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SOLOMON v. CEDAR ACRES EAST (03/25/74)

decided: March 25, 1974.

SOLOMON, APPELLANT,
v.
CEDAR ACRES EAST, INC.



Appeal from decree of Court of Common Pleas of Lancaster County, No. 14 Equity Docket, page 186, in re Jerome Solomon v. Cedar Acres East, Inc., Dollar Savings Bank, Frank Millmond, additional defendant.

COUNSEL

Daniel H. Shertzer, for appellant.

Charles B. Grove, Jr., with him Michael D. Bull, and May, Grove, Stork & Blakinger, for appellee.

Jones, C. J., Eagen, O'Brien, Roberts, Pomeroy, Nix and Manderino, JJ. Opinion by Mr. Justice Manderino.

Author: Manderino

[ 455 Pa. Page 497]

The appellant, Jerome Solomon, is an architect who sought specific performance of a contract for architectural services against the corporate defendant, Cedar Acres East, Inc. The corporation joined Frank Millmond, promoter of the corporation as an additional defendant. The trial court denied specific performance of the contract against both the corporate defendant and the promoter, but ordered the defendants to pay the appellant two thousand dollars in quantum meruit for architectural services rendered.

The pertinent facts are as follows. On August 3, 1966, the promoter signed an option to buy a fifty-two acre tract of land for a corporation primarily controlled and owned by the promoter (this corporation is not the corporate defendant involved in this case). Soon thereafter, the promoter engaged the appellant who did certain preliminary architectural work for the site during August, September and October of 1966. The defendant corporation was not contemplated and was not in existence at that time.

On November 13, 1966, the promoter entered into an agreement with four other men for the creation of the

[ 455 Pa. Page 498]

    defendant corporation. The agreement provided for the issuance of one-hundred per cent of the stock of the proposed corporation. Two days later, on November 15, 1966, the appellant and the promoter entered into a contract whereby the appellant was to perform architectural services as required for the development of the fifty-two acre tract of land. The appellant was to be a five per cent owner of any corporation formed for the development of the tract, was to receive five per cent of the profits of any corporation formed, and was to receive fifty dollars for each one-family living unit erected upon the fifty-two acres. The agreement did not make any reference to the defendant corporation. The appellant performed additional services after the signing of this agreement, but performed no services after December 8, 1966.

On December 21, 1966, the promoter assigned to the defendant corporation the option to buy the fifty-two acre tract.

On June 30, 1967, the appellant sent an itemized bill for architectural services to the defendant corporation stating "Amount due as of this invoice . . . $1500." A second notice of the fifteen hundred dollar billing was sent to the defendant corporation on August 10, 1967. A letter followed on December 7, 1967, in which the appellant requested payment of the fifteen hundred dollars in "complete settlement." This letter referred to the terms of the agreement that the appellant had entered into with the promoter on November 15, 1966. This letter was the first notice that the defendant corporation received concerning the appellant's agreement with the promoter. The defendant corporation refused to honor the agreement or to ...


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