Thousand Dollar Club v. Krispinsky

47 Pa. D. & C.4th 393, 2000 Pa. Dist. & Cnty. Dec. LEXIS 180
CourtPennsylvania Court of Common Pleas, Mercer County
DecidedJuly 13, 2000
Docketno. 1998-209
StatusPublished

This text of 47 Pa. D. & C.4th 393 (Thousand Dollar Club v. Krispinsky) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Mercer County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thousand Dollar Club v. Krispinsky, 47 Pa. D. & C.4th 393, 2000 Pa. Dist. & Cnty. Dec. LEXIS 180 (Pa. Super. Ct. 2000).

Opinion

DOBSON, J.,

The matters before the court for disposition are defendant IRM Distributors’ [395]*395motion for judgment on the pleadings, defendant Bernard Krispinsky’s motion for partial judgment on the pleadings, additional defendants Frank Frankovich, Mark Frankovich, Bernard Rich and John Steklachick’s preliminary objections to joinder pursuant to defendant Krispinsky’s Rule 2252(d) new matter, and additional defendant Bernard Rich’s addendum to the preliminary objections. Oral argument was heard before this court on May 1, 2000. As this is the third opinion this court has issued in this case, rather than repeat the facts and procedural history, the court incorporates and sets forth the facts and procedural history from its opinion of August 31, 1999 as follows:

“The procedural history of this case is as follows. A complaint was filed on January 20,1998 in the names of 28 individual plaintiffs. The plaintiffs were members of one or more of three different investment clubs created by defendant Bernard Krispinsky. The complaint included three counts of fraudulent misrepresentation and three counts of breach of fiduciary duty, one for each of the clubs; one count of breach of contract, one count of negligence, and one count of punitive damages, brought by the members of the clubs collectively; and one count of misrepresentation brought by plaintiff Bernard Rich only.

“Defendant filed preliminary objections. After hearing oral argument on April 6, 1998, this court issued an order striking the complaint and the count of punitive damages and granting leave to amend. The court instructed the plaintiffs as to how any amended complaint should be re-pled.

“An amended complaint was filed on July 24, 1998. The plaintiffs were changed from the individual mem[396]*396bers to the three investment clubs1 by their trustees ad litem. Each club brought a separate count of breach of fiduciary duty, fraud, violation of the Pennsylvania Securities Act, violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law, negligence, and breach of contract.

“Defendant again filed preliminary objections, and oral argument was heard on October 5, 1998. On December 22, 1998, the court issued an order striking counts 4-9 and 16-18, and sub-paragraph 69(h) and granting leave to amend.

“A second amended complaint was filed on February 5, 1999. The caption now listed as plaintiff the Thousand Dollar Club by its trustees ad litem. The complaint included counts of fraud, breach of fiduciary duty, negligence, and breach of contract.

“On March 19, 1999, plaintiff was granted leave to file a third amended complaint to add party-defendant IRM Distributors. The third amended complaint was filed on March 26, 1999, defendants now being Bernard Krispinsky and IRM Distributors.

“This complaint includes counts of fraud, breach of fiduciary duty, negligence, and breach of contract against Bernard Krispinsky and one count of negligence against IRM Distributors. .. .

“This case arose from a dispute between plaintiffs, the members of the Thousand Dollar Club, a private investment club, and its founder and organizer, defendant Bernard Krispinsky. The third amended complaint avers that in November of 1995, defendant initially solicited 24 individuals, the plaintiffs, to invest $1,000 each for mem[397]*397bership in the Thousand Dollar Club. (Third amended complaint ¶5.) An organizational meeting was held, bylaws were approved, and defendant was appointed funds director and was made responsible for investing the club’s assets. (Id. a^8-9.) It was agreed that the plaintiffs would pay an additional $25 dollars per month as dues. (Id. at ¶9.) Defendant was given a free membership in the club as compensation for his services as funds director. (Id.)

“From December 1995 to February 1997, defendant prepared and handed out monthly statements reviewing the status of the club’s accounts and assets. (Id. at ¶21.) From March 1997 to October 1997, defendant did not prepare written monthly statements, but orally reported the status of the accounts and assets to the plaintiffs. (Id. atf23.) In November 1997, defendant was terminated as funds director. (Id. at ¶29.) The termination was based on a number of alleged acts of wrongdoing by defendant with regard to the club accounts and assets resulting in substantial monetary loss to the plaintiffs. (Id. at ¶29-30.)”

The first matter to be addressed is Krispinsky’s motion for partial judgment on the pleadings. “A motion for judgment on the pleadings may be granted only in cases where no facts are at issue and the law is so clear that a trial would be a fruitless exercise.... In addition, the court must view all well-pled facts of the non-moving party as true....” Beardell v. Western Wayne School District, 91 Pa. Commw. 348, 353, 496 A.2d 1373, 1375 (1985). (citations omitted)

Krispinsky makes several arguments in his motion for partial summary judgment; we will address them seriatim. Krispinsky first asks that the averments of his new matter and Rule 2252(d) new matter as they pertain to [398]*398plaintiff Thousand Dollar Club be deemed admitted, because plaintiff has not responded in a timely fashion. This court’s order of December 29, 1999 granted plaintiff 10 days within which to file a reply to new matter. Plaintiff filed its reply that same day, thus the issue has been resolved.

Krispinsky next asks that the court enter judgment against the 28 original plaintiffs as well as original plaintiff Bernard Rich, because they failed to file amended complaints after the original complaint was stricken. The order of April 6, 1998 found that the causes of action were individual and could not be consolidated into one count as originally plead. The court struck the complaint, including Rich’s individual cause of action, and directed plaintiffs to file amended complaints within 60 days. When the original complaint was stricken, the 28 original plaintiffs and Rich were dismissed as parties, thus judgment cannot be entered against them.

A first amended complaint was properly filed in the names of the three clubs by their trustees ad litem.2 The court’s order of December 22, 1998 did not strike the amended complaint, but directed the Thousand Dollar Club to amend within 45 days, and directed Invest for Five and Wildcats to file separate complaints. Invest for Five and Wildcats were effectively dismissed as parties by the order of December 22,1998, thus judgment cannot be entered against them.

Krispinsky next claims that some of plaintiff’s allegations are barred by the statute of limitations. Plaintiff’s [399]*399causes of action are based upon Krispinsky’s actions occurring between November 1995 and November 1997. The original complaint was filed January 20, 1998.

A two-year statute of limitations applies to the counts of fraud, breach of fiduciary duty and negligence. 42 Pa.C.S. §5524 (Supp. 2000); Maillie v. Greater Delaware Valley Health Care Inc., 156 Pa. Commw. 582, 628 A.2d 528 (1993); Walls v. Scheckler, 700 A.2d 532 (Pa. Super. 1997).

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Bluebook (online)
47 Pa. D. & C.4th 393, 2000 Pa. Dist. & Cnty. Dec. LEXIS 180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thousand-dollar-club-v-krispinsky-pactcomplmercer-2000.