In Re:Trust of Mihordin, M. Appeal of: Mihordin,V.

162 A.3d 1166, 2017 Pa. Super. 145, 2017 WL 2123444, 2017 Pa. Super. LEXIS 345
Superior Court of Pennsylvania·Decided May 16, 2017·No. In Re:Trust of Mihordin, M. Appeal of: Mihordin v. No. 1084 WDA 2016·Published·Cited by 11 cases

Opinions

OPINION BY

GANTMAN, P.J.:

Appellant, Vicki Mihordin, appeals from the order entered in the Mercer County Court of Common Pleas, which granted the petition filed on behalf of Appellees Lynda J. Pozzuto and her former husband, Michael L. Pozzuto (“Pozzutos”) for reformation of a deed. We reverse.

The relevant facts and procedural history of this appeal are as follows. The Pozzu-tos sought to transfer property located in Rayburn Township, Armstrong County to [1169] Lynda Pozzuto’s parents, Richard and Marilyn Mihordin (“Mihordins”). In 1995, the Pozzutos executed a Real Estate Sales Agreement (“1995 Agreement”) between the Pozzutos as sellers and the Mihordins as buyers of a parcel of land. Michael Pozzuto contacted his counsel to prepare the 1995 Agreement. Pursuant to the 1995 Agreement, the Mihordins would pay the Pozzutos $5,000.00 per year for a period of three years and an additional $5,000.00 at closing for a total of $20,000.00. The 1995 Agreement in full provides:

AGREEMENT
' THIS AGREEMENT, made this 28th day of March, 1995, by and between Mike Pozzuto and Lynda Pozzuto, his wife (hereinafter referred to as Sellers).
AND
Richard L. Mihordin and Marilyn R. Mihordin, his wife (hereinafter referred to as Buyers);
WHEREAS, the Sellers are in the process of purchasing- certain property in Kittanning, Pennsylvania; and
WHEREAS, the Buyers wish to purchase some of the aforesaid property from the Sellers;
NOW THEREFORE, THE PARTIES INTENDING TO BE LEGALLY BOUND, AGREE AS FOLLOWS:
1. Sellers will sell and Buyers will purchase a parcel, of land of Buyers choice fronting on 100 feet of river for the sum of $20,000.00 payable at $5,000.00 on day of closing and $5,000.00 a year, each and every year for the succeeding three (3) years.
2. If Buyers decide to sell the aforesaid parcel, they give the Sellers the option to purchase the property for $20,000.00. Said option to be exercised within 90 days after written notice received by Sellers from Buyers.
3. If Sellers would default on the purchase of the said property, they must refund the Buyers all hand monies paid by Buyers to Sellers.
4. Upon Buyers payment of the full purchase price to Sellers, they will receive a deed subject to any encumbrances-then existing on the property.
5. Upon the "death of Buyers, the land is to revert back to Sellers. ■
6. If Sellers sell the complete parcel of land, they will deed over the property of Buyers to Buyers. .
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written.

(See 1995 Sales Agreement, attached as Exhibit A to the Pozzutos’ Rule to Show Cause; Appellant’s Brief, Appendix B at 17.) The Pozzutos and the Mihordins signedthe 1995 Agreement.

In 1998, the Pozzutos executed a deed transferring the riverfront parcel of property to the Mihordins in fee simple. (See Deed of September 10, 1998, attached as Exhibit B to the Pozzutos’ Rule to Show Cause; Appellant’s Brief, Appendix C at 18.) The scrivener of the 1995 Agreement was also the scrivener of the 1998 deed, Attorney William Panella; He did not refer to the 1995 Agreement in preparing the deed or include a reversionary interest in favor of the Pozzutos in the 1998 deed.

Richard Mihordin died in May 2011. After his death, Marilyn Mihordin created the irrevocable Trust of Marilyn.Mihordin on August 23, 2011, and transferred the subject parcel to the trust by virtue of a new deed of the same date. The trust provided, inter alia, that upon Marilyn Mihordin’s death, any remaining income and principal or corpus of the trust would go to her two daughters equally. The named co-trustees and beneficiaries of the trust are her two daughters, Lynda Pozzu-to and Appellant, who both signed the [1170] trust and agreed to accept the terms and conditions set forth in the trust. Neither the trust nor the 2011 deed (both prepared by different counsel) referred to any rever-sionary interest in favor of the Pozzutos. (See The Marilyn R. Mihordin Irrevocable Trust Agreement, attached as Exhibit 1 to Appellant’s Answer to the Pozzutos’ Rule to Show Cause; Appellant’s Brief, Appendices D and E, at 19, 20.) Marilyn Mihor-din died on October 22, 2014.

On December 21, 2015, the Pozzutos filed a Rule to Show Cause Why A Deed Should Not Be Reformed, seeking to reform the 1998 deed to reflect their ownership of the property in question via a reversionary interest, asserting a scrivener’s error or mistake as well as the intent of the parties as represented in the 1995 Agreement. Appellant filed an answer on January 12, 2016, and a counterclaim for enforcement of the 2011 deed in trust and an order directing the real estate to be distributed equally between the daughters pursuant to the trust. The Pozzutos filed their answer to the counterclaim on February 1, 2016, with new matter. Appellant replied to the new matter on February 12, 2016.

The court held a hearing on February 23, 2016. By order of June 24, 2016, the court granted the Pozzutos’ petition and directed the 1998 deed to be reformed to reflect the asserted reversionary interest in favor of the Pozzutos, consistent with Article five of the 1995 Agreement. Appellant timely filed a notice of appeal on July 20, 2016. On July 25, 2016, the court ordered Appellant to file a concise statement of errors complained of on appeal per Pa. R.A.P. 1925(b); Appellant timely complied on August 5, 2016.

Appellant raises this issue on appeal:

DID THE [TRIAL] COURT COMMIT ERROR IN ORDERING THAT THE DEED IN QUESTION SHOULD BE REFORMED DUE TO SCRIVENER’S ERROR?

(Appellant’s Brief at 4).

Appellant argues this case presents the classic example of the merger doctrine, under which the 1995 Agreement merged with the 1998 deed, which superseded any provisions of the 1995 Agreement not included in the 1998 deed. Appellant maintains that none of the instruments executed after the 1995 Agreement, including the 1998 deed and the 2011 trust and 2011 deed, refer to a life estate or reversionary interest. Appellant reasons any reversion-ary interest allegedly in the 1995 Agreement was lost, once the 1998 deed and all later instruments did not include it.

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In Re:Trust of Mihordin, M. Appeal of: Mihordin,V., 162 A.3d 1166, 2017 Pa. Super. 145, 2017 WL 2123444, 2017 Pa. Super. LEXIS 345 (Pa. Ct. App. 2017).

162 A.3d 1166 (In Re:Trust of Mihordin, M. Appeal of: Mihordin,V.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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In Re:Trust of Mihordin, M. Appeal of: Mihordin,V.
162 A.3d 1166 (Superior Court of Pennsylvania, 2017)