Peruto, A. v. Catalyst Outdoor Adv.

Superior Court of Pennsylvania·Decided January 13, 2021·No. 2913 EDA 2019·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

A. CHARLES PERUTO, JR. : IN THE SUPERIOR COURT OF : PENNSYLVANIA

:

v. :

:

:

CATALYST OUTDOOR ADVERTISING, :

LLC., AND THADDEUS BARTKOWSKI :

III : No. 2913 EDA 2019 :

:

APPEAL OF: CATALYST OUTDOOR :

ADVERTISING, LLC. :

Appeal from the Judgment Entered August 28, 2019 In the Court of Common Pleas of Philadelphia County Civil Division at No(s): No. 170901962

BEFORE: BOWES, J., STABILE, J., and COLINS, J.* MEMORANDUM BY BOWES, J.: Filed: January 13, 2021 Catalyst Outdoor Advertising, LLC (“Catalyst”) appeals from the judgment in favor of A. Charles Peruto, Jr.1 After review, we affirm.

We summarize the factual history as recited by the trial court. The controversy between Catalyst and Mr. Peruto arises from an earlier dispute between Mr. Peruto and Santander Bank. Mr. Peruto is a practicing attorney who filed a lawsuit in federal court against Santander Bank and Meridian

* Retired Senior Judge assigned to the Superior Court.

1Catalyst purports to appeal from the denial of post-trial motions. The appeal properly lies from the judgment. Thom v. CDM Auto Sales, 221 A.3d 681, 683 (Pa.Super. 2019). We have amended the caption accordingly.

Capital Group, LLC, over a $267,000 prepayment penalty on a loan from Santander. See A. Charles Peruto, Jr. v. Santander Bank, N.A. and Meridian Capital Group, LLC, Case 2:16-cv-04092-GEKP (E.D. Pa.). Mr. Peruto’s complaint against Santander was dismissed with prejudice on October 24, 2016. Following that dismissal, Mr. Peruto embarked on a campaign to raise public awareness of his grievances with Santander. See N.T. Bench Trial, 6/20/19, at 55. To that end, he organized public demonstrations outside of several Santander Bank branches with thirty-five or more people in attendance. Id.

In addition to the foregoing, Mr. Peruto decided to take out a billboard advertisement vilifying Santander, something to the effect of “Santander: The Bank that Robs You.” Id. at 28. Mr. Peruto knew that many mainstream advertising companies would be unwilling to run what he candidly admitted was an outrageous advertisement. Id. at 8-9, 28. He charged his son, A. Charles Peruto, III (hereinafter “Chaz Peruto”) with the task of finding a company that would perform the service. Id. at 7. Chaz Peruto was directed to Catalyst, an advertising company that operates billboards in the Philadelphia area. He and Thaddeus Bartkowski, CEO of Catalyst, discussed a four-week advertising contract at the price of $25,000. Mr. Peruto testified at trial that he had previously placed billboard advertisements and that they typically only cost $2,000 to $6,000. Id. at 29.

On October 18, 2016, Chaz sent an email to his father in which he reported that Catalyst agreed to run the advertisement, but with several caveats. Id. at 9. Catalyst wanted to use a digital billboard as it was easier to remove than a physical one, and it would likely be removed in a few days. Additionally, Catalyst would have the final say over the content of the copy. Id. According to Chaz, his father was willing to pay the $25,000 upfront because Catalyst was willing to charge them only for the days the advertisement was actually displayed. Id. at 10. According to Mr. Peruto, despite the $25,000 price, he knew he “was only going to spend another two or 3,000 [dollars] to get [Santander] to the table to negotiate with me. I wasn’t going to spend another [$]25,000.” Id. at 31.

Thereafter, Catalyst e-mailed a contract to Chaz Peruto consisting of thirteen paragraphs that did not include a term about paying on a per diem basis if the advertisement was removed prior to a month, although the parties had discussed such a provision. Id. at 11. After Chaz Peruto expressed concern over the omission, Catalyst sent a revised contract on October 31, 2016, which added the following fourteenth paragraph:

[Catalyst] has the right to approve advertising copy. In the event [Catalyst] needs to remove advertising copy, [Mr. Peruto] will only be billed for the days that [his] advertisements appeared on the units.

Id. at 12-13; see also Def. Motion, 8/5/19, Ex. A. According to Chaz, this paragraph added by Catalyst functionally memorialized in writing his understanding of the agreement, and specifically, his father’s understanding

that he would pay for the advertisement at a per diem rate. See N.T. Bench Trial, 6/20/19, at 14.

On November 1, 2016, Chaz signed the credit card form authorizing Catalyst to charge Mr. Peruto $25,000 for the advertisement. Catalyst sent Mr. Peruto several proposed designs, and he agreed to a format that included a design and the phrase “Santander: The Bank that Robs You.” Id. at 29. Mr. Peruto did not realize at the time that design used in the advertisement was the Santander logo or that it was trademark protected. Id. The agreed- upon advertisement was displayed on Catalyst’s electronic billboard beginning on Friday, November 4, 2016. Id. at 24.

On November 5, 2016, Mr. Peruto was contacted by an attorney for Santander Bank. Id. at 30. The attorney informed Mr. Peruto that the design on the billboard was Santander’s logo. Mr. Peruto accepted service of a complaint in New Jersey and appeared in federal court on Monday, November November 7, 2016, where he was informed that his improper use of Santander’s logo subjected him to a fine of $250,000 per day, and that the fine already totaled $750,000 for the three days the advertisement had appeared. Id. Immediately thereafter, Mr. Peruto called his son and directed him to immediately arrange for the removal of the advertisement. Id.

Chaz informed Mr. Bartkowski of Catalyst that his father had been named in a lawsuit that day, and that the advertisement had to be removed. Id. at 15. Catalyst agreed to do so at once. Id. at 24. Chaz Peruto received

confirmation from Catalyst on Wednesday that the advertisement had been removed. Id. at 24, 30.

Although Mr. Peruto expected to be charged only for the three days that the advertisement actually ran, he subsequently received a credit card bill that did not reflect any credit or refund for the unused portion of the $25,000 he originally paid. Id. at 30-31. Chaz testified that when Mr. Bartkowski eventually responded to his inquiries, Mr. Bartkowski stated that since Catalyst was not forced to take down the billboard, Mr. Peruto would be charged the full $25,000. Id. at 16. That was not consistent with Chaz’s understanding of the agreement. Id. At trial, Mr. Peruto testified that he and Mr. Bartkowski had a “complete understanding” that he was not going to be charged $25,000 as “no way was this billboard saying something that outrageous in such a prevalent spot would be up for a month.” Id. at 31.

On September 18, 2017, Mr. Peruto filed this action against Catalyst.

Mr. Peruto alleged Catalyst breached the contract by charging him the full $25,000 rather than the pro rata amount that the parties had agreed to per paragraph fourteen of the contract. The Commerce Court referred the matter to compulsory arbitration. Arbitrators awarded Mr. Peruto $22,321.45, an amount reflecting the refund he should have received since the advertisement had run only for three days.

Catalyst appealed the arbitration ruling to the court of common pleas.

Catalyst filed a motion for summary judgment in which it alleged that the

agreement was fully integrated, did not contain a pro rata provision, and unambiguously provided for a $25,000 charge for the billboard. The trial court denied summary judgment, concluding that there were genuine issues of material fact on the face of the contract.

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