Marra v. Burgdorf Realtors, Inc.

726 F. Supp. 1000, 1989 U.S. Dist. LEXIS 14567, 1989 WL 147028
CourtDistrict Court, E.D. Pennsylvania
DecidedDecember 6, 1989
DocketCiv. A. 89-4717
StatusPublished
Cited by8 cases

This text of 726 F. Supp. 1000 (Marra v. Burgdorf Realtors, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marra v. Burgdorf Realtors, Inc., 726 F. Supp. 1000, 1989 U.S. Dist. LEXIS 14567, 1989 WL 147028 (E.D. Pa. 1989).

Opinion

MEMORANDUM OPINION

CAHN, District Judge.

Lawrence Marra, Sr. (“Marra”) 1 , has filed a complaint alleging that the defendant, Burgdorf Realtors, Inc. (“Burgdorf”), and its agent, Art Morgan, committed fraud and violated portions of the Pennsylvania Unfair Trade Practices and Consumer Protection Law, 73 Pa.Stat. Ann. §§ 201-1 to 209-6 (Purdon 1971 & Supp. 1989) (“UTPCPL”), and the Pennsylvania Real Estate Licensing and Registration Act, 63 Pa. Stat. Ann. §§ 455.101-.902 (Purdon Supp.1989) (“RELA”). Burgdorf has moved to dismiss the complaint for failure to state a claim or, in the alternative, for failure to join an indispensable party. For the reasons below, this motion is granted.

*1002 1. FACTUAL BACKGROUND

The facts, as alleged in Marra’s complaint, are as follows. Marra, a Pennsylvania citizen and resident, has long engaged in the purchase, sale, rental, and development of real property. Complaint, MI 1, 4. Many of the properties purchased by Marra have been held in trust for members of Marra’s family; while they were the titleholders of record, they had executed deeds and other documents to Marra for all such properties. Complaint, MI 4, 5. All proceeds from the sale of these properties were paid to Marra. Complaint, 115. Marra averages several sales each month. Complaint, 116.

In March and April of 1985, Marra listed some properties with Art Morgan, a real estate broker then with Coldwell Banker Real Estate. Complaint, 118. The arrangement was ended shortly after. Complaint, 119. Sometime later, Morgan became associated with Burgdorf, a corporation incorporated under New Jersey law with its principal place of business in Cherry Hill, New Jersey. Complaint, MI 3, 10. As a Burgdorf employee, Morgan proposed to Marra that Marra list certain properties with Burgdorf. Complaint, 1111. Marra declined, advising Morgan that all properties titled in the names of Marra, Jr. and L.M.J., Inc. were in fact owned by Marra and that there was a lis pendens on all Lehigh County property titled in the names of Marra, Jr. and L.M.J., Inc. Id.

The result is predictable to those who recall King Lear. 2 On May 25, 1989, Marra, Jr. telephoned Marra's manager and told him that Morgan had sold two parcels of land titled in Marra, Jr.’s name but in fact owned by Marra. Complaint, H 12. At least one other property owned by Marra is listed for sale by Burgdorf; though Burgdorf has been apprised of Morgan’s conduct, it has made no attempt to prevent Morgan from listing or selling any properties owned by Marra. Complaint, MI 13,14.

Fortunately for Marra, the American legal system spared him the fearful expedient of, Lear-like, wandering madly across the countryside (though he might, of course, have muttered “How sharper than a serpent’s tooth it is/To have a thankless child!”). 3 Instead, he sued. The action here names Burgdorf as the sole defendant. In the first count, Marra alleges that Morgan’s sale and attempted sale of properties owned by Marra constituted “gross negligence, willful fraudulent activity and reckless disregard of Plaintiff’s rights.” Complaint, 1116. In the second count, Marra invokes the UTPCPL, averring that Burgdorf’s decision to list Marra’s properties without Marra’s consent was fraudulent and created a likelihood of misunderstanding or confusion, which would violate the statute. Complaint, ¶ 18. Finally, in the third count Marra maintains that the defendant violated several clauses of section 455.604 of RELA. First, Marra alleges that Morgan, Burgdorf’s agent, made “substantial misrepresentations as to the ownership of property.” Second, Morgan allegedly made “a false promise of a character likely to influence, p[e]rsuade or induce another person to enter into a contract or agreement when it could not or did not intend or was not able to keep such promise.” Third, Morgan pursued “a continued and flagrant course of misrepresentation or ma[de] up false promises through a salesperson.” Fourth, Morgan made “misleading and untruthful advertising.” Fifth, Morgan placed “a ‘For Sale’ sign on a property without the written consent of the owner or his authorized agent.” Complaint, H 21. Moreover, Marra alleges that Burgdorf failed “to exercise adequate supervision over the activities of their licensed salespersons or associated brokers[,] namely Art Morgan.” Complaint, *1003 ¶ 22. 4 This court has jurisdiction under 28 U.S.C. § 1332.

II. DISCUSSION

A. Failure to Join an Indispensable Party

Burgdorf argues that Marra, Jr. is an indispensable party to these proceedings because adjudication of this case would necessarily prejudice him, while dismissal would not deny Marra remedies. Since Marra, Jr. is concededly a Pennsylvanian, joinder would destroy diversity. Accordingly, it argues, all counts should be dismissed. This court substantially agrees with Burgdorf, though Marra, Jr. is dispensable from part of Count III.

Fed.R.Civ.P. 12(b)(7) makes failure to join a party under Rule 19 a basis for a motion to dismiss. Rule 19, in turn, sets up a two-part test. See, e.g., Bank of Am. Nat’l Trust and Sav. Ass’n v. Hotel Rittenhouse Assocs., 844 F.2d 1050, 1053-54 (3d Cir.1988); Bonar, Inc. v. Schottland, 631 F.Supp. 990, 998-99 (E.D.Pa.1986). 5 First, under Rule 19(a), the court must determine whether the person in question should be joined. The standard is set out in the rule:

A person ... shall be joined as a party in the action if (1) in the person’s absence complete relief cannot be accorded among those already parties, or (2) the person claims an interest relating to the subject of the action and is so situated that the disposition of the action in the person’s absence may (i) as a practical matter impair or impede the person’s ability to protect that interest or (ii) leave any of the persons already parties subject to a substantial risk of incurring double, multiple, or otherwise inconsistent obligations by reason of the claimed interest.

If the person must be joined but cannot be made a party, then the second part of the test, found in Rule 19(b), must be applied. Field v. Volkswagenwerk AG, 626 F.2d 293, 300 (3d Cir.1980). Under it, “the court shall determine whether in equity and good conscience the action should proceed among the parties before it, or should be dismissed, the absent person being thus regarded as indispensable.” Fed.R.Civ.P. 19(b). The rule lists four factors to consider.

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Cite This Page — Counsel Stack

Bluebook (online)
726 F. Supp. 1000, 1989 U.S. Dist. LEXIS 14567, 1989 WL 147028, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marra-v-burgdorf-realtors-inc-paed-1989.