Werner, W. v. 1281 King Associates

Superior Court of Pennsylvania·Decided July 16, 2021·No. 1549 EDA 2020·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

WILLIAM P. WERNER AND DONNA : IN THE SUPERIOR COURT OF WERNER, H/W : PENNSYLVANIA :

Appellants :

:

:

v. :

:

: No. 1549 EDA 2020

1281 KING ASSOCIATES, LLC AND :

MARTIN'S FAMOUS PASTRY SHOPPE, :

INC :

Appeal from the Order Entered July 27, 2020 In the Court of Common Pleas of Philadelphia County Civil Division at No(s): No. 200202111

BEFORE: PANELLA, P.J., OLSON, J., and COLINS, J.* MEMORANDUM BY COLINS, J.: FILED JULY 16, 2021 Appellants, William P. Werner and Donna Werner, H/W (the “Werners”), appeal from the order of the Court of Common Pleas of Philadelphia County sustaining the preliminary objection of Appellees 1281 King Associates, LLC (“1281 King”) and Martin’s Famous Pastry Shoppe, Inc. (“Martin’s,” collectively “Appellees”) to venue and transferring the instant matter to the Court of Common Pleas of Franklin County. We affirm.

The Werners commenced the instant action by complaint on February 19, 2020. According to the complaint, William Werner sustained a serious injury on February 5, 2019 at property located at 1281 King Road, West

* Retired Senior Judge assigned to the Superior Court.

Chester, Chester County, which was owned and operated by Martin’s and/or 1281 King. Complaint ¶¶6, 10. Mr. Werner was at the property in his role as a delivery driver when he caught his pant leg on a jagged edge of a portable ramp, causing him to fall. Id. ¶¶8, 10. Mr. Werner’s injuries included a right hip fracture requiring surgery, and he suffered lost wages and an impairment of his earning capacity. Id. ¶¶13, 15. The complaint pleads two counts: a negligence claim based on Appellees’ alleged failure to use reasonable care in the maintenance of their property, as well as a loss of consortium claim in favor of Mrs. Werner.

On May 8, 2020, Appellees filed preliminary objections in which they contested venue in Philadelphia County, among other objections. According to the objections, Mr. Werner, through his company, Werner Bread Man, LLC, entered into an Independent Distributor Agreement (“Distributor Agreement”) with Martin’s in 2014. Preliminary Objections ¶11, Ex. B. The Distributor Agreement set forth Mr. Werner’s rights, duties, and obligations as the exclusive independent distributor for Martin’s baked products and snack items in a portion of Southeastern Pennsylvania. Id.

On July 20, 2019, Martin’s entered into a Termination, Release, Consent, and Arbitration Agreement (“Termination Agreement”) with Mr. Werner and Werner Bread Man, LLC. Id. ¶13, Ex. C. In this agreement, Martin’s consented to an assignment of Mr. Werner’s distribution rights to another party in exchange for a termination of the Distributor Agreement and Mr. Werner’s release of Martin’s and its affiliates from liability related to the prior

agreement or the work performed under that agreement. Id., Ex. C ¶¶2-4. In addition, the Termination Agreement contained a forum selection clause providing as follows:

Subject to Section 6 above [providing that all disputes be resolved through binding arbitration], the courts of the Commonwealth of Pennsylvania, and the United States federal courts, with jurisdiction in Franklin County, Pennsylvania will be the exclusive venue for all claims, disputes, and controversies by any Distributor Party against any Martin’s Party[1] or by Martin’s against any Distributor party, whether in tort, contract, or otherwise, in any way arising out of, relating to, or having any connection with the Distributor Agreement or this Agreement (including, without limitation, the formation and termination of the Distributor Agreement or this Agreement), the marketing, distribution, or sale of Martin’s products by any Distributor Party, services provided by any Distributor Party to Martin’s, or any other association or agreement between or among any Distributor Parties and any Martin’s Parties. Subject to Section 6 above, the parties hereby consent to the jurisdiction of such courts and no party will make any claim that such courts are an inconvenient forum.

Id., Ex. C ¶7(d) (emphasis added).

Appellees argued in their objections that as a result of this forum selection clause, venue in Philadelphia County is not proper against Martin’s. Id. ¶19. In addition, Appellees contended that 1281 King could not independently be sued in Philadelphia because the alleged negligent acts occurred at 1281 King’s warehouse in West Chester, Chester County, and

1 The “Distributor Parties” are defined in the Termination Agreement to include

Werner Bread Man, which is designated as the “Distributor,” and Mr. Werner, who is designated as the “Distributor Owner.” Preliminary Objections Ex. C, Preamble, ¶1. The “Martin’s Parties” include Martin’s as well as its affiliates and subsidiaries. Id.

1281 King is headquartered in West Chester and does no business, owns no property, and has no registered agents in Philadelphia. Id. ¶¶6, 20-26. Therefore, Appellees requested that the trial court dismiss the suit based on improper venue or in the alternative transfer the case to Franklin County. Id. ¶27. In their answer to the preliminary objections, the Werners admitted the nature of Mr. Werner's business relationship with Martin’s and the existence of the Distributor and Termination Agreements, although they denied any relevance of these agreements to the current lawsuit. Answer to Preliminary Objections ¶¶6, 11-18.

On July 27, 2020, the trial court entered an order sustaining Appellees’

preliminary objection to improper venue and transferring the matter to the Court of Common Pleas of Franklin County. The trial court did not address Appellees’ remaining preliminary objections. The Werners filed a timely appeal from the trial court’s order.2 On September 8, 2020, the Werners filed their statement of errors complained of on appeal as directed by the trial court.

On October 7, 2020, the trial court issued its opinion in which it explained its rationale for sustaining Appellees’ preliminary objection based on improper venue. In its opinion, the trial court found that the forum

2 Although interlocutory, the July 27, 2020 order was appealable as of right

under our Rules of Appellate Procedure. See Pa.R.A.P. 311(c) (“An appeal may be taken as of right from an order in a civil action or proceeding changing venue, transferring the matter to another court of coordinate jurisdiction, or declining to proceed in the matter on the basis of forum non conveniens or analogous principles.”).

selection clause of the Termination Agreement is applicable here as the clause is not limited to disputes relating to the interpretation of the Distributor or Termination Agreements, but it broadly relates to actions “in any way arising out of, relating to, or having any connection with . . . the marketing, distribution, or sale of Martin’s products by any Distributor Party, services provided by any Distributor Party to Martin’s . . . .” Trial Court Opinion, 10/7/20, at unnumbered page 6; Preliminary Objections, Ex. C ¶7(d). Moreover, the court noted that the forum selection clause does not solely concern contractual disputes between the parties and instead that the clause provided that venue was proper in Franklin County for “all claims, disputes, and controversies . . . whether in tort, contract, or otherwise . . . .” Trial Court Opinion, 10/7/20, at unnumbered page 6; Preliminary Objections, Ex. C ¶7(d).

On appeal, the Werners raise the following issues:

1. Whether preliminary objections to venue in a personal injury lawsuit should be overruled when the basis for the objection is a venue clause in a contract terminating a business arrangement.

2. Whether preliminary objections to venue should be overruled in an action asserting joint and several liability where one of the defendants regularly conducts business.

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