Lutz v. Village 2 at New Hope, Inc.

71 Pa. D. & C.2d 595, 1973 Pa. Dist. & Cnty. Dec. LEXIS 15
CourtPennsylvania Court of Common Pleas, Bucks County
DecidedAugust 3, 1973
Docketno. 43935
StatusPublished

This text of 71 Pa. D. & C.2d 595 (Lutz v. Village 2 at New Hope, Inc.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Bucks County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lutz v. Village 2 at New Hope, Inc., 71 Pa. D. & C.2d 595, 1973 Pa. Dist. & Cnty. Dec. LEXIS 15 (Pa. Super. Ct. 1973).

Opinion

GARB, /.,

This is an action instituted in the Court of Common Pleas of Bucks County, Orphans’ Court Division, the undersigned specially presiding, by virtue of a petition to revoke or reform an alleged inter vivos trust and to compel a trustees’ account. Plaintiffs are a group of individuals allegedly all of whom are owners of dwelling units in Village 2 at New Hope, Bucks County, Pa. and members of the Village 2 Homeowners’ Association, an unincorporated association. Defendant, Village 2 at New Hope, Inc., is a corporation with its principal office and place of business at Post Office Box 2222, Village 2, New Hope, Bucks County, Pa. Defendant, First Charter National Bank, is a New Jersey corporation with its principal office and place of business at 1 Rossmoor Drive, Jamesburg, N.J., employing and maintaining a resident trust administrator with an office located at Post Office Box 303, New Hope, Bucks County, Pa. Both defendants have filed extensive preliminary objections to the petition which we decide herein.

By virtue of section 1, rule 1 of the Pennsylvania Supreme Court Orphans’ Court Rules, except where otherwise provided by a rule adopted by the Supreme Court or by an act of assembly, or by gen[597]*597eral rule or special order of the local Orphans’ Court, the pleading and practice in the Orphans’ Court Division shall conform to the rules regarding pleading and practice in equity in the local Court of Common Pleas. Bucks County Orphans’ Court Rule *301.1 provides that, where applicable, the rules applicable to the Court of Common Pleas of Bucks County shall apply and are adopted as Rules of the Orphans’ Court Division. Bucks County Orphans’ Court Rule *302.1 provides that prehminary objections shall be available to any party but shall be limited to questions of law, form or jurisdiction. Pa.R.C.P. 1501 provides that, except as otherwise provided, the procedure in an action in equity shall be in accordance with the rules relating to an action in assumpsit. Under Pa.R.C.P. 1509 it is provided that preliminary objections as authorized by Pa.R.C.P. 1017(b) are available to any party in an action in equity. Therefore, it is appropriate that prehminary objections to the petition be considered by the court raising questions which would be cognizable in an action in equity.

With the exception of a motion for a more specific pleading, the prehminary objections are directed to the very heart of the cause of action pleaded in the petition and, therefore, move, essentially, for summary dismissal. Such prehminary objections admit as true ah well-pleaded material facts set forth in the petition, as well as all inferences reasonably deducible therefrom, but not the pleaders’ conclusions of law: Eden Rock Country Club v. Mullhauser, 416 Pa. 61 (1964), and Lerman v. Rudolph, 413 Pa. 555 (1964). In determining whether such prehminary objections should be sustained, two standards must be borne in mind: (1) the question at issue is not whether the petition is so [598]*598clear in form and specification as to require no amendment before plaintiff is entitled to proceed to trial, but whether, upon the facts averred, the law says with certainty that no recovery is permitted; and, (2) where a doubt exists as to whether such preliminary objection should be sustained, this should be resolved in favor of overruling it: Clevenstein v. Rizzuto, 439 Pa. 397 (1970), and Sacred Heart Hospital v. Lanshe, 445 Pa. 57 (1971).

The petition alleges that petitioners are all owners of dwelling upits in Village 2 and are members of the Village 2 Homeowners’ Association. The petition further pleads that Village 2 at New Hope, Inc. is a corporation with principal office and place ofbusinessinNew Hope, Bucks County, Pa., andis the settlor of all trust agreements referred to in the petition. First Charter National Bank is a New Jersey corporation with principal place of business in New Jersey but with a resident trust administrator in New Hope, Bucks County, Pa., andis the trustee named in all trust agreements referred to therein.

On or about May 27, 1969, it is alleged that Village 2 executed a certain community trust instrument naming First Charter National Bank as trustee, a copy of which instrument is annexed to the petition and incorporated therein. It is alleged that First Charter National Bank did accept delivery of the document and noted its agreement to act as trustee thereon. It is alleged that the trust document contains no language retaining in the settlor a right of revocation and that a mode of termination is specifically set forth in paragraphs 29 through 34, inclusive, therein. The said document, the petition alleges, has never been revoked but rather remains in full force and effect. It is alleged that [599]*599Village 2 is a planned unit development featuring a condominium form of ownership whereby each individual homeowner enjoys aright in common with all other owners and occupants of residences to use and enjoy common lands and facilities within Village 2. Management and maintenance of common lands and facilities is governed by the terms and conditions of the asserted community trust document. It is further alleged that petitioners purchased their dwelling units in Village 2 in reliance upon the terms and conditions of the aforesaid community trust, which was represented to them by various principals and agents of Village 2, as being the instrument which controlled, and will continue to control, the management and maintenance of the common lands and facilities.

The petition alleges that on or about June 26, 1972, Village 2 executed a purported deed of trust for the purposes of empowering respondent, First Charter National Bank, as trustee, to manage and maintain the common lands and facilities of Village 2 at New Hope. A copy of this document is likewise annexed to the petition and incorporated therein. It is alleged that the purported deed of trust is ineffectual and of no legal consequence since it attempts, allegedly, to reconvey the same common lands and facilities which were relinquished to the trustee from settlors by the community trust document of May 27, 1969. It is alleged that the purported trust of June 26, 1972, contained numerous terms and conditions which differ from those set forth in the trust document of May 27, 1969, which are prejudicial to, and inconsistent with, the vested rights of petitioners. It is alleged that defendants lacked the power to alter or amend the earlier community trust when they executed the alleged [600]*600trust of June 26, 1972, and wrongfully contend that the community trust document of May 27, 1969, was revoked. Petitioners allege that they have never ratified or consented to the terms and conditions of the June 26, 1972, trust and have repeatedly demanded from defendants a full and complete account of all funds and property delivered into the possession of defendants as fiduciaries under the community trust but have not received same. Petitioners further contend that they have been denied the benefit of a number of the services to which they were entitled from the trustee under the provisions of the community trust instrument.

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Bluebook (online)
71 Pa. D. & C.2d 595, 1973 Pa. Dist. & Cnty. Dec. LEXIS 15, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lutz-v-village-2-at-new-hope-inc-pactcomplbucks-1973.