JR Viewmont LLC v. PR Financing LP

44 Pa. D. & C.5th 277
CourtPennsylvania Court of Common Pleas, Lackawanna County
DecidedDecember 23, 2014
DocketNo. 2012-CV-3840
StatusPublished

This text of 44 Pa. D. & C.5th 277 (JR Viewmont LLC v. PR Financing LP) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lackawanna County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
JR Viewmont LLC v. PR Financing LP, 44 Pa. D. & C.5th 277 (Pa. Super. Ct. 2014).

Opinion

MINORA, J.,

The issue currently before [279]*279this court is a joint appeal by the defendants PR Financing LP, SMS Holdings Inc., and Service Management Systems, Inc. This joint appeal arises from the decision of Special Trial Master (STM) Henry P. Burke denying the defendants motion to strike the plaintiffs objections to the notice of intent to Serve Subpoenas upon JR Montage, LLC and NEPA JR, LLC. For the reasons set forth below, the defendants joint appeal is denied and therefore the order of the Special Trial Master is sustained.

PROCEDURAL AND FACTUAL HISTORY

This case arises from a dispute involving a lease between a tenant, JR Viewmont LLC, hereinafter ‘JR’, and the landlord, PR Financing LP, one of the above named defendants. The dispute concerns the leasing and subsequent construction, maintenance, and operation of the plaintiffs leased premises, containing a Johnny Rockets restaurant. The disputed leased property is located within the Viewmont Mall, which is owned by the landlord defendant PR Financing LP. Venue is proper because the mall is located in Dickson City, Lackawanna County, Pennsylvania. JR alleges that after signing a lease with the PR Financing LP, they were asked to sign an amended lease for the property at the request of PR Financing LP. JR alleges that they agreed to sign the amended lease regarding their lease of space inside the Viewmont Mall for the purposes of operating their Johnny Rockets restaurant.

[280]*280By way of further background as to the different entities at issue on this appeal, Edward Hughes and Michael Hughes ownNEPA, JR, LLC. NEPA JR, LLC in turn owns JR Montage, LLC, JR Viewmont LLC, and 48% of JR Mohegan. JR Montage, LLC operates a Johnny Rockets restaurant at Montage Mountain in Moosic, Pennsylvania. JR Mohegan operates a Johnny Rockets inside the Mohegan Sun Casino in Wilkes-Barre, Pennsylvania. Lastly, JR Viewmont, LLC, the plaintiff in the case at issue, operated a Johnny Rockets in the Viewmont Mall in Dickson City, Pennsylvania.

JR alleges that representations were made to them by PR Financing, LP regarding a construction project that would impact the area surrounding the leased property where the restaurant was located. JR further alleges that the following representations were made to them by the defendants: the aforementioned project would only take about three months to complete; the project plans were completed prior to the singing of the amended lease; that it had projections of increased foot traffic in that specific section of the Viewmont mall; the exterior entrance to the Johnny Rockets in the Viewmont mall would not be closed to the public or potential customers; the food court would be minimally obstructed for a few weeks; the construction would be performed overnight; the project would remove the exterior columns outside the Johnny rockets entrance; and the Johnny Rockets would be able to operate with having a patio in place of the exterior windows before and [281]*281after the project.

JR alleges that they relied on the aforementioned representations prior to entering into the amended lease. JR further alleges that they were induced to enter into the amended lease based upon the above representations made to them by the defendants. The project allegedly deviated from the representations set forth above, as JR claims those parameters to have been represented to them. JR alleges they have suffered significant financial damages from the breach of these representations as JR’s business in the Viewmont Mall has allegedly suffered as a result of the defendant’s representations, which were breached in several respects.

JR further alleges in their amended complaint that defendants SMS Holdings Inc. and Service Management Systems, Inc., were involved in a kickback scheme which resulted in further damages to the JR’s business of operating the Johnny Rockets. SMS Holdings Inc. and Service Management Systems, Inc. were both allegedly involved in construction that was taking place at the Viewmont Mall during the time period in question. In turn, this was the cause of the JR’s alleged loss of business and profits.

The defendants instant appeal alleges that the Special Trial Master erred and requests that this court should vacate the order and strike the plaintiffs objections to the proposed subpoenas to JR Montage, LLC and NEPA [282]*282JR, LLC because the financial records being sought are relevant to the defendants in the matter and can lead to the discovery of relevant evidence to the case at bar. Defendants claim that the financial records sought may tend to establish patterns of profits and losses by the Johnny Rockets restaurants in the same geographic location and operated by the same ownership.

Plaintiff argues that the defendants offer no compelling reason as to why its motion to strike should be allowed other than stating that the relevancy requirement is to be interpreted liberally. Plaintiff further claims that the allegations set forth in their amended complaint are specific only to the Johnny Rockets restaurant location at the Viewmont Mall. Plaintiff further alleges that if the defendant wishes to perform a general market data analysis that can be publicly available, and further, that as the owner and operator of dozens of malls, the defendants have access to significant data as to the financial records of these malls, as they have various restaurants as tenants.

This case was initiated by way of a complaint on June 22, 2012 and a subsequent amended complaint on November 30, 2012. On May 9, 2014, defendants served the plaintiff with a notice of intent to serve subpoenas to produce documents and things for discovery pursuant to Rule 4009.21. The proposed subpoenas were directed at JR. Montage, LLC and NEPA JR, LLC, seeking all financial records including financial statements, tax records, profits [283]*283and losses, expenses, budgets, and sales projections. On May 29, 2014, plaintiffs filed their objections to the proposed subpoenas. On July 17, 2014, the defendants filed a motion to strike the plaintiffs objection to the notice of intent to serve subpoenas. On August 4, 2014, Special Trial Master Burke issued an order denying the defendants motion to strike the plaintiffs objections of the notice of intent to serve subpoenas, therefore JR’s objections to the proposed discovery by the defendants stands.

DISCUSSION

A subpoena is an order of the court commanding a person to attend and testify at a particular time and place. It may also require the person to produce documents or things which are under the possession, custody or control of that person. Pa.R.C.P. 234.1(a). Pennsylvania Rule of Civil Procedure 4009.21 sets forth the proper procedure for the discovery and production of documents within the control of a nonparty. In pertinent part, the rule states the following:

(a) A party seeking production from a person not a party to the action shall give written notice to every other party of the intent to serve a subpoena at least twenty days before the date of service. A copy of the subpoena proposed to be served shall be attached to the notice.

Pa.R.C.P. 4009.21(a).

“...[Djiscovery is liberally allowed with respect to [284]*284any matter, not privileged, which is relevant to the cause being tried.” George v. Schirra, 814 A.2d 202, 204 (Pa. Super. Ct. 2002).

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Cite This Page — Counsel Stack

Bluebook (online)
44 Pa. D. & C.5th 277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jr-viewmont-llc-v-pr-financing-lp-pactcompllackaw-2014.