Lobar Associates, Inc. v. O'Neill, E.
3525 EDA 2016
| Pa. Super. Ct. | Nov 17, 2017Background
- Lobar Associates contracted with an entity affiliated with tenant Radnor Carmel Café to renovate 372 W. Lancaster Ave. for a restaurant; Lobar billed $1,109,670.50 and was unpaid $199,011.64.
- Appellants Edward and Carla O’Neill are the fee simple owners who leased the premises to Radnor Carmel Café under a written lease.
- The Lease: (a) contemplated and required tenant renovations, (b) required owner cooperation in approvals/permits, (c) made improvements the owner’s property at lease end, and (d) obligated owners to repair/maintain structural components; owners paid $12,373.40 toward structural work.
- Lobar filed a mechanics’ lien and then a suit to enforce it after Carmel Café failed to pay the final amount.
- Appellants’ sole defense: the Lease did not constitute a writing signed by the owners stating the improvements were for the owners’ "immediate use and benefit" as required by 49 P.S. § 1303(d).
- Trial court granted summary judgment for Lobar for $199,011.64; Superior Court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the owner-signed lease satisfies §1303(d)’s "writing" requirement showing improvements were for owner’s immediate use and benefit | Lobar: The Lease expressly contemplates renovations, requires owner cooperation, gives owners ownership of improvements at lease end, and obligates owners to pay for structural work — satisfying the statute | O'Neill: The Lease does not contain a written, signed statement by owners that the improvements were for their immediate use and benefit, so lien cannot attach to owner’s fee estate | Lease provisions show central purpose was renovation benefiting owner; Superior Court held the Lease satisfies §1303(d) and affirmed summary judgment for Lobar |
Key Cases Cited
- Kelly v. Hannan, 566 A.2d 310 (Pa. Super. 1989) (mechanics’ lien is statutory remedial proceeding and requires contractual basis)
- Murray v. Zemon, 167 A.2d 253 (Pa. 1960) (owner’s signed consent must state improvement is for owner’s immediate use and benefit; lien must be self-sustaining)
- American Seating Co. v. City of Philadelphia, 256 A.2d 599 (Pa. 1969) (signed lease can satisfy writing requirement if it shows improvements benefit owner)
- Chenot v. A.P. Green Services, Inc., 895 A.2d 55 (Pa. Super. 2006) (summary judgment standards and review scope)
- Pappas v. Asbel, 768 A.2d 1089 (Pa. 2001) (scope of appellate review is plenary)