First National Bank v. Kelly

10 Pa. D. & C.5th 521
CourtPennsylvania Court of Common Pleas, Lawrence County
DecidedJanuary 11, 2010
Docketno. 11998-08
StatusPublished

This text of 10 Pa. D. & C.5th 521 (First National Bank v. Kelly) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lawrence County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Bank v. Kelly, 10 Pa. D. & C.5th 521 (Pa. Super. Ct. 2010).

Opinion

PICCIONE, J.,

Before this court for disposition are the additional defendants’ preliminary objections to the defendants’ complaint. The current action arose out of a guaranty agreement between First National Bank of Pennsylvania, successor by merger to the First National Bank of Slippery Rock (plaintiff) and Timothy S. Kelly and Sharon L. Kelly (defendants). In the guaranty dated May 24,2002, the defendants agreed to assume all of the obligations of K & M Feeds Inc. to the plaintiff. On December 1, 2008, the plaintiff filed a [523]*523complaint alleging that the defendants were in default under the guaranty and that the defendants owed $313,781.36 to the plaintiff.

On July 2, 2009, the defendants filed their complaint joining additional defendants. In it, the defendants allege that, together with Carl V. Mace and Cindy A. Mace (additional defendants), they became involved with K & M in December of 1995. Several years later, the additional defendants agreed to purchase the defendants’ shares in K & M for $40,000. A promissory judgment note and an agreement fixing the buyout price were signed on January 1, 2002. According to the complaint, the defendants then entered into the guaranty agreement with the plaintiff because they recognized that K & M would need financing. In April of 2004, the defendants transferred their stock in K & M to the additional defendants in exchange for the additional defendants’ oral promise that the defendants would be released from any obligations related to K & M. The defendants allege that they detrimentally relied upon the additional defendants’ promise and that the additional defendants are responsible for K & M’s debt to the plaintiff.

On August 17, 2009, the additional defendants filed the following preliminary objections to the defendants’ complaint: (1) misjoinder of a cause of action; (2) legal insufficiency of a pleading; and (3) insufficient factual specificity. Oral argument regarding the preliminary objections was held before this court on October 26, 2009.

Under Rule 1028 of the Pennsylvania Rules of Civil Procedure, any party may file preliminary objections to [524]*524any pleading, and the specific grounds on which such preliminary objections may be based are elucidated in the express language of the Rule. Pa.R.C.P. 1028. Rule 1028 requires that all preliminary objections specifically state the grounds upon which they relied. Foster v. Peat Marwick Main & Co., 18 Pa. Commw. 147, 156, 587 A.2d 382, 386 (1991).

In their first preliminary objection, the additional defendants assert that joinder was improper in these proceedings. “A person not previously a party who is j oined as an additional defendant may object to the joinder by filing preliminary objections asserting prejudice or any other grounds set forth in Rule 1028.” Pa.R.C.P. 2253(c). Rule 2252 governs the right to join additional defendants and provides, in pertinent part:

“(a) Except as provided by Rule 1706.1, any party may join as an additional defendant any person not a party to the action who may be
“(1) solely liable on the underlying cause of action against the joining party, or ...
“(4) liable to or with the joining party on any cause of action arising out of the transaction or occurrence or series of transactions or occurrences upon which the underlying cause of action against the joining party is based.” Pa.R.C.P. 2252(a).

This rule is to be “broadly construed to effectuate its purpose of avoiding multiple lawsuits by settling in one action all claims arising out of the transaction or occurrence on which [the] plaintiff’s cause of action is based.” [525]*525Garrett Electronics Corporation v. Kampel Enterprises Inc., 382 Pa. Super. 352, 354, 555 A.2d 216, 217 (1989). Courts have favored the policy of broadly interpreting Rule 2252 “not only to compel every interested person to defend the action by the plaintiff, but also to save the original defendant from possible harm resulting from loss of evidence as might result if compelled to await the end of the suit before proceeding against those from whom he seeks contribution.” Hileman v. Morelli, 413 Pa. Super. 316, 325, 605 A.2d 377, 382 (1992).

“[Jjoinder of additional defendants is not permitted where allegations contained in the original complaint and allegations contained in the joinder complaint relate to different harms to be proven with different evidence as to different occurrences happening at different times.” Gordon v. Sokolow, 434 Pa. Super. 208, 215, 642 A.2d 1096, 1100 (1994).

“Where the joining defendants allege joinder on the basis that the additional defendants were (1) alone liable to the plaintiff; (2) that additional defendants were jointly or severally liable with appellant, i.e., for contribution; or (3) that additional defendants were liable over to the joining defendants by way of indemnification, pursuant to section 2252(a)(l)-(3), ‘the only substantive limitation placed upon the right to join an additional defendant on any of these grounds is that liability must be premised upon the same cause of action alleged by the plaintiff in his or her complaint.”’ Gordon, 434 Pa. Super. at 214, 642 A.2d at 1099 (citing Svetz for Svetz v. Land Tool Co., 355 Pa. Super. 230, 235, 513 A.2d 403, 404-405 (1986)).

[526]*526“The same cause of action alleged by the plaintiff” has been broadly construed as requiring only that the “additional defendant’s liability [be] related to the original claim which plaintiff asserts against the original defendant.” Gordon, 434 Pa. Super. at 215, 642 A.2d at 1099 (citing Somers v. Gross, 393 Pa. Super. 509, 514, 574 A.2d 1056, 1058 (1990)).

The additional defendants argue that their purported liability to the defendants is not sufficiently related to the plaintiff’s claim against the defendants; however, a “defendant’s cause of action against an indemnitor, although not the same cause of action alleged by the plaintiff, is related to it.” Fulmer v. Duquesne Light Company, 374 Pa. Super. 537, 542, 543 A.2d 1100, 1102 (1988). Because the additional defendant’s liability depends on whether the defendant is held liable to the plaintiff, it can be said that the joinder claim arises from the same occurrence upon which the original claim is based. Id. Joinder of the additional defendants serves the added purpose of avoiding multiple lawsuits by compelling eveiy interested party to defend against the plaintiff’s action at the same time. Accordingly, the additional defendants ’ preliminary objection regarding joinder is hereby overruled.

In their second preliminary objection, the additional defendants assert that the defendants’ complaint fails to set forth a cause of action for which relief may be granted.

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Related

Cardenas v. Schober
783 A.2d 317 (Superior Court of Pennsylvania, 2001)
Meier v. Maleski
648 A.2d 595 (Commonwealth Court of Pennsylvania, 1994)
Garrett Electronics Corp. v. Kampel Enterprises, Inc.
555 A.2d 216 (Supreme Court of Pennsylvania, 1989)
Fulmer v. Duquesne Light Co.
543 A.2d 1100 (Supreme Court of Pennsylvania, 1988)
Svetz for Svetz v. Land Tool Co.
513 A.2d 403 (Supreme Court of Pennsylvania, 1986)
Peluso v. Kistner
970 A.2d 530 (Commonwealth Court of Pennsylvania, 2009)
Hileman v. Morelli
605 A.2d 377 (Superior Court of Pennsylvania, 1992)
Travers v. Cameron County School District
544 A.2d 547 (Commonwealth Court of Pennsylvania, 1988)
Foster v. Peat Marwick Main & Co.
587 A.2d 382 (Commonwealth Court of Pennsylvania, 1991)
Somers v. Gross
574 A.2d 1056 (Supreme Court of Pennsylvania, 1990)
Unified Sportsmen v. Pennsylvania Game Commission
950 A.2d 1120 (Commonwealth Court of Pennsylvania, 2008)
Matarazzo v. Millers Mutual Group, Inc.
927 A.2d 689 (Commonwealth Court of Pennsylvania, 2007)
Gordon v. Sokolow
642 A.2d 1096 (Superior Court of Pennsylvania, 1994)
Envirotest Partners v. Commonwealth, Department of Transportation
664 A.2d 208 (Commonwealth Court of Pennsylvania, 1995)
Rambo v. Greene
906 A.2d 1232 (Superior Court of Pennsylvania, 2006)
Rochez Bros. v. Commonwealth
334 A.2d 790 (Commonwealth Court of Pennsylvania, 1975)

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Bluebook (online)
10 Pa. D. & C.5th 521, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-bank-v-kelly-pactcompllawren-2010.