Hercules Painting Company v. Semanderes, S.

CourtSuperior Court of Pennsylvania
DecidedJanuary 11, 2021
Docket65 WDA 2020
StatusUnpublished

This text of Hercules Painting Company v. Semanderes, S. (Hercules Painting Company v. Semanderes, S.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hercules Painting Company v. Semanderes, S., (Pa. Ct. App. 2021).

Opinion

J-A18038-20

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

HERCULES PAINTING COMPANY, : IN THE SUPERIOR COURT OF INC., MARIA SAVAKIS, AND GEORGE : PENNSYLVANIA SAVAKIS : : : v. : : : STAVRO N. SEMANDERES, A/K/A : No. 65 WDA 2020 STAVROS SEMANDERES AND : STAVROS N. SEMANDERES, HELENE : SEMANDERES, ODYSSEY PAINTING : COMPANY, INC., HOUSTON : INDUSTRIAL CORPORATION : : Appellants :

Appeal from the Judgment Entered January 2, 2020 In the Court of Common Pleas of Washington County Civil Division at No(s): 2017-5544

BEFORE: BENDER, P.J.E., DUBOW, J., and NICHOLS, J.

MEMORANDUM BY NICHOLS, J.: FILED JANUARY 11, 2021

Appellants Stavro N. Semanderes, a/k/a Stavros Semanderes and

Starvos N. Semanderes, Helene Semanderes, Odyssey Painting Company,

Inc., and Houston Industrial Corporation appeal from the judgments entered

against Appellants and in favor of Appellees Hercules Painting Company, Maria

Savakis, and George Savakis. Appellants contend that the trial court erred in

failing to consider whether Appellees’ breach of a joint venture and other

promises constituted a meritorious defense to the entry of judgments by

confession. We affirm. J-A18038-20

On August 18, 2014, Appellants and Appellees executed a promissory

note, the relevant terms of which were as follows:

FOR VALUE RECEIVED, the Undersigned [Appellants] promise to pay to the order of [Appellees] Maria Savakis and George Savakis, of [address omitted], and [Appellee] Hercules Painting Company, Inc., of [address omitted], (“Payee”), at such place as the holder hereof may from time to time designate in writing, the principal sum of Seven Hundred Eighty Thousand Dollars ($780,000.00) or so much thereof as shall equal the unpaid principal outstanding with interest as hereinafter provided to be paid in lawful money of the United States of America, as follows:

From the dates following of the advances and including the Maturity Date, interest shall accrue under this Note at a rate equal to eight percent (8%) per annum. All interest rates hereunder shall be calculated on a 365/366-day simple interest basis.

The advances consisted of the following:

$250,000.00 on March 3, 2014 (written in a personal check from [Appellees] George and Maria Savakis, shareholder of the Payee, to [Appellant] Stavros Semanderes),

$250,000.00 on March 13, 2014 (written in a personal check from [Appellees] George and Maria Savakis, shareholder of the Payee, to [Appellant] Stavros Semanderes),

$150,000.00 on April 10, 2014 (written in a personal check from [Appellees] George and Maria Savakis, shareholder of the Payee, to [Appellant] Stavros Semanderes),

$130,000.00 on August 18, 2014, (written in a personal check from George and Maria Savakis, shareholder of the Payee, to Odyssey Contracting).

The entire amount the principal and all accrued interest shall be due and payable no later than December 31, 2014.

* * *

Upon default, the Undersigned hereby authorizes and empowers any attorney of any court of record within the United States of America or elsewhere to appear for the Undersigned and, with or

-2- J-A18038-20

without declaration filed, confess judgment or judgments against the Undersigned in favor of the Payee, or other holder thereof, as of any term, for the above principal sum remaining unpaid, interest thereon, and any other sums due by the Undersigned with release of all errors and the right to issue execution forthwith upon default as aforesaid.

The obligations and liabilities of the Undersigned, including without limitation the warrant to confess judgments, shall bind them and their heirs, legal representatives, successors amid assigns, and such obligations and liabilities shall be their joint and several undertaking, and the benefits hereof shall inure to the Payees and their heirs and assigns. The Undersigned acknowledge that although the proceeds of the loans which are the subject of this Note were issued to [Appellant] Stavros Semanderes also known as Stavo N. Semanderes and Stavros N. Semanderes and Odyssey Contracting, the Holders issued the loan proceeds for the benefit of all of the Undersigned and based on the promise of all of the Undersigned that they would be jointly and severally liable to the Holders for the principal debt, all interest accruing thereon and all ancillary obligations as set forth in this note.

Promissory Judgment Note, 8/18/14 at 1-2 (unpaginated). Appellants Stavro

N. Semanderes and Helene Semanderes signed the note both as individuals,

and as officers of Appellants Odyssey Painting Company, Inc., and Houston

Industrial Corporation, as well as the entity referred to in the note as “Odyssey

Contracting.”

On October 24, 2017, Appellees filed a “Complaint in Confession of

Judgment” against Appellants. Appellees asserted that Appellants failed to

pay on December 31, 2014, as required by the note and after Appellees sent

demand letters. Appellees sought a judgment for $1,227,123.83. The docket

does not reflect that the prothonotary of the court entered judgments by

-3- J-A18038-20

confession. See Pa.R.C.P. 2956. However, on December 8, 2017, Appellees

served Appellants with notices pursuant to Pa.R.C.P. 2958.1, which governs

notice of judgments by confession prior to execution.

On December 13, 2017, Appellants filed a “Petition to Strike and/or

Open Judgment by Confession.” Appellants, in part, challenged the amount

sought by Appellees. See Pet. to Open, 12/13/17, at “Count 1” to “Count 4.”

Of relevance to this appeal, Appellants alleged in “Count 5” of their petition

that Appellees “breached their obligations to [Appellants] by breaching [a]

joint venture agreement and by failing to provide financing as agreed to

between the parties.” Id. at ¶ 61. In support, Appellants initially noted that

Appellees did not seek a judgment by confession against Odyssey Contracting

and that Odyssey Contracting was involved in a pending bankruptcy action.

Id. at ¶ 5. Appellants continued that in 2015, Odyssey Contracting and

Appellee Hercules Painting Company “had engaged in discussion regarding the

formation of a joint venture to obtain work related to bridge painting.” Id. at

¶ 10. As a result of those discussions, “the parties orally agreed to engage in

a joint venture” and that the profits from certain projects would be split 60%

to Appellee Hercules Painting Company and 40% to Odyssey Contracting. Id.

at ¶¶ 10, 12. According to Appellants, a dispute arose in the alleged joint

venture, and Odyssey Contracting sued Hercules Painting Company.1

____________________________________________

1 The civil action by Odyssey Contracting against Hercules Painting was commenced in the Court of Common Pleas of Washington County. The action was later removed to a federal district court.

-4- J-A18038-20

Appellants asserted that Appellees sought the judgments by confessions “to

pressure [Appellants] into withdrawing their meritorious claims [in the action

between Odyssey Contracting and Appellee Hercules Painting Company].” Id.

at ¶ 34.

Additionally, Appellants alleged that the purpose of the note was to

provide Appellants with financing during unrelated litigation between Odyssey

Contracting and “L&L Painting.” Id. at ¶¶ 35, 38. Appellants claimed that

“despite [Appellees’] promise to continue to provide the financing necessary

to Odyssey Contracting during the pendency of its action against L&L,

[Appellees] stopped providing such financing to [Appellants].” Id. at ¶ 39.

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