Joshua Hill, Inc. v. Whitemarsh Township Authority (In Re Joshua Hill, Inc.)

199 B.R. 298, 1996 U.S. Dist. LEXIS 10702, 1996 WL 412825
CourtDistrict Court, E.D. Pennsylvania
DecidedJuly 11, 1996
DocketMisc. Action No. 96-0092. Bankruptcy No. 95-17523DAS. Adversary No. 95-0856DAS
StatusPublished
Cited by7 cases

This text of 199 B.R. 298 (Joshua Hill, Inc. v. Whitemarsh Township Authority (In Re Joshua Hill, Inc.)) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joshua Hill, Inc. v. Whitemarsh Township Authority (In Re Joshua Hill, Inc.), 199 B.R. 298, 1996 U.S. Dist. LEXIS 10702, 1996 WL 412825 (E.D. Pa. 1996).

Opinion

ORDER

McGLYNN, Senior District Judge.

AND NOW, this 11th day of July, 1996, it' is hereby ORDERED AND DECREED as follows:

1. The Report and Recommendation of Chief Bankruptcy Judge David A. Scholl, dated April 23, 1996, relating to Defendants’ Motion for Summary Judgment, and supplemented by Judge Scholl’s Memorandum of May 22, 1996 (collectively, “the Report”), is APPROVED and ADOPTED.

2. The Motion of the Defendants for Summary Judgment is GRANTED in part.

3. Counts I, II, III, VI, VIII, X, and XI of the Complaint filed in the Proceeding and certain aspects of Counts IV, V, and XII of the Complaint, as described in the Report, are DISMISSED.

4. Litigation of all of the remaining Counts and claims shall continue to be administered by the Bankruptcy Court pending trial.

REPORT AND RECOMMENDATIONS OF BANKRUPTCY JUDGE SUR DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT

DAVID A SCHOLL, Chief Bankruptcy Judge.

A INTRODUCTION

Presently before this court in the above-captioned proceeding (“the Proceeding”) is a Motion (“the Motion”) of WHITEMARSH *304 TOWNSHIP AUTHORITY (“the Authority”), WHITEMARSH TOWNSHIP (“the Township”), and their individual members, all of the parties named as defendants in the Proceeding (collectively, “the Defendants”), for summary judgment in their favor as to all of the many claims of JOSHUA HILL, INC. (“the Debtor”) and MARC A. ZAID, ESQUIRE (“Zaid,” with the Debtor, “the Plaintiffs”), in the Proceeding. The Proceeding arises out of the Debtor’s inability to utilize its sole asset, certain real estate situated on Joshua Road in the Township (“the Property”), for Zaid’s intended purpose of constructing high-density residential units on the Property. The Plaintiffs attribute their inability to utilize the Property to (1) environmental problems on the Property which they claim were not disclosed to them in violation of warranties provided by the Authority, the seller, in an Agreement of Sale of June 3, 1987 (“the A/S”); and (2) the Township’s refusal to allow rezoning for the intended purpose.

The Motion is based on three general types of contentions: (1) the majority of the Plaintiffs’ claims are time-barred under the relevant respective statutes of limitations; (2) the Plaintiffs’ claims under the Pennsylvania Hazardous Sites Clean-Up Act, 35 P.S. §§ 6020.101, et seq. (“the HSCA”), and the Pennsylvania Clean Streams Law, 35 P.S. §§ 691.1, et seq. (“the CSL”), must be dismissed for lack of requisite preliminary notice of the claims; and (3) various other theories allegedly rendering specific claims invalid, including governmental immunity.

For the reasons set forth below, we recommend that the district court order that limitations does bar most of the breach of contract claims, specifically Counts III, VI, VIII of the Amended Complaint (“the Complaint”), and certain portions of the tort claims set forth in Counts IV and V of the Complaint. We also submit that the HSCA and CSL claims are barred by the lack of requisite prior notice. Similarly, we believe that the claim in Count X (inverse condemnation) is barred because of the Plaintiffs’ failure to follow the procedures set forth in the state Eminent Domain Code. Finally, we also conclude that the claims set forth in Count XI (Civil Rights Act) (“the CRA”) lack merit as a matter of law. We do allow a portion of the Count IV nuisance and Count V trespass claims, certain claims against the Township in its capacity as the alleged tenant of the Property (Counts VII and IX), and Count XII (negligent or fraudulent concealment) to survive. Also unaffected by this Report are two Counts added to the Complaint by amendment, Count XIII (an objection to a proof of claim of the Authority filed on its behalf by the Debtor) and Count XIV (seeking to invalidate an alleged lien placed against the Property by the Township), which are not referenced in the Motion. A status conference is scheduled on May 1, 1996, to discuss potential means of resolving the Proceeding before it is referred to the district court for any necessary jury trial.

B. FACTUAL AND PROCEDURAL HISTORY

The Debtor filed the underlying Chapter 11 bankruptcy case on September 26, 1995. The Debtor’s sole asset is the Property. Although the Plaintiffs filed a praecipe for a writ of summons in a suit initiated against the Defendants in the Court of Common Please of Montgomery County, Pennsylvania (“the C.C.P.;” the suit is referenced as “the C.C.P. Suit”), on October 1, 1993, their admitted reason for the filing of this bankruptcy case was to litigate these issues in a forum other than the C.C.P., which they perceived as hostile to their interests.

No creditors of the Debtor or other interested parties have filed any pleadings in the case, except for the actions of the Township and the Authority in defending this Proceeding. A plan of reorganization (“the Plan”) and accompanying disclosure statement (“the D/S”) were filed by the Debtor on February 20, 1996. The D/S was approved without objection from any creditors on March 20, 1996, and a confirmation hearing on the Plan is scheduled on May 1, 1996.

The Plan is very simple. It contemplates payment of certain compromise sums, the amount being conditional on the date of payment, to the mortgagee of the Property, and full payment to unsecured creditors. These payments are to be funded by the litigation *305 of the Proceeding. The success of the case, as well as the goal to obtain a federal forum to hear it, is therefore driven by the Proceeding.

The Proceeding was filed on November 7, 1995. The original Complaint set forth 12 separate civil claims, all related to the sale of, and post-sale dealings of the parties pertaining to, the Property, and, except where indicated, against all Defendants. Count I, under the HSCA, seeks recovery of the Plaintiffs’ costs of responding to the presence of hazardous substances allegedly located on the Property, including their clearing and remediation. Count II, based on the CSL, seeks an abatement of industrial wastes from the Property’s waters. Count III is a claim against the Authority for rescission of the A/S and restitution of other cash expenses relating to the sale of the Property. The Plaintiffs assert claims for nuisance and trespass, respectively, in Counts IV and V, arising out of the alleged presence of waste materials on the Property. Count VI is a claim for breach of provisions in the A/S which required the Authority to provide the buyer with all reports relating to the Premises. In Count VII, the Plaintiffs seek ground rents allegedly due to them under an alleged “Incinerator Lease” of the Property to the Township, dated December 1, 1964, and extending through April 1, 1994 (“the 1964 Lease”). In Count XI, the Plaintiffs set forth a claim under 42 U.S.C. § 1983 of the CRA, alleging that the Defendants have deprived them of the lawful use and peaceful enjoyment of the Property in violation of the fourteenth amendment. Finally, Count XII is a claim against the Township for fraudulent and/or recklessly negligent concealment of information about the Property from the Plaintiffs.

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Bluebook (online)
199 B.R. 298, 1996 U.S. Dist. LEXIS 10702, 1996 WL 412825, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joshua-hill-inc-v-whitemarsh-township-authority-in-re-joshua-hill-paed-1996.