Hankin v. Graphic Technology Inc.

11 Pa. D. & C.5th 460, 2010 Pa. Dist. & Cnty. Dec. LEXIS 93
CourtPennsylvania Court of Common Pleas, Montgomery County
DecidedJanuary 27, 2010
Docketno. 2006-30821
StatusPublished
Cited by1 cases

This text of 11 Pa. D. & C.5th 460 (Hankin v. Graphic Technology Inc.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Montgomery County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hankin v. Graphic Technology Inc., 11 Pa. D. & C.5th 460, 2010 Pa. Dist. & Cnty. Dec. LEXIS 93 (Pa. Super. Ct. 2010).

Opinion

CARPENTER, J.,

FACTUAL AND PROCEDURAL HISTORY

Appellant/defendant, Graphic Technology Inc. (GTI), appeals several orders issued by this court. All orders are [462]*462now final based upon our October 16, 2009 order in which we entered a final judgment in favor of appellee/ plaintiff, Mark Hankin in the amount of $184,443.88.

Hankin commenced the underlying action by filing a confession of judgment against GTI on December 13, 2006 in the amount of $184,443.88 for GTI’s alleged breach of a lease agreement.

By way of background, Hankin is the owner of a commercial property located at Willow Grove Industrial Commons, 2940 Turnpike Drive, Willow Grove, Pennsylvania. On August 20,1998, Hankin and GTI executed a lease for the premises. OnNovember 30,2004, GTI assigned the lease to Vestcom New Century LLC to occupy the premises and assume the lease. By letter dated April 11,2006, Vestcom informed Hankin of its intention to terminate the lease effective October 31,2006. However, Vestcom, occupied the premises until November 30,2006. Because Vestcom did not vacate the premises until November, paragraph 25 of the lease allowed Han-kin to either disregard the notice of termination and renew the lease for another year, or to treat the tenant as an involuntary holdover on a month-to-month lease at triple the rent. Hankin elected to renew the lease for another year term.

On December 13, 2006, Hankin filed the confessed judgment against GTI. GTI filed a petition to strike and/ or open on January 22, 2007. In addition, Hankin also filed a separate lawsuit against Vestcom in this court, at docket number 2006-30536.

While the petition to srike and/or open was pending, Hankin transferred the judgment to Kansas and obtained an order of garnishment from the District Court of John[463]*463son County (Kansas court), attaching $184,443.88 (garnished funds). As a result of the garnishment, on July 2, 2007, GTI filed an emergency petition for stay of execution in this court. As a result of the emergency petition, on July 5,2007, an agreed order was entered, staying all execution proceedings.

On January 8, 2008, the confessed judgment was opened. Subsequently, on March 24, 2008, GTI filed a motion to compel arbitration.

Also on March 24, 2008, while the stay was in force, GTI filed in the Kansas court a motion to strike and vacate foreign judgment and immediately release fund to defendant. The court in Kansas granted the motion to strike and vacate and entered an order directing that the garnished funds be released on May 8, 2008.

In response, Hankin filed a motion for contempt on April 11, 2008 in this court, bringing to our attention GTI’s recent legal action in Kansas.

On April 30,2008 we held a hearing on Hankin’s motion for contempt, and on that date we issued an order. So as to maintain the status quo, we directed GTI to instruct or to take any such action as may be necessary for the Kansas court to transfer and/or commence transfer of the $184,443.88 to the prothonotary of this court. We deferred ruling on the issue of contempt and counsel fees. Additionally, the April 30, 2008 order contained a self-executing remedy in the event that GTI failed to comply. Specifically, it provided that if GTI. did not comply with the order on or before May 5, 2008, GTI would be sanctioned by the automatic entry of final judgment in favor of Hankin in the amount of $184,443.88.

[464]*464On May 2, 2008, GTI filed a notice of appeal of this court’s order and obtained a stay of the entry of judgment.

During the time these events were unfolding in this court, Hankin appealed the Kansas court’s decision to release the garnished funds and expressly requested and obtained a stay of the release of the funds pending the appeal. A stay was granted until May of 2009.

On April 29, 2009, the Pennsylvania Superior Court quashed GTI’s appeal of the April 30, 2008 order as interlocutory and remanded the case for further proceedings. Significantly, our Superior Court specifically directed GTI to “immediately comply” with this court’s April 30, 2008 order.1

A day after our Superior Court filed its April 29,2009 memorandum decision, GTI filed another motion in the Kansas court seeking to have the garnished funds immediately released directly to the company. See Hankin’s motion for contempt 8/21/09, exhibit “G,” GTI’s 4/30/09 motion. This was another attempt by GTI to have the garnished funds directly released to the company, contrary to this court’s April 30, 2008 order, the Superior Court’s April 29,2009 order, and the July 5,2007 agreed order.

As the May 2009 expiration date of the Kansas stay was approaching, Hankin filed a motion with the Kansas [465]*465court requesting an extension of the Kansas stay to prohibit the Kansas court from releasing the garnished funds. On May 1, 2009, after argument, the Kansas court granted Hankin’s motion for an extension of the Kansas stay and entered an “order continuing stay of judgment pending final resolution of appeal” (Kansas stay extension order) declaring that the garnished funds would not be released in the absence of an order from the Kansas appellate court.

Back in Pennsylvania, on May 11, 2009, after the Superior Court issued its April 29, 2009 memorandum decision, GTI filed an emergency motion for reconsideration of the April 30, 2008 order, and Hankin filed a response. On June 24, 2009 we heard argument on the emergency motion. On June 30,2009 we issued an order vacating our April 30, 2008 order. With respect to the garnished funds being held by the Kansas court, we instructed GTI to take whatever action necessary for the Kansas court to transfer the garnished funds to the Montgomery County Prothonotary, at the time they are released from the Kansas court. Additionally, we stayed this matter pending the receipt of the garnished funds to our prothonotary.

In the interim, this court held argument on GTI’s motion to compel arbitration. We denied the motion on June 30, 2009. GTI appealed from our order to the Pennsylvania Superior Court, docketed at 2610 EDA 2009. That appeal is pending, and has been consolidated with this appeal.

Subsequently on August 21,2009 Hankin filed a motion requesting the court find the defendant in contempt for violating an order of court. GTI filed a response on [466]*466September 17, 2009. On September 18, 2009 we held a hearing on the matter. After careful consideration, we issued an order on September 18, 2009, in which we directed GTI to apply to the Kansas court for the direct transfer of the garnished funds within 10 days from the date of the order. We warned that GTI’s failure to comply could result in a final judgment in favor of Hankin. We held the motion for contempt in abeyance, pending compliance with the order.

On September 25,2009, GTI filed a pleading captioned “application to the district court.” On October 1, 2009, the Kansas court conducted a hearing on GTI’s application. GTI’s “application” was nothing more than a futile exercise designed to give the appearance of complying with the September 18,2009 order, in an effort to avoid being held in contempt, while maintaining the funds in Kansas. We emphasize that the “application” never asked for the garnished funds to be transferred. Rather, it is a 15-paragraph pleading, in which the first 11 paragraphs set forth a brief recitation of the factual background.

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11 Pa. D. & C.5th 460, 2010 Pa. Dist. & Cnty. Dec. LEXIS 93, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hankin-v-graphic-technology-inc-pactcomplmontgo-2010.