Hospitality Associates of Tannersville, L.P. v. Aaron & Wright Technical Services

28 Pa. D. & C.5th 95
CourtPennsylvania Court of Common Pleas, Monroe County
DecidedFebruary 8, 2013
DocketNo. 1807-CV-2007
StatusPublished

This text of 28 Pa. D. & C.5th 95 (Hospitality Associates of Tannersville, L.P. v. Aaron & Wright Technical Services) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Monroe County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hospitality Associates of Tannersville, L.P. v. Aaron & Wright Technical Services, 28 Pa. D. & C.5th 95 (Pa. Super. Ct. 2013).

Opinion

HIGGINS, J.,

On March 14, 2007, the Plaintiff, Hospitality Associates of Tannersville, L.P. (hereinafter “Hospitality”), filed a complaint against the defendant, Aaron and Wright Technical Services and LandAmerica Assessment Coiporation (hereinafter “LandAmerica”). Hospitality seeks recovery of funds that were expended due to reliance on an allegedly erroneous property evaluation provided by LandAmerica to Marathon Asset Management (hereinafter “Marathon”) pursuant to a contract therewith. On December 21,2007, LandAmerica filed a motion for summary judgment. Following oral [97]*97argument and consideration of the parties’ briefs, the Honorable Jerome P. Cheslock denied LandAmerica’s motion on March 5, 2008.

On July 2, 2012, LandAmerica filed a second motion for summary judgment, and a brief in support thereof on November 2, 2012. On November 2, 2012, Hospitality filed an answer to LandAmerica’s motion along with a countermotion for summary judgment and a brief in support thereof. Both parties have presented oral argument before this court. The pleadings and discovery in this matter are closed. There are no genuine issues of material fact, and the matter is ripe for summary judgment.

DISCUSSION

Summary judgment may be granted pursuant to Pa. R. Civ. P. 1035.2 where there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Thompson Coal Co. v. Pike Coal Co., 412 A.2d 466, 468-69 (Pa. 1979). Summary judgment is properly entered where the pleadings, depositions, answers to interrogatories, and admissions, together with affidavits demonstrate that no genuine, triable issue of fact exists and that the moving party is entitled to judgment as a matter of law. Pa. R. Civ. P. 1035(b); Cosmas v. Bloomingdales Bros., Inc., 660 A.2d 83, 85 (Pa. Super. 1995).

Summary judgment may be granted only in cases where the right is clear and free from doubt. Musser v. Vilsmeier Auction Co. Inc., 562 A.2d 279, 280 (Pa. 1989). The court must examine the record in the light most favorable to the non-moving party and resolve all doubts against the [98]*98moving party. Davis v. Pennzoil Co., 264 A.2d 597 (Pa. 1970). Moreover, the burden is on the moving party to prove that no genuine issue of material fact exists. Long v. Yingling, 700 A.2d 508, 512 (Pa. Super. 1997). All doubts as to the existence of a genuine issue of material fact must be resolved against the moving party. Thompson, 412 A.2d at 469.

In response, the nonmoving party may not rest upon the pleadings, but must set forth specific facts demonstrating a genuine issue for trial. Phaff v. Gerner, 303 A.2d 826 (Pa. 1973). The court may also accept as true all wellpled facts contained in the non-moving party’s pleadings. Mattia v. Employers Mut. Cos., 440 A.2d 616 (Pa. Super. 1982); Ritmanich v. Jonnel Enters, Inc., 280 A.2d 570 (Pa. Super. 1971). A general denial is unacceptable and deemed an admission where it is clear that the defendant has adequate knowledge and that the means of information are within the control of the defendant. Elia v. Olszewski, 84 A.2d 188 (Pa. 1951).

I. Facts before the Court

On April 25, 2005, Milestone Capital Corporation (hereinafter “Milestone”) entered into an agreement of sale for the purchase of the Chateau Resort and Conference Center from Mountain Lake Properties. Pursuant to the agreement of sale, Milestone was provided a two month period to conduct and conclude any due diligence necessary for the purchase of the property. In order to finance the purchase of the property, Milestone approached Marathon for assistance. Milestone later assigned its interest in the [99]*99sale agreement to Hospitality.

In order to inform its financing decision, Marathon entered into an agreement with LandAmerica, of which Aaron and Wright is a subsidiary, to conduct a Property Assessment Condition Report of the property. Marathon and Land America were the only parties to the consulting agreement signed for the evaluation of the property (hereinafter “agreement”). Defendant’s Motion for Summary Judgment, Exhibit ‘A’. Hospitality was not a direct party to the agreement nor is it mentioned anywhere in the agreement as an express third party beneficiary. Id. However, Hospitality did provide payment for LandAmerica’s services to Marathon.

On June 14, 2005, LandAmerica provided Marathon with a property assessment report of the Chateau property (hereinafter “report”). Hospitality obtained and relied on the report in assessing the necessary repairs and renovations to the property. Hospitality alleges that the report was incorrect with respect to the existence and operational capacity of fire suppression sprinklers. As a result of its reliance, Hospitality had to expend $300,000.00 to install a sprinkler system and lost bookings during the installation period.

Section 2.1 of the report titled “purpose” provides “LAC (i.e. LandAmerica Assessment Corporation) was retained to conduct a property condition assessment of the subject property to assist in the underwriting of a proposed mortgage loan of the real property.” Defendant’s 12/21/2007 Motion for Summary Judgment, Exhibit [100]*100‘C\ Additionally, Section 2.6 of the report titled “User Reliance” provides:

The investigation was conducted on behalf of and for the exclusive use of Marathon Asset Management (Client), solely for use in a property condition evaluation of the subject property. This report and findings contained herein shall not, in whole or in part, be disseminated or conveyed to any other party, nor used by any other party, in whole or in part without prior written consent of Aaron & Wright (owned by LandAmerica). Aaron & Wright acknowledges and agrees that the report may be conveyed to and relied upon by client, the lender and the title insurer associated with the refinancing and/or property transfer of the subject property.

Id. These terms were not present in the agreement and there is no evidence that Marathon took action to assent to these conditions.

II. Cross Motions for Summary Judgment

LandAmerica moves for summary judgment asserting that Hospitality is unable to proceed under any of the counts of the complaint. LandAmerica argues that the claim for breach of contract in Count I fails because Hospitality was neither a party to the agreement nor was it an intended third party beneficiary. LandAmerica further contends that it owed no duty of care to Hospitality and, therefore, Counts II through VII fail because each relies on LandAmerica breaching a duty owed to Hospitality.

Hospitality responds, also moving for summary [101]*101judgment as to liability.

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Bluebook (online)
28 Pa. D. & C.5th 95, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hospitality-associates-of-tannersville-lp-v-aaron-wright-technical-pactcomplmonroe-2013.