Peruto, A. v. Catalyst Outdoor Adv.

CourtSuperior Court of Pennsylvania
DecidedJanuary 13, 2021
Docket2913 EDA 2019
StatusUnpublished

This text of Peruto, A. v. Catalyst Outdoor Adv. (Peruto, A. v. Catalyst Outdoor Adv.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peruto, A. v. Catalyst Outdoor Adv., (Pa. Ct. App. 2021).

Opinion

J-S35003-20

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37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. J-S35003-20

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.

-2- J-S35003-20

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

-3- J-S35003-20

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

-4- J-S35003-20

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

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