Xtreme Caged Combat v. Zarros, M. ( 2021 )


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  • J-A27037-20
    
    2021 PA Super 29
    XTREME CAGED COMBAT & RYAN                 :   IN THE SUPERIOR COURT OF
    KERWIN                                     :        PENNSYLVANIA
    :
    :
    v.                             :
    :
    :
    MICHELLE ZARRO & ALLAN                     :
    ROSENBLUM                                  :   No. 654 EDA 2020
    :
    :
    APPEAL OF: RYAN KERWIN                     :
    Appeal from the Judgment Entered February 13, 2020
    In the Court of Common Pleas of Bucks County Civil Division at No(s):
    No. 2015-03980
    BEFORE:      STABILE, J., NICHOLS, J., and COLINS, J.*
    OPINION BY COLINS, J.:                               Filed: February 25, 2021
    Appellant Ryan Kerwin (Plaintiff) appeals pro se from a judgment
    entered in favor of Michelle Zarro and Allan Rosenblum (collectively
    Defendants) in a fraudulent transfer action following the trial court’s grant of
    a nonsuit against him and the denial of his post-trial motions. For the reasons
    set forth below, we affirm the trial court’s judgment in favor of defendant Allan
    Rosenblum, but vacate its judgment in favor of defendant Zarro and remand
    this case for a new trial of Plaintiff’s claim against defendant Zarro.
    Plaintiff filed a trademark infringement action against Steven Rosenblum
    (Debtor) and others in in the United States District Court for the Eastern
    ____________________________________________
    *   Retired Senior Judge assigned to the Superior Court.
    J-A27037-20
    District of Pennsylvania in July 2012 and in August 2014, a judgment was
    entered in his favor against Debtor and the other defendants in that action in
    the amount of $76,800.         On December 11, 2014, Debtor filed a voluntary
    bankruptcy petition under Chapter 13 of the Bankruptcy Code.
    On May 29, 2015, while Debtor’s bankruptcy was pending, Plaintiff1 filed
    the instant action against Defendants seeking relief against them under the
    Pennsylvania Uniform Fraudulent Transfer Act (PUFTA), 12 Pa.C.S. §§ 5101–
    5110 (in effect February 1, 1994 to February 19, 2018).2 In his Complaint,
    Plaintiff averred that in August 2012, after he filed the trademark infringement
    action, Debtor used $50,000 of his own money to purchase a Levittown,
    Pennsylvania gym (the Levittown gym) and made defendant Allan Rosenblum,
    his father, a 50% owner of the Levittown gym.        Complaint ¶¶7-9, 29-44.
    Plaintiff also averred that Debtor transferred his ownership of a gym at 8801
    Torresdale Avenue, Philadelphia (the Torresdale gym) and its equipment to
    ____________________________________________
    1 The complaint in this action also listed as a plaintiff Xtreme Caged Combat,
    which Plaintiff characterized is a “mixed martial arts promotion registered in
    the Commonwealth of Pennsylvania” of which he is the sole owner, and
    averred that Xtreme Caged Combat was also a plaintiff in the trademark
    action. Complaint ¶¶3-4, 7. Defendants in their answer asserted that Xtreme
    Caged Combat is a fictitious name owned by Plaintiff and another person and
    that it is not an entity at all. Answer and New Matter, Answer ¶¶3-4. Xtreme
    Caged Combat is not an appellant or participant in this appeal.
    2After the transactions at issue here, PUFTA was amended effective February
    20, 2018 and the name of the act was changed to the Pennsylvania Uniform
    Voidable Transactions Act. Act of December 22, 2017, P.L. 1249 §§ 1-5.
    These amendments, however, apply only to transfers on or after February 20,
    2018. Id. §§ 7-8.
    -2-
    J-A27037-20
    defendant Zarro, a friend. Id. ¶¶19-28, 38-44. Plaintiff averred that Debtor
    received no consideration for these transfers, asserted that the transactions
    constituted fraudulent transfers under Sections 5104 and 5105 of PUFTA, and
    sought to both recover damages from Defendants and set aside Defendants’
    ownership of the transferred property.      Id. ¶¶38-44, 52-53, 57-58.        On
    February 29, 2016, the bankruptcy court granted Plaintiff derivative standing
    to proceed with this action on behalf of Debtor’s estate. In re Rosenblum,
    
    545 B.R. 846
    , 863-73, 875 (E.D. Pa. 2016).
    Defendants filed preliminary objections to Plaintiff’s complaint and the
    court overruled those preliminary objections without opinion in February 2016.
    Trial Court Order, 2/10/16. Plaintiff filed a motion for summary judgment
    against defendant Zarro in January 2016, while Defendants’ preliminary
    objections were pending, and that motion was denied by the same judge who
    had overruled the preliminary objections. Trial Court Order, 3/15/16. Plaintiff
    filed a second motion for summary judgment in 2018, seeking judgment
    against both defendants.     In 2019, a different judge, from the Court of
    Common Pleas of Chester County, was assigned to this action and that judge
    denied Plaintiff’s second summary judgment motion.           Trial Court Order,
    9/26/19.
    This action proceeded to a jury trial on October 7, 2019, before the latter
    judge, at which Plaintiff represented himself pro se.         At trial, Plaintiff
    abandoned his requests to set aside the transfers and sought only money
    -3-
    J-A27037-20
    judgments from Defendants. N.T. Trial, 10/8/19, at 249-50. Plaintiff called
    three witnesses, Debtor, defendant Allan Rosenblum, and himself. Plaintiff
    also read into evidence defendant Zarro’s interrogatory answers and
    introduced various documents into evidence, including a 2014 property claim
    made by defendant Zarro concerning the Torresdale gym and a lease between
    her and the Torresdale gym’s landlord. On October 8, 2019, after Plaintiff
    rested his case, Defendants moved for a compulsory nonsuit and the trial court
    granted Defendants’ motion. Id. at 244-70. Plaintiff timely filed post-trial
    motions seeking removal of the nonsuit and, alternatively, a directed verdict
    in his favor or a new trial. On February 12, 2020, the trial court entered an
    order denying Plaintiff’s post-trial motions. Judgment against Plaintiff and in
    favor of Defendants was entered on Plaintiff’s praecipe on February 13, 2020.
    This timely appeal followed.
    Plaintiff argues the following issues as grounds for reversal of the trial
    court’s judgment:
    A. Whether Appellant presented evidence at trial that if believed
    by the jury would have entitled him to judgment and whether the
    trial court erred in entering a non-suit against Appellant.
    B. Whether the trial court improperly supported its decision to
    enter the non-suit against Appellant by resolving issues of fact
    against Appellant instead of allowing those issues to be decided
    by the jury.
    C. Whether the trial court committed an error of law when it
    denied Appellant’s motion for summary judgment and his
    subsequent request for judgment notwithstanding the verdict/non
    suit.
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    J-A27037-20
    D. Whether the trial court violated the law of the case doctrine
    when it made legal findings that directly overruled and conflicted
    with the legal findings made by a [sic] another judge who had
    previously ruled in the same case.
    E. Whether the trial court violated the doctrine of collateral
    estoppel when it made legal and factual findings that directly
    overruled and conflicted with the legal and factual findings made
    by the United States Bankruptcy Court who had previous ruled in
    the bankruptcy case that gave rise to the fraudulent transfer suit
    against the defendants in this case.
    Appellant’s Brief at 5-6 (unnecessary capitalization and suggested answers
    omitted).3    We first address Plaintiff’s fourth and fifth issues, in which he
    claims that the trial court was barred by prior decisions from granting a
    nonsuit, followed by his first and second issues concerning the merits of the
    nonsuit, which we address together, and then his third issue.
    In his fourth issue, Plaintiff argues that the trial court was barred from
    granting a nonsuit in favor of Defendants under the law of the case doctrine
    because a different judge had overruled Defendants’ preliminary objection in
    the nature of a demurrer. This claim is without merit.
    Contrary to Plaintiff’s assertions, the law of the case doctrine does not
    bar a trial judge from ruling in defendants’ favor at trial on an issue as to
    ____________________________________________
    3 Plaintiff also lists as an issue whether the trial court erred in holding that his
    Pa.R.C.P. 1925(b) statement was insufficient to preserve any issues for
    appeal. We agree with Plaintiff that his Rule 1925(b) statement was sufficient
    to preserve the above issues and that those issues are not waived.
    Defendants in their brief request that this Court order Plaintiff to pay their
    attorney fees and costs in defending this appeal on the grounds that the
    appeal is frivolous. Appellees’ Br. at 67. Because we conclude that Plaintiff’s
    appeal from the nonsuit in favor of Zarro is meritorious, this request is denied.
    -5-
    J-A27037-20
    which a different judge overruled preliminary objections.              Under the
    coordinate jurisdiction rule, an aspect of the law of the case doctrine, a judge
    may generally not alter the resolution of a legal question previously decided
    by another judge of that court. Riccio v. American Republic Insurance
    Co., 
    705 A.2d 422
    , 425 (Pa. 1997); Parker v. Freilich, 
    803 A.2d 738
    , 745
    (Pa. Super. 2002). This rule, however, applies only where the second judge
    rules on the same type of motion as the first judge; the coordinate jurisdiction
    rule does not bar a judge at a later and different procedural stage of the case
    from overruling another judge’s decision on preliminary objections, even on
    an identical legal issue and even where the record is unchanged. Riccio, 705
    A.2d at 425-26; K.H. ex rel. H.S. v. Kumar, 
    122 A.3d 1080
    , 1091-92 (Pa.
    Super. 2015); Parker, 
    803 A.2d at 745-46
    ; Mellon Bank, N.A. v. National
    Union Insurance Co. of Pittsburgh, 
    768 A.2d 865
    , 870-71 (Pa. Super.
    2001). Because the ruling here was at trial, a different procedural posture
    from the preliminary objections, the coordinate jurisdiction rule could not limit
    the trial court’s authority to grant a nonsuit.4
    ____________________________________________
    4 Indeed, there is not even any overruling of an earlier decision here. There is
    no inconsistency between overruling a demurrer and the granting of this
    nonsuit. A demurrer assumes the truth of the complaint’s averments and
    challenges the legal sufficiency of those averments, even if they are proven.
    Keller v. Bank of New York Mellon, 
    212 A.3d 52
    , 56 (Pa. Super. 2019). As
    is discussed below, the nonsuit here was not based on the insufficiency of
    Plaintiff’s averments to state a cause of action, but on the trial court’s
    conclusion that Plaintiff failed to prove facts essential to his cause of action at
    trial.
    -6-
    J-A27037-20
    In his fifth issue, Plaintiff argues that even if he did not prove his causes
    of action, the trial court erred in granting a nonsuit because the bankruptcy
    court’s decision in In re Rosenblum, supra, collaterally estopped Defendants
    from disputing the elements of those claims. This argument likewise fails.
    The doctrine of collateral estoppel precludes a party from disputing an
    issue only where all of the following five elements are satisfied: (1) the issue
    is identical to an issue decided in a prior case, (2) the prior case resulted in a
    final judgment on the merits, (3) the party against whom collateral estoppel
    is asserted was a party to the prior case, or is in privity with a party to that
    case, (4) there was a full and fair opportunity to litigate the issue in the prior
    case, and (5) the determination in the prior case was essential to the
    judgment. E.K. v. J.R.A., 
    237 A.3d 509
    , 521 (Pa. Super. 2020); Wilmington
    Trust, N. A. v. Unknown Heirs, 
    219 A.3d 1173
    , 1179 (Pa. Super. 2019).
    Whether collateral estoppel bars re-litigation of an issue is a question of law
    subject to this Court’s plenary, de novo review. Wilmington Trust, N. A.,
    219 A.3d at 1179.
    The requirements for collateral estoppel are absent here. Neither Allan
    Rosenblum nor Zarro was a party to the proceedings out of which the
    bankruptcy court decision arose.     Rather, the parties to those proceedings
    were Plaintiff and Debtor. 545 B.R. at 852-53. Most importantly, there was
    no judgment in the bankruptcy court decision on the issues here, whether
    Plaintiff’s evidence against Defendants was sufficient to prove a fraudulent
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    J-A27037-20
    transfer cause of action and whether Debtor made any fraudulent transfer.
    The issue before the bankruptcy court was whether Plaintiff could bring a
    fraudulent transfer action against Defendants on behalf of Debtor’s estate.
    Id. at 852-53, 873, 875. The bankruptcy court’s only ruling concerning the
    merits of Plaintiff’s action was a determination that Plaintiff’s averments in his
    complaint that Debtor transferred ownership interests in the Levittown gym
    and the Torresdale gym and the contents of those gyms, if proven, would
    support fraudulent transfer claims, not that there was evidence to support
    those averments or that any fraudulent transfer to Defendants occurred. Id.
    at 863-70. Collateral estoppel therefore did not bar Defendants from disputing
    Plaintiff’s fraudulent transfer claims against them and cannot constitute a
    ground for reversal of the nonsuit in their favor.
    Moving to the merits of the trial court’s grant of the nonsuit, Plaintiff
    argues in his first and second issues that he presented sufficient evidence for
    the jury to find all of the elements of his fraudulent transfer claims against
    Defendants and the nonsuit was therefore improper. A nonsuit is proper if,
    viewing the evidence and all reasonable inferences arising from it in the light
    most favorable to the plaintiff, a jury could not reasonably conclude that all of
    the elements of the plaintiff’s cause of action have been established. T.M. v.
    Janssen Pharmaceuticals Inc., 
    214 A.3d 709
    , 720 (Pa. Super. 2019);
    Kovacevich v. Regional Produce Cooperative Corp., 
    172 A.3d 80
    , 85 (Pa.
    Super. 2017). We will reverse the grant of a nonsuit only if the trial court
    -8-
    J-A27037-20
    abused its discretion or made an error of law.          T.M., 214 A.3d at 720;
    Kovacevich, 172 A.3d at 85.
    Under Section 5104 of PUFTA, a transfer is fraudulent as to both present
    and future creditors 1) if it was made with intent to hinder or defraud a creditor
    or 2) if the debtor did not receive reasonably equivalent value and either the
    debtor’s remaining assets were insufficient for a business that he was
    undertaking or the debtor was incurring debts beyond his ability to pay as
    they came due. 12 Pa.C.S. § 5104 (in effect February 1, 1994 to February
    19, 2018);5 Fell v. 340 Associates, LLC, 
    125 A.3d 75
    , 81-84 (Pa. Super.
    ____________________________________________
    5   Section 5104(a) provided that:
    A transfer made or obligation incurred by a debtor is fraudulent
    as to a creditor, whether the creditor’s claim arose before or after
    the transfer was made or the obligation was incurred, if the debtor
    made the transfer or incurred the obligation:
    (1) with actual intent to hinder, delay or defraud any creditor of
    the debtor; or
    (2) without receiving a reasonably equivalent value in exchange
    for the transfer or obligation, and the debtor:
    (i) was engaged or was about to engage in a business or a
    transaction for which the remaining assets of the debtor were
    unreasonably small in relation to the business or transaction; or
    (ii) intended to incur, or believed or reasonably should have
    believed that the debtor would incur, debts beyond the debtor’s
    ability to pay as they became due.
    12 Pa.C.S. § 5104(a) (in effect February 1, 1994 to February 19, 2018).
    -9-
    J-A27037-20
    2015); Mid Penn Bank v. Farhat, 
    74 A.3d 149
    , 153-56 (Pa. Super. 2013).
    Under Section 5105 of PUFTA, a transfer is fraudulent as to present creditors
    if the debtor did not receive reasonably equivalent value and the debtor was
    insolvent or was made insolvent by the transfer. 12 Pa.C.S. § 5105 (in effect
    February 1, 1994 to February 19, 2018);6 Knoll v. Uku, 
    154 A.3d 329
    , 333-
    36 (Pa. Super. 2017). If a creditor proves that a transfer was fraudulent under
    Section 5104 or Section 5105, he may have the transfer set aside to the extent
    necessary to satisfy his claim. 12 Pa.C.S. § 5107 (in effect February 1, 1994
    to February 19, 2018); see also Knoll, 154 A.3d at 336. The creditor may
    also recover the value of fraudulently transferred property from a transferee
    who received the property that the debtor fraudulently transferred or from a
    person for whose benefit the transfer was made. 12 Pa.C.S. § 5108(b) (in
    effect July 1, 2001 to February 19, 2018); see also Farhat, 
    74 A.3d at 152, 156
    .
    ____________________________________________
    6   Section 5105 provided that:
    A transfer made or obligation incurred by a debtor is fraudulent
    as to a creditor whose claim arose before the transfer was made
    or the obligation was incurred if the debtor made the transfer or
    incurred the obligation without receiving a reasonably equivalent
    value in exchange for the transfer or obligation and the debtor
    was insolvent at that time or the debtor became insolvent as a
    result of the transfer or obligation.
    12 Pa.C.S. § 5105 (in effect February 1, 1994 to February 19, 2018).
    - 10 -
    J-A27037-20
    The only relief that Plaintiff sought at trial was recovery of the value of
    the transferred property from Defendants.       N.T. Trial, 10/8/19, at 249-50.
    Plaintiff was therefore required to introduce evidence sufficient to prove not
    only that the transfers at issue were fraudulent under Section 5104 or 5105,
    but that Defendants were transferees or persons for whose benefit the
    transfers were made. 12 Pa.C.S. § 5108(b) (in effect July 1, 2001 to February
    19, 2018).    The trial court granted the nonsuit because it concluded that
    Plaintiff introduced no evidence at trial sufficient to show that Debtor
    transferred any property to either defendant Allan Rosenblum or defendant
    Zarro. Trial Court Order, 2/12/20, at 1-3 n.1; Trial Court Opinion at 3-5.
    We agree that Plaintiff failed to introduce evidence sufficient for a jury
    to find that Debtor made a fraudulent transfer to defendant Allan Rosenblum
    or for his benefit and that the trial court properly granted a nonsuit in favor of
    defendant Allan Rosenblum. The evidence at trial concerning Plaintiff’s claim
    against Allan Rosenblum showed that Debtor transferred $50,000 in August
    2012 from his personal home equity line of credit to Charter Fitness, the owner
    of the Levittown gym, as consideration for the purchase of that gym business
    by Quick-Fit USA, LLC (Quick-Fit). N.T. Trial, 10/7/19, at 48, 123-35, 138;
    N.T. Trial, 10/8/19, at 45, 96-97, 131-32, 134.        While this might show a
    fraudulent transfer by Debtor for the benefit of Quick-Fit, Plaintiff did not sue
    Quick-Fit or seek any relief against Quick-Fit. Allan Rosenblum did not receive
    - 11 -
    J-A27037-20
    any funds or other property in the August 2012 transaction.           N.T. Trial,
    10/8/19, at 130, 167.
    The only connection to this 2012 transfer that Plaintiff proved with
    respect to Allan Rosenblum was that Allan Rosenblum and Debtor were each
    50% owners of Quick-Fit. N.T. Trial, 10/7/19, at 125-26; N.T. Trial, 10/8/19,
    133-34, 160, 162. That ownership of Quick-Fit, however, was created when
    Quick-Fit was incorporated in 2009, long before Plaintiff’s claim against Debtor
    arose. N.T. Trial, 10/7/19, at 20-21; N.T. Trial, 10/8/19, at 100-01, 113-14,
    132-34, 138-39, 159-62.     There was no evidence that Plaintiff was insolvent
    or unable to pay future obligations in 2009 or that Quick-Fit was formed to
    defraud any creditor. N.T. Trial, 10/8/19, at 135, 227-28. Nor was there any
    evidence that Allan Rosenblum ever received any money or other property
    from Quick-Fit in connection with or following the 2012 transaction or that he
    ever received any money or property from the operation of the Levittown gym.
    Id. at 49, 114-16, 141-42. There was also no evidence that Allan Rosenblum
    could receive any future benefit from the 2012 transfer. The evidence at trial
    showed that in 2017, Quick-Fit defaulted on its lease for the Levittown gym
    premises and its landlord took possession of all of the Levittown gym
    equipment. Id. at 128-29, 132.
    Because there was no evidence introduced at trial that defendant Allan
    Rosenblum received any property transferred by Debtor or that there was any
    fraudulent transfer by Debtor for his benefit, the trial court properly concluded
    - 12 -
    J-A27037-20
    that Plaintiff failed to prove a cause of action under PUFTA for a money
    judgment against this defendant. 12 Pa.C.S. § 5108(b) (in effect July 1, 2001
    to February 19, 2018).
    The trial court, however, erred in granting a nonsuit with respect to
    defendant Zarro. The sole ground on which defendant Zarro sought a nonsuit
    was that that Plaintiff had failed to show that Debtor transferred property to
    her. N.T. Trial, 10/8/19, at 256-57. The evidence admitted at trial, taking all
    reasonable inferences in Plaintiff’s favor, was sufficient for a jury to find that
    Debtor gave equipment in the Torresdale gym with a value of at least $4,200
    to Zarro for no consideration after Plaintiff filed his 2012 trademark action
    when Debtor was no longer paying his debts as they came due.
    Debtor testified that he and a partner, who was a defendant in Plaintiff’s
    trademark action but not in this action, began operating the Torresdale gym
    in 2011 in leased space in a building owned by a third-party.          N.T. Trial,
    10/7/19, at 4, 79, 93, 118-20, 185-86. Debtor testified that he abandoned
    his ownership of the Torresdale gym business and the equipment in the
    Torresdale gym to Zarro, the sister of his paramour, in 2013 or 2014 and did
    not receive anything in exchange for abandoning that property. Id. at 11-13,
    43-44, 47, 88, 93-94, 181-82; N.T. Trial, 10/8/19, at 27-28, 80-81, 98. Zarro
    admitted in interrogatory answers that Plaintiff read into evidence that she
    owned boxing equipment at the Torresdale gym address and that she did not
    pay anything for the equipment. N.T. Trial, 10/8/19, at 174-78, 180-82. The
    - 13 -
    J-A27037-20
    evidence at trial also showed that Zarro in 2014 filed a claim of ownership of
    the equipment the Torresdale gym address and asserted that its value was
    $4,200 and that Zarro entered into a lease for the Torresdale gym premises
    in December 2013. Plaintiff’s Exs. 11, 37. At the time that Debtor abandoned
    the Torresdale gym business and equipment, Debtor was not meeting his
    obligations to pay rent under the Torresdale gym lease. N.T. Trial, 10/7/19,
    at 186-87, 195-96, 198.
    The trial court concluded that there was no evidence of a fraudulent
    transfer to Zarro because Debtor abandoned the business and equipment to
    the Torresdale gym’s landlord and Zarro obtained the property from the
    landlord. Trial Court Order, 2/12/20, at 2-3 n.1; Trial Court Opinion at 5. The
    record, however, does not support a conclusion that the landlord owned the
    equipment or that Zarro obtained the equipment from the landlord, let alone
    require those conclusions. Debtor testified that he abandoned his ownership
    interest in the Torresdale gym and equipment to Zarro, not that the landlord
    took possession. N.T. Trial, 10/7/19, at 47, 94; N.T. Trial, 10/8/19, at 98.
    Moreover, Zarro’s lease referenced only rental of space in a building, not
    acquisition or rental of any equipment. Plaintiff’s Ex. 37 at 1.
    Because there was sufficient evidence for a jury to find that Debtor
    transferred his ownership of the Torresdale gym and its equipment to
    defendant Zarro for no consideration, the trial court erred in granting her
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    J-A27037-20
    motion for a compulsory nonsuit and Plaintiff’s claim against defendant Zarro
    must be remanded for a new trial on his claim against her.
    In his remaining issue, Plaintiff argues that the trial court erred in
    denying his second motion for summary judgment and that he is entitled
    under that summary judgment motion to judgment in his favor against both
    defendants on liability. This argument fails for two reasons.
    First, as the trial court correctly held, Trial Court Opinion at 5, the denial
    of this summary judgment motion is not appealable as an issue separate from
    the grant of the nonsuit at trial. This Court has held that where, as here, a
    summary judgment motion is based on the sufficiency of the evidence to prove
    the plaintiff’s claims, once a case goes to trial and evidence is presented at
    trial, the denial of summary judgment is moot and the sufficiency of the
    evidence must be analyzed based on the trial record. Whitaker v. Frankford
    Hospital of City of Philadelphia, 
    984 A.2d 512
    , 517 (Pa. Super. 2009).7
    ____________________________________________
    7 We note that our Supreme Court and this Court in reported decisions
    subsequent to Whitaker have in fact ruled on the merits of denials of
    summary judgment in appeals following a hearing or trial. See Woodford v.
    Insurance Department, 
    243 A.3d 60
    , 68-71 (Pa. 2020) (affirming denial of
    summary judgment on the merits in appeal from judgment following
    evidentiary hearing); Krepps v. Snyder, 
    112 A.3d 1246
    , 1257-60 (Pa. Super.
    2015) (affirming denial of plaintiff’s motion for summary judgment on the
    merits in appeal from judgment following trial). These decisions, however,
    have not addressed the issue of whether the factual record at trial supersedes
    the denial of summary judgment and whether the denial of summary
    judgment is appealable as a separate issue following trial. No decision has
    overruled Whitaker, and it therefore remains binding precedent.
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    J-A27037-20
    Secondly, even if we could consider this issue, it would fail. Plaintiff
    contends that he was entitled to summary judgment in his favor on two
    grounds: 1) because Defendants failed to respond to the motion and its
    statement of undisputed facts and 2) because he allegedly showed that the
    elements of his fraudulent conveyance were undisputed.        Neither of these
    arguments has merit.
    Contrary to Plaintiff’s contentions, failure to respond to a summary
    judgment motion does not require a trial court to grant summary judgment in
    favor of the movant. Woodford v. Insurance Department, 
    243 A.3d 60
    ,
    71 n.9 (Pa. 2020); Thomas v. Elash, 
    781 A.2d 170
    , 177 (Pa. Super. 2001).
    Moreover, Plaintiff did not endorse the statement of undisputed facts with a
    notice to plead.      Defendants’ failure to respond to the allegations in that
    statement therefore does not constitute an admission of those allegations.
    Cooper v. Church of St. Benedict, 
    954 A.2d 1216
    , 1221 (Pa. Super. 2008);
    McCormick v. Allegheny General Hospital, 
    527 A.2d 1028
    , 1032 (Pa.
    Super. 1987).8
    Plaintiff also failed to demonstrate in his second summary judgment
    motion that all of the elements of his claims against Defendants were
    undisputed. Plaintiff’s motion was based in large part on his own affidavit and
    ____________________________________________
    8 Indeed, the only authority that Plaintiff cites for his contention that
    Defendants were required to respond to the statement of undisputed facts, 25
    Pa. Code 1021.94a(g)(2), is a rule governing Environmental Hearing Board
    proceedings and has no applicability to this case.
    - 16 -
    J-A27037-20
    statement, oral testimony of Debtor, and a written statement filed by Debtor.
    Summary judgment cannot be granted in favor of a party who bears the
    burden of proof based the movant’s own affidavit and statements and oral
    testimony and statements of witnesses other than the opposing parties.
    Woodford, 243 A.3d at 69-71; Penn Center House, Inc. v. Hoffman, 
    553 A.2d 900
    , 903-04 (Pa. 1989). The admissions of defendant Allan Rosenblum
    that Plaintiff submitted in support of his summary judgment motion
    established only that Allan Rosenblum was a 50% owner of the corporation
    that owns the Levittown gym and that the corporation was formed in 2009.
    Allan Rosenblum Answers to Plaintiff’s Interrogatories.    The admissions of
    defendant Zarro that Plaintiff submitted in support of his summary judgment
    motion established that Zarro owned a boxing studio and boxing equipment
    at the Torresdale gym address and that she paid nothing for the equipment,
    but did not include any admission that Debtor transferred the business or
    equipment to her. Zarro Answers to Plaintiff’s Interrogatories. The trial court
    therefore properly denied Plaintiff’s second motion for summary judgment.
    For the foregoing reasons, we conclude that the trial court properly
    granted defendant Allan Rosenblum’s motion for compulsory nonsuit, but that
    it erred in granting a compulsory nonsuit in favor of defendant Zarro.
    Accordingly, we affirm the judgment in favor of defendant Allan Rosenblum,
    vacate the judgment in favor of defendant Zarro, and remand this case for a
    new trial of Plaintiff’s claim against defendant Zarro.
    - 17 -
    J-A27037-20
    Judgment affirmed in part and vacated in part. Case remanded for a
    new trial limited to Plaintiff’s claim against defendant Zarro.   Jurisdiction
    relinquished.
    Judgment Entered.
    Joseph D. Seletyn, Esq.
    Prothonotary
    Date: 2/25/21
    - 18 -
    

Document Info

Docket Number: 654 EDA 2020

Filed Date: 2/25/2021

Precedential Status: Precedential

Modified Date: 2/25/2021