482 A.2d 240 | Pa. Super. Ct. | 1984
Lead Opinion
This appeal presents a novel issue concerning the construction of the term “declarant” under the Pennsylvania Uniform Condominium Act, 68 Pa.C.S.A. § 3101 et seq. For the reasons stated herein, we affirm the order of the lower court.
The facts are as follows:
On or about February 17, 1981, The Touraine Tenants Association commenced an equity action against Touraine Partners, Sargo, III, Inc. (sole general partner of Touraine Partners), Robert Sheridan, Robert Sheridan & Partners, and Marks & Co. (managing agent for The Touraine), seeking to prevent Touraine Partners from evicting individual tenants of The Touraine and to stop the renovation project. Settlement negotiations continued through the summer of 1981, during which time Touraine Partners’ counsel repeatedly referred to the occupying tenants, whose various leases expired in March, May, June or August of 1981, as illegal holdover tenants. Touraine Partners accepted rent checks tendered for July and August, but refused rent payments for September and thereafter. On July 21, 1981, at a meeting between Touraine Partners and the Touraine tenants at the Bellevue Stratford Hotel, Touraine Partners expressed its willingness to make available to the tenants certain benefits detailed in the Pennsylvania condominium statute, provided the tenants terminated the litigation. Also in July, Touraine Partners began the restoration program and entered into a contract with Turner Construction Co. for that purpose.
On September 15 and 16, 1981, Touraine Partners filed a complaint in equity and motions for preliminary injunction against two of the occupying tenants, seeking immediate possession of the occupied premises and the defendants’ ejectment. Touraine Partners subsequently filed similar actions against ten other occupying tenants. On September 28, the twelve defendants answered the motions, claiming that because Touraine Partners had converted The Touraine
In the October, 1981 issue of the WFLN Radio Guide, there appeared a full-page advertisement proclaiming the availability of condominium homes in The Touraine.
On October 2, 5, 6, 7 and 9, 1981, the Chancellor held hearings on the motions for preliminary relief. On October 9, the court consolidated the twelve actions against the individual tenants with the tenants’ original action, and, because of the extensive testimony taken, considered the hearing as final.
In the November 2, 1981 issue of Time magazine, the November 9, 1981 issue of Newsweek, and the December 2, 1981 issue of Business Week, there appeared advertisements on the availability of condominium homes in The Touraine.
On November 3, 1981, the tenants filed a motion to reopen testimony alleging that the November advertisements constituted after-acquired evidence. On December 2, 1981, the Chancellor filed a Decree Nisi, granting the injunctive relief requested by Touraine Partners and denying the tenants’ requested relief. The court refused to reopen testimony and the holdover tenants were ordered to vacate the premises within 30 days. On December 14, the tenants’ exceptions were hand-delivered to the trial judge. On January 13, 1982, the lower court en banc dismissed the exceptions and entered the Decree Nisi as a Final Decree. On January 15, Touraine Partners executed the Declaration of Condominium for The Touraine, which was recorded in the
Appellants contend that the lower court erred in holding that Touraine Partners was not a “declarant” under the 1980 Pennsylvania Uniform Condominium Act, 68 Pa.C.S.A. § 3101 et seq., (the Act). The term “declarant” is defined, in pertinent part, as follows: “(2) If the condominium has not yet been created, ‘declarant’ means any person who offers to dispose of or disposes of his interest in a unit not previously disposed of.” Id. § 3103 (emphasis added).
Any advertisement, inducement, solicitation or attempt to encourage any person to acquire any interest in a unit other than as security for an obligation. An advertisement in a newspaper or other periodical of a general circulation, or in any broadcast medium to the general public, of a condominium not located in this Commonwealth, is not an offering if the advertisement states that an offering may be made only in compliance with the law of the jurisdiction in which the condominium is located.
68 Pa.C.S.A. § 3103 (emphasis added). Accordingly, appellants argue that the advertisements appearing in the October, 1981 issue of the WFLN Radio Guide and subsequently in other magazines constituted “offers to dispose” of condominium units within the meaning of “declarant”, thereby entitling them to notice and the option to purchase under § 3410.
Appellees, however, contend that the lower court correctly interpreted “offers to dispose” to mean contractual offers. Therefore, they argue that because the advertisements did not quote any prices, they were too indefinite to constitute “offers” and, hence, did not result in Touraine Partners becoming a declarant under the Act.
In order to resolve this dispute, we turn to the language and background of the Act itself. Section 3410 provides, in pertinent part:
(a) Notice of conversion — A declarant of every conversion condominium shall give each of the tenants and any subtenant in possession of a unit or units in a building or buildings subject to this subpart notice of the conversion no later than one year before the declarant will require the tenants and any subtenant in possession to vacate.... Every notice shall be accompanied*204 by a public offering statement concerning the proposed sale of condominium units within such building or buildings. Except as otherwise provided in subsection (f), no tenant or subtenant may be required by the declarant to vacate upon less than one year’s notice, except by reason of nonpayment of rent, waste or conduct that disturbs other tenants’ peaceful enjoyment of the premises and the terms of the tenancy may not be altered during that period. Failure of a declarant to give notice as required by this subsection is a defense to an action for possession.
(b) Offer to tenant to purchase unit. — For six months after delivery or mailing of the notice described in subsection (a), the declarant shall offer to convey each unit or proposed unit occupied for residential use to the tenant who leases that unit. If a tenant fails to purchase the unit during that six-month period, the declarant may not offer to dispose of an interest in that unit during the following six months at a price or on terms more favorable to the offeree than the price or terms offered to the tenant____
(d) Notice to vacate. — If a notice of conversion specifies a date by which a unit or proposed unit must be vacated, the notice also constitutes a notice to quit specificed by section 501 of the act of April 6, 1951 (P.L. 69, No. 20), known as “The Landlord and Tenant Act of 1951.”
(g) Tenant meetings; open to the public. — At least 30 days before the notice of conversion is given, the declarant shall hold a tenant meeting open to the public in the municipality where the conversion is proposed at a place and time convenient to the persons who may be directly affected by the conversion.
68 Pa.C.S.A. § 3410 (emphasis added). This provision makes it clear that a public offering statement must be prepared before the notice of the conversion can be given and that the occupying tenant must receive the first offer to purchase the unit. Then, if the tenant declines to pur
The Pennsylvania Condominium Act is based upon the 1977 Uniform Condominium Act (UCA), §§ 1-101 et seq., 7 U.L.A. 101 (1978). The definition of “declarant” in § 3103 of the Pennsylvania Act corresponds, in relevant part, to the definition of “declarant” in § 1-103(10) of the UCA.
The definition of “declarant” focuses on two distinct time periods regarding the condominium: before and after the condominium has been created.
The definition also focuses on those circumstances where liability should be imposed upon a potential declarant before the condominium is created. In those circumstances, the declarant would not meet the definition contained in subsection (10)(i). It is a common market practice in some states, however, for a prospective de*206 clarant to sell or to offer to contract to sell condominiums units to prospective purchasers before the condominium is created. In such a case, the offeror would meet the definition of a declarant contained in subsection (10)(ii).
UCA § 1-103 comment 7 (emphasis added). Additionally, the comments to § 4-106 of the UCA, upon which § 3406 of the Pennsylvania Act is based, contemplate situations in which the declarant and a prospective purchaser enter into a “nonbinding reservation agreement”, whereby the purchaser reserves the right to buy a unit but is not contractually bound to do so. UCA § 4-106 comment 3.
In light of the provisions of the Pennsylvania Act and the comments to the UCA, we find appellees’ construction of “offers to dispose” in the definition of declarant as contractual offers reasonable. The Act clearly contemplates certain limited situations when a person could become a declarant prior to the execution of the declaration of condominium. The alternate definition was added because, in practice, developers often sold or offered to sell condominium units before the condominium was even created. This offer, whether to occupying tenants or to other prospective purchasers, comes in the form of the public offering statement. Under contract law principles, “[a]n offer is the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it.”
Accordingly, we reject appellants’ construction of “offers to dispose” to include advertisements as inconsistent with the Act.
In the instant case, it is apparent that Touraine Partners cannot be considered a declarant. Throughout the
Moreover, even if Touraine Partners had been a declarant under the Act, we would not grant appellants’ requested relief because of our finding that appellants were illegal holdovers whose leases had been properly terminated under the Pennsylvania Landlord and Tenant Act, 68 Pa. S.A. § 250.101 et seq. The Landlord and Tenant Act provides that its three-months notice provision may be modified or waived by the tenant under the terms of the particular lease. Id. § 250.501.
Accordingly, having found that Touraine Partners was not a declarant under the Pennsylvania Uniform Condominium Act and that appellants were not entitled to any of the Act’s benefits, we must affirm the order of the court below.
Affirmed.
. We accept these findings of fact which were affirmed by the lower court en banc and are supported by sufficient evidence. See Sobel v. Sobel, 435 Pa. 80, 84, 254 A.2d 649, 651 (1969); Yuhas v. Schmidt, 434 Pa. 447, 453, 258 A.2d 616, 619 (1969); Agsco Equipment Corp. v. Borough of Green Tree, 297 Pa.Superior Ct. 33, 36, 443 A.2d 284, 286 (1981); Frowen v. Blank, 266 Pa.Superior Ct. 145, 147, 403 A.2d 585, 586 (1979).
. On March 15, 1982, the lower court granted Touraine Partners’ motion for sanctions and ordered the tenants’ counsel to pay attorneys fees of $2,500 to the Touraine Partners.
. If the condominium has been created, then a "declarant” is defined, in relevant part, as "any person who has execuíed a declaration". 68 Pa.C.S.A. § 3103. Under the Act, a condominium is created by recording an executed declaration. Id. § 3201(a). Therefore, in the instant case, because the Declaration of Condominium for The Touraine was not recorded until February 9, 1982, the Touraine condominium had not yet been created during the relevant time period.
The term “person" is defined to include natural persons, corporations and partnerships. Id. § 3103.
. A "conversion condominium" is "[a] condominium containing any building that at any time before recording of the declaration was occupied wholly or partially by persons other than purchasers and persons who occupy with the consent of purchasers." 68 Pa.C.S.A. § 3103.
. See 68 Pa.C.S.A. § 3410.
. The 1977 UCA was amended in 1980, but the amended version has not been adopted by Pennsylvania. As amended, § 1-103(9) of the 1980 UCA defines a "declarant” as "any person or group of persons acting in concert who (i) as part of a common promotional plan, offers to dispose of his or its interest in a unit not previously disposed of[.]” 1980 UCA § 1-103, 7 U.L.A. 124, 131 (Supp.1983).
. Applicable Pennsylvania caselaw on the subject is sparse. Sargo, II, Inc. v. City of Philadelphia, 488 F.Supp. 1045, 1052-53 (E.D.Pa.1980), involved a 1979 city ordinance providing that a condominium conversion would be unlawful unless the tenants were given one year’s advance written notice "of the owner's intention to convert to a condominium by a date certain specified therein”. Id. The district court held that substantial compliance with this ordinance, which had been enacted pursuant to the Pennsylvania Unit Property Act, 68 P.S. § 700.101 et seq. (repealed 1980), was sufficient. In River Park Tenants Association v. 3600 Venture, 534 F.Supp. 45, 50-51 (E.D.Pa. 1981), the court held that under the Pennsylvania Uniform Condominium Act, developers were not prevented from giving notice of the impending conversion prior to the recordation of a declaration of condominium. See also 68 Pa.C.S.A. § 3410 note 2 (citing River Park Tenants Association v. 3600 Venture, supra).
. Appellants’ construction of "offers to dispose” to include advertisements is also overly broad. In a situation such as the instant case, it would be both unrealistic and unwarranted to hold that a general advertisement suffices to trigger § 3410, thereby requiring the developer to give notice of an uncertain conversion and allowing the tenants to buy into a condominium which may never exist. We agree with appellees’ conclusion that the term “offering” has relevance only with respect to the optional Article 5 provisions of the 1977 UCA. Article 5, which Pennsylvania did not adopt when it adopted the rest of the UCA in 1980, provides for state agency regulation and registration of residential condominiums. See id. § 5-110 comment 2 (foreign condominium must only be registered in the enacting state if a declarant is "offering" the condominium in the enacting state).
. Section 250.501 of the Landlord and Tenant Act provides, in relevant part, that:
A landlord desirous of repossessing real property from a tenant may notify, in writing, the tenant to remove from the same at the expiration of the time specified in the notice under the following circumstances, namely, (1) upon the termination of a term of the tenant, (2) or upon forfeiture of the lease for breach of its conditions, (3) or upon the failure of the tenant, upon demand, to satisfy any rent reserved and due, where there is not personal property on the premises adequate to satisfy the rent in arrears except such property as is by this act exempt from levy and sale on distress for rent.
In case of the expiration of a term or of a forfeiture for breach of the conditions of the lease where the lease is for any term of less than one year or for an indeterminate time, the notice shall specify that the tenant shall remove within thirty days from the date of service thereof, and when the lease is for one year or more, then within three months from the date of service thereof----
The notice above provided for may be for a lesser time or may be waived by the tenant if the lease so provides.
68 Pa.S.A. § 250.501.
. The record supports the lower court’s finding that Touraine Partners did not engage in any conduct tending to coerce or harass the tenants into early lease terminations. See Lower Court Opinion at 18-19.
. Appellants also contend that the lower court erred in (1) refusing to permit the admission into evidence of alleged after-discovered evidence; (2) changing the temporary injunction proceedings to permanent injunction proceedings; and (3) entering the March 15, 1982 order sanctioning the tenants’ counsel. We find these contentions meritless. First, the after-discovered evidence, namely, the November advertisements in Time and Newsweek, was cumulative, sought to impeach credibility, and unlikely to change the result of the hearing; therefore, the lower court did not abuse its discretion in denying appellants’ motion to reopen testimony. See Freed v. Priore, 247 Pa.Superior Ct. 418, 424, 372 A.2d 895, 898 (1977); Hydro-Flex, Inc. v. Alter Bolt Co., Inc., 223 Pa.Superior Ct. 228, 232, 296 A.2d 874, 877 (1972). Next, the record indicates that appellants' counsel agreed to the preliminary hearing being considered a hearing on both a preliminary and final injunction or, at least, failed to object to the lower court's ruling during the conference and hearing. See N.T. October 9, 1981 at 5.71-5.72. See also Lower Court Opinion at 4 and 4 n. 6. Lastly, no appeal was taken from the March 15, 1982 order and therefore we will not consider the issue. See Pa.R.A.P. 903(a).
Concurrence Opinion
concurring:
I concur in the majority’s affirmance of the trial court’s order, but write separately because my analysis differs
Appellants’ statement of questions does not challenge the trial court’s conclusion. The statement of questions reads as follows:
I. Did the lower court err in holding that Sheridan/Touraine Partners was not a “Declarant” within the meaning of the Pennsylvania Uniform Condominium Act?
Answer: Yes, the court did so err.
II. Did the lower court err in refusing to permit after discovered evidence?
Answer: Yes, the court did so err.
III. Did the lower court err in transforming these proceedings from that involving a temporary injunction proceeding to that involving a permanent injunction proceeding after the close of the testimony on the temporary injunctions without allowing tenants/appellants an opportunity to present testimony in support of the allegations of their complaint in equity?
Answer: The court did so err.
“[OJrdinarily no point will be considered which is not set forth in the statement of questions involved or suggested thereby.” Pa.R.A.P. 2116. See Commonwealth v. Unger, 494 Pa. 592, 594 n. 1, 432 A.2d 146, 147 n. 1 (1980) (issue not included in statement of questions not preserved on appeal);
Moreover, the references in the text of appellants’ brief to the trial court’s conclusion are vague and do not effectively challenge the trial court’s analysis. In their statement of the case at page 8 appellants state generally that the August 1981 notice did not meet the 30 and 90 day notice requirements of the Landlord Tenant Act, but this statement is not explained or developed in the argument section of the brief, and therefore should not be considered on appeal. See Giant Markets, Inc. v. Sigma Marketing Systems, Inc., 313 Pa.Super. 115, 126 n. 2, 459 A.2d 765, 771 n. 2 (1983) (issue raised in summary of argument and not carried forward in the brief will not be considered). In their first argument at page 20 of their brief, appellants say that the October 1981 WFLN Guide was first distributed during the last week of September. However, there is no evidence in the record to support this contention. Quite to the contrary, Mrs. Coombs testified that she first saw the October 1981 Guide “When it was first published in October.” N.T. 2.174. In any case, appellants haye not challenged the trial court’s determination that under the Landlord Tenant Act and the terms of Paragraph 21 of their leases, the August 20, 1981, notice was sufficient to require the tenants to surrender possession in 5 days.
Given the effectively unchallenged conclusion that appellants’ leases were validly terminated under the Landlord Tenant Act prior to publication of the October 1981 WFLN Guide, I should hold that appellants have not established that the trial court erred in holding that they were not entitled to the protections of the Condominium Act. Even if the advertisement did constitute an offer and Touraine Partners thereby became a declarant, only tenants legally in possession at that time would be entitled to the protections of the Act.
. I agree with the majority’s disposition of appellants’ remaining ■ arguments, see Majority Opinion 210 n. 10, except that I would not