Phelps, N. v. Caperoon, L.

190 A.3d 1230
CourtSuperior Court of Pennsylvania
DecidedJune 18, 2018
Docket873 MDA 2017; 923 MDA 2017
StatusPublished
Cited by23 cases

This text of 190 A.3d 1230 (Phelps, N. v. Caperoon, L.) 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
Phelps, N. v. Caperoon, L., 190 A.3d 1230 (Pa. Ct. App. 2018).

Opinion

OPINION BY NICHOLS, J.:

Appellant/Cross-Appellee Nikos Floros Phelps (Buyer) appeals from the judgment entered following a bench trial on his claims under the Real Estate Seller Disclosure Law (RESDL), 1 Unfair Trade Practices and Consumer Protection Law (UTPCPL), 2 and fraudulent misrepresentation against Appellee/Cross-Appellant Louis L. Caperoon (Seller). Seller, in turn, cross-appeals from the order granting summary judgment in favor of Buyer on his RESDL claim. We affirm in part, reverse in part, and remand for further proceedings, as set forth below.

The trial court set forth the relevant facts below:

This matter stems from a residential real estate transaction between [Buyer] and [Seller]. The subject property is located at ... Parkway East, Lower Paxton Township, Dauphin County, Pennsylvania (hereinafter "the Property"). The Property consists of a 165 year-old, 1,888 square-foot, two (2) story single family home, with an unfinished basement, together with several outbuildings (barn, garage, greenhouse structures) on 7.98 acres of land. After negotiating, the parties agreed that [Buyer] would lease the Property for a period of six (6) months, and at the end of the lease term, [Buyer] would purchase the property. On June 30, 2010, the parties executed an Agreement of Sale contemporaneous with a lease agreement.

Trial Ct. Op., 8/1/17, at 1-2.

Prior to signing the Agreement of Sale, Buyer inspected the Property three times. R.R. at 52a-53a. 3 During his inspections, Buyer testified he asked Seller if there was anything he needed to know and Seller responded that "everything was fine. There was nothing to be concerned with." Id. at 54a. Buyer acknowledged that he chose not to hire a property inspector and that he was aware that a seller should provide a RESDL disclosure statement. Id. at 145a. Buyer stated he did not find it unusual that Seller did not provide a RESDL disclosure statement in this case. Id.

Paragraph 11 of the Agreement of Sale provided as follows:

Inspection of Premises -Buyer certifies that he has personally inspected the premises, or has caused it to be inspected in a manner satisfactory to him. Buyer agrees that the property is in satisfactory condition and repair. Buyer hereby acknowledges that he is purchasing the property "as is". Buyer expressly waives any and all implied warranties to which the Buyer might be entitled, *1234 and acknowledges that he was given no express warranties.

Id. at 16a.

Buyer lived at the Property for six months under the lease. It was only after Buyer purchased the Property, however, that he discovered numerous deficiencies, including a deteriorated septic system requiring replacement; a cracked furnace heat exchanger; leaky roof; flawed electrical wiring; water damage from a never-connected washer drain; and various issues associated with the improper removal of load-bearing walls and heating ducts. 4 See generally Compl., 1/8/13, at ¶ 7.

Buyer sued Seller, raising three claims: (1) violation of RESDL; (2) violation of UTPCPL; and (3) fraudulent misrepresentation. With respect to his first claim, Buyer averred that Seller failed "to disclose material defects," in the disclosure form required by RESDL. Compl., 1/8/13, at ¶¶ 4, 9. With respect to his claim for RESDL damages, Buyer alleged as follows:

The total damages suffered by [Buyer] as a result of [Seller's] failure to disclose material defects, as required by [RESDL] are unknown precisely, as [Buyer] continues to investigate the best and most cost-effective solutions to the various problems, but said damages are currently estimated to be approximately $120,000.00. [Buyer] reserves the right to supplement this averment as his investigation continues.

Compl., 1/8/13, at ¶ 9; id. ad damnum cl.

Seller admitted that he did not provide Buyer a RESDL disclosure form. Answer, 5/6/13, at ¶ 4. Seller further averred that he "did not disclose any of the material defects alleged [by Buyer] solely because no such defects existed or were known to [Buyer] at the time the Agreement of Sale was entered into." Id. Seller additionally asserted that no disclosure was required because it was a sale of commercial property. Id. at ¶ 9.

At the close of discovery, Buyer moved for partial summary judgment on Seller's liability under RESDL. Seller filed an answer and cross-motion for summary judgment on all of Buyer's claims. Buyer, in turn, filed an answer in opposition to Seller's cross-motion.

Following a hearing, the trial court denied Seller's cross-motion and granted Buyer's motion for partial summary judgment on Buyer's liability under RESDL. The court reasoned that the "provisions of the [RESDL] cannot be waived." Order, 4/23/15. The court ordered that Seller "is liable to [Buyer] for all damages, if any, resulting from the material defects alleged in [Buyer's] Complaint, in an amount to be proven by [Buyer] at trial." Id.

On December 13 and 29, 2016, the trial court held a bench trial. 5 Buyer did not orally move for or file a motion for a directed verdict at the close of evidence.

On May 4, 2017, the trial court awarded damages of $39,065.02 to Buyer for Seller's violation of RESDL with respect to "(1) the defective roof and resulting water damage; and (2) re-wiring of the electric which resulted in hidden junction boxes and open air splices." 6 Memo. Op. & Order, 5/4/17, at 13. The court found in favor *1235 of Seller on Buyer's remaining claims of UTPCPL and fraudulent misrepresentation. Id.

Buyer filed a timely post-trial motion that, in relevant part, challenged the trial court's award of RESDL damages. Buyer claimed that the court miscalculated RESDL damages and did not consider whether he was entitled to additional damages of $194,692.82, representing consequential and difference-in-value damages under Skurnowicz v. Lucci , 798 A.2d 788 , 795 (Pa. Super. 2002). 7

The trial court denied Buyer's post-trial motion on May 24, 2017, before Seller filed a response. The court formally entered judgment on May 30, 2017, and Buyer timely appealed on May 31, 2017.

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Bluebook (online)
190 A.3d 1230, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phelps-n-v-caperoon-l-pasuperct-2018.