Korotki, A. v. Offit Kurman

CourtSuperior Court of Pennsylvania
DecidedJanuary 26, 2026
Docket2983 EDA 2024
StatusUnpublished
AuthorLazarus

This text of Korotki, A. v. Offit Kurman (Korotki, A. v. Offit Kurman) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Korotki, A. v. Offit Kurman, (Pa. Ct. App. 2026).

Opinion

J-A22005-25

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37

ABRAHAM KOROTKI, RESERVES : IN THE SUPERIOR COURT OF DEVELOPMENT, LLC, THE RESERVES : PENNSYLVANIA RESORT, SPA & COUNTRY CLUB, : LLC, THE RESERVES MANAGEMENT, : LLC, STL DEVELOPMENT, LLC, ST2K, : LLC, AND SALEENA KOROTKI : : : v. : No. 2983 EDA 2024 : : OFFIT KURMAN, P.A., MAURICE L. : OFFIT, ESQ., JOSEPH J. BELLINGER, : ESQ., TIMOTHY C. LYNCH, ESQ., : THEODORE MARASCIULO, ESQ., : SCHWARTZ & SCHWARTZ, : ATTORNEYS AT LAW, P.A., STEVEN : SCHWARTZ, ESQ., GELLERT SCALI : BUSENKELL & BROWN, LLC, : MICHAEL BUSENKELL, ESQ., HILLER : & ARBAN, LLC, ADAM HILLER, ESQ., : BRIAN ARBAN : : : APPEAL OF: ABRAHAM KOROTKI, : RESERVES DEVELOPMENT, LLC, THE : RESERVES RESORT, SPA & COUNTRY : CLUB, LLC, THE RESERVES : MANAGEMENT, LLC, STL : DEVELOPMENT, LLC, ST2K, LLC :

Appeal from the Order Entered October 11, 2024 In the Court of Common Pleas of Philadelphia County Civil Division at No(s): 141201053

BEFORE: LAZARUS, P.J., SULLIVAN, J., and STEVENS, P.J.E. *

MEMORANDUM BY LAZARUS, P.J.: FILED JANUARY 26, 2026

____________________________________________

* Former Justice specially assigned to the Superior Court. J-A22005-25

Abraham Korotki, Reserves Development, LLC, The Reserves Resort,

Spa & Country Club, LLC, The Reserves Management, LLC, STL Development,

LLC, and ST2K, LLC (collectively, the Korotki Parties), appeal from the order,

entered in the Court of Common Pleas of Philadelphia County, granting

summary judgment in favor of Appellees, Offit Kurman, P.A. (Offit Firm),

Maurice L. Offit, Esquire (Attorney Offit), Joseph J. Bellinger, Esquire, Timothy

C. Lynch, Esquire (Attorney Lynch), Theodore Marasciulo, Esquire, Schwartz

& Schwartz, Attorneys at Law, P.A., Steven Schwartz, Esquire (Attorney

Schwartz), Gellert Scali Busenkell & Brown, LLC, Michael Busenkell, Esquire,

Hiller & Aarban, LLC, Adam Hiller, Esquire (Attorney Hiller), and Brian Arban,

Esquire (Attorney Arban) (collectively, the Offit Parties or Appellees), and

dismissing Korotki’s amended complaint, with prejudice, in this malpractice

action. We affirm.

On December 5, 2014, the Korotki Parties filed a civil complaint alleging

that seven attorneys and their three law firms committed legal malpractice for

their roles in a bankruptcy proceeding. At this juncture, only three defendants

remain: Attorney Offit, Attorney Lynch, and the Offit Firm. Despite the

voluminous record and protracted proceedings, we conclude that this appeal

presents a straightforward question of causation, and that the trial court

correctly determined that Appellees were entitled to summary judgment.

Supporting that conclusion, however, requires a lengthy discussion of the

facts. We begin there.

-2- J-A22005-25

In 1998, Abraham Korotki (Korotki) began developing The Reserves

Resort Spa & Country Club (Reserves), a 185-lot real estate community in

Sussex County, Delaware. The Reserves Resort Spa & Country Club, LLC

(RRSCC) was the Reserves Development’s corporate entity. On August 13,

2001, Korotki transferred real estate to Reserves Development, Corporation

(Development), a limited liability company with a place of business in Ventnor

City, NJ. Id. at ¶¶ 8-9, 53. Reserves Development then filed a Declaration

of Restrictive Covenants (covenants) that contained, among other things,

assessments and charges that would impose “certain monetary obligations on

future lot owners.” Amended Complaint, 9/22/15, at ¶ 54. Later, these

covenants were amended to require additional payments in order to help fund

the construction of amenities, improvements, and maintenance and were

“subject to increase or decrease as determined by” the Reserves Management

Corporation, LLC (Management), a business owned solely by Korotki. 1 See

id. at ¶ 59; see also id. at ¶ 62 (“Management was created to, among other

things, administer and enforce the restrictions and covenants and levy and

collect the assessments and charges created by” the conveyances).

The development project was split into four phases. A subset of the 185

lots was fully developed in the first phase of the project. See Amended

Complaint, 9/22/15, at ¶ 59 (“[]Korotki completed the infrastructure (roads,

utilities, sanitary[,] sewer[,] and storm water management) in Phase 1 of the ____________________________________________

1 The corporate form for some of these entities changed at some point. Those changes are not relevant to this appeal.

-3- J-A22005-25

Reserves Development and sold most of the lots within Phase 1 to

homebuyers.”). In 2004, Korotki “began to sell undeveloped lots” to various

residential home building companies, and at least some of those companies

“assumed full responsibility to complete the Phase 2 infrastructure.” Id. at ¶

65. Other transactions required that the buyers “among other things[,] . . .

pay infrastructure costs based upon their pro rata ownership of the lots in

Phase 3[.]” Id. at ¶ 69. However, as the amended complaint states,

“[d]evelopment [s]tall[ed and l]itigation [e]nsue[d].” Id. at ¶ 71. The

complaint alleged that these lot sales “led to various breaches of contract by

the purchasers and/or their successors and assigns, among others, together

with incidents of outright fraud, which generated a multiplicity of litigation in

the state courts of Delaware.” Id. at ¶ 68. Ultimately, Korotki, in his

individual capacity, and RRSCC declared bankruptcy. 2

Several law firms represented Korotki and the various corporate

entities3 in this endeavor, with regard to the critical decision ultimately to

declare bankruptcy. Attorney Hiller, his partner, Attorney Arban, and their

law firm, Hiller & Arban, were retained “in or about 2007” for “certain litigation

2 The other corporate entities did not seek bankruptcy.

3 For ease of reference, from this point on in this decision we will generally

refer to the Korotki Parties as Korotki, unless otherwise warranted, as Korotki was the sole owner of RRSCC, Management, and Development. The remaining two entities were initially owned by his ex-wife, Saleena Korotki. The two divorced during the pendency of these proceedings and a New Jersey court transferred ownership to Korotki. Additionally, Saleena Korotki was separately represented and has not appealed.

-4- J-A22005-25

and other matters” relating to the Reserves Development. Attorney Schwartz

and his law firm, Schwartz & Schwartz, represented Korotki as his “litigation

counsel in or about 2007, and, by 2008, were deeply involved in most, if not

all of the pending litigations[.]” Id. at ¶ 26.4

The parties dispute the Offit Parties’ level of involvement in the decision

to file for bankruptcy. This much is clear—the Offit Parties entered the picture

upon the advice of some or all of the Delaware Attorneys to assist with letters

of credit issued by the Wilmington Trust Company (WTC). The amended

complaint alleged that one of the residential buyers had “misrepresented to

[]Korotki and Reserves that it would pay its pro rata share of the bonding

costs. Relying upon [these] false assurances, Reserves posted $2,500,000.00

in cash for two irrevocable letters of credit” from WTC to Sussex County. Id.

at ¶ 78. Korotki then “personally guaranteed the [WTC] letters of credit and,

as a result, effectively[] personally guaranteed the completion of the Phase 3

infrastructure[.]” Id. at ¶ 80.

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