Finality • Summary Judgment Order • Transfer to Arbitration

Radon Insurance, LLC v. Land Endeavor 0-2, Inc. et al., PICS Case No. 17-1066 (C.P. Philadelphia July 11, 2017) Glazer, J. (5 pages).

Plaintiffs failed to establish a final disposition from which they could take an appeal where the court granted defendants summary judgment on all but one count and transferred that remaining count for resolution through arbitration. The court recommended that plaintiffs' appeal be quashed or, alternatively, that its decision be affirmed.

The parties were involved in a failed joint venture to develop real estate in Philadelphia. They executed a joint venture agreement and two separate subcontract agreements, one dated March 2015 and another dated June 2015. The March agreement allowed defendants to terminate the agreement upon 48-hour notice to plaintiffs of their default on any of the terms and conditions of the contract. The June subcontract was much the same as the earlier subcontract, but included special paragraphs regarding default and provided plaintiffs with 48 hours to cure any breach. If plaintiffs did not cure any breach within that time, defendants had the sole right to terminate the joint venture. If defendants chose the termination route, plaintiffs were to be paid a “termination payment” equal to the sum of payment for all worked performed and unpaid to the date of the termination and certain direct costs. Defendants terminated the joint venture in November 2015, after plaintiffs installed improper structural beams. Plaintiffs filed suit, seeking relief for defendants' alleged breach of the joint venture agreement, March subcontract and June subcontract as well as duress, unjust enrichment, quantum meruit and intentional infliction with contractual relations. Defendants moved for summary judgment on all counts. The court granted the motion in part, dismissing all plaintiffs' claims except the claim for alleged breach of the June subcontract, which it transferred to arbitration. Plaintiff filed an appeal, prompting the court's opinion. The court explained that defendants' termination of the joint venture was proper pursuant to the plain terms of the June 2015 subcontract, which allowed for termination if plaintiffs failed to cure a default within 48 hours of being notified. Plaintiffs were given 13 days to cure a defect, but did not do so. Thus, the termination was proper. However, defendants did not provide plaintiffs with a termination payment pursuant to the June subcontract. Defendants conceded the amount due was $13,538, but the court was unable to find a basis for that amount. While the court was unable to determine from the pleadings and exhibits the amount due, it was clear the amount was below the $50,000 threshold for the court to have jurisdiction. As such, the court transferred plaintiffs' count on the June subcontract to an arbitration program. Given the transfer of the remaining count to arbitration, the court found that there had not been a final disposition from which plaintiffs could take an appeal.

Finality • Summary Judgment Order • Transfer to Arbitration

Radon Insurance, LLC v. Land Endeavor 0-2, Inc. et al., PICS Case No. 17-1066 (C.P. Philadelphia July 11, 2017) Glazer, J. (5 pages).