No. 1144 April Term, 1978, Appeal from the Order of the Court of Common Pleas, Civil Division of Allegheny County at No. GD 75-17744.
Angelo C. Procopio, Pittsburgh, for appellants.
Maurice A. Nernberg, Pittsburgh, for appellee.
Price, Hester and Montgomery, JJ.
[ 268 Pa. Super. Page 408]
This is an appeal from an order of the Court of Common Pleas of Allegheny County granting appellee's exceptions to the trial court's disposition and entering verdict on appellee's claims.
Appellee (Plaintiff below) owner of a building located on William Penn Highway in Murrysville, Pennsylvania, leased those premises to "Mr. Beefe International, Inc. for a 15 year term commencing May 1, 1970. Mr. Beefe, in turn, licensed Minutello, Inc. (of which appellants are sole and equal shareholders) to operate a "Mr. Beefe" fast food restaurant on the premises. Minutello, Inc. also entered into an agreement with appellee whereby it would be in the position of subleasee and in the event "Mr. Beefe" went bankrupt, it would advance to position of prime tenant.
On August 12, 1971, Mr. Beefe was adjudicated bankrupt and pursuant to the above agreement, Minutello, Inc. advanced to the position of prime tenant and began making rental payments.
In May, 1972, however, appellants, apparently dissatisfied with the business, transferred in bulk all property connected with the restaurant to Leon and Frances K. White for $27,500.00.
In connection with this transfer, the rent was reduced to $1,000.00 a month by appellees; of which the Whites were obligated to pay $850.00, the remainder being absorbed by
[ 268 Pa. Super. Page 409]
Minutello, Inc. At that point, however, Minutello, Inc., having sold its equipment and sublet the building, was effectively out of business. The appellants, however, continued to make $150.00 a month rental payments to appellee, until late 1972, for the amount owed by Minutello, Inc. When the payments by appellants stopped, appellee filed suit and obtained judgment for the arrearages.
Minutello, Inc., however, had been rendered judgment-proof by the transfer of its assets to the Whites. The $27,500.00 in proceeds received from the Whites had been distributed. $5,000.00 went to various creditors; the remaining $22,500.00 was distributed to the appellants as a repayment for loans to Minutello, Inc. This was ...