BJ's Wholesale Club, Inc. v. Pacifica Mech.
CourtSuperior Court of Pennsylvania
Date FiledOctober 27, 2026
Docket10 MDA 2026
JudgeLazarus
StatusUnpublished
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Full Opinion
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NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37
BJ'S WHOLESALE CLUB, INC. : IN THE SUPERIOR COURT OF
: PENNSYLVANIA
Appellant :
:
:
v. :
:
:
PACIFICA MECHANICSBURG LLC : No. 10 MDA 2026
Appeal from the Order Entered December 1, 2025
In the Court of Common Pleas of Cumberland County Civil Division at
No(s): 2024-10866
BEFORE: LAZARUS, P.J., STEVENS, P.J.E.*, and BENDER, P.J.E.
MEMORANDUM BY LAZARUS, P.J.: FILED: OCTOBER 27, 2026
BJ’s Wholesale Club, Inc. (BJ’s), appeals from the order, entered in the
Court of Common Pleas of Cumberland County, granting Appellee Pacifica
Mechanicsburg LLC’s (Pacifica) petition for reasonable attorneys’ fees and
costs in the amount of $276,158.62. After careful consideration, we reverse.
On October 14, 2022, BJ’s entered into a 20-year lease agreement
(Lease)1 with Pacifica to have Pacifica prepare a building site and building pad
for the construction of a new BJ’s Wholesale Club. Pacifica is the developer
and landowner of the shopping center, Beltway Town Center, the site of the
new BJ’s club location. The new BJ’s club was being built to replace another
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* Former Justice specially assigned to the Superior Court.
1 On March 6, 2024, the parties amended the Lease (First Amendment) fixing
the building pad completion date as June 3, 2024.
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local BJ’s in Camp Hill that was outdated and no longer suitable for BJ’s needs.
The Camp Hill store’s lease expired on August 31, 2025. See N.T. Preliminary
Injunction Hearing, 10/22/24, at 4. BJ’s plan was to have the new store
completed before the option date on the Camp Hill store required that its lease
be renewed in February 2025. Id. at 4, 19.
The Lease sets forth a construction timeline for the completion of the
phases of Pacifica’s work. See Lease, 10/14/22, at Article IV, § 4.1B. Section
27.3(d)(i) of the Lease provides, in pertinent part, that if Pacifica defaults “in
the timely completion” of its construction responsibilities and does not cure
the default within 10 days after notice by BJ’s, BJ’s has the right to “perform,
at [Pacifica’s] sole cost and expense, all or any part of [Pacifica’s] work.” Id.
at Article XVII, § 27.3.(d)(i). Additionally,
[i]f and to the extent [BJ’s] exercises its rights hereunder,
[Pacifica] agrees to cooperate in good faith and provide [BJ’s] with
reasonable assistance so that [BJ’s] can complete such portions
of [Pacifica’s] work. [Pacifica] grants to [BJ’s] the right, as its
agent, to directly contact and contract with [Pacifica’s]
contractors, on behalf of [Pacifica], to complete the work, all at
[Pacifica’s] cost and expense.
Id.
The Lease also includes a provision for the recovery of “reasonable
attorneys’ fees and costs” by the “prevailing party” in “any action at law . . .
[or] in equity [that] is necessary to enforce or interpret the terms of this
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Lease.” Id., at Article XXX, § 30.13.2 The Lease does not define the term
“prevailing party.”
When issues arose regarding whether Pacifica was timely completing
Phase II site work, BJ’s filed a complaint, on October 15, 2024, against Pacifica
raising a breach of contract claim and seeking declaratory and injunctive relief.
See Complaint, 10/15/24, at 1. Specifically, BJ’s sought money damages for
breach of the Lease and a preliminary injunction prohibiting Pacifica from
interfering with BJ’s
exercise [of] self-help under the Lease[3] at its own risk and
expense, and transferring the government permits necessary to
self-help from Pacifica to BJ’s, while deferring to a plenary decision
on the merits [as to] whether and to what extent BJ’s is entitled
to reimbursement from Pacifica for the cost incurred in carrying
out its right to self-help.
Id. at 2-3.
On October 16, 2024, BJ’s filed a motion seeking a preliminary
injunction to have Pacifica enjoined from interfering with its self-help remedies
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2 Subsection 30.13 states:
Prevailing Party. If any action at law is necessary to enforce or
interpret the terms of this Lease and the amount in controversy
or the value of the relief sought shall exceed $25,000.00, the
prevailing party shall be entitled to reasonable attorneys’ fees and
costs of the proceeding in addition to any other relief to which it
may be entitled. If any action in equity is necessary to enforce or
interpret the terms of this Lease, the prevailing party shall be
entitled to reasonable attorneys’ fees and costs in addition to any
other relief to which it may be entitled.
Id.
3 See supra at 2, citing Article XXVII, § 27.3 (Tenant Default provision).
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under the Lease and also seeking that Pacifica immediately transfer to BJ’s all
permits and approvals necessary for BJ’s to commence and complete the
Phase II site work and off-site work.4 See Motion for Preliminary Injunction,
10/16/24, at 1-2. Specifically, BJ’s averred that, without a preliminary
injunction, “BJ’s will be irreparably harmed from being denied the use of its
leasehold interest, cancellation of memberships[,] and damage to its
reputation and good will.” Id. at 10.
Pacifica filed a counter-motion to strike BJ’s motion for a preliminary
injunction, claiming that BJ’s failed to sufficiently allege irreparable and
immediate harm for which the court is capable of granting relief and that BJ’s
is actually requesting permanent relief that cannot be decided by a preliminary
injunction hearing because it would impair the rights of numerous third parties
and require extensive court supervision for enforcement. See Counter-Motion
to Strike Motion for Preliminary Injunction, 10/21/24, at 1. Additionally,
Pacifica argued that BJ’s expressly waived all consequential and indirect
damages under the Lease by agreeing that any delay on Pacifica’s part would
be compensated solely by liquidated damages.5 See id. at 5; see also Lease,
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4 Off-site work was explained by a BJ’s witness as work that is on PennDOT’s
right-of-way. See N.T. Preliminary Injunction Hearing, 10/22/24, at 24.
5 After the instant action was discontinued, Pacifica instituted an action in the
United States District Court for the Middle District of Pennsylvania claiming
BJ’s breached the Lease and demanding a declaratory judgment that BJ’s has
no right to receive approximately $4 million in rent abatement as liquated
damages.
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10/14/22, at Article IV, § 4.2(d); id. at Article XXVII § 27.3(d)(ii); id. at
Article XXX, § 30.4.
On October 22, 2024, and November 8, 2024, the court held hearings
on BJ’s motion for a preliminary injunction. BJ’s witnesses testified at the
October 2024 hearing that Pacifica had not yet hired a contractor for the on-
site work, which prevented BJ’s from moving forward with completing the
building of the warehouse, stocking the club, and opening it. See N.T.
Preliminary Injunction Hearing, 10/22/24, at 25-27. Pacifica witnesses
testified that it had three different contractors ready to start building the site
in December 2024 and that they agreed they could be finished by May 1,
2025, but that they had yet to sign any contracts with those proposed
contractors. See id. at 79-80. At the conclusion of the hearing, after calling
counsel to chambers, the judge reconvened the hearing, stating, on the
record, “Based upon our discussions in chambers, it’s my understanding that
the parties feel confident they can reach a stipulated order in the next week
or so. Is that a fair statement?” Id. at 80. Counsel answered, “Yes, Your
Honor.” Id. At that point, the judge continued the matter to November 1 st,
unless the parties reached a stipulated order. Id. at 81. See also id. (judge
stating to counsel, “Good luck. I hope you can—this sounds like it should be
resolved. If you can’t resolve it, I will.”). The parties did not reach a
stipulation so a further hearing was scheduled for November.
At the November 8, 2024 hearing, Pacifica presented contracts that it
had entered into with on- and off-site work contractors to complete the scope
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of the site work within the timeframe (5/22/25) set by BJ’s and the judge at
the prior hearing in October. See N.T. Preliminary Injunction Hearing,
11/8/24, at 4-5. In an effort to prevent the entry of a preliminary injunction,
a defense witness testified that, in addition to start and end dates, Pacifica
had added “milestones” into the contract—to show its construction progress
for Phase II. Id. at 8-9. Plaintiff’s witness, however, testified that the
contracts presented by Pacifica are missing tasks that were required under
the Lease. Id. at 16. In particular, the contracts did not contain the date
utilities would be certified and fully operational, id. at 16, and did not list the
fire protection line, free-standing signs, or loading dock. Id. at 16-17.
Without these required items, BJ’s would be delayed in constructing the
building. Id. at 17. Pacifica rebutted this testimony by claiming that the
missing items were all related to Phase I site work, not Phase II site work.
Id. at 26-27.
At the conclusion of the November 8, 2024 hearing, the court ordered
the parties to submit post-hearing briefs by November 12, 2024, in support
of their respective positions and to specifically reference to the relevant
portions of the exhibits that they wanted the court to review. See Order,
11/8/24. Notably, in its post-hearing brief, BJ’s stated that, in the alternative
to granting a preliminary injunction, “the [c]ourt [should] oversee Pacifica’s
performance by retaining jurisdiction, ordering Pacifica to meet the task
requirements and milestones in the Revised Construction timetable,
adjourning BJ’s motion until further notice, and authorizing BJ’s to renew the
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motion and request an emergency hearing on 48 hours’ notice.” Plaintiff’s
Post-Hearing Brief, 11/12/24, at 2.
Following the hearings and the submission of post-hearing briefs, the
court denied, without prejudice, injunctive relief “for numerous reasons,” but
retained jurisdiction in the matter, noting that it would “schedule another
hearing if [Pacifica’s] contractor falls substantially behind in the progress of
the work.” Order, 11/19/24.6
On April 3, 2025, BJ’s filed another motion for a preliminary injunction,
claiming that since the denial of its first motion, “Pacifica has fallen
substantially behind the schedule prepared by its chosen construction
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6 The order denying injunctive relief states as follows:
AND NOW, this 18th day of November, 2024, after hearing and
having reviewed the briefs filed by the parties in support of their
respective positions, it is clear that a preliminary injunction is not
warranted at this time for numerous reasons.1 Plaintiff’s request
is DENIED without prejudice.
We will retain jurisdiction in this matter and schedule
another hearing if [Pacifica’s] contractor falls substantially
behind in the progress of the work.
' The most straightforward reason is that [BJ’s] has failed
to show that the requested injunction is reasonably
suited to abate the offending action. [Pacifica] has a
contract in place calling for the completion of work by
May 15, 2025. While [BJ’s] has begun contract
negotiations, it did not present any evidence as to a
viable completion date.
Order, 11/18/24 (emphasis in original and added).
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contractor [] and cannot meet the May 15 deadline.” Motion for Preliminary
Injunction, 4/3/25, at 3. Pacifica filed an answer to BJ’s motion, asserting
that it “has been aggressively pushing and continues to aggressively push the
project forward to meet the timetable under the [contractors’] contracts, let
alone BJ’s ‘best of all worlds’ completion date of July 15, 2025.” Answer to
Motion for Preliminary Injunction, 4/9/25, at 2.
On April 10, 2025, the court held a hearing on BJ’s motion. At the
hearing, BJ’s counsel, Mark S. Olinsky, explained to the court that the day
before the hearing, it had proposed that Pacifica put commitment dates in
writing so that it “might move this hearing” and put “this motion [for a
preliminary injunction] in abeyance subject to see[ing] if [it] meet[s] those
dates.” N.T. Preliminary Injunction Hearing, 4/10/25, at 31. After counsel’s
statement, the following exchange occurred:
THE COURT: All right. Let’s stop you there. We’ll proceed. I've
got to break at 10 minutes to 12, because I've got a dentist
appointment. So[,] we’re going to have to break until 1:30. That
gives you guys an hour and a half to try to resolve this.
[court proceedings resumed]
MR. OLINSKY: Well, Judge, it’s been rejected, and that’s why
we're moving forward, frankly.
***
MR. OLINSKY: I'll finish. If you let me finish, you'll get your part,
I’m sure. Judge, what we proposed is that we put those dates and
dates from the mid-March schedule into the form of writing, hold
the motion in abeyance, and then if they can’t meet those dates,
for whatever reason, you know, we can all get back together and
we can find out why. We're willing to live with that. Our concern
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is that they’re, frankly, not going to meet those dates, and what
we’ll present in the rest of our testimony, through Mr. Lords and
through Mr. Netreba, is what happens to us if they don’t.
THE COURT: The other hurdle that you have to—this is a
preliminary injunction hearing. He’s telling me he’s got to
schedule these other people, okay, so he’s got to rely on those
dates. They’re fighting the preliminary injunction hearing. He’s
telling me there’s no reason these can’t be done by May 15th, so
he can then go ahead and schedule. If it’s not done, you will incur
monetary damages for which there is a remedy.
MR. OLINSKY: Well, Judge, we think we’ll incur irreparable
damage, because [when] we were here in October/November,
Costco[7] was kind of somewhere in the future, but we didn’t have
as much specificity as we have now as to when their proposed
opening date is. We need to get it opened and be campaigning
for customers, to both retain the customers we have so they don’t
switch and new customers to get open before them. It’s a
competitive advantage. That’s what would be irreparable for us,
Your Honor.
THE COURT: Okay. Do you have testimony as to if you take over
you can get it done by these dates?
MR. OLINSKY: Judge, we can ask Mr. Lords. I think the real issue
here is, since we think they’ve missed a lot of dates already—if
they held their dates, we’d be okay. That’s what we would tell
you. If I asked that question, I believe that’s what the answer
would be. The real problem is we don’t have confidence in that.
That’s why, Judge, what we’d prefer, I’ll be honest with you—
whether it’s a consent order or whether it’s sort of an order
that you would enter whether it's consented to or not—is
to put this hearing in abeyance pending to see if they meet
their dates. If they don’t, we can come back and say, what
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7 BJ’s witness, Patrick Netreba, testified that a new Costco was opening “right
down the street” in the fall of 2025—approximately in September—and that it
“was critically important for [BJ’s] to acquire . . . members before [it]
open[s].” See id. at 48-49. Netreba is BJ’s director of real estate for the
northern half of the United States. See id. See also id., 10/22/24, at 36
(BJ’s witness testifying “Costco has proposed to locate down the road from us,
about a mile or two down the road.”).
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do we do now, and can we jump in to try to finish the job
because they’re failing. That would satisfy us, Judge.
Let me put it this way. It’s kind of like a lesser remedy than an
injunction; and, therefore, we think it would be reasonable to be
entered, whether by consent or by you, short of finishing the
hearing, frankly. We can just say, wait a second, take the dates
that are—this is the way we scoped it out, Judge. We called our
adversaries late in the afternoon yesterday when we got this idea
and gave them a heads-up. They acted promptly to let us know,
by three hours later, that it didn’t work for them.
But what we tried to do is to put things in basically three
categories: those things which come out of the papers they filed
yesterday, the dates they gave us; those dates that come out of
the—I think it's Exhibit 5 that was sent to us in mid-March; and
all, frankly, reasonable extrapolations from those things. All
things we can live with. Then we’ll—we think we can barely make
it, but we think we can make it.
For whatever reasons they were entitled to, they’re not required
to consent to that, but we think that would be a good result today
for everybody, frankly, for the [c]ourt and for us, and we think,
frankly, for them. We could all go home, enter an order on
consent, hopefully on consent, that says meet those dates.
If you’re not—if you can’t meet those dates, let’s get back
into court—we can set a preliminary date to do it—and see
where things stand, and see whether at that point we think
it makes sense for us to jump back in or not. Frankly, we’d
rather not jump in at this point. We’d rather them meet
those dates.
Id. at 31-34 (emphasis added). At this point in the hearing, Pacifica’s counsel
interjected that BJ’s proposal to put commitment dates in writing was
“completely heavy-handed [and] was just beyond anything [it] would ever
agree to.” Id. at 35. The court then asked Pacifica if “further discussions
would be beneficial” or if the court “shall continue with the hearing.” Id. at
35-36. Pacifica’s counsel responded, “[p]lease continue with the hearing.”
Id. at 36.
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BJ’s vice-president of construction and facilities, Lloyd Lords, then
testified that if the utilities were hooked up by the end of April and everything
else was done by May 15th, BJ’s could timely complete the project by finishing
its remaining site work8 in approximately another nine weeks and its
remaining vital gas/fueling station work in 12 weeks. Id. at 36-37, 41, 48.
At the conclusion of the hearing, the court entered an order denying BJ’s
renewed motion for a preliminary injunction, without prejudice, “based upon
[Pacifica’s] assurances that utilities will be installed by the end of
April.” See Order, 4/11/25 (emphasis added); see also N.T. Preliminary
Injunction Hearing, 4/10/25, at 68-69. In its order, the court scheduled a
supplemental hearing for May 2, 2025, in the event that the utilities were not
installed by the end of April. See Order, 4/11/25; see also N.T. Preliminary
Injunction Hearing, 4/10/25, at 69.9
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8 The remaining work BJ’s would have to complete to get the building up and
running included, among other things, final terminations inside the building,
final inspections from the township, and stock and train staff in preparation
for opening. Id. at 36-37.
9 From the bench, the court noted at the conclusion of the hearing that:
All right. I’m going to deny the request for a preliminary
injunction. You have not met your burden. The testimony I heard
was that if the timeframes are met there’s not a problem. The
other testimony I heard was that there's no reason the timeframes
cannot be met. I will, however—and that’s based upon the
assurances that the utilities will be done by the end of the
month.
Id. at 68-69 (emphasis added).
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On April 30, 2025, BJ’s requested the matter be continued, averring in
its motion that, following an April 29th site visit, it appeared the utilities were
not yet completed, and it had not yet received an updated schedule from
Pacifica. Accordingly, BJ’s asked for an additional week to determine whether
a supplemental hearing was necessary. On May 1, 2025, Pacifica filed an
answer to BJ’s continuance motion, stating that it had not fallen “substantially
behind” on any site work, that it had sent BJ’s an update confirming gas and
electrical services would be installed on April 28th, and that storm and sanitary
work had already been completed. See Answer to Plaintiff’s Motion for
Continuance, 5/1/25, at 3; see also id. (“In short, there is nothing
preventing BJ’s from finalizing preparations to open its store.”) (emphasis in
original). Pacifica averred that an additional hearing on the matter would
“result in a waste of th[e trial c]ourt’s time” where its utility work is completed
and, thus, BJ’s request for a preliminary injunction is not only meritless[,] but
also stale.” Id. at 3-4. The following day, on May 2, 2025, the court granted
BJ’s motion and continued the case for a supplemental hearing to be held on
May 23, 2025.
On May 22, 2025, BJ’s filed another motion to continue the rescheduled
supplemental hearing to June 3, 2025, or later, stating “[b]ased on
information exchanged by the parties on May 21 and 22, 2025, and
continued discussions between counsel, the parties have agreed to
request a further postponement of the hearing.” Plaintiff’s Motion for
Continuance, 5/22/25, at 2 (emphasis added). The motion also states that
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“[n]otwithstanding the parties’ agreement to continue the May 23, 2025[]
hearing, Pacifica [] does reserve the right to raise all defenses, including the
defense that further preliminary injunction proceedings in this matter are not
necessary.” Id.
On May 27, 2025, the court granted BJ’s continuance, stating that it
“will reschedule the hearing at the request of either party.” Order, 5/27/25.
On September 18, 2025, BJ’s filed a praecipe to discontinue the case, without
prejudice, against Pacifica. See Praecipe to Discontinue, 9/18/25; see also
Pa.R.C.P. 229(a).
On October 17, 2025, Pacifica filed a petition10 seeking attorneys’ fees
and costs pursuant to the “Prevailing Party” provision of the Lease, claiming
that it is “entitled to recover its attorney[s’] fees and costs incurred in
defending against BJ’s failed lawsuit under the express language” of the Lease.
Defendant’s Petition for Attorneys’ Fees and Costs, 10/17/25, at 1. BJ’s filed
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10 Attached to its petition, Pacifica included:
Saxton & Stump LLC invoices for
legal fees and expenses totaling $254,994.12; Barley Snyder invoices for legal
fees and expenses totaling $49,579.54; SR Duffie Consulting LLC invoices for
professional services directly related to BJ’s injunction proceedings totaling
$2,400.00; BL Companies invoices for fees and expenses as a result of
engineering issues related to the injunction motion totaling $8,223.75; and
TPD, Inc., invoices for consulting on traffic issues related to the injunction
motion totaling $ 2,749.21. See Defendant’s Petition for Attorneys’ Fees and
Costs, 10/17/25, at 11. BJ’s contests on appeal, among other things, that the
court improperly granted Pacifica reimbursement for its consulting fees,
claiming that subsection 30.13 of the Lease only permits a prevailing party to
recover taxable costs—costs associated with the process of litigation—not
consulting fees. See Appellant’s Brief, at 33-35.
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an answer and new matter to the petition,11 alleging, among other things, that
Pacifica could not be a prevailing party in the action where BJ’s complaint
seeking injunctive relief, as well as the two motions it filed seeking a
preliminary injunction, “compel[ed] Pacifica to take action that it had refused
to take in order to avoid the issuance of an injunction [that would] turn[]
control of construction over to BJ.’s.” Plaintiff’s Answer and New Matter,
11/12/25, at 8; see also id. at 12 (“[T]he threat of the [c]ourt’s intervention
prodded Pacifica to take action that it should have long before[.]”). Pacifica
filed a reply to BJ’s new matter, claiming that “BJ’s received exactly 0% of
what it sought in its [c]omplaint and in either of the preliminary injunction
motions it filed in this action” and is, in essence, asking this court to “convert
an action for declaratory and injunctive relief into an action for specific
performance.” Defendant’s Reply to New Matter, 11/24/25, at 2.
The court conducted a hearing on the fees and costs petition on
November 26, 2025, at which time Pacifica presented invoices documenting
its attorneys’ fees and expenses in the matter, including consulting fees. See
supra at n.10. At the beginning of the hearing, BJ’s objected, on the basis of
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11 We note that in BJ’s new matter to Pacifica’s petition for attorneys’ fees and
costs, BJ’s avers that it received its certificate of occupancy on August 26,
2025, and opened for business on September 1, 2025. See Plaintiff’s Answer
and New Matter to Defendant’s Petition for Attorneys’ Fees and Costs,
11/12/25, at 13. See also Defendant’s Reply to Plaintiff’s Answer and New
Matter to Defendant’s Petition for Attorneys’ Fees and Costs, 11/24/25, at 3
(acknowledging BJ’s “store is now open”); Appellee’s Brief, at 22 (“After
Pacifica completed the project, BJ’s discontinued the litigation.”).
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relevancy, to Pacifica admitting Defense Exhibits 3, 4, and 5, invoices from
consultants and expert witnesses.12 See N.T. Attorneys’ Fees and Costs
Hearing, 11/26/25, at 4. Specifically, BJ’s counsel argued that the exhibits
contained unauthenticated hearsay evidence that did not include information
relevant to costs. Id. The court overruled the objection on relevancy grounds,
but stated that Pacifica would be required to provide testimony regarding the
invoices for the costs having been received and paid. Id. at 5.
On December 1, 2025, the Honorable Edward E. Guido issued an order,
containing findings of fact and conclusions of law, that granted the petition
and concluded that Pacifica was the “prevailing party” in the action.13 The
court found Pacifica was entitled to reasonable fees and costs under the Lease
in the amount of $276,158.62 ($262,890.66 in attorneys’ fees and $13,267.96
in costs). See In re: Findings of Fact, Conclusions of Law, and Order of Court,
12/1/25, at 1. Judge Guido’s order contains no analysis or discussion of how
he came to the legal conclusion that Pacifica was the prevailing party. See
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12 BJ’s counsel also objected, on the grounds of hearsay, to the admission of
Defense Exhibit 6, Attorney Adler’s expert report. See id. at 5. The court
reserved ruling on that objection until later in the hearing since Attorney Adler
was present to testify to the report. Id. at 6. BJ’s counsel renewed the
objection to Attorney Adler’s testimony on the basis of his “methodology and
reliability and assistance to the [c]ourt under [Pennsylvania Rule of Evidence]
702.” Id. at 55. The court ultimately certified him as an expert and accepted
his testimony over these objections. Id.
13 BJ’s preserved the prevailing party argument on appeal by raising the issue
at the attorneys’ fees and costs hearing. See N.T. Attorneys’ Fees and Costs
Hearing, 11/26/25, at 40-41, 43.
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id. at 1 (“Conclusions of Law” section of order states “1. Defendant was the
prevailing party in this action.”). See id. at 1.
BJ’s filed a timely notice of appeal and court-ordered Pa.R.A.P. 1925(b)
concise statement of errors complained of on appeal.14 BJ’s presents the
following issues for our consideration:
1. Whether the trial court committed reversible error in awarding
attorneys’ fees to [] Pacifica [] as the “prevailing party” under the
terms of a contract between the parties when [B.J.’s] voluntarily
discontinued its case because [Pacifica] acquiesced to the relief
sought in response to [B.J.’s] lawsuit and under pressure from the
trial court?
2. Whether the trial court committed reversible error by
concluding [Pacifica’s] fees were “reasonable” when the amount
of time was not reasonably related to the volume of legal work
performed, the work was duplicative, and the fees were “block-
billed” so that the amount of time spent on particular tasks was
indiscernible?
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14 BJ’s Rule 1925(b) statement avers, in part, that because the trial court
“entered its [o]rder . . . without an opinion or discussion of the grounds for
the decision[,] . . . BJ’s cannot readily discern the bases for the [c]ourt’s
decision and, therefore, generally asserts that the trial court erred in its
conclusion that Pacifica [] is the ‘prevailing party’ entitled to recover attorneys’
fees.” Rule 1925(b) Statement, 1/27/26, at 1-2. However, the record reflects
that Judge Guido retired from the bench on December 31, 2025—just thirty
days after issuing his order granting Pacifica’s attorneys’ fees and costs and
one day before BJ’s filed its notice of appeal. Consequently, the Honorable
Alexandra E. Sacavage issued the Rule 1925(b) order and Rule 1925(a)
opinion in the matter.
Judge Sacavage’s opinion addressed the “prevailing party” issue by noting
that Judge Guido “agreed with the Defendant that it was the ‘prevailing party’
in the underlying action.” In doing so he relied upon the holding in
Friedenbloom v. Weyant, 814 A.2d 1253 (Pa. Super. 2003)[.”] Trial Court
Rule 1925(a) Opinion, 2/27/26, at 3.
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3. Whether the trial court committed reversible error in awarding
[Pacifica’s] expert witness and consultant fees as the “prevailing
party” under the terms of a contract between the parties providing
for attorneys’ fees only?
4. Whether the trial court committed reversible error by admitting
Exhibits 3, 4, and 5 into evidence at the November 26, 2025[]
hearing when the exhibits were not authenticated, lacked
foundation, and constituted hearsay?
5. Whether the trial court committed reversible error by admitting
the testimony of Matthew Chabal regarding invoices, expenses,
and activities of third parties at the November 26, 2025[] hearing
when the testimony lacked adequate foundation and constituted
hearsay?
6. Whether the trial court committed reversible error by
prohibiting [B.J.’s] from entering into evidence the trial court’s off-
the-record comments and instructions to [Pacifica’s] counsel, as a
result of which [Pacifica] admitted it changed its legal and factual
position to avoid the entry of injunctive relief, demonstrating it did
not prevail in the litigation?
7. Whether the court committed reversible error in admitting the
testimony of [Pacifica’s] expert witness, Theodore A. Adler,
Esq[uire], because [Attorney] Adler’s testimony constituted
improper legal opinion?
8. Whether the trial court committed reversible error in admitting
the testimony of [Attorney] Adler because he failed to meet the
requirements under [] Rule [] 702 that require a witness [to]
employ reliable methodology?
Appellant’s Brief, at 7-8.
“Appellate review of a trial court’s order awarding attorney’s fees to a
litigant is limited solely to determining whether the trial court palpably abused
its discretion in making a fee award.” Thunberg v. Strause, 682 A.2d 295,
299 (Pa. 1996).
An abuse of discretion is not merely an error of judgment, but[,]
if in reaching a conclusion, the law is overridden or misapplied, or
the judgment exercised is manifestly unreasonable, or the result
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of partiality, prejudice, bias[,] or ill-will [] as shown by the
evidence of record. Review of the grant of counsel fees is limited
. . . and we will reverse only upon a showing of plain error.
Habjan v. Habjan, 73 A.3d 630, 642 (Pa. Super. 2013) (internal quotation
marks, citations, and brackets omitted).
Moreover, it is well-settled that the voluntary discontinuance of an
action before trial constitutes a final judgment as a matter of law. See Levitt
v. Patrick, 976 A.2d 581, 587 (Pa. Super. 2009), citing Miller v. Elec. O. v.
DeWeese, 907 A.2d 1051, 1055 (Pa. 2006). Indeed, “once an action has
been discontinued, no action remains pending before the court.” See Motley
Crew, LLC. v. Bonner Chevrolet Co., Inc., 93 A.3d 474, 476 (Pa. Super.
2014). A discontinuance places a plaintiff in the same position as if the action
had never been instituted. Id. (citations omitted).
B.J.’s first asserts that the trial court erred in awarding attorneys’ fees
to Pacifica as the “prevailing party” under the terms of the Lease when B.J.’s
voluntarily discontinued its case because Pacifica acquiesced to the relief
sought in response to B.J.’s lawsuit. Specifically, BJ’s claims that “BJ’s threat
of a preliminary injunction compelled Pacifica to abandon its position that it
had no duty to begin Phase II Site Work, to hire a contractor, and to begin
the Phase II Site Work on December 3, 2024.” Appellant’s Brief, at 15.
Additionally, BJ’s claims that Pacifica “avoided [a] preliminary injunction [for
the second time] by promising the trial court that it would have all utilities
installed by the end of April.” Id. at 16.
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Typically, Pennsylvania subscribes to the “American Rule,” which states
that “parties to adversary litigation are required to pay their own counsel
fees.” Petow v. Warerhime, 996 A.2d 1083, 1087 (Pa. Super. 2010).
However, “courts can award counsel fees to the prevailing party when
authorized by statute or rule of court, upon agreement of the parties, or
pursuant to some other recognized case law exception.” Olympus Corp. v.
Canady, 962 A.2d 671, 677 (Pa. Super. 2008) (emphasis added). 15 The
intent of a fee-shifting provision is to deter and eventually punish the
potentially breaching party. See McMullen v. Kutz, 985 A.2d 769, 776 (Pa.
2009).
According to Judge Sacavage, who was not the trial judge in the instant
matter, Judge Guido relied on Freidenbloom v. Weyant, 814 A.2d 1253 (Pa.
Super. 2003), to support the award of attorneys’ fees and costs to Pacifica by
concluding that it was the “prevailing party” under the Lease. See supra at
n.14. In Freidenbloom, our Court stated:
A praecipe to discontinue a case constitutes a final resolution of
all issues. Sustrik v. Jones & Laughlin Steel Corp., [] 197 A.2d
44 (Pa. 1964).[16] Further, a praecipe for discontinuance has the
same effect as a judgment entered in favor of the defendant.
Triffin v. Janssen, [] 688 A.2d 1212, 1214 (Pa. Super. 1997).
____________________________________________
15 This case implicates the “prevailing party” language in an agreement
between parties as opposed to attorneys’ fees and costs that are awarded to
prevailing parties by statute.
16 Sustrik also is procedurally distinct from the instant matter where the
parties settled and discontinued their case, but the plaintiff did not praecipe
to voluntarily discontinue the matter under Rule 229.
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Thus, since a praecipe for discontinuance constitutes a final
resolution of the case and has the effect of a final judgment, a
trial court may consider a petition for fees filed within a period of
30 days after the filing of the praecipe.
Id. at 1255 (emphasis added); see also Trial Court Rule 1925(a) Opinion,
2/27/26, at 3.
Triffin, supra, one of the main cases relied upon in Freidenbloom,
involved a trial court’s sua sponte imposition of sanctions against a plaintiff
and defendant pursuant to Pa.R.C.P. 4019. On appeal and cross-appeal, the
Triffin Court reversed the trial court’s sanctions order, concluding that the
order was a violation of the clear language of Pa.R.C.P. 4019. Id. 1214-15.
Notably, in a footnote, the Triffin Court held that an interlocutory order
imposing sanctions became final for purposes of appeal when the plaintiff
praeciped to discontinue the action. See Triffin, 688 A.2d at 1214 n.2.
Based upon those facts, the Freidenbloom Court’s statement that
Triffin determined a praecipe for discontinuance has “the same effect as a
judgment entered in favor of the defendant” is, in fact, disingenuous. The
Triffin Court never discussed what, if any, judicial effect a praecipe to
discontinue has on the non-praeciping party or whether a voluntary
discontinuance equates to a judicial determination. Rather, Triffin only
addressed the finality of the order for purposes of this Court’s jurisdiction over
the appeal. Thus, we do not find Freidenbloom dispositive of the issue before
us today. See Miller Elec. Co. v. DeWeese, 907 A.2d 1051, 1055 (Pa. 2006)
(“Freidenbloom stands for the proposition that a praecipe to discontinue
constitutes a final judgment [] and that a trial court may only act on a motion
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for fees that is filed within 30 days from final judgment.”); id. at 1056
(“Freidenbloom held a trial court may consider a petition for fees filed within
30 days of the entry of final judgment.”) (emphasis in original).
Because the term “prevailing party” was not defined in the parties’
Lease, we look to caselaw for guidance. The seminal case interpreting the
term “p