Scarpignato, M. v. Xue, S.

CourtSuperior Court of Pennsylvania
DecidedFebruary 2, 2023
Docket1481 EDA 2022
StatusUnpublished

This text of Scarpignato, M. v. Xue, S. (Scarpignato, M. v. Xue, S.) 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
Scarpignato, M. v. Xue, S., (Pa. Ct. App. 2023).

Opinion

J-A01001-23

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

MICHAEL SCARPIGNATO : IN THE SUPERIOR COURT OF : PENNSYLVANIA : v. : : : SABRINA YA XUE : : Appellant : No. 1481 EDA 2022

Appeal from the Judgment Entered April 20, 2022 In the Court of Common Pleas of Delaware County Civil Division at No(s): CV-2020-002552

BEFORE: LAZARUS, J., NICHOLS, J., and McCAFFERY, J.

MEMORANDUM BY McCAFFERY, J.: FILED FEBRUARY 02, 2023

Sabrina Ya Xue (Buyer) appeals from the April 20, 2022, judgment

entered after the trial court, in a non-jury verdict, found in favor of Michael

Scarpignato (Seller). This case concerns a contract between the parties for

the purchase and sale of property located in Wallingford, Pennsylvania. The

court found both parties breached the contract based on their conduct over a

two-year period. On appeal, Buyer claims the court erred: (1) by raising

certain defenses sua sponte after the record was closed and rejecting her

claims based on those defenses; and (2) by finding the “mutual mistake”

doctrine voided the contract, Buyer materially breached the contract by not

adequately communicating with Seller regarding “extras,” and by not paying

for those extras within an allotted time. Based on the following, we affirm. J-A01001-23

The trial court summarized the stipulated facts and procedural history

as follows:

[Seller] is the owner of premises [at] 507 Hastings Avenue, Wallingford, Delaware County, PA (hereinafter “Property” or “the Property”). [Buyer] entered into a written Agreement of Sale contract on May 18, 2017, with [Seller], pursuant to which [Seller] agreed to sell to [Buyer] and [Buyer] agreed to purchase from [Seller], the Property [for approximately $400,000].

[Buyer] paid purchase price deposits totaling $15,000 (hereinafter “Initial Deposit) to be held by [Seller]’s real estate agent pursuant to the Agreement of Sale. At the time the Agreement of Sale was executed, Property was in a state of disrepair and in need of substantial rehabilitation and renovation.

As set forth in the Agreement of Sale, [Seller] and [Buyer] agreed to approve specifications for the rehabilitation and renovation of the Property, and [Buyer] was required to pay additional non-refundable deposits (hereinafter “Additional Deposits”) for any “extras” requested by [Buyer] which were not contained in the aforementioned specifications.

On May 25, 2017, [Buyer] approved and executed the specifications sheet, detailing planned specifications for the renovation, as required.

[Seller] undertook rehabilitation and renovation of the Property. According to Testimony, [Seller] advanced labor and assumed costs for extras that were not reimbursed by [Buyer], nor did [Buyer] pay any Additional Deposits.

On September 12, 2019, [Seller] provided [Buyer] with a list of alterations titled “Extras to date: 9/12/19” stating that additional deposits were required at that time in the amount of $20,308. The document stated that funds were to be made available within 72 hours.

On September 18, 2019, [Seller] advised [Buyer] that he was terminating the Agreement of Sale for Breach of Contract related to Section 32(B)(2) of the Agreement of Sale which states that Seller will require non-refundable deposits for any “extras”

-2- J-A01001-23

that were not signed off on or agreed to in the final plans and Specs.

Subsequent to [Seller]’s declaration of default of contract, [he] has further renovated and altered the house to his family’s specifications, and his family permanently resides there with the benefit of the improvements, labor and materials many of which had been discussed with [Buyer].

In his [July 13, 2020] Complaint and through his Testimony, [Seller] contended that [Buyer]’s breach of the Agreement of Sale was a material breach. [Seller] requested [that he be able to retain] the $15,000 initial deposit made by [Buyer] as damages for [her] alleged material breach of the Agreement of Sale.

Trial Ct. Op., 6/15/22, at 2-3.

Seller also requested $50,000 for pecuniary loss as a result of

being deprived of payment for labor, materials, carrying costs

associated with Buyer’s requested extras beyond the approved

specifications.

Buyer filed an answer with new matter and counterclaims, alleging

breach of contract requesting the return of her $15,000 deposit, and

$50,000 in damages. She further sought a declaratory judgment as to

the return of her deposit, specific performance, and an order that Seller

transfer the Property to her after she pays all contractually required

amounts. Seller subsequently filed an answer with new matter to

Buyer’s counterclaims.

A Non-Jury Trial was held on January 10, 2022. Subsequent to . . . the Findings of Fact and Conclusions of Law and Memorandums submitted to the Court, this Court issued a Verdict on February 1, 2022. In that Verdict, this Court found that:

-3- J-A01001-23

a. The language in the Agreement of Sale was patently ambiguous.

b. Both parties to this contract committed a material breach and the law will give relief to neither.

c. No remedy of specific performance is available.

d. The escrowed $15,000 with no interest, was ordered to be released and paid to [Buyer], and each party was to assume their own costs and attorney fees. This Court found that neither party had any more duties under the contract.

e. All other claims and cross claims of both parties were denied and dismissed.

Trial Ct. Op. at 4 (emphasis added). Buyer filed post-trial motions, which

were denied on March 16, 2022. Seller then filed a praecipe for entry of

judgment on April 20, 2022. This appeal followed.

Buyer raises the following issues on appeal:

1. [Seller] did not assert or litigate certain defenses [to Buyer’s counterclaims]. Did the trial court err by raising those defenses sua sponte after the record closed and rejecting claims based on them?

2. Did the trial court err by ruling that: (1) the “mutual mistake” doctrine voided the contract; (2) [B]uyer materially breached the contract by not adequately communicating with [S]eller regarding “extras”; and (3) [B]uyer materially breached the contract by not paying the “extras” invoice within 72 hours?

Buyer’s Brief at 4.

Based on the nature of Buyer’s arguments, we will address them

together. Buyer alleges: “[T]he trial court had two distinct and independent

bases for denying money damages or specific performance: (1) that Buyer’s

alleged failure to communicate about ‘extras’ clearly was a material breach;

-4- J-A01001-23

and (2) that the communication issues created a ‘mutual mistake’ justifying

voiding the contract.” Buyer’s Brief at 22. Buyer first argues that the trial

court sua sponte raised defenses that Seller never relied on and did not raise

— in a new matter to her counterclaims — specifically, Buyer’s purported

failure to communicate and the “mutual mistake” doctrine. See id. at 23.

She states that “Seller’s only argument was that he was entitled to terminate

the [Agreement of Sale c]ontract for non-payment of the ‘extras’ invoice.” Id.

at 26-27. Buyer alleges the “court came up with [these defenses] after the

close of evidence and the parties’ opportunity to submit post-trial briefing.”

Id. at 23 (emphasis in original).

Next, Buyer complains that none of the defenses raised by the trial court

had merit. See Buyer’s Brief at 27. She states there was no material breach

on her part for two reasons: (1) she did not breach the contract “at all” as she

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