Sipes, T. v. Hopper, D.
1867 WDA 2016
| Pa. Super. Ct. | Jan 3, 2018Background
- Hopper and others operated a china factory; they (collectively “Hopper”) acquired the property via purchase of the mortgage and tax sale activity in 1999 and ran the plant until ~2003 when operations ceased and utilities were turned off.
- In December 2006 Sipes purchased the real estate at a tax sale for $2,500; the parties agree Hopper retained ownership of the manufacturing equipment left in the building but provided no inventory to Sipes after the sale.
- Sipes notified Hopper (through counsel) in April 2007 that Hopper had until April 16, 2007 to remove equipment and that Sipes had paid $10,000 to Columbia Gas to address a lien; Sipes demanded reimbursement prior to release of equipment.
- Hopper made limited removal attempts (twice) with unqualified helpers and did not retain professionals until about a month after the April deadline; some equipment was later scrapped by Sipes’s contractor to remove debris.
- Hopper sued for conversion and damages; the non-jury trial court found Sipes had lawful justification to dispose of the equipment because Hopper unreasonably failed to remove or protect it during the approximately four-month period after the tax sale.
- The Superior Court affirmed, holding trial-court factual findings supported by the record and that Sipes did not convert Hopper’s equipment; no damages were owed.
Issues
| Issue | Hopper's Argument | Sipes' Argument | Held |
|---|---|---|---|
| Whether Sipes converted Hopper’s equipment by disposing of it after the tax sale | Sipes unlawfully deprived Hopper of chattels and should be liable for conversion | Sipes acted reasonably and had lawful justification to dispose after Hopper failed to remove or protect equipment | No conversion; court found Hopper unreasonably delayed and Sipes had justification to dispose |
| Whether Hopper’s claimed values require damages calculation | Hopper asserted very high values based on an old handwritten 1992 list (millions) or his own ~$600,000 estimate | Sipes disputed value and emphasized Hopper’s failure to safeguard or timely remove items | No damages calculated because conversion was not proved; valuation issue moot |
Key Cases Cited
- Company Image Knitware, Ltd. v. Mothers Work, Inc., 909 A.2d 324 (Pa. Super. 2006) (standard of review in non-jury cases)
- J.J. DeLuca Co. v. Toll Naval Associates, 56 A.3d 402 (Pa. Super. 2012) (deference to trial court credibility findings)
- Ecksel v. Orleans Const. Co., 519 A.2d 1021 (Pa. Super. 1987) (credibility review principles)
- McKeeman v. Corestates Bank, N.A., 751 A.2d 655 (Pa. Super. 2000) (definition of conversion)
- Stevenson v. Economy Bank of Ambridge, 197 A.2d 721 (Pa. 1964) (conversion described as deprivation of possession without consent)
- Martin v. National Sur. Corp., 262 A.2d 672 (Pa. 1970) (conversion by unreasonably withholding possession)
- PTSI, Inc. v. Haley, 71 A.3d 304 (Pa. Super. 2013) (conversion principles)
- Gutteridge v. J3 Energy Group, Inc., 165 A.3d 908 (Pa. Super. 2017) (standard of appellate review)
