Realen Valley Forge Greenes Associates v. Timoney

11 Pa. D. & C.5th 87
CourtPennsylvania Court of Common Pleas, Montgomery County
DecidedDecember 22, 2009
Docketno. 05-09127
StatusPublished

This text of 11 Pa. D. & C.5th 87 (Realen Valley Forge Greenes Associates v. Timoney) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Montgomery County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Realen Valley Forge Greenes Associates v. Timoney, 11 Pa. D. & C.5th 87 (Pa. Super. Ct. 2009).

Opinion

DRAYER, J.,

The dispute between the parties involves the development of the Valley Forge Golf Course in Upper Merion Township, Pennsylvania. The Hankin Family Partnership1 owned 135 acres of undeveloped land in Upper Merion Township, Montgomery County, Pennsylvania. Because the property was zoned “AG” under Upper Merion Township’s zoning code, it has been used as the Valley Forge Golf Club. In June of 1996, the receiver entered into an agreement to sell the golf course property to Realen Valley Forge Greenes Associates2 for $23,000,000 contingent upon Realen obtaining the right to develop it for commercial purposes, either through a rezoning or through a successful challenge to the validity of the existing agricultural zoning (1996 purchase agreement). This agreement was first amended in 1997 (1997 amended purchase agreement).

[89]*89In 1997, Realen submitted to the Township Zoning Hearing Board a substantive challenge to the validity of the AG zoning of the golf course property that was opposed by the Upper Merion Board of Supervisors. In support of its challenge, Realen submitted two alternative site plans for the development of the golf course property. These plans have been generally known throughout this litigation as plan A and plan B. The ZHB rejected the Realen challenge in a decision dated August 13,1999. Realen unsucessfully appealed the ZHB decision to the Court of Common Pleas of Montgomery County and to the Commonwealth Court.

In January of 2001, Realen, the receiver and Marc Kaplin, Esquire, counsel at that time for Realen, entered into a joint prosecution agreement under which Mr. Kaplin on behalf of Hankin and Realen was to prosecute additional causes of action in the state court under the Pennsylvania Eminent Domain Code and federal court under the Civil Rights Act (collectively, “additional actions”). In March and April of 2001, these additional actions were commenced.

On or about July 1,2002, Realen told the receiver that it was unwilling to comply with the provisions of the existing purchase agreements to gain extensions to the agreement.

On July 3, 2002 Realen filed a petition for allocatur with the Supreme Court. Between July 2002 and May 2003 there were extensive negotiations relating to amending the 1997 purchase agreement.

On February 13,2003, Realen and the receiver signed an amendment to the purchase agreements. On March 3, [90]*902003, the receiver filed a petition asking this court, inter alia, to consider the amended agreement of sale that had been signed (receiver’s petition).3

On April 11, 2003, the Pennsylvania Supreme Court granted allocatur to review the ZHB denial of the Realen challenge and the lower court decisions sustaining that denial. On May 8,2003, after a hearing on the receiver’s petition, Realen and the receiver executed the second amendment amending and fully restating the purchase agreement dated June 19,1996 and the first amendment thereto executed in October 1997 (2003 second amended purchase agreement) and an amended and restated agreement concerning representation and joint prosecution (amended joint prosecution agreement). Like the 1996 and 1997 purchase agreements, the 2003 second amended purchase agreement contained provisions for Hankin to receive an additional purchase price.

In December of 2003, the Supreme Court issued a ruling in favor of Realen holding that the AG zoning of the golf course property was invalid and remanded the case to the Court of Common Pleas for implementation of the development of either plan A or plan B .In re Appeal of Realen Valley Forge Greenes Associates, 576 Pa. 115, 838 A.2d 718 (2003).

On June 4, 2004, before any final approvals in connection with the development had been obtained, Realen advised the receiver that they elected to close on the property on June 24, 2004. On June 24, 2004, Realen [91]*91closed on the property and paid the sum of $27,046,106.56 to Hankin.

In the fall of 2004, Realen and Mr. Kaplin took steps to stay the additional actions without the consent of the receiver. See exhibits P-91 throughtP-94. OnNovember 30,2004, the receiver sent a letter to counsel for Realen objecting to the stays. In that letter, the receiver states:

“If it develops that the one-year period for measuring increased consideration to the sellers is measured not from the date of the issuance of original permits to Realen, but rather, from the date of settlement, in that improbable event we wish to make it clear that we are of the opinion that the stay of proceedings tolls the running of that one-year period.” (Exhibit P-95.)

On December 9,2004, counsel for Realen sent a letter to the receiver stating that Realen was within its authority to stay the additional actions with the township and that the time period for determining additional purchase price was running and would expire on June 24, 2005. On March 14,2005, the receiver asked us to consider an order to lift stays and resolve disputes. Nothing was ever filed in connection with this request.

On March 18, 2005, Realen commenced this action against Hankin by filing a complaint for a declaratory judgment. The relief requested was to have us declare that:

“(a) Any additional purchase price under the purchase agreement4 must be determined as of June 24, 2005;

[92]*92“(b) The determination of an amount of additional purchase price is limited to those aspects of the development of the golf course property for which final approvals have been obtained as of June 24, 2005;

“(c) If Realen does not obtain any final approvals by June 24, 2005, Realen will not be required to pay any additional compensation at that time nor at any time thereafter.”

On March 21, 2006, Realen filed a motion to amend the complaint. On February 29, 2008, we granted leave to amend the complaint and the amended complaint was filed on April 9, 2008.

The amended complaint contained an additional request for relief:

“(d) Realen has the present right to settle the additional actions (United States District Court for Eastern District of Pennsylvania, docket no. 01-cv-1622 and Montgomery County Court of Common Pleas docket no. 01-6978) without payment of money by the Township to defendants without their consent and prior to paying additional purchase price, if any is found to be due.”

DISCUSSION

We first will consider the issues relating to the 2003 second amended purchase agreement and the payment of an additional purchase price. By order of June 1,2005, we found that an ambiguity existed in sub-paragraph 2A(c) of the 2003 second amended purchase agreement in setting a deadline for determining if Realen would owe an “additional purchase price” to Hankin for higher density development of the property.

[93]*93Sub-paragraph 2A(c) states that “It is contemplated that before the closing date occurs the purchaser [Realen] will have obtained final approvals for all aspects of the development that the purchaser will construct on the property.” In fact, in June of 2004, Realen elected to complete the closing even though no final approvals for the development of the property had been obtained.

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Related

Casey v. ZONING HEAR. BD. OF WARWICK TP.
328 A.2d 464 (Supreme Court of Pennsylvania, 1974)
Capek v. Devito
767 A.2d 1047 (Supreme Court of Pennsylvania, 2001)
Robert F. Felte, Inc. v. White
302 A.2d 347 (Supreme Court of Pennsylvania, 1973)
In Re Appeal of Realen Valley Forge Greenes Associates
838 A.2d 718 (Supreme Court of Pennsylvania, 2003)
Trombetta v. Raymond James Financial Services, Inc.
907 A.2d 550 (Superior Court of Pennsylvania, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
11 Pa. D. & C.5th 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/realen-valley-forge-greenes-associates-v-timoney-pactcomplmontgo-2009.