J.T. Thomas Homes v. Destefano, A.

Superior Court of Pennsylvania·Decided May 15, 2026·No. 448 WDA 2025·Unpublished·Beck

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37

J.T. THOMAS HOMES, INC., A : IN THE SUPERIOR COURT OF PENNSYLVANIA CORPORATION : PENNSYLVANIA :

Appellant :

:

:

v. :

:

: No. 448 WDA 2025

ANTHONY J. DESTEFANO AND KELLY :

B. DESTEFANO, HUSBAND AND WIFE :

Appeal from the Judgment Entered March 17, 2025 In the Court of Common Pleas of Allegheny County Civil Division at No(s): GD-20-7355

BEFORE: STABILE, J., MURRAY, J., and BECK, J. MEMORANDUM BY BECK, J.: FILED: May 15, 2026 Appellant, J.T. Thomas Homes, Inc. (“J.T. Thomas Homes”), appeals from the judgment entered against it by the Allegheny County Court of Common Pleas (“trial court”) in favor of Appellees, Anthony J. DeStefano and Kelly B. DeStefano (together, the “DeStefanos”) following a nonjury trial. Each party brought crossclaims for breach of their April 8, 2019 contract, in which J.T. Thomas Homes agreed to construct, and the DeStefanos agreed to purchase, a custom, new-construction residential home in Upper St. Clair Township (hereinafter, the “Contract”).1 Upon review, we affirm.

Facts and Procedural History

1 The Contract was admitted at trial as J.T. Thomas Homes’ Exhibit 10 and the DeStefanos’ Exhibit 1. We cite directly to the contract for ease of review.

Pursuant to the Contract, in exchange for $576,000, J.T. Thomas Homes agreed to construct a new single-family dwelling on a lot separately purchased by the DeStefanos in the Fox Chase II development. Contract, ¶¶ 1, 5(A), 11. The home was to be custom built to the “Plans and Specification” described in paragraph one of the Contract, which included architectural drawings prepared by architect Bob Stevens and a “Description of Material” incorporated as exhibits into the Contract. Id., ¶ 1. The DeStefanos financed the purchase by obtaining a construction loan from Washington Financial Bank (“Bank”). A payout schedule attached to the Contract specified the stages of construction and corresponding draw due upon J.T. Thomas Homes’ completion of each stage, subject to review and certification of work by the DeStefanos and the Bank. See id., ¶¶ 5, 11, 12, & Exhibit C.

J.T. Thomas Homes represented and warranted that it was “fully experienced and properly qualified as an expert in residential construction of the type described in the Plans and Specifications and that it is properly equipped, organized and financed to perform such work.” Id., ¶ 2. It also promised to “at all times exert its best efforts to complete construction at the earliest possible time and will at all times furnish sufficient labor and materials to assure the most efficient and expeditious construction progress giving due regard for the highest quality of workmanship.” Id., ¶ 4. It provided a one- year express warranty “against any loss or damage arising from any defects in materials or workmanship” for one-year post-occupancy, and disclaimed

any other express, implied, or oral warranties. Id., ¶ 24. The DeStefanos or their agent had the “right to inspect the job from time to time,” and “[s]hould any contract violations be noted,” the DeStefanos agreed to promptly notify J.T. Thomas Homes in writing. Id., ¶ 15.

The Contract further addressed defaults in performance by both parties.

If the DeStefanos failed to pay J.T. Thomas Homes within seven days of the payment’s due date, the Contract entitled J.T. Thomas Homes to apply all money paid and proceed with a civil action for breach of contract, or, if “construction is complete in all respects,” to recover the balance of the “Final Purchase Price” plus twelve percent interest. Id., ¶ 18(A). The Contract refers to three events constituting a default by J.T. Thomas Homes: (1) failure “to perform the work diligently,” a defined contractual term of “an unexcused cessation of work for seven or more days”; (2) “damage or defect,” which are undefined terms; or (3) failure “to perform the work or repair or replace the defect.” Id., ¶ 18(B). Upon any of these events, the DeStefanos, at their “sole option,” may “recover the full cost of the completion, repair or replacement or to set off the same from any sums otherwise due” to J.T. Thomas Homes thereunder “or proceed with an action at law.” Id.

The trial court found, and the certified record indicates, that the relationship between Jeff Thomas (“Thomas”), the owner of J.T. Thomas Homes, and the DeStefanos deteriorated several months after the project began, resulting in communications that were “increasingly contrary to a

productive contractor/client relationship.” Trial Court Opinion, 12/23/2024, at 5. Although the Contract required the DeStefanos to timely make periodic selections to avoid construction delays, the DeStefanos delayed making their selections. Id. By mid-February 2020, they “largely stopped communicating with J.T. Thomas Homes and its vendors to further selections” and cancelled an order with an appliance vendor. Id.

J.T. Thomas Homes received the first five progress payments, but the DeStefanos refused to authorize the final three draws totaling $201,635 because of their increasing dissatisfaction with J.T. Thomas Homes and its work. Id. at 6-9. J.T. Thomas Homes, through Thomas and its counsel, requested payment from the DeStefanos several times, and eventually initiated litigation in July 2020. Id. at 6. Despite the strained relationship and pending litigation, J.T. Thomas Homes continued its work on the home for a time.2 Id. Ultimately, J.T. Thomas Homes did not finish the job and the DeStefanos hired other contractors to complete work on the home. Id.

Relevant to this appeal, J.T. Thomas Homes alleged that the DeStefanos breached the Contract by failing to make timely selections and to pay the final draws. The DeStefanos brought counterclaims against J.T. Thomas Homes, alleging breach of contract, breach of implied warranty, and violations of the Unfair Trade Practices Consumer Protection Law (“UTPCPL”).

2 In March 2020, the COVID-19 pandemic temporarily halted construction.

Following a six-day bench trial, on December 23, 2025, the trial court entered a nonjury verdict awarding $9,406 to the DeStefanos and against J.T. Thomas Homes. In an accompanying opinion, the trial court explained that the DeStefanos’ failure to make timely selections was not a material breach and would have only excused the timetable under which J.T. Thomas Homes was to complete the project. See Trial Court Opinion, 12/23/2024, at 8. The trial court found that J.T. Thomas Homes did not bring the home to final completion—the standard triggering full payment under the Contract—but it did complete work totaling $165,575. Id. at 6-9. Specifically, it completed the work detailed in the sixth progress payment relating to interior walls; most of the work specified in the seventh progress payment relating to trim, except for installing the garage door and granite; and some of the work required to receive the final draw. Id.

The trial court decided that most of “the lapses in workmanship” by J.T.

Thomas Homes did not excuse the DeStefanos from its contractual obligation to pay for this work because the contractor could have corrected such lapses “through punch list and repair steps” if this had been provided by the DeStefanos. Id. at 7. However, the trial court decided that J.T. Thomas Homes’ installation of the roof and the mortar joining the brick exterior “were fundamentally defective without viable correction,” which triggered the DeStefanos’ option in paragraph 18 of the Contract “to set off repair or replacement from any sums otherwise due to J.T. Thomas Homes.” Id. at 7.

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