Phung, D. v. The Cutler Group

Superior Court of Pennsylvania·Decided August 29, 2018·No. 621 EDA 2017·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

DU PHUNG AND THUR PHUNG : IN THE SUPERIOR COURT OF : PENNSYLVANIA

Appellants :

:

:

v. :

:

:

THE CUTLER GROUP, INC. T/D/B/A : No. 621 EDA 2017 DAVID CUTLER GROUP :

Appeal from the Order Entered January 13, 2017 In the Court of Common Pleas of Montgomery County Civil Division at No(s): 06-27292

BEFORE: STABILE, J., STEVENS*, P.J.E., and STRASSBURGER**, J. MEMORANDUM BY STEVENS, P.J.E.: FILED AUGUST 29, 2018 Appellants, Du Phung and Thur Phung, appeal from the January 13, 2017, order entered in the Court of Common Pleas of Montgomery County granting summary judgment in favor of Appellee, the Cutler Group, Inc., t/d/b/a David Cutler Group, and dismissing Appellants’ complaint in its entirety with prejudice. After a careful review, we affirm.

The relevant facts and procedural history are as follows: On October 30, 2006, Appellants filed a complaint averring that, on September 24, 2000, they signed an agreement of sale with Appellee for the construction of their house. On July 26, 2001, they made settlement on the house, which was constructed by Appellee, and the parties executed a home warranty agreement. As

* Former Justice specially assigned to the Superior Court. ** Retired Senior Judge assigned to the Superior Court.

constructed, the front of the house is clad with brick veneer, while the side and rear elevations are clad with stucco.

Appellants alleged that, on April 1, 2006, they discovered water penetrating the interior of their home through the exterior stucco, resulting in water damage and fungal contamination of the exterior and interior of the house, as well as its contents. Appellants alleged they provided Appellee with notice and a reasonable period to make repairs to the new house, as well as correct the defects, to no avail. Appellants indicated they will incur costs in excess of $100,000.00 to make the repairs. The complaint contained claims of negligence, strict liability, breach of contract, breach of express warranty, breach of statutory and implied warranties, inconvenience/annoyance/discomfort, and consumer fraud.

Appellee filed preliminary objections on November 14, 2006, to which Appellants filed a response on December 4, 2006. However, the trial court did not rule upon the preliminary objections.1 The docket reveals that, on June 19, 2009, the trial court issued a notice to terminate the matter, and on July 2, 2009, Appellants filed a statement of intent to proceed. On October 26, 2011, the trial court issued another notice to terminate, to which Appellants filed a statement of intent to proceed on

1 Relevantly, the trial court explained that “[a]t the time, the local rule required the filing of an argument praecipe by the plaintiffs’ counsel, which was not done.” Trial Court Opinion, filed 4/11/18, at 2 n.1.

November 15, 2011. On December 12, 2013, the trial court again issued a notice to terminate, and on December 13, 2013, Appellants filed a statement of intent to proceed.

Following a discovery management conference in April of 2014, and the parties’ filing of a trial praecipe on October 23, 2015, the trial court placed the case on a standby trial list.

Thereafter, on January 28, 2016, Appellee filed a motion in limine seeking to preclude Appellants’ experts from testifying at trial. Specifically, Appellee averred Appellants’ expert, Jerry Yedinak of Jerry Yedinak Stucco Inspection & Design, did not offer in his report an opinion with the required reasonable degree of professional certainty that a defect in the application of the stucco caused moisture to breach the water resistant nature of the building envelope and/or caused damage to the substrate.

In this regard, Appellee noted that, in his report, Mr. Yedinak indicated that, on August 21, 2006, he inspected the exterior of the home and performed an analysis of the moisture content of the substrate by drilling holes through the exterior stucco cladding. Appellee averred Mr. Yedinak reported an elevated probe reading under the corner of a single window on the left elevation proximate to a rear window and indicated the elevated reading could have been caused by a number of things, including “improper, or the lack of, flashing around windows, as well as possible leaking windows.” Appellee’s Motion In Limine, filed 1/28/16, at 3 (emphasis omitted). Appellee noted that

Mr. Yedinak’s report speculated as to the cause for the elevated moisture reading. Id. Appellee noted Mr. Yedinak did not inspect the interior of the house.

Further, in the motion in limine, Appellee sought to preclude the expert testimony of Marc Conti of Property Damage Services. Appellee argued Mr. Conti, who failed to issue a formal report and relied upon a “price list,” failed to “calculate the cost of the repairs that Mr. Yedinak opined were necessary to remedy the defect[,]” and utilized “the wrong measure of damages[.]” Id. at 4-5.

Appellants filed a response in opposition to Appellee’s motion in limine, and on April 13, 2016, Appellants sought a continuance based on the unavailability of Mr. Yedinak, who was housebound in relation to double hip replacement surgery. Appellants informed the trial court that they would “‘immediately make arrangements for [Mr. Yedinak’s] videotaped trial deposition, so as to prevent any further delay.’” Trial Court Opinion, filed 4/11/18, at 5 (citation to record omitted). The trial court granted the request for a continuance and scheduled argument on the motion in limine for May 4, 2016. However, “Appellants never obtained Mr. Yedinak’s videotaped trial deposition.” Id.

On May 20, 2016, Appellants requested the matter be stricken from the upcoming trial list. Appellants averred that Mr. Conti, their proposed damages expert, had passed away in the week prior and they needed time to obtain a

substitute damages expert. On May 25, 2016, the trial court granted Appellants’ request and directed the case be placed back into the civil trial inventory for November 2016.

Following a telephone conference, as well as the grant of another request for continuance made by Appellants, the trial court scheduled argument on all pre-trial motions for January 10, 2017, with trial to commence on January 17, 2017. Appellants filed a pre-trial statement on January 4, 2017, listing four trial witnesses: themselves (Mr. and Mrs. Phung), Tim Brennan, and Mr. Yedinak. On that same day, Appellee filed two motions in limine.

In one motion, presenting similar arguments as presented in Appellee’s January 28, 2016, motion, Appellee sought the preclusion of Mr. Yedinak’s expert testimony on the basis his opinions lacked the requisite degree of professional certainty.

In the other motion, Appellee sought to preclude the expert testimony of Appellants’ “new” damages expert, Mr. Brennan. Specifically, Appellee argued that, in his report and estimate, Mr. Brennan utilized the wrong measure of damages. Appellee averred Mr. Brennan’s report did not contain an estimate to repair the exterior defects outlined by Mr. Yedinak, and Mr. Yedinak did not inspect the interior of the home, yet Mr. Brennan concluded there is a defect that caused “interior damage identified on the first and second floors from water infiltration.” Appellee’s Motion In Limine, filed 1/4/17, at 2.

Appellee noted that Mr. Brennan first inspected the home fifteen years after it was built and ten years after Mr. Yedinak conducted his testing. Further, Appellee noted that Mr. Brennan’s opinion “merely parrots the findings in the estimate and report” prepared by other experts. Id. at 3. Mr. Brennan’s report, dated July 25, 2016, provided in its entirety as follows (verbatim):

Dear Mr. Wheeler:

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