Lafferty, H. v. Ferris, T.

Superior Court of Pennsylvania·Decided September 21, 2017·No. 1131 MDA 2016·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

HARRY J. LAFFERTY, MICHAEL D. KIRN, : IN THE SUPERIOR COURT OF ROBERT T. KIRN, JOHN J. ROEDELL, : PENNSYLVANIA JOHN M. FERRIS, AND ROBERT F. : FERRIS :

:

v. :

:

THOMAS D. FERRIS, :

:

Appellant : No. 1131 MDA 2016

Appeal from the Order entered June 27, 2016 in the Court of Common Pleas of Susquehanna County, Civil Division, No(s): 2008-01941

HARRY J. LAFFERTY, MICHAEL D. KIRN, : IN THE SUPERIOR COURT OF ROBERT T. KIRN, JOHN J. ROEDELL, : PENNSYLVANIA JOHN M. FERRIS, AND ROBERT F. : FERRIS :

:

v. :

:

THOMAS D. FERRIS, :

:

Appellant : No. 1619 MDA 2016

Appeal from the Order entered September 16, 2016 in the Court of Common Pleas of Susquehanna County, Civil Division, No(s): 2008-01941

BEFORE: MOULTON, SOLANO and MUSMANNO, JJ. MEMORANDUM BY MUSMANNO, J.: FILED SEPTEMBER 21, 2017 Thomas D. Ferris (“Ferris”) appeals from the Orders denying his Post-

Trial Motion, and granting the Motion to Enforce filed by Harry J. Lafferty (“Lafferty”), Michael D. Kirn, Robert T. Kirn, John J. Roedell, John M. Ferris, and Robert F. Ferris (“R. Ferris”) (collectively, “Plaintiffs”). We affirm the

trial court’s June 27, 2016 Order, and vacate the trial court’s subsequent Orders of August 23, 2016 and September 16, 2016.1 Briefly, in August 1998, Ferris and Plaintiffs created a limited liability company known as Facowee Acres, LLC (“Facowee Acres”).2 In October 1998, Ferris and his brother, R. Ferris, purchased a 100-acre parcel in Susquehanna County, Pennsylvania (“the Property”), to be used as a hunting lodge for members of Facowee Acres (the Plaintiffs and Ferris, hereinafter collectively referred to as “the members”). Ferris and his brother, R. Ferris, executed a mortgage on the Property. Each of the members of Facowee Acres orally agreed to pay, over time, the mortgage and other related costs for the Property. Upon payment in full by the members, R. Ferris and Ferris would transfer the Property to the members, who then would transfer the Property to Facowee Acres.

1 Ferris appeals from the June 27, 2016 Order of the trial court, which denied his Post-Trial Motion (docketed at No. 1131 MDA 2016), and the trial court’s August 23, 2016 and September 16, 2016 Orders (docketed at 1619 MDA 2016), which modified the trial court’s January 11, 2016 verdict/Order, and granted Plaintiffs’ Motion to Enforce. We have combined the appeals for ease of disposition. As we will discuss infra, although no judgment has been entered, we consider this an appeal of the trial court’s June 27, 2016 Order, and the matter properly before us for disposition.

2 Facowee Acres was named as a plaintiff in the Second Amended Complaint, but no attorney entered an appearance on its behalf. In their Response to Ferris’s February 16, 2010 Rule to Show Cause, Plaintiffs denied that Facowee Acres is a plaintiff in these proceedings. Facowee Acres is not identified as a plaintiff in subsequent filings.

In addition, in 1999, Ferris purchased, in his name, a 4.4-acre parcel adjacent to the Property (“the Adjacent Property”). The members agreed that the Adjacent Property would be added to the Property, and that the members would pay for the Adjacent Property in the same manner in which they were paying for the Property. Ferris subsequently transferred title to the Adjacent Property to himself and R. Ferris.

Over time, payments made by members were deposited into a bank account owned by R. Ferris. Expenses for the Property and the Adjacent Property, including real estate taxes and maintenance expenses, were paid from that bank account. All of the members, except Ferris, paid their respective shares of the mortgage and related expenses for the Property and the Adjacent Property. Throughout this time period, the members used the Property and the Adjacent Property for hunting. Improvements also were made to the Property.

In 2007, Ferris told the members that he wished to sell back his interest in Facowee Acres. However, when members asked Ferris to convey the Property and the Adjacent Property in accordance with their oral agreement, he refused.

Subsequently, without the knowledge of the other members, Ferris and R. Ferris used the Property and the Adjacent Property as collateral for a $125,000 equity line of credit, used solely for their own benefit. In August 2008, R. Ferris and Ferris executed a natural gas lease with Chesapeake

Appalachia, LLC (“Chesapeake”) for the Property and Adjacent Property, for an up-front payment of $28,500.3 In December 2008, Plaintiffs filed the instant equity action against Ferris. Ferris filed a counterclaim, seeking partition of the Property and Adjacent Property. On January 11, 2016, following a non-jury trial, the trial court entered an Opinion and Order determining that an enforceable agreement existed between Ferris and the Plaintiffs. In accordance with this oral agreement, the trial court ordered Ferris and R. Ferris to execute a special warranty deed conveying title to the Property and the Adjacent Property to Plaintiffs and Ferris, in their respective proportionate shares. The trial court further dismissed Ferris’s counter-claim.4 Ferris filed a Post-Trial Motion for a new trial on January 26, 2016.

On May 31, 2016, Plaintiffs filed a Praecipe to enter judgment. However, no judgment was entered. On June 6, 2016, Ferris filed a Praecipe/Application to amend the trial court’s Order to include determination of finality. On June 24, 2016, Ferris filed a Notice of Appeal of the trial court’s May 31, 2016 “order,” although no such order was entered. This Court docketed the

3 The trial court directed that Ferris and R. Ferris deposit the Chesapeake funds with the court. 4 We also adopt, as though fully restated herein, the trial court’s comprehensive summary of the factual and procedural history underlying the instant appeal. See Trial Court Opinion, 1/11/16, at 2-27.

appeal at No. 1026 MDA 2016. By an Order entered on August 17, 2016, this Court quashed the appeal.5 On June 27, 2016, the trial court entered an Order denying Ferris’s post-trial Motions. On July 13, 2016, Ferris filed a Notice of Appeal of the June 27, 2016 Order, which this Court docketed at No. 1131 MDA 2016. On August 17, 2016, this Court entered an Order directing the trial court to enter judgment within 10 days. No judgment appears on the docket.

On August 18, 2016, while Ferris’s appeal at No. 1131 MDA 2016 was pending, Plaintiffs filed a Motion to Enforce the trial court’s January 11, 2016 Order. On August 23, 2016, the trial court entered an Order both granting Plaintiff’s Motion to Enforce, and issuing a Rule to Show Cause why Plaintiffs’ Motion should not be granted. The trial court subsequently entertained oral argument on Plaintiffs’ Motion to Enforce. On September 16, 2016, the trial court again entered an Order granting Plaintiffs’ Motion to Enforce. The trial court’s Order also modified its January 7, 2016 verdict and Order to allow for an alternative remedy i.e., the execution of a general warranty deed transferring title of the Property and Adjacent Property to Facowee Acres. Ferris filed a second Notice of Appeal challenging the trial court’s September 16, 2016 Order. That appeal is docketed at No. 1619 MDA 2016.

In his appeals, Ferris presents the following claims for our review:6

5 This Court stated that Ferris could “raise any and all properly preserved issues that he intended to raise at No. 1026 MDA 2016” in his subsequent

1. Whether failure to include numerous indispensable parties in the action involving the adjudication of the non-parties’ real estate and royalty rights renders the trial court’s Order null and void such that there was a denial of due process of law[?]

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