Morehall Contracting Co. v. Brittany Estates Ltd. Partnership

27 Pa. D. & C.4th 54, 1995 Pa. Dist. & Cnty. Dec. LEXIS 98
CourtPennsylvania Court of Common Pleas, Berks County
DecidedSeptember 1, 1995
Docketnos. 1655-89 A.D., 140-89 M.L.D.
StatusPublished

This text of 27 Pa. D. & C.4th 54 (Morehall Contracting Co. v. Brittany Estates Ltd. Partnership) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Berks County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morehall Contracting Co. v. Brittany Estates Ltd. Partnership, 27 Pa. D. & C.4th 54, 1995 Pa. Dist. & Cnty. Dec. LEXIS 98 (Pa. Super. Ct. 1995).

Opinion

ESHELMAN, J.,

This opinion is in support of our order pursuant to Pa.R.C.P. §1925, which found that plaintiff’s amended mechanic’s lien claim was not divested by the August 6, 1993 sheriff’s sale in the above-captioned matter.

This action was commenced by the plaintiff, Morehall Contracting Company Inc. by a mechanic’s lien filed on February 24,1989. Thereafter, Morehall filed a complaint to obtain judgment upon mechanic’s lien claim with the Court of Common Pleas of Berks County, Pennsylvania on April 10, 1989.

The mechanic’s lien arose out of a construction project on certain real property owned by the defendant Brittany Estates Limited Partnership in Caernarvon Township, Berks County, Pennsylvania. Morehall had performed certain work including excavation, paving and grading work on the property as a subcontractor to Chesterdale Construction. When Chesterdale failed to pay the money owed to Morehall for the work done, Morehall filed the instant action against Brittany as well as breach of contract action against Brittany and Chesterdale.

Brittany responded to Morehall’s complaint by filing preliminary objections in the nature of a demurrer. In its preliminary objections, Brittany argued that the mechanic’s lien should be stricken because the work performed by Morehall was beyond the scope of the Mechanic’s Lien Law of 1963 because it was not incidental to the erection or construction of a building or improvement. Brittany filed no other preliminary objections. By order of this court dated June 13, 1993, Brittany’s preliminary objections were sustained and the mechanic’s lien claim was dismissed without prejudice.

On July 3, 1989, Morehall filed an amended mechanic’s lien claim and an amended complaint to obtain judgment upon mechanic’s lien claim. Brittany once again filed preliminary objections to the amended claim alleging the work performed by Morehall was outside [57]*57the scope of the Mechanic’s Lien Law. Once again, this court sustained Brittany’s demurrer and ordered the amended claim stricken in an order dated September 11, 1989.

On October 6, 1989, Morehall filed a timely notice of appeal to the Pennsylvania Superior Court appealing the dismissal of the amended claim. After briefing and argument by the parties, the Superior Court reversed this court’s order of September 11, 1989. The amended claim was reinstated nunc pro tunc to February 2,1989 pursuant to this court’s order dated November 21,1991.

Following the reinstatement of the amended claim, Brittany filed an answer with new matter to the amended claim. Morehall responded with its reply to new matter on or about January 2, 1992, thereby closing the pleadings in this matter.

On or about February 27,1992, Brittany filed a motion for summary judgment alleging, inter alia, that More-hall’s lien should be stricken because it failed to apportion the lien as to the various improvements on the property. In support of its argument, Brittany argued that Morehall’s lien constitutes an impermissible blanket lien over areas for which Morehall had no contract and performed no work. Those areas referred to were Phases II and III of the property.

Morehall filed a response to Brittany’s motion for summary judgment arguing that the lien was properly filed against the entire tract because no plan of any sort had been filed in the Berks County Court of Common Pleas Recorder of Deeds Office describing the phases of the development and the improvements to be constructed thereon. By order of this court dated April 15,1992, Brittany’s motion for summary judgment was denied. On July 21,1993, a certificate of readiness for trial was filed by Morehall and the case was listed for trial.

[58]*58Subsequent to the filing of the mechanic’s lien claim, Brittany apparently entered into a construction loan agreement with Meridian Mortgage Corporation, MMC. As security for this loan, Brittany executed a promissory note and mortgage in favor of MMC on December 18, 1989 covering Phase I and Phase II of the property at issue herein. Brittany later gave a mortgage to MMC on Phase III of the property as additional security for the agreement.

On January 14, 1992, a series of assignments of Phases I and II mortgage and the Phase III mortgage began whereby MMC assigned the mortgages to Meridian Bank who then assigned them to Meridian Asset Servicing Corporation on June 22, 1993, which in turn assigned the mortgages to petitioner, MASC-PA Properties on August 4, 1993.

Brittany apparently was financially unable to comply with the terms of the construction loan agreement and thereafter defaulted on the agreement, the note and the two mortgages. MASC confesses judgment on the note on April 20, 1993. MASC received a judgment on the note and filed a writ of execution with respect to Phases I and II. A sheriff’s sale took place on August 6, 1993 and MASC, the successor to the mortgage, was the apparent successful bidder. MASC now claims that it is the legal owner of Phases I and II.

MASC filed a petition for allowance to intervene to raise two issues with respect to Morehall’s lien on the property. First, MASC argued that Morehall’s lien with respect to Phases I and II was divested by the August 6, 1993 sheriff’s sale. Second, MASC argues that Morehall’s lien with respect to Phases II and III should be stricken as affecting excess curtilage. This court granted MASC’s petition to intervene and later denied MASC’s preliminary objections by order dated January 11, 1995.

[59]*59Following the denial of MASC’s preliminary objections, Morehall filed a motion for summary judgment arguing that no genuine issue of material fact existed with respect to the lien filed against Brittany Estates. This court granted Morehall’s motion for summary judgment by order dated April 19, 1995, in the amount of $121,058.86.

Thereafter, MASC filed its own motion for partial summary judgment asserting that Morehall’s lien as to Phases I and II was divested-by the sheriff’s sale on MASC’s junior mortgage. MASC’s motion was subsequently denied.

Finally, Valley Ponds Limited Partnership filed a petition seeking intervention in this action based on an assignment of MASC’s interest in the Phase III mortgage. Morehall has opposed Valley Ponds’ intervention unless it is limited to the pursuit of the excess curtilage argument previously raised by Valley Ponds’ assignor, MASC. Valley Ponds attended the trial as interested parties. In ruling, this court denied Valley Ponds ’ petition to intervene.

STIPULATED FACTS

The following facts were stipulated to by counsel for plaintiff and intervenor and were entered into evidence at the time of trial and are hereby incorporated:

(1) On September 27, 1988, plaintiff Morehall Contracting Company Inc. entered into a contract with Chesterdale Construction Company, the Chesterdale contract, pursuant to which Morehall was to perform certain work on certain real property owned by defendant Brittany Estates Limited Partnership, which property is situate in Caernarvon Township, Berks County, Pennsylvania. A true and correct copy of the Chesterdale contract, together with copies of all exhibits and drawings incorporated therein by reference, is attached hereto as exhibit “A.”

[60]*60(2) The property is more particularly described in that certain deed dated October 21, 1987 from Nathan G. Stoltzfus and Marian R.

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Bluebook (online)
27 Pa. D. & C.4th 54, 1995 Pa. Dist. & Cnty. Dec. LEXIS 98, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morehall-contracting-co-v-brittany-estates-ltd-partnership-pactcomplberks-1995.