Twp. of Salem v. Miller Penn Development, LLC Twp. of Salem v. Miller Penn Development, LLC

142 A.3d 912, 2016 Pa. Commw. LEXIS 238
CourtCommonwealth Court of Pennsylvania
DecidedMay 26, 2016
Docket2083 C.D. 2015; 2174 C.D. 2015
StatusPublished
Cited by10 cases

This text of 142 A.3d 912 (Twp. of Salem v. Miller Penn Development, LLC Twp. of Salem v. Miller Penn Development, LLC) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Twp. of Salem v. Miller Penn Development, LLC Twp. of Salem v. Miller Penn Development, LLC, 142 A.3d 912, 2016 Pa. Commw. LEXIS 238 (Pa. Ct. App. 2016).

Opinion

OPINION BY Senior Judge JAMES GARDNER COLINS.

These are consolidated cross-appeals from an order of the Westmoreland County Court of Common Pleas (trial court) denying post-trial relief following a nonjury trial and entering judgment for the Township of Salem (Township) in the amount of $25,558.45 in an action brought by the Township against Miller Penn Development, LLC (Developer) to remedy defects in a street in Developer's residential subdivision. For the reasons set forth below, we affirm.

In March 2000, the Township's supervisors granted approval of a final plan (Subdivision Plan) for Developer's Whitethorn Subdivision Phase II (Subdivision), a development composed of 22 single-family residential lots located in the Township.

The Subdivision Plan provided for construction of a street through the Subdivision that ended in a cul-de-sac. The Township did not require Developer to enter into a developer's agreement or post security before it approved the Subdivision Plan and Developer did not post any bond or other security for the construction of improvements. After the Subdivision Plan was approved and recorded, Developer began constructing the street set forth in the plan, Shaw Court, and completed construction of Shaw Court in the fall of 2001.

On November 15, 2001, after completion of the construction of Shaw Court, the Township and Developer entered into a Developer's Agreement for Public/Site Improvements (Developer's Agreement). The Developer's Agreement provided that "Developer covenants, promises and agrees to build, construct and install all public and private improvements in accordance with the approval plan and any and all specifications of Salem Township, on or before the 31st day of December, 2001" and that Developer agreed that those improvements would be constructed in accordance with the Township's ordinances. (Developer's Agreement ¶¶ 4, 5, 14, 24, Reproduced Record (R.R.) at 40-41, 46, 49.) The Developer's Agreement provided that "[i]n lieu of the completion of all public and private improvements," Developer was required to post financial security such as a performance bond or letter of credit sufficient to cover 110% of the costs of completion of the improvements and that the Township could seize the security if Developer failed to complete construction of the improvements by December 31, 2001. ( Id. at 3 & ¶¶ 5, 6, R.R. at 38, 41-43.) Again, however, Developer posted no bond or security. The Developer's Agreement further provided that "Developer shall offer for dedication, all proposed public streets," and that the Township "shall not accept a request for dedication prior to the completion of ninety percent (90%) of the development." ( Id. ¶ 27, R.R. at 50.)

Because the Township's subdivision and land development ordinance (SALDO) in effect at the time of the approval of the Subdivision Plan was held invalid ab initio in August 2000, the Westmoreland County SALDO applied to land development in the Township. (Westmoreland County SALDO § 109, Supplemental Reproduced Record (Supp. R.R.) at 331-332.) The Westmoreland County SALDO provided that "[a]ll proposed public streets ... shall be constructed as prescribed in the Standard Specifications for street construction for the municipality in which the development is located," and that "[t]he governing body of the local municipality shall have sole jurisdiction over all matters concerning street construction." ( Id. § 409, Supp. R.R. at 353.) The Township's street ordinance, Township Ordinance 101, required that all newly constructed Township streets, including streets intended for public dedication, must have a two-inch subbase, a four-inch base, a two-inch binder and a one-inch wearing course composed of certain specified materials and required that these layers be compacted. (Township Ordinance 101 §§ 58-59, Supp. R.R. at 382-383.) Shaw Court did not comply with all of the requirements of Township Ordinance 101, and the Township was aware in 2002 that Shaw Court had not been constructed in compliance with Ordinance 101. In addition, the Westmoreland County SALDO required that cul-de-sacs have a minimum paved diameter of 80 feet and Developer's final approved plan showed the cul-de-sac as having an 80-foot paved diameter. (Westmoreland County SALDO § 407, Supp. R.R. at 353; Trial Transcript (N.T.) at 111, Supp. R.R. at 111.) The diameter of the paved Shaw Court cul-de-sac is approximately 60 feet and did not comply with the approved plan.

Shaw Court deteriorated and developed ruts, cracks, potholes and areas of water ponding on the roadway. Developer has requested that the Township accept Shaw Court as a public street, and the Township has refused to accept it. As of 2014, four of the 22 lots in the Subdivision remained unsold. In October 2014, the Township repaired a portion of Shaw Court at the request of the homeowners.

On March 19, 2010, the Township filed this action against Developer. 1 The Township's original complaint sought equitable relief compelling Developer to post a bond and fix the defects in Shaw Court. Developer filed preliminary objections on a number of grounds, including objections that the Township had no cause of action in equity. On July 30, 2010, the trial court entered an order sustaining the preliminary objections to the Township's equity claims. Following this order, the Township filed an amended complaint asserting breach of the Developer's Agreement and failure to comply with Township Ordinance 101 and the Westmoreland County SALDO, seeking $193,165 in damages for the cost of fixing the defects in Shaw Court. Developer filed a motion for summary judgment asserting that the Township's claims were barred by the statute of limitations, which was denied by the trial court on August 2, 2012. In 2013, the case was stayed due to Developer's bankruptcy proceeding. On May 14, 2014, the bankruptcy court entered an order granting the Township relief from the automatic stay with respect to this action. On October 22 and 23, 2014, the trial court held a two-day nonjury trial of the Township's claims against Developer.

On March 3, 2015, the trial court issued an opinion and order finding in the Township's favor and against Developer and awarding the Township $25,558.45 in damages. The trial court found that Shaw Court was not properly installed and held that the action was not barred by the statute of limitations on the ground that Developer did not breach the Developer's Agreement until it made statements in December 2009 that it would not repair Shaw Court. (Trial Court Opinion at 4-5.) The trial court also found that the Township's evidence of the cost of repair of Shaw Court and reconstruction of its cul-de-sac was speculative and inadequately supported. ( Id. at 5.) The trial court therefore awarded as damages only the amounts that it found that Developer conceded were required for the repairs and reconstruction, $8,265.95 to resurface the deteriorated portions of the Shaw Court roadway and $17,322.50 to fix the cul-de-sac. ( Id. ) Both parties filed motions for post-trial relief, Developer challenging the trial court's statute of limitations ruling and the Township challenging both the preliminary objections ruling that it could not proceed in equity and the trial court's damages award. On July 13, 2015, the trial court issued an order denying the post-trial motions and entering judgment in accordance its March 3, 2015 opinion and order.

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Cite This Page — Counsel Stack

Bluebook (online)
142 A.3d 912, 2016 Pa. Commw. LEXIS 238, Counsel Stack Legal Research, https://law.counselstack.com/opinion/twp-of-salem-v-miller-penn-development-llc-twp-of-salem-v-miller-penn-pacommwct-2016.