Stinger, W. v. Chesapeake Appalachia

CourtSuperior Court of Pennsylvania
DecidedDecember 15, 2014
Docket831 WDA 2014
StatusUnpublished

This text of Stinger, W. v. Chesapeake Appalachia (Stinger, W. v. Chesapeake Appalachia) 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
Stinger, W. v. Chesapeake Appalachia, (Pa. Ct. App. 2014).

Opinion

J-S64038-14

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

WALTER R. STINGER, SR. IN THE SUPERIOR COURT OF PENNSYLVANIA Appellant

v.

CHESAPEAKE APPALACHIA, LLC

Appellee No. 831 WDA 2014

Appeal from the Order Entered April 29, 2014 In the Court of Common Pleas of Greene County Civil Division at No(s): AD-860-2010

BEFORE: GANTMAN, P.J., BENDER, P.J.E., and LAZARUS, J.

MEMORANDUM BY GANTMAN, P.J.: FILED DECEMBER 15, 2014

Appellant, Walter R. Stinger, Sr. (“Mr. Stinger”), appeals from the

order entered in the Greene County Court of Common Pleas, which granted

the petition of Appellee, Chesapeake Appalachia, LLC (“Chesapeake”), to

enforce the parties’ settlement agreement. We affirm.

The relevant facts and procedural history of this case are as follows.

Mr. Stinger, as trustee of the Walter R. Stinger Living Trust, owned

approximately four hundred and three (403) acres of land in the Aleppo

Township, excluding the rights to the oil and gas within the property.

Chesapeake held a lease to the oil and gas and operated gas wells on Mr.

Stinger’s property. On July 30, 2010, Mr. Stinger filed an action against

Chesapeake for damages it caused to the surface of Mr. Stinger’s property

by operating the wells. Chesapeake filed an answer denying its activities J-S64038-14

destroyed or devalued Mr. Stinger’s property, and noting that Mr. Stinger

had declined offers of compensation for surface disturbances to the property.

During the course of discovery, the parties attempted to reach a settlement

agreement in which Mr. Stinger would sell his property to Chesapeake and

discontinue the litigation.

On July 30, 2013, Mr. Stinger’s counsel (“prior counsel”) wrote a letter

to Mr. Stinger indicating that Chesapeake would offer Mr. Stinger a sum

certain if Mr. Stinger made a “binding, written demand” for that amount

(“settlement amount”).1 (Prior Counsel’s Letter to Mr. Stinger, 7/30/13, at

1; R.R. at 162a). As an additional inducement for Mr. Stinger to settle, prior

counsel offered to reduce the firm’s fee by three percent. (See id.) The

letter set forth that Mr. Stinger would pay attorney’s fees in the amount of

$200,000.00 if the property sold for the settlement amount. (Id.) Mr.

Stinger signed the July 30, 2013 letter (“revised fee agreement”) on August

2, 2013 under the statement: “The within fee arrangements are hereby

acknowledged and agreed.” (Id.)

The next day, prior counsel sent the following letter to counsel for

Chesapeake:

This letter will confirm that [Mr. Stinger] is willing to settle this matter at the sum of [the settlement amount]. Please note that Mr. Stinger has signed this letter consenting to ____________________________________________

1 The record indicates the parties agreed to keep the amount of settlement confidential.

-2- J-S64038-14

the aforesaid sum. The terms of the aforesaid settlement will need to be finalized, if the same is agreed to. Thank you.

(Prior Counsel’s Letter to Chesapeake, 7/31/13, at 1; R.R. at 161a).

Underneath prior counsel’s signature, the letter states: “I consent to the

settlement of the sum of [the settlement amount] for the above captioned

matter. It is my understanding that the attorneys for the plaintiff and the

defendant will finalize the terms for the settlement.” (Id.) Mr. Stinger

signed his name below this statement along with the date of July 31, 2013.

(See id.)

Counsel for Chesapeake responded on August 6, 2013, as follows:

In response to [prior counsel’s] letter of July 31, 2013, to [Chesapeake’s counsel], Chesapeake will agree to settle this matter by purchasing Mr. Stinger’s property which is the subject of this action and will agree to pay a total of [the settlement amount], conditioned as follows:

1. Clear title with a warranty from the trust and Mr. Stinger. Chesapeake will have a reasonable time to obtain a title opinion and appraisal.

2. The allocation of the [settlement amount] payment will include $200,000 for attorney’s fees, with the remaining allocation of [the settlement amount] between purchase price and damages to be at Chesapeake’s reasonable discretion and based on an appraisal of the property with the understanding that it is the shared goal of the parties to minimize the tax consequences for both parties.

3. The parties will agree to a confidential settlement agreement which will provide for:

a. A full release of all claims that Mr. Stinger,

-3- J-S64038-14

the trust and their heirs and assigns made or could have made relating to the property.

b. The dates and conditions for closing.

c. Dismissal with prejudice of the lawsuit filed at Walter R. Stinger, Sr. v. Chesapeake Appalachia, L.L.C., A.D. No. 860-2010.

4. An agreement that Chesapeake may begin its reclamation work now without any interference, objection or motion for injunction from Mr. Stinger.

If these terms are agreeable, please sign below and return. I will get the settlement agreement drafted for your review.

(Chesapeake’s Letter to Prior Counsel, 8/6/13, at 1-2; R.R. at 164a-165a).

Chesapeake’s counsel signed below these terms. (See id. at 2; R.R. at

165a). Under that signature, the letter continues: “The terms outlined

above in items 1-3 are agreed to in principle pending agreement to a signed

settlement agreement. Item 4 is agreed to as of the date noted below[.]”

(Id.) Prior counsel signed the letter below this statement along with the

date of August 9, 2013. (Id.)

On September 3, 2013, Chesapeake filed a motion to discontinue a

pretrial conference scheduled for the following day, based on its belief that

the parties had reached a settlement agreement. The court granted

Chesapeake’s motion. On September 4, 2013, Mr. Stinger appeared in court

for the pre-trial conference; however, neither prior counsel nor anyone on

behalf of Chesapeake attended. Prior counsel and counsel for Chesapeake

-4- J-S64038-14

subsequently drafted a final settlement agreement. Nevertheless, Mr.

Stinger refused to sign the document or provide Chesapeake with the

relevant settlement documents.

On December 6, 2013, Chesapeake filed a petition to enforce the

settlement agreement. Mr. Stinger subsequently hired new counsel

(“replacement counsel”), who entered his appearance on December 19,

2013.2 Mr. Stinger filed an answer to Chesapeake’s petition that same day,

and amended it on December 31, 2013. On February 18, 2014, the trial

court held a hearing on Chesapeake’s petition to enforce the settlement

agreement. At the hearing, Mr. Stinger alleged the settlement agreement

was unenforceable for the following reasons: Mr. Stinger did not intend to

sell the property; Mr. Stinger wanted the case to proceed to trial; Mr.

Stinger had no involvement with the settlement negotiations after he signed

the July 31, 2013 letter; Mr. Stinger did not agree to the final terms of the

settlement and prior counsel lacked authority to agree to those terms; and

prior counsel’s fee was excessive in light of the parties’ alleged settlement.

The court granted Chesapeake’s motion on April 29, 2014. The court

ordered Chesapeake to arrange closing and provide the total consideration

due to Mr. Stinger at closing; and ordered Mr. Stinger to provide the deed to

the property at closing. The court also ordered Chesapeake to deposit

____________________________________________

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