DONOVAN REALTY, LLC v. CAMPERS INN HOLDING CORPORATION

CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 28, 2023
Docket2:20-cv-03954
StatusUnknown

This text of DONOVAN REALTY, LLC v. CAMPERS INN HOLDING CORPORATION (DONOVAN REALTY, LLC v. CAMPERS INN HOLDING CORPORATION) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DONOVAN REALTY, LLC v. CAMPERS INN HOLDING CORPORATION, (E.D. Pa. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

DONOVAN REALTY, LLC, et al.

Plaintiffs/Counterclaim

Defendants, CIVIL ACTION NO. 20-3954 v. CAMPERS INN HOLDING CORP., et al. Defendants/Counterclaim Plaintiffs.

MEMORANDUM OPINION Rufe, J. March 28, 2023 The case arises out of a failed transaction for the sale of real estate and recreational vehicle (“RV”) dealerships: the “Boat N RV Superstore” in Hamburg, Pennsylvania and the “Boat N RV Warehouse” in West Coxsackie, New York. Plaintiffs/Counterclaim Defendants Donovan Realty, LLC, DD&A Tilden Realty, LLC, Zerteck, Inc., Tilden Recreational Vehicles, Inc., and Derwood L. Littlefield (collectively, “BNRV”) agreed to sell the RV sales and service operations and the land to Defendants/Counterclaim Plaintiffs Campers Inn Holding Corporation, CI of Hamburg LLC, and CI of West Coxsackie, LLC (collectively, “Campers Inn”).1 The transactions did not close and BNRV then sold the properties and dealerships to non- party Camping World Holdings, Inc. and associated entities. BNRV filed this lawsuit on August 13, 2020, asserting claims for breach of contract (Count I) seeking damages including the $750,000 deposit and damages, including counsel fees; a declaratory judgment that because the real estate transaction did not close by July 31, 2022, the

1 Different entities were involved as to each property but the parties generally refer to the collective groups. parties’ agreements terminated, entitling BNRV to the deposit (Count II); and, in the alternative, promissory estoppel based on BNRV’s reliance on promises made by Campers Inn (Count III).2 On August 25, 2020, Campers Inn answered the Complaint and asserted a Counterclaim for breach of contract, seeking damages and an injunction ordering specific performance.3 Campers Inn also filed a motion for a preliminary injunction4 and a notice of lis pendens.5 By

Memorandum and Order dated November 10, 2021, the Honorable Petrese Tucker, to whom this case was then assigned, denied a motion for partial judgment on the pleadings and also denied the motion for preliminary injunction as moot because the properties had been sold.6 On October 9, 2020, BNRV closed the sale of the dealerships and real estate to non-party Camping World and no longer holds title to the properties.7 Campers Inn moves for summary judgment on BNRV’s claims and on Campers Inn’s counterclaims for breach of contract, and seeks a permanent injunction ordering specific performance.8 BNRV seeks partial summary judgment on the question of whether Campers Inn

2 See generally Compl. [Doc. No. 1]. 3 Campers Inn Ans. & Countercl. [Doc. No. 8]. 4 Campers Inn sought an order directing BNVR to “[c]ease and desist all efforts to solicit, discuss, and/or negotiate the transfer or sale of their recreational vehicle businesses and accompanying real estate to any other party other than [Campers Inn]; and “[s]pecifically perform their contractual obligations under the [parties’ agreements], as amended by the Addendum, to convey to [Campers Inn] the subject properties.” Campers Inn Mot. Prelim. Inj. Proposed Order [Doc. No. 9-2] at 3. 5 Campers Inn Notice Lis Pendens [Doc. No. 11]. The purpose of a notice of lis pendens is to “to warn all persons that certain property is the subject matter of litigation, and that any interests acquired during the pendency of the suit must be subject to the outcome of the litigation.” Bryan A. Garner, A Dictionary of Modern Legal Usage at 530 (2d ed. 1995).. 6 Mem. Op. & Order Nov. 10, 2021 [Doc. Nos. 47, 48]. 7 The Memorandum noted that the circumstances did not “foreclose the Court’s ability to unwind the alleged sale, if it [is] later determined that Sellers violated the terms of their contract.” Mem. Op. Nov. 10, 2021 [Doc. No. 47] at 1 n.3. The case was reassigned to the docket of this Court on March 15, 2022. Order Mar. 15, 2022 [Doc. No. 61]. 8 Campers Inn Mot. Summ. J. [Doc. No. 67]. was required to close its purchase by July 31, 2020, unless it satisfied conditions to extend the deadline, and on the demand for specific performance because BNRV no longer holds title to the properties and Campers Inn never tendered performance.9 Because factual disputes render the case ill-suited to resolution on summary judgment, the motions will be denied.

I. LEGAL STANDARD Under Federal Rule of Civil Procedure 56(a), summary judgment on a claim or part of a claim is warranted where there is “no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”10 When “the evidence is such that a reasonable jury could return a verdict for the nonmoving party,” there is a “genuine” dispute over material facts.11 The court “must view the facts in the light most favorable to the non-moving party and must make all reasonable inferences in that party's favor.”12 It is improper for a court “to weigh the evidence or make credibility determinations” as “these tasks are left to the fact-finder.”13 Nevertheless, the party opposing summary judgment must support each essential element of the opposition with concrete evidence in the record.14 “If the evidence is merely colorable, or is not

significantly probative, summary judgment may be granted.”15 If, after making all reasonable

9 BNRV Mot. Partial Summ. J. [Doc. No. 75]. 10 Fed. R. Civ. P. 56(a). 11 Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). 12 Hugh v. Butler Cnty. Family YMCA, 418 F.3d 265, 267 (3d Cir. 2005) (citation omitted). 13 Boyle v. Cnty. of Allegheny Pa., 139 F.3d 386, 393 (3d Cir. 1998) (citations omitted). 14 Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). 15 Anderson, 477 U.S. at 249-50 (internal citations omitted). inferences in favor of the non-moving party, the court determines that there is no genuine dispute as to any material fact, summary judgment is appropriate.16 “The rule is no different where there are cross-motions for summary judgment.”17 As stated by the Third Circuit, “[c]ross-motions are no more than a claim by each side that it alone

is entitled to summary judgment, and the making of such inherently contradictory claims does not constitute an agreement that if one is rejected the other is necessarily justified or that the losing party waives judicial consideration and determination whether genuine issues of material fact exist.”18 II. DISCUSSION A. The Transactions Although the parties disagree on many facts as to why the sale was not consummated, the basic contours of the transaction are set forth in the relevant documents. On February 4, 2020, the parties entered into an asset purchase agreement (the “APA”) governing the sale of the dealership assets, and an agreement for the purchase and sale of the real estate and related property (the “RPA”). The agreements provide that they are governed by New York law.19 The

agreements included a “no shop” provision under which BNRV agreed not to directly or indirectly “consider, discuss or negotiate with, or solicit, initiate or encourage the transfer or sale” of the dealerships and land and to notify Campers Inn of any offers received.20 The APA

16 Wisniewski v. Johns–Manville Corp., 812 F.2d 81, 83 (3d Cir. 1987). 17 Lawrence v.

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DONOVAN REALTY, LLC v. CAMPERS INN HOLDING CORPORATION, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donovan-realty-llc-v-campers-inn-holding-corporation-paed-2023.