Hidden Ridge Condo. Ass'ns v. Sabatino

1

HIDDEN RIDGE CONDOMINIUM ASSOCIATIONS, INC., A PENNSYLVANIA NON-PROFIT CORPORATION, AND JILL WANZIE, TOM BURICH, KATHLEEN RAUSCHER, KAREN LOFE AND COREY SIGLER, AS TRUSTEES AD LITEM OF THE EXECUTIVE BOARD OF THE HIDDEN RIDGE CONDOMINIUM ASSOCIATION, ON THEIR OWN BEHALF OF ALL THE OTHERS SIMILARLY SITUATED v. P. RONALD SABATINO A./K/A RONALD SABATINO, SCIOTO CONSTRUCTION COMPANY, A PENNSYLVANIA CORPORATION AND T&R PROPERTIES, INC., AN OHIO CORPORATION.APPEAL OF: SCIOTO CONSTRUCTION COMPANY

No. 873 WDA 2021

No. J-A25039-22

Superior Court of Pennsylvania

March 9, 2023

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

Appeal from the Judgment Entered July 16, 2021 In the Court of Common Pleas of Allegheny County Civil Division at No(s) GD-08-021879

Joseph D. Seletyn, Esq.

BEFORE: KUNSELMAN, J., NICHOLS, J., and McCAFFERY, J.

MEMORANDUM

McCAFFERY, J.

Scioto Construction Company (Scioto) appeals from the judgment entered in the Allegheny County Court of Common Pleas after the trial court granted Hidden Ridge Condominium Associations, Inc.'s (Hidden Ridge) petition to enforce a settlement agreement. The court awarded damages to Hidden Ridge in the amount of $220,874.25 and struck a quitclaim deed recorded by Scioto on October 13, 2017, rendering Scioto responsible for the on-going maintenance of a stormwater detention facility on the subject parcel until such time that it is dedicated to and accepted by the township. On appeal, Scioto argues the trial court erred by entering summary judgment in favor of Hidden Ridge when: (1) genuine issues of material fact remained; (2) the court failed to hold a trial or evidentiary hearing on Scioto's affirmative defenses; (3) Hidden Ridge's contract action is barred by the statute of limitations; (4) the damages award is unsupported by competent evidence; (5) the damages award contradicts the court's prior ruling which was overturned on appeal; and (6) the language of the settlement agreement either did not require the township's acceptance of the stormwater detention facility or was ambiguous as to that term. For the reasons below, we vacate the order on appeal and remand for further proceedings.

The tortured procedural history of this litigation began in 2008, generated one trial on an unrelated issue, and has resulted in four prior appeals to this Court. By way of background, "Scioto developed a condominium project in South Park Township, Allegheny County." Hidden Ridge Condominium Assoc. v. Sabatino,^[1] 1272 WDA 2018, 1307 WDA 2018, 1642 WDA 2018, 1692 WDA 2018 (unpub. memo. at 4) (Pa. Super. Oct. 1, 2019) (footnote omitted). In 2008, Hidden Ridge, on behalf of itself and all unit owners, initiated a civil action against Scioto and several other related defendants, asserting claims for, inter alia, unpaid condominium fees, breach of contract, breach of warranties, and misappropriation of funds. See Hidden Ridge's Amended Complaint in Equity & Civil Action Including Class Action Allegations, 11/4/09, at ¶¶ 66-81, 96-135, 144-50. However, as the trial court explains: "The crux of that litigation concerned the ramifications of the [condominium] plan's designation as a 'non-flexible' . . . plan rather than a 'flexible plan[,]'" which resulted in Scioto's obligation to pay condominium fees. Trial Ct. Op., 11/8/21, at 7. The issue of the unpaid fees proceeded to a jury trial,^[2] and on June 4, 2012, the jury entered an award in favor of Hidden Ridge in the amount of $251,725. Id. Scioto filed an appeal to this Court, which affirmed the judgment. Hidden Ridge v. Sabatino v. J.R. Gales & Assoc., 1992 WDA 2012 (unpub. memo.) (Pa. Super. Dec. 18, 2013).

Meanwhile, on September 24, 2012, the parties entered into a Settlement Agreement and Release, by which Scioto agreed to pay Hidden Ridge $650,000 to resolve the remaining outstanding claims. See Settlement Agreement & Release at ¶ 1.1. In addition, and relevant to the matter herein, the Settlement Agreement also included the following paragraph pertaining to the completion of construction of the development:

1.3 Scioto Build-Out. Scioto has built only 161 of the 181 condominium units created by the Declaration and the Parties agree that the remaining 20 un-built Units shall be built (the "Build Out Units"). Scioto will commence construction on the Build Out Units no later than April 14, 2013, or as soon thereafter as conditions permit, and shall substantially complete such construction of the Build Out Units by December 31, 2014, and further agrees that the permanent storm water detention facilities shall be completed and dedicated to South Park Township by December, 2014. All construction shall be completed in accordance with the Developer's Agreement with South Park Township, the Declaration and the Plans of Hidden Ridge, including, but not limited to, the completion of all permanent storm water detention facilities, as required by the applicable law, and including, but not limited to, the Ordinances of the Township of South Park and the Commonwealth of Pennsylvania. As to the completed Common Areas and Units, the Scioto Defendants shall have no obligation to complete, fix and/or repair any other alleged deficiency described by the Releasing Parties in the Hidden Ridge Action.

Settlement Agreement & Release at ¶ 1.3 (some emphases added).

On January 20, 2015, Hidden Ridge filed a Petition to Enforce Settlement Agreement, asserting Scioto failed to complete the permanent stormwater detention facility and dedicate it to South Park Township by December 2014, as required in the Settlement Agreement. Hidden Ridge's Petition to Enforce Settlement Agreement, 1/20/15, at 2-3 (unpaginated). On February 17, 2015, the trial court entered an order granting the petition, and directing Scioto as follows:

Scioto . . . shall complete construction of the permanent stormwater detention facilities and take the appropriate steps to have the facilities dedicated to and accepted by the Township, without further delay weather permitting. Should Scioto fail to satisfy any of these obligations by June 30, 2015 [Hidden Ridge] may then proceed with a Motion for Sanctions and request the entry of such sanctions as the court deems appropriate, including an award of reasonable attorney fees and any other reasonable costs associated with the construction and/or acceptance of the stormwater facilities.

Order, 2/17/15 (emphases added).

Almost three years later, on January 22, 2018, Hidden Ridge filed a motion for sanctions. See Hidden Ridge's Motion for Sanction, 1/22/18. It asserted that Scioto "blatant[ly] disregard[ed]" the trial court's February 2015 order and, additionally, "allowed the condition of the pond to deteriorate" such that it was in "need of repair to satisfy the requirements of the Township[.]" Id. at ¶¶ 8-9. Additionally, Hidden Ridge alleged the "downspouts and lines which are in place to convey stormwater" to the pond were "in need of repair . . . to satisfy the Township standards for acceptance of the permanent stormwater detention facilities." Id. at ¶ 9.

The trial court conducted a contempt hearing on April 11, 2018. Hidden Ridge presented testimony concerning the deterioration of various drainage pipes throughout the development leading to the stormwater detention pond, and whether those pipes were part of the permanent stormwater detention facilities contemplated in the Settlement Agreement. See N.T., 4/11/18, at 7-11, 45-47, 64, 85. Scioto presented evidence, inter alia, that a South Park Township ordinance "expressly" stated the Township "will not accept the dedication of storm water detention and/or management systems." Id. at 38 (emphasis added); see also id. at 59. Two days later, the court entered an order, and accompanying memorandum, finding Scioto was in contempt of the court's February 17, 2015, order. The court concluded "it was clearly established that the first formal attempt [by Scioto] to obtain approval from South Park Township for [the stormwater] detention facility was an email dated November 19, 2015[,]" almost five months after the court's extended deadline. Trial Ct. Memo., 4/13/18, at 2 (unpaginated). The trial court also noted that Scioto presented evidence that the South Park Township zoning ordinance - which was in effect at the time of the Settlement Agreement - provided the Township would "not accept dedication of or accept a dedicated storm water facility." Id. (emphasis added). Accordingly, the court scheduled a hearing "on the appropriate nature and/or amount of a sanction(s) to be imposed[.]" Order, 4/13/18.

The sanctions hearing proceeded on July 25, 2018. Hidden Ridge's witnesses testified that it would cost $130,000 to replace the deteriorating pipes and drains, and $88,000 to bring the "existing storm water retention basin" to an acceptable standard for "dedication by a municipality." N.T., 7/25/18, at 41-42, 47-48, 57. Hidden Ridge also presented evidence that a permanent stormwater detention facility would incur "annual expected maintenance costs" of $5,000 to $10,000. Id. at 60. Lastly, Hidden Ridge presented evidence that on October 13, 2017 - without Hidden Ridge's knowledge or approval - Scioto recorded a quitclaim deed to the parcel of land upon which the stormwater detention pond was located. See id. at 16.

For its part, Scioto presented conflicting testimony that it would cost $20,240 "to bring [the] pond up to standards[.]" Id. at 108, 123.

On August 1, 2018, the trial court entered an order directing Scioto to pay Hidden Ridge $39,283.05, to "restore the pond/water detention facility to a functioning condition." Order, 8/1/18. The court also explicitly stated: "From the payment of said $39,283.05 forwards the responsibility of the maintenance and repair of the pond/water...