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Rendon v. Ragans

May 29, 2009

JUAN RENDON, TAYLOR HENNINGER, AND JESUS GONZALEZ, PLAINTIFFS,
v.
MICHAEL RAGANS, CARLOS DEOLIVEIRA, AND WENDY DEOLIVEIRA HIS WIFE, DEFENDANTS.



The opinion of the court was delivered by: Judge Nora Barry Fischer

MEMORANDUM OPINION

I. INTRODUCTION

This matter is before the Court on Defendants Carlos and Wendy DeOliveira's Motion to Dismiss Plaintiffs Juan Rendon, Taylor Henninger, and Jesus Gonzalez's breach of contract claims against the DeOliveiras filed on March 16, 2009.*fn1 (Docket No. 6). Defendants contend that Plaintiffs' breach of contract claims are barred by the two-year statute of limitations in the Pennsylvania Real Estate Seller Disclosure Law ("RESDL"), 68 Pa. C.S. § 7301 et seq. (Docket No. 6 at 4-5). Alternatively, Defendants argue that the terms and conditions of the Sales Agreements*fn2 preclude Plaintiffs' claims. Plaintiffs filed their Response to Defendants' Motion to Dismiss on April 6, 2009, in which they maintain that the facts set forth in the Complaint properly allege a breach of contract claim which survives the bar of the statute of limitations. (Docket No. 11). Thereafter, on April 15, 2009 Defendants filed their Reply, further articulating support for their motion. (Docket No. 15). For the reasons outlined herein, Defendants' Motion to Dismiss is DENIED.

II. FACTUAL BACKGROUND

Between approximately October 2005 and March 2006, Defendants sold six (6) parcels of real property to Plaintiffs. (Docket No. 1 at ¶ 8). The DeOliveiras sold two parcels to Plaintiffs Rendon and Gonzales, specifically:

a. 290 Florence Street, Sharon, Pennsylvania 16146, on or about October 3, 2005, for $14,600; and

b. 111 North Second Street, Duquesne, Pennsylvania, 15110, on or about November 9, 2005, for $16,500

(Docket No. 1 at ¶ 10). The DeOliveiras sold four parcels to Plaintiffs Rendon and Henninger, specifically:

a. 2901 Stewart Street, McKeesport, Pennsylvania 15132, on or about December 5, 2005, for $17,600;

b. 1310 Second Street, Beaver Falls, Pennsylvania 15010, on or about November 28, 2005, for $16,500;

c. 80 Pine Street, Natrona Heights, Pennsylvania, 15065, on or about December 5, 2005, for $16,300; and

d. 926 Twelfth Street, Beaver Falls, Pennsylvania 15010, on or about December 5, 2005, for $15,600.

(Docket No. 1 at ¶ 11). Plaintiffs allege that Defendants did not provide them with properly executed Sales Agreements in connection with the sale of any of the parcels. (See Id. at ¶¶ 9-14).

Defendant Michael Ragans*fn3 initially solicited Plaintiffs in California to invest in a "proven program" in which they would provide funds to Defendants to purchase large blocks of foreclosed real estate, including the six parcels in question. (Id. at ¶¶ 16, 19-22). Ragans represented that these parcels were in good condition and only needed "nominal repairs." (Id. at ¶ 23). Plaintiffs claim that, relying on these representations, they purchased the six parcels in question. (Id. at ¶ 26).

In connection with each Sales Agreement entered into between the parties, Defendants allegedly failed to provide Plaintiffs with "Seller Disclosure Statements" as required by the Sales Agreements as well as the RESDL (Id. at ¶¶ 27-28). Plaintiffs also aver that because they were located in California, they were unable to visit and inspect the six parcels prior to purchasing them, and instead relied on Defendants' representations as to the condition of the parcels. (Id. at ¶¶ 31-32). According to Plaintiffs, Defendant Carlos DeOliveira personally guaranteed in his correspondence with Plaintiff Juan Rendon that if Plaintiffs encountered difficulty in selling the ...


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