Kohn v. Shegda

5 Pa. D. & C.3d 526, 1978 Pa. Dist. & Cnty. Dec. LEXIS 413
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedFebruary 16, 1978
Docketno. 721
StatusPublished

This text of 5 Pa. D. & C.3d 526 (Kohn v. Shegda) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kohn v. Shegda, 5 Pa. D. & C.3d 526, 1978 Pa. Dist. & Cnty. Dec. LEXIS 413 (Pa. Super. Ct. 1978).

Opinion

SPORKIN, J.,

— This matter had its genesis in a complaint in equity instituted by plaintiff, Sam Kohn, requesting that this court order defendant, George Shegda, to specifically perform a written agreement, dated December 27, 1976, purporting to grant an option from defendant to plaintiff for the purchase of premises 2005-2031 North American Street, Philadelphia, Pa. (hereinafter “the subject premises”).

Following initiation of this matter, a rule was granted upon defendant to show cause why a prehminary injunction should not issue. After consideration of the rule, this court entered a preliminary injunction by agreement of counsel enjoining defendant from conveying or transferring title to said real estate.

Thereafter, defendant moved for judgment on the pleadings, attacking the legal validity of the written option agreement and its sufficiency pursuant to the Pennsylvania Statute of Frauds.1 The said motion was denied and this matter then came before us for final hearing. Upon consideration of the pleadings, of the record before us, and of the applicable law, we find that an enforceable option existed in favor of plaintiff to purchase the subject premises, which option was properly exercised by plaintiff; and that defendant wrongfully failed and refused to convey the subject premises to plaintiff, thus rendering defendant subject to a decree of equitable and monetary relief in favor of plaintiff.

From the pleadings, the admissions contained therein, the evidence adduced before us, and the written exhibits offered in evidence, we make the following

[528]*528FINDINGS OF FACT

1. Plaintiff, Sam Kohn, and defendant, George Shegda, are adult citizens and residents of the City and County of Philadelphia, Commonwealth of Pennsylvania.

2. At all times relevant hereto, defendant has been the owner of premises 2005-203T (inclusive) North American Street, Philadelphia, Pa.,with the buildings and improvements erected thereon (“the subject premises”).

3. Plaintiff is engaged in the wholesale meat business and at all times relevant hereto has been the owner of premises 2001-2003 North American Street, Philadelphia, Pa., which adjoin the subject premises.

4. On May 14, 1976, plaintiff and defendant entered into a written option agreement (“the original option agreement”) for the purchase by plaintiff from defendant of the subject premises for the sum of $80,000 and pursuant to the terms of which buyer (plaintiff) was to exercise said option within 60 days from the date thereof; the consideration for grant of such option to purchase was the sum of $1,000, to be paid by plaintiff to defendant. (Exhibit P-1).

5. Plaintiff accordingly paid said $1,000 to defendant; plaintiff was unable to exercise said option within the required 60 day period, however, because he was unable to secure bank financing for the actual purchase.

6. Subsequent to the expiration of the original option agreement defendant agreed orally to extend that agreement until such time as the plaintiff could secure appropriate bank financing.

7. In the early part of December, 1976, plaintiff [529]*529informed defendant that plaintiffs lender (Continental Bank) was willing to grant plaintiff a loan to enable him to purchase the subject premises, provided that plaintiff could get zoning board of adjustment approval for the use of said premises as a slaughterhouse or abbatoir.

8. On or about December 27, 1976, plaintiff had his sister, Barbara Kohn, deliver to defendant a written extension option agreement dated December 14, 1976, at defendant’s home, extending the original option agreement.

9. On December 27, 1976, defendant refused to execute said written extension of the original option agreement but, instead, on his stationery prepared a written option agreement granting plaintiff an option, for a consideration of $100 to purchase premises 2005-2031 North American Street, Philadelphia, Pa. at a price of $80,000. (Exhibit P-4) (“the later option agreement.”)

10. On December 28, 1976, at plaintiffs place of business the said later option agreement was executed by plaintiff and defendant and the $100 consideration for the option rights was paid to defendant by plaintiff.

11. Unfortunately, the later option agreement, drafted by defendant, contained ambiguous language as to what events would trigger termination of, or settlement thereunder; specifically, it provided only that it would expire, “at the approval or disapproval of zoning.” (Emphasis supplied.)

12. In light of the record herein, we construe such lánguage simply to have provided that settlement under the later option agreement would be contingent upon receipt by plaintiff of zoning approval; plaintiff was to apply to the zoning board of adjustment to secure approval for the use of the [530]*530said optioned property as an abbatoir and plaintiff would have a reasonable time within which to exercise said option upon plaintiffs securing the requested zoning, but if the application were denied the option would terminate.

13. Pursuant to the terms of said later option agreement, on March 16,1977, with the full knowledge and consent of defendant, plaintiff applied to the zoning board of adjustment for the requested change. (Exhibit P-7.)

14. Plaintiff retained special “zoning counsel” and expended in excess of $10,000 on counsel and architectural fees, to secure the requested zoning change.

15. On May 5, 1977, the Zoning Board of Adjustment of the City of Philadelphia granted plaintiff a variance for use of the subject premises as an abbatoir and on May 9, 1977, issued its Permit, No. 248262, to plaintiff for said use. (Exhibits P-8-9.)

16. On or about May 9, 1977, plaintiff informed defendant of the approval by the zoning board and exercised his option to purchase the said premises for the sum of $80,000, upon which notification defendant indicated his approval and advised plaintiff to have plaintiffs attorney schedule settlement.

17. Shortly after defendant was notified by plaintiff of the approval by the zoning board of the requested change and the exercise by the plaintiff of the option to purchase the said properties, defendant along with all other businessmen in said area received a letter from the Mayor of Philadelphia inviting him to a meeting in the Mayor’s Office on May 19,1977, at which meeting defendant along with the other businessmen present was advised of the intention of the City of Philadelphia to spend [531]*531considerable sums of money for the future development of the American Street Industrial area, as a result of which the properties in question substantially increased in value.

18. On June 13, 1977, defendant was advised in writing by certified mail, return receipt requested, by plaintiffs counsel that: “As you have already been put on notice that we received approval from the zoning board and that you have been advised by Sam Kohn that he is ready and prepared to exercise the option to purchase the aforementioned properties, I have this day ordered title insurance and we are prepared to make settlement on or before 60 days from the date of this letter” which letter was received by defendant on June 15, 1977, according to the return receipt card signed by him. (Exhibit P-10.)

19.

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Bluebook (online)
5 Pa. D. & C.3d 526, 1978 Pa. Dist. & Cnty. Dec. LEXIS 413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kohn-v-shegda-pactcomplphilad-1978.