Harris v. Stark & Stark

34 Pa. D. & C.5th 567
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedDecember 4, 2013
DocketNo. 02981
StatusPublished

This text of 34 Pa. D. & C.5th 567 (Harris v. Stark & Stark) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. Stark & Stark, 34 Pa. D. & C.5th 567 (Pa. Super. Ct. 2013).

Opinion

SNITE, J.,

This is a case for wrongful use of civil proceedings under the Dragonetti Act and for abuse of process. It arises from two underlying cases brought and heard in the Philadelphia Court of Common Pleas Commerce Program. Douglas T. Harris, plaintiff in this case, was a party in both underlying cases. Before the court are defendants Henry Van Blunk, Stark & Stark, P.C., Liderbach, Hahn, Foy & Van Blunk, P.C., Robert Erlanger, and Erlanger Law Firm PLLC’s Motion for Partial Summary Judgment, plaintiff’s response in opposition thereto, and defendants’ reply.

PROCEDURAL HISTORY

The underlying proceedings arose out of a real estate purchase agreement (“purchase agreement”) between defendants Charles Kamps, Patrick Hanley, and Scott Blow (“Individual Defendants”), their partnerships Philadelphia Waterfront Development (“PWD”) and Philadelphia Waterfront Partners (“PWP”) (collectively “PWP Plaintiffs”), and Churchill Development Group, LLC, Churchill Residential Development, LP, Churchill Commercial Development, LP (collectively “Churchill”), and their principal Joseph Logue (“Logue”), concerning [570]*570property located at 7777 State Road.

On August 18, 2006 Churchill purchased 100% of the membership interests in PWD and 75% of the membership interests in PWP from Individual Defendants.1 Under the purchase agreement, Individual Defendants were to provide PWP’s 2005 tax returns to Churchill by October 15, 2006.2 By November 15, 2006 Churchill, acting through PWP, was required to obtain a loan commitment for the acquisition of the property located at 7777 State Road.3 By December 15, 2006 Churchill, acting through PWP, was required to close on the purchase of 7777 State Road subject to reasonable extension as approved.4 The purchase agreement further provided that Churchill, acting through PWP, had an additional thirty days to complete the tasks if Individual Defendants failed to provide timely tax returns.5 If Churchill failed to timely comply with its tasks, 75% of the PWD interest and 75% of the PWP interest would revert to Individual Defendants.6

On October 12, 2006, Individual Defendants provided improperly executed copies of PWP’s tax returns to Churchill.7 Individual Defendants’ failure to provide timely tax returns was a breach of their obligations under the purchase agreement thus allowing Churchill an additional thirty days to complete their tasks under the purchase agreement.8 Therefore, Churchill had until December 14,2006 to obtain a loan commitment and until [571]*571January 13, 2007 to close on the property.9 Individual Defendants began to assert that a reversion had occurred due to Churchill’s failure to complete their tasks in the required time.10 Churchill was able to obtain a loan commitment on December 6, 2006.11 Churchill closed on the property on January 17, 2007.12

In January 2007 PWP Plaintiffs, represented by Moving Defendants in the instant action, filed a praecipe for a writ of summons against Churchill and Logue and a praecipe for lis pendens13 as to the property arguing that a reversion had occurred under the purchase agreement (“PWP Action”). PWP Plaintiffs filed a complaint against Churchill, Logue, and Douglas T. Harris (“Harris”) on April 7, 2007.14 PWP Plaintiffs pursued claims of breach of contract, unjust enrichment, fraudulent conveyance, constructive trust, fraud, breach of fiduciary duty, and conspiracy against Logue and Churchill arguing that Logue and Churchill failed to perform under the terms of the purchase agreement resulting in a reversion of the property to PWP Plaintiffs.15 PWP Plaintiffs pursued claims for fraudulent conveyance, fraud, breach of fiduciary duty, and civil conspiracy against Harris for his role as attorney for PWP Plaintiffs in the negotiation of the purchase agreement.16 Prior to the trial, PWP Plaintiffs voluntarily dismissed the remaining claims against Harris, [572]*572terminating him as a party in the action. On April 15, 2010, following a bench trial, the court issued an order and opinion entering judgment against PWP Plaintiffs and in favor of Logue and Churchill.

Meanwhile, on June 21, 2007, Harris filed a complaint against Individual Defendants for breach of contract (“Harris Action”).17 Harris claimed that the Individual Defendants breached their obligation to pay Harris under the terms of the promissory note executed as consideration for business and legal work Harris performed throughout the negotiations with Logue and Churchill. The Harris Action proceeded to trial. The jury found that Individual Defendants breached their obligation to pay Harris. Harris was awarded judgment for the full amount of the promissory notes, plus interest and legal fees, on July 19, 2010. The court awarded Harris $525,000 (plus interest) and attorneys’ fees and costs in the amount of $243,035.99 under the terms of the notes. Harris has not been able to collect on the judgment he received.

Harris filed a complaint in the present action on April 29, 2011. Harris asserts claims of wrongful use of civil proceedings and abuse of process against all defendants.18 In the present action Harris alleges that he “was damaged because the judgments he has obtained in the Harris Action, and the [notes] that underlie them, were rendered substantially uncollectable.”19 Harris argues that it is the fault of defendants Hemy Van Blunk, Stark & Stark, P.C., [573]*573Liderbach, Hahn, Foy & Van Blunk, P.C., Robert Erlanger, and Erlanger Law Firm PLLC (“Moving Defendants”) that he has been unable to collect on the judgments against Individual Defendants.20 In the instant action Harris seeks compensatory damages in the amount of his award in addition to monies associated with his collection efforts.21 Moving Defendants file the instant motion for summary judgment to preclude Harris from seeking damages in the amount of the monetary judgments he was awarded on his claims against Individual Defendants in the Harris Action.

DISCUSSION

The only issue before the court on Moving Defendants’ Motion for Partial Summary Judgment is whether Harris can, in the instant case, recover from Moving Defendants the amount of the judgment he was awarded in the Harris Action against Individual Defendants.

Once the relevant pleadings have closed, any party may move for summary judgment.22 “Pennsylvania law provides that summary judgment may be granted only in those cases in which the record clearly shows that no genuine issues of material fact exist and that the moving party is entitled to judgment as a matter of law.”23 Further, granting summary judgment is appropriate only when the evidentiary record shows the material facts are undisputed.24 The trial court must view the record in the light most favorable to the non-moving party.25

[574]

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Cite This Page — Counsel Stack

Bluebook (online)
34 Pa. D. & C.5th 567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-stark-stark-pactcomplphilad-2013.