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LEONARD CHAPLISKI AND WALTER FOLGER T/D/B/A RANSHAW TRANSPORTATION AND AUTO WRECKERS COMPANY v. CHURCHILL COAL CORPORATION (12/27/85)

filed: December 27, 1985.

LEONARD CHAPLISKI AND WALTER FOLGER T/D/B/A RANSHAW TRANSPORTATION AND AUTO WRECKERS COMPANY, APPELLEES,
v.
CHURCHILL COAL CORPORATION, APPELLANT



Appeal from the Order entered on October 10, 1984, in the Court of Common Pleas of Northumberland County, Civil Division, at No. 80-1303.

COUNSEL

Christopher J. Foust, Milton, for appellant.

Wickersham, Beck and Cercone, JJ.

Author: Beck

[ 349 Pa. Super. Page 285]

Appellant, Churchill Coal Corporation, defendant below, appears before us seeking to vacate the order of the court

[ 349 Pa. Super. Page 286]

    below. For the following reasons, we vacate that order and remand for further proceedings.

The facts and procedure of this case are long and involved and clearly set out in President Judge Krehel's opinion.

On 28 November 1977, Plaintiffs and Defendant entered into a Security Agreement to purchase certain equipment and real estate.

On 22 May 1980, Plaintiffs filed a Complaint against the Defendant averring that the Defendant violated the terms of the security agreement and that judgment be entered on Plaintiffs' behalf.

On 1 July 1980, the Defendant filed an Answer and the action was listed for trial for the next Civil Trial List on 14 October 1980.

The next occurrence was a Hearing that occurred on 18 June 1981. At that time Plaintiffs and Defendant entered into a Stipulation to which the Defendant agreed to pay One Hundred and Twenty-five Thousand ($125,000.00) Dollars. The Defendant also agreed to pay six (6%) percent interest per annum. In return the Plaintiffs agreed to drop the Mortgage Foreclosure action. Defense Counsel at that time made no comment about a "Federal" matter which was pending at that time.

On 29 June 1981, the Defendant filed a Petition in Bankruptcy, under Chapter 11, in the United States Bankruptcy Court for the Southern District of New York. No notice of this proceeding was ...


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