Scarpitti v. Weborg

Rule of Law:

Purchasers of lots in a residential subdivision are intended third-party beneficiaries of an implied contract between the subdivision developer and an architect hired to enforce subdivision restrictions, and thus have standing to sue the architect for a breach of that contract.

Facts:

• William and Susan Scarpitti and Joseph and Judith Hines purchased residential lots in the Winchester South Subdivision from the developer, Winchester Development Company, Inc.
• The lots were subject to recorded deed restrictions, including Restriction No. 2, which limited garages to no more than two and one-half cars.
• Restriction No. 7 required that all construction plans be submitted to and approved in writing by the architect, William Weborg, to ensure compliance with the restrictions.
• The Scarpittis and Hineses submitted plans for homes with three-car garages to Weborg.
• Weborg disapproved their plans, citing the violation of the two-and-one-half car garage limit in Restriction No. 2.
• In reliance on Weborg's decision, the Scarpittis and Hineses built homes with garages that complied with the restriction.
• Subsequently, Weborg approved plans for other lot owners in the same subdivision for homes with three-car garages.

Procedural Posture:

• The Scarpittis and Hineses (appellees) sued architect William Weborg (appellant) in a Pennsylvania trial court.
• Weborg filed preliminary objections in the nature of a demurrer, arguing the complaint failed to state a valid claim.
• The trial court sustained Weborg's demurrer and dismissed the homeowners' complaint with prejudice.
• The homeowners (as appellants) appealed to the Superior Court of Pennsylvania, an intermediate appellate court.
• The Superior Court reversed the trial court's dismissal.
• Weborg (as appellant) appealed that reversal to the Supreme Court of Pennsylvania.