Nexus Real Estate v. Erickson, J., Appeal of: JLB
174 A.3d 1
| Pa. Super. Ct. | 2017Background
- Tenant John Erickson leased an apartment since 2002; rent rose to $700/month. Property sold to JLB Retasa Shady, LLC in Nov. 2014; Nexus Real Estate managed the building.
- In Nov. 2014 a section of the bathroom ceiling fell; tenant repeatedly reported ceiling collapse, persistent leaks, visible mold, no heat all winter 2015, and air conditioning failures that persisted through summer.
- Nexus repeatedly promised repairs (emails and oral assurances) but delayed or performed inadequate, temporary fixes; city inspections and tenant photographs documented ongoing defects and mold; substantial ceiling collapse recurred.
- Building exterior construction impeded safe ingress/egress, created noise and frequent water shutdowns; tenant escrowed rent beginning Oct. 2015.
- Procedural posture: landlord sued tenant for unpaid rent; tenant sued landlord under warranty of habitability and the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL). Actions consolidated for non-jury trial; trial court awarded tenant treble damages under UTPCPL plus fees; judgment reduced on post-trial motions; landlord appealed.
Issues
| Issue | Plaintiff's Argument (Erickson) | Defendant's Argument (Landlord) | Held |
|---|---|---|---|
| Whether treble damages under the UTPCPL were proper | Nexus made intentional/reckless, deceptive false promises and repeatedly failed to repair habitable defects; treble damages appropriate under Schwartz standard | Treble damages reserved for truly egregious, deceitful, or illegal conduct; Landlord responded to complaints and followed procedures, so treble damages not warranted | Affirmed: trial court properly found intentional/reckless wrongful conduct and rationally awarded treble damages under Schwartz |
| Whether full rent reimbursement as actual damages was supported by evidence | Tenant sought full rent refund for uninhabitable conditions | Landlord argued insufficient proof of uninhabitability to justify full rent reimbursement | Waived on appeal (not preserved in Pa.R.A.P. 1925(b)); appellate court did not reach merits |
Key Cases Cited
- Schwartz v. Rockey, 932 A.2d 885 (Pa. 2007) (defines standard for awarding treble damages under UTPCPL: focus on intentional or reckless wrongful conduct and deferential review for rationality)
- Meyer v. Community College of Beaver County, 93 A.3d 806 (Pa. 2014) (noting hybrid punitive-remedial nature of treble damages)
- Pikunse v. Kopchinski, 631 A.2d 1049 (Pa. Super. 1993) (example of egregious landlord conduct warranting heightened relief)
- Wallace v. Pastore, 742 A.2d 1092 (Pa. Super. 1999) (example of landlord misrepresentations and improper retention of security deposit bearing on remedies)
- Dibish v. Ameriprise Fin., Inc., 134 A.3d 1079 (Pa. Super. 2016) (discussing appellate review of discretionary awards akin to equitable discretion)