Hillside Villas Condominium Association, Inc. v. Bottaro Development Company , 177 A.3d 456 ( 2018 )


Menu:
  •           IN THE COMMONWEALTH COURT OF PENNSYLVANIA
    Hillside Villas Condominium                   :
    Association, Inc.                             :
    :
    v.                             :      No. 615 C.D. 2017
    :
    Bottaro Development Company,                  :
    Mervin E.S. Resnick and Joyce K.              :
    Resnick Irrevocable Trust, John L.            :
    Bottaro, Lawrence J. Bottaro, Bottaro         :
    Construction Company                          :
    :
    Appeal of: Mervin E.S. Resnick and            :
    Joyce K. Resnick Irrevocable Trust            :
    Hillside Villas Condominium                   :
    Association, Inc.,                            :
    Appellant             :
    :
    v.                             :      No. 616 C.D. 2017
    :      Argued: December 7, 2017
    Bottaro Development Company,                  :
    Mervin E.S. Resnick and Joyce K.              :
    Resnick Irrevocable Trust, John L.            :
    Bottaro, Lawrence J. Bottaro, Bottaro         :
    Construction Company                          :
    BEFORE:        HONORABLE ROBERT SIMPSON, Judge
    HONORABLE ANNE E. COVEY, Judge
    HONORABLE DAN PELLEGRINI, Senior Judge
    OPINION
    BY JUDGE SIMPSON                              FILED: January 16, 2018
    In these consolidated cases, both parties appeal from a final judgment
    of the Court of Common Pleas of Dauphin County1 (trial court). The trial court held
    1
    The Honorable William T. Tully presided.
    that the Mervin E.S. Resnick and Joyce K. Resnick Irrevocable Trust (Trust) was a
    declarant as that term is defined by the Pennsylvania Uniform Condominium Act
    (PUCA).2 The trial court thus found the Trust jointly and severally liable, along with
    the condominium developer, to Hillside Villas Condominium Association, Inc.
    (Association) for the cost of repairs and completion of the common elements of the
    condominium property. The trial court awarded damages to the Association, but in
    an amount less than the damages to which the parties stipulated.
    The Trust appealed the determination of its declarant status. The
    Association cross-appealed the trial court’s reduction of the stipulated damages
    amount. Upon review, we affirm in part, and vacate and remand in part.
    I. Background
    The Association is a non-profit condominium association comprised of
    the unit owners of Hillside Villas Condominium. The Trust owned a tract of real
    property in Susquehanna Township, Dauphin County (Township). In 2001, the
    Trust entered into an Agreement of Sale (Agreement) to convey part of the land to
    Bottaro Development Company (Developer).
    The Agreement contemplated development of the purchased land into
    a condominium. Developer did not pay the purchase price at the time of executing
    the Agreement, and the Trust did not transfer title to the property at that time.
    Instead, the parties agreed that the Trust would receive payment in a series of
    settlements as units were built. The Agreement entitled the Trust to receive an
    2
    68 Pa. C.S. §§3101-3414.
    2
    additional payment of $25,000 beyond the original purchase price for each unit
    Developer constructed above 24 units. The Agreement also gave the Trust the
    unilateral option to void the Agreement if Developer failed to sell at least four units
    per year or if the Township did not approve the parties’ land development plan.
    Nothing in the Agreement stated that the Trust was retaining only a security interest
    in the contemplated condominium development.
    Developer and the Trust together submitted a Preliminary/Final Land
    Development Plan (the Plan) to the Township. The Township approved the Plan,
    and it was recorded in the office of the Recorder of Deeds of Dauphin County. The
    Plan identified the Trust as the owner of the property and Developer as the equitable
    owner.
    The Trust and Developer jointly executed and recorded the Declaration
    for Hillside Villas, a Condominium (Declaration) identifying both the Trust and
    Developer as the declarant. The associated Declaration Plat (Plat) and a series of
    nine subsequent recorded amendments to the Declaration all identified the Trust and
    Developer as the declarant.      Importantly, nothing in the Declaration, Plat, or
    amendments stated that the Trust held only a security interest. To the contrary, the
    Declaration specifically represented to the public that Developer and the Trust were
    building and creating the condominium.
    The Public Offering Statement for Hillside Villas likewise identified
    the Trust and Developer as the declarant. Significantly, in the Public Offering
    Statement, the declarant (Developer and the Trust) provided express warranties
    3
    relating to construction of the units. Again, nothing in the Public Offering Statement
    stated that the Trust held only a security interest in the property or that the Trust was
    not a declarant for purposes of the express warranties.
    As the units were constructed, the Trust and Developer executed a deed
    for each unit and an Assignment of Special Declarant Rights (Assignment) for each
    group of units. Each deed named the Trust as a grantor and co-declarant. Each deed
    also referred to the relevant Assignment. Each Assignment related to a group of
    units and the limited common elements associated with those units. Also, each
    Assignment identified the Trust as the assigning declarant and Developer as the
    successor declarant. In each, the Trust expressly retained all declarant rights not
    assigned.
    Notably, the Trust never executed an Assignment regarding the last
    units, Building H, Units 3 and 4, or the limited common elements associated with
    those units. Further, the record contains no indication that the Trust ever assigned
    its declarant rights regarding the general common elements such as the street,
    sidewalks, curbing, and stormwater management system, many of which were the
    subject of claims for completion and repairs.
    Developer never completed construction of many of the common
    elements. Others were defective and required extensive repair. The Association
    sued Developer and the Trust, seeking to recover the cost of the needed completion
    and repairs.
    4
    The Trust asserted a cross-claim against Developer for indemnification.
    Developer stipulated to: (1) entry of judgment against it and in favor of the
    Association on the complaint; (2) entry of judgment against it and in favor of the
    Trust on the cross-claim; and, (3) damages in an amount to be proven at trial, as to
    which Developer agreed to offer no defense.
    The main focus of the parties’ dispute at trial was whether the Trust was
    a declarant as that term is defined by PUCA, 68 Pa. C.S. §3103. The Association
    relied on evidence identifying the Trust as a declarant in recorded documents
    including the Declaration, Plat, Public Offering Statement, and deeds.             The
    Association also asserted that the Assignments did not divest the Trust of all its
    interest in the common elements. The Trust countered that its retention of legal title
    and its attendant identification as a declarant in recorded documents merely reflected
    its security interest in the property, supporting its right to payment of the purchase
    price by Developer.
    The Association offered evidence that it had already expended $42,700
    on stormwater issues and the common street. The Association presented expert
    evidence that the additional cost to complete the necessary construction and repairs
    would be $863,285. Thus, the Association presented evidence of total damages in
    the amount of $905,985. The Trust stipulated to the damages amount as presented
    in the Association’s evidence. See Reproduced Record (R.R.) at 340a.
    After a bench trial, the trial court found the Trust was a declarant under
    PUCA. The trial court entered judgment in favor of the Association and jointly and
    5
    severally against the Trust and Developer in the amount of $669,865. Both parties
    appealed to the Superior Court, which transferred the appeals to this Court. The
    Association opposed the transfer, arguing that the Superior Court previously issued
    rulings on issues involving similar subject matter. We defer to the Superior Court’s
    determination of the appropriate court for these appeals.
    II. Issues
    The appeal and cross-appeal present several issues for this Court’s
    review,3 which we paraphrase as follows:
    1.      Whether the holder of legal title to real property, which
    is listed as a declarant in a condominium declaration, public
    offering, deeds, and other recorded documents, is a declarant
    under PUCA for purposes of liability to the unit owners for
    completion and repair of common elements.
    2.     Whether an assignment of special declarant rights
    relieves the assigning declarant of liability regarding defective
    and incomplete common elements.
    3.    Whether the trial court committed legal error by
    declining to honor the parties’ damages stipulation.
    III. Discussion
    A. The Trust’s Appeal – Declarant Status under PUCA
    The Trust argues that the trial court committed legal error in
    determining that the Trust was a declarant under PUCA, because the Trust held only
    3
    On appeal from a non-jury trial, this Court’s review is limited to a determination of
    whether the trial court’s findings are supported by competent evidence and whether the trial court
    committed an error of law. Deep Meadows Civic Ass’n v. Trusello, 
    140 A.3d 60
    (Pa. Cmwlth.
    2016).
    6
    a security interest in the real property. In the alternative, the Trust argues that even
    if it was initially a declarant, it successfully assigned all liabilities under the
    Declaration by the series of Assignments of special declarant rights in connection
    with the construction and sale of the units.4
    1. Initial Declarant Status
    a. Contentions
    The Trust argues that the Agreement with Developer left the Trust
    holding only a security interest in the property. Because PUCA expressly excludes
    the holder of a security interest from the definition of a declarant, the Trust argues
    that it cannot be liable to the Association under PUCA.
    The Trust asserts that the holdings of DiDonato v. Reliance Standard
    Life Insurance Co., 
    249 A.2d 327
    (Pa. 1969), Byrne v. Kanig, 
    332 A.2d 472
    (Pa.
    Super. 1974), and similar decisions govern this case. The Trust further relies on
    Stillwater Lakes Civic Association v. Krawitz, 
    772 A.2d 118
    (Pa. Cmwlth. 2001), in
    which this Court held that an agreement of sale was a substitute for a mortgage and
    the seller retained only a security interest in the unit during the time the buyer was
    in possession. 
    Id. at 120-21.
    These decisions stand for the general proposition that
    an unconditional agreement of sale for real property vests equitable title in the buyer,
    with the seller retaining only a security interest in the property.
    4
    The Trust also asserted that the trial court lacked competent evidence or committed legal
    error in concluding “that the Trust failed to distinguish itself from the Declarant ….” Appellant’s
    Br. at 4. The Trust’s brief, however, contains no argument section corresponding to this stated
    issue. Accordingly, to the extent that this argument is distinct from the Trust’s other arguments,
    it is waived. See Sch. Dist. of Phila. v. Jones, 
    139 A.3d 358
    (Pa. Cmwlth. 2016).
    7
    The Association argues that the Agreement between the Trust and
    Developer was not a typical unconditional agreement of sale. The Association
    emphasizes that the Trust conditioned the Agreement on Developer’s maintenance
    of a minimum annual unit sales volume, and that the Trust had the sole option to
    void the sale if Developer failed to satisfy the sales quota. The Association points
    out that the Trust designated itself as the declarant, along with Developer, in
    documents recorded under PUCA. The Association also contends that the Trust still
    holds record title to the unsold land in the development and declarant rights in the
    common areas.
    b. Analysis
    The general principles of contract and real property law cited by the
    Trust have some appeal.        Such principles apply if not displaced by PUCA’s
    provisions. See 68 Pa. C.S. §3108. Upon analysis, however, we conclude that this
    case is distinguishable from those on which the Trust relies. Unlike the sellers in
    those cases, the Trust did not enter into an unconditional sales agreement leaving it
    with only a security interest. The Trust therefore falls within PUCA’s definition of
    a declarant.
    To that end, PUCA defines a “declarant,” in pertinent part, as follows:
    (1)   If the condominium has been created, ‘declarant’ means:
    (i)    any person who has executed a declaration, or an
    amendment to a declaration to add additional real estate, other
    than persons holding interests in the real estate solely as
    security for an obligation ….
    68 Pa. C.S. §3103 (emphasis added).
    8
    Here, the Trust retained more than a bare security interest protecting its
    right to payment of the purchase price. The Trust had a right not just to terminate,
    but to void the Agreement if Developer failed to meet certain sales benchmarks. Had
    that occurred, the Trust stood to benefit from any intervening increase in the value
    of the property by reason of whatever development had occurred to that point.
    Additionally, the Trust was entitled to receive an additional payment of $25,000
    above the purchase price for every unit Developer built over 24 units. Thus, the
    Trust received value under the Agreement beyond just payment of the purchase price
    of undeveloped land. The Agreement was not merely an unconditional installment
    sales agreement. The Trust did not hold merely a security interest.
    Moreover, the Trust expressly and repeatedly defined itself in recorded
    documents as the declarant along with Developer. By doing so, the Trust acquired
    special declarant rights, including retained rights in the common elements5 of the
    development. PUCA defines “special declarant rights,” in pertinent part, as:
    Rights reserved for the benefit of a declarant to:
    (1) Complete improvements indicated on plats and plans
    filed with the declaration (Section 3210).
    * * * *
    (7) Use easements through the common elements for the
    purpose of making improvements within the condominium ….
    5
    Under the Pennsylvania Uniform Condominium Act (PUCA), “common elements” are
    “[a]ll portions of a condominium other than the units.” 68 Pa. C.S. §3103. A “limited common
    element” is “[a] portion of the common elements allocated by or pursuant to the declaration or by
    operation of section 3203(2) or (4) (relating to unit boundaries) for the exclusive use of one or
    more but fewer than all of the units.” 
    Id. 9 68
    Pa. C.S. §3103(1), (7).
    With those rights came corresponding obligations imposed by PUCA
    that the Trust was not free to ignore. PUCA imposes a mandatory warranty against
    structural defects providing, in pertinent part:
    (a) Definition. — As used in this section, ‘structural defects’
    means those defects in components constituting any unit or
    common element which reduce the stability or safety of the
    structure below accepted standards or restrict the normal
    intended use of all or part of the structure and which require
    repair, renovation, restoration or replacement. Nothing in this
    section shall be construed to make the declarant responsible for
    any items of maintenance relating to the units or common
    elements.
    (b) General rule. — A declarant warrants against structural
    defects in each of the units for two years from the date each is
    conveyed to a bona fide purchaser, and all of the common
    elements for two years. Any conveyance of a unit during the
    two-year warranty period shall be deemed to transfer to the
    purchaser all of the declarant’s warranties created under this
    section ….
    68 Pa. C.S. §3411(a), (b).6 Under PUCA, a “declarant’s obligation to complete and
    restore” includes, in pertinent part:
    (b) Repair and restoration. — The declarant is subject to
    liability for the prompt repair and restoration, to a condition
    compatible with the remainder of the condominium, of any
    portion of the condominium affected by the exercise of rights
    reserved pursuant to or created by section[] … 3218 (relating
    to easement to facilitate completion …).
    68 Pa. C.S. §3414(b).
    6
    The Trust has not asserted that the Association’s claims are untimely in any respect or
    that any mandatory statutory warranty has expired.
    10
    A comparison of the Trust’s position with that of Developer’s
    construction lender highlights the distinction in status between the Trust and a mere
    holder of a security interest. Developer obtained a series of open-ended construction
    loans, secured by mortgages, to finance the development of the condominium. See
    R.R. at 600a-824a.7 The lender, despite its first mortgage lien position, never
    identified itself as a declarant in relation to the condominium; nor did it ever acquire
    any related special declarant rights or attendant obligations. Instead, the Declaration
    set forth specific rights accorded to the mortgagee, which did not overlap with any
    declarant rights.      Similarly, the Public Offering Statement described only the
    construction mortgage in its “Liens and Encumbrances” section; it gave no
    indication that the Trust’s interest as a named declarant was limited to a lien or
    encumbrance. The construction lender, in contrast to the Trust, held only a security
    interest, as PUCA applies that term.
    PUCA contemplates a liberal construction that will provide make-
    whole relief to an aggrieved party. It provides: “The remedies provided by this
    subpart shall be liberally administered to the end that the aggrieved party is put in as
    good a position as if the other party had fully performed ….” 68 Pa. C.S. §3113.
    Allowing the Trust to escape the obligations it necessarily assumed along with the
    rights it acquired in the condominium’s common elements would contravene the
    purpose of PUCA.
    7
    The initial construction mortgage stated as “background” that Developer held equitable
    title and the Trust held bare legal title solely as security for the unpaid balance of the purchase
    price. Reproduced Record (R.R.) at 600a. That recitation is not determinative of the Trust’s legal
    status under PUCA.
    11
    Buyers of units in a condominum development have a right to proper
    construction and completion of the common elements. Hence, PUCA imposes on
    the declarant a duty to provide that construction, and a mandatory warranty to
    guarantee its proper completion. See 68 Pa. C.S. §§3411, 3414. PUCA also requires
    a public offering statement to disclose the identity of the declarant. 68 Pa. C.S.
    §3402. By identifying itself as a declarant in recorded documents, including the
    Public Offering Statement, the Trust manifested its intent to assume its mandatory
    statutory responsibility for and warranty of the proper completion of the common
    elements in which it held special declarant rights. Unit buyers were entitled to rely
    on that warranty. The Trust’s argument after the fact that it really intended to hold
    only a security interest is unavailing.
    Perhaps most importantly, the Trust expressly undertook obligations
    directly to unit purchasers. The Public Offering Statement defined the Trust as a
    declarant and then set forth the declarant’s express warranties to all unit purchasers.
    The Public Offering Statement contained no disclaimer of any kind by the Trust
    relating to those express warranties. Thus, the Trust facially represented to the
    public that it was providing the express warranties.
    Similarly, the deed to each unit identified the Trust as a grantor and a
    co-declarant. The Trust therefore assumed the obligations and warranties of a
    declarant to each individual grantee. Like the Public Offering Statement, the deeds
    contained no disclaimer by the Trust of those obligations and warranties.8 Thus, the
    8
    Each deed referred to a related partial assignment of special declarant rights, and
    confirmed the Trust’s transfer to Developer of any interest in the unit being sold. Nothing in the
    deeds limited the Trust’s existing rights or obligations concerning the general common elements.
    12
    Trust’s duties and obligations to the unit buyers arose not only from its statutory
    declarant status, but also from its express undertaking of those duties and obligations
    in recorded documents on which unit purchasers were entitled to rely.
    2. The Trust’s Post-Assignment Obligations
    In the alternative, the Trust argues that even if it was originally a
    declarant, it successfully relinquished that status by assigning its declarant special
    rights in connection with the sales of the various units. We discern no merit in this
    argument.
    The Trust assigned only rights relating to the units themselves and their
    attendant limited common elements. It expressly retained all rights not assigned.
    Those rights include an interest in limited common elements attendant to unsold
    units, as well as in common elements that serve the entire development.
    Section 3304(b)(2.1) of PUCA provides that a transferor declarant
    remains responsible for obligations and liabilities relating to retained special
    declarant rights, whether those obligations are imposed by PUCA or assumed by the
    declarant:
    (b) Liability of declarant following transfer. — Upon
    transfer of any special declarant right, the liability of a
    transferor declarant is as follows:
    (1) A transferor is not relieved of any obligation or
    liability arising before the transfer and remains liable for
    warranty obligations imposed upon him by this subpart
    ….
    13
    * * * *
    (2.1) If a transferor retains any special declarant right,
    but transfers one or more other special declarant rights
    to a successor who is not an affiliate of the declarant, the
    transferor is liable for any obligations or liabilities
    imposed on a declarant by this subpart or by the
    declaration relating to the retained special declarant
    rights arising after the transfer ….
    68 Pa. C.S. §3304(b)(1), (2.1) (emphasis added).
    Thus, PUCA imposes continuing obligations on a declarant even after
    it assigns some or all of its special declarant rights. If a declarant transfers special
    declarant rights to a successor, the transferor declarant nonetheless remains liable
    for all warranties and obligations that arose before the transfer.         68 Pa C.S.
    §3304(b)(1). If the transferor declarant assigns some of its special declarant rights
    but retains others, it remains liable for all warranties and obligations, even if they
    arise after the transfer, relating to any elements in which the transferor declarant
    retains any rights. 68 Pa. C.S. §3304(b)(2.1).
    In this case, the record demonstrates that every Assignment of special
    declarant rights by the Trust related only to the limited common elements attendant
    to the units identified in that particular Assignment. The Trust never assigned its
    special declarant rights relating to the final units constructed, Building H, Units 3
    and 4.
    More importantly, the Trust expressly retained in each Assignment all
    special declarant rights not specifically assigned. The Trust never transferred its
    14
    special declarant rights in the general common elements, such as the street,
    sidewalks, curbing, and stormwater management system. These same common
    elements are subjects of the Association’s damages claim. Therefore, the Trust
    remained liable under PUCA for the statutory obligations and warranties relating to
    those areas, regardless of whether those obligations and warranties arose before or
    after the Assignments. See 68 Pa. C.S. §3304(b)(2.1).
    Indeed, the Trust necessarily remained liable for those common
    elements regardless of any possible assignment. Common elements, such as the
    street, sidewalks, and curbing, appeared on the Plat and thus were obligations arising
    at the commencement of the condominium project. See R.R. at 407a-09a. Liability
    and warranties for those elements therefore remained, notwithstanding any later
    assignment of special declarant rights. See 68 Pa. C.S. §3304(b)(1).
    Accordingly, the trial court correctly found the Trust liable jointly and
    severally with Developer for the cost of completing the common elements and
    repairing defects in their original construction.
    B. The Association’s Cross-Appeal – Stipulated Damages
    In its cross-appeal, the Association argues that the trial court erred by
    reducing the amount of its judgment without explanation and in contravention of the
    parties’ stipulation regarding the damages amount. We agree.
    At trial, the Association presented expert evidence that the total cost to
    complete the remaining work needed in the development would be $863,285. Tr.
    15
    Ct., Slip Op., 3/24/16, at 19. The evidence also showed that the Association already
    spent $42,700 on some of the most urgent repairs, 
    id., bringing the
    total cost for all
    the needed construction to $905,985 ($863,285 plus $42,700). The Trust stipulated
    to the damages amount as presented in the Association’s evidence. See R.R. at 340a.
    Developer previously stipulated to the damages amount to be shown at trial and
    agreed not to offer any defense on the damages amount. Tr. Ct., Slip Op., 3/24/16,
    at 2. The Association accordingly demanded a total damages award of $905,985.
    In its verdict, the trial court found in favor of the Association, but
    awarded only $669,865 in damages. Neither the verdict nor the trial court’s
    supporting opinion contained any explanation for the reduction of the damages from
    the amount stipulated by the parties.
    In its post-trial motion, the Association argued that the trial court erred
    by discounting the only expert evidence offered at trial and by ignoring the parties’
    stipulation. The trial court denied the post-trial motion, again without explanation.
    In its opinion under Pa. R.A.P. 1925(a), the trial court explained that its
    damages award reflected its view of the credibility and weight of the evidence. Tr.
    Ct., Slip Op., 8/2/16 (1925(a) Op.), at 10. The trial court acknowledged the parties’
    damages stipulation; however, it observed that the Association cited no statutory
    authority or case law to support its argument that the court should honor the
    stipulation. 
    Id. In its
    post-trial motion, the Association presented a fully-developed
    argument, including multiple citations to the record.              Its argument was
    16
    straightforward: only one expert presented damages evidence at trial, and the parties
    stipulated to the amount of damages that expert calculated. The Association offered
    adequate support for that argument. This Court concludes that the trial court erred
    by requiring a citation to legal authority in these circumstances. We therefore
    address the merits of the Association’s damages argument.9
    Under Pennsylvania law, litigants may limit any of the issues available
    for the court’s consideration except matters affecting the jurisdiction, business, or
    convenience of the court. Northbrook Life Ins. Co. v. Com., 
    949 A.2d 333
    (Pa.
    2008) (reversing this Court’s judgment that disregarded the parties’ stipulation). A
    stipulation of facts is binding and conclusive on a trial court, although the court may
    nonetheless draw its own legal conclusions from those facts. See Senex Explosives,
    Inc. v. Commonwealth, 
    58 A.3d 131
    (Pa. Cmwlth. 2012).
    In this case, the parties’ damages stipulation was undisputed.10 The
    Association asserted it at trial, in its post-trial motion, and in its brief on appeal. The
    9
    Rule 2119(a) of the Pennsylvania Rules of Appellate Procedure similarly does not
    mandate citations to authority for every argument. The rule requires parties to support their
    arguments with “such discussion and citation of authorities as are deemed pertinent.” 
    Id. This Court
    declines to find waiver of arguments that contain no legal citations but are otherwise
    sufficiently developed to allow meaningful appellate review. See, e.g., Herzog v. Unemployment
    Comp. Bd. of Review (Pa. Cmwlth., No. 437 C.D. 2010, filed October 14, 2010), 2010 Pa.
    Commw. Unpub. LEXIS 691 (unreported) (petitioner’s failure to provide legal citation did not
    waive uncomplicated argument that was factually developed); Arthur v. Unemployment Comp.
    Bd. of Review (Pa. Cmwlth., No. 593 C.D. 2009, filed October 20, 2009), 2009 Pa. Commw.
    Unpub. LEXIS 568 (unreported) (appellate court will not refuse to review an issue based solely on
    absence of legal citations, if the argument is sufficiently developed to permit meaningful review).
    These decisions are consistent with the provisions of Rule 2119(a) and offer persuasive authority
    on this issue. See 210 Pa. Code §69.414(a).
    10
    At trial, the Trust expressly stipulated to the damages amount. The trial court required
    the Association to present its damages evidence solely because Developer did not specifically join
    17
    Trust offered no opposition at trial, in response to the Association’s post-trial
    motion, or in its briefs submitted to this Court.                   The trial court expressly
    acknowledged the stipulation at trial, and later in its Rule 1925(a) Opinion. In these
    circumstances, the trial court was not free to disregard the parties’ stipulation by
    entering judgment for a lower damages amount. Therefore, this Court vacates the
    judgment as to damages only, and remands to the trial court with a direction to enter
    judgment in favor of the Association in the stipulated amount of $905,985.
    IV. Conclusion
    Based on the foregoing, this Court affirms the trial court’s
    determination that the Trust was and remained a declarant under PUCA and thus
    was jointly and severally liable to the Association, along with Developer. We vacate
    that stipulation. However, Developer did stipulate (1) to damages in the amount shown at trial;
    and, (2) that it would offer no damages defense. The record reveals the following discussion at
    the time the Association called its damages expert:
    [Trust counsel]: Judge, I just want to reiterate our offer to stipulate to the
    damages as Plaintiff has articulated them which –
    THE COURT: The only trouble is you stipulate to the damages but
    [Developer] has not. And [Developer] would have to deal with the
    judgment as well. So to keep the record complete, I think what that does
    is allows him to put it on and probably takes the need for you to cross-
    examine extensively.
    [Trust counsel]: Well, that certainly will not happen.
    THE COURT: That’s for sure. So with that understanding though, make
    your record but you obviously don’t have to stress credibility
    determination since there doesn’t seem to be anyone to counter it ….
    R.R. at 340a-41a (emphasis added).
    18
    the trial court’s damages award and remand for entry of judgment in the stipulated
    amount of $905,985.
    ROBERT SIMPSON, Judge
    Judge Cosgrove did not participate in the decision in this case.
    19
    IN THE COMMONWEALTH COURT OF PENNSYLVANIA
    Hillside Villas Condominium             :
    Association, Inc.                       :
    :
    v.                          :   No. 615 C.D. 2017
    :
    Bottaro Development Company,            :
    Mervin E.S. Resnick and Joyce K.        :
    Resnick Irrevocable Trust, John L.      :
    Bottaro, Lawrence J. Bottaro, Bottaro   :
    Construction Company                    :
    :
    Appeal of: Mervin E.S. Resnick and      :
    Joyce K. Resnick Irrevocable Trust      :
    Hillside Villas Condominium             :
    Association, Inc.,                      :
    Appellant       :
    :
    v.                          :   No. 616 C.D. 2017
    :
    Bottaro Development Company,            :
    Mervin E.S. Resnick and Joyce K.        :
    Resnick Irrevocable Trust, John L.      :
    Bottaro, Lawrence J. Bottaro, Bottaro   :
    Construction Company                    :
    ORDER
    AND NOW, this 16th day of January, 2018, the order of the Court of
    Common Pleas of Dauphin County is AFFIRMED IN PART. The trial court’s
    damage(s) award is VACATED. This matter is REMANDED to the trial court to
    enter judgment in the amount of $905,985 in favor of Hillside Villas Condominium
    Association, Inc. and jointly and severally against Bottaro Development Company
    and Mervin E.S. Resnick and Joyce K. Resnick Irrevocable Trust on the Hillside
    Villas Condominium Association, Inc.’s complaint.     The trial court is further
    directed to amend its judgment in favor of the Mervin E.S. Resnick and Joyce K.
    Resnick Irrevocable Trust and against Bottaro Development Company on the
    Mervin E.S. Resnick and Joyce K. Resnick Irrevocable Trust’s cross-claim and to
    enter judgment thereon in the amount of $905,985. In all other respects, the trial
    court’s order is AFFIRMED.
    Jurisdiction is relinquished.
    ROBERT SIMPSON, Judge
    

Document Info

Docket Number: 615 C.D. 2017; 616 C.D. 2017

Citation Numbers: 177 A.3d 456

Judges: Simpson, Covey, Pellegrini

Filed Date: 1/16/2018

Precedential Status: Precedential

Modified Date: 10/26/2024