Sep 25, 2019 4 min read

In a 47-page complaint filed in Washington County Court, North Strabane Township asked that the developers of the Majestic Hills plan, beset with a “catastrophic landslide” last year, pay the municipality more than $4.1 million in damages.

Three homes were condemned and demolished, and the township’s suit is the latest in a spate of litigation that followed.

North Strabane Township has not filed suit at the federal level, said Gary Sweat, township solicitor, but a docket entry noted the municipality had until last Friday to initiate suit in county court, a deadline that it met.

In the recent litigation, the township alleges that the developers and other firms participating in the Majestic Hills project “cut corners, failing to adhere to the recommendations of the engineers they hired,” even though this and continuous monitoring of earthwork were required.

Money paid to demolish homes, stabilize the area and keep it accessible to the public, including those who live in about 200 homes, are estimated at about $4 million by the township.

North Strabane claims it has forwarded invoices to the developer in an attempt to recover money spent on Majestic Hills, but, as of the filing of the legal action last week, the defendants have not paid.

Joseph DeNardo said Tuesday, “We deny the allegations that there was any negligence or shortcuts that were practiced by the developer. That is simply not true.

“There were multiple engineers who approved the drawings and inspected the work that was done, and the township reviewed, inspected and accepted all the improvements that were done there.”

Plans for Majestic Hills date back to at least 2004, according to the township, when Majestic Hills LLC entered into an agreement to sell to NVR Inc. 179 developed lots. NVR is identified in federal litigation as doing business as Ryan Homes.

“The homes were constructed over 10 years ago. The homes existed for 10 years before there were any problems,” DeNardo said, adding that he and co-defendants “intend to defend to the umpteenth level.”

“We can’t rule out that this could have been an act of God, record rainfall that produced multiple landslides throughout the region. There were roads that fell down that were up for 50 years.”

Before the situation in Majestic Hills unfolded, North Strabane issued $20 million in debt to upgrade and expand its facilities.

The expense of responding to emergencies at Majestic Hills has jeopardized the township’s ability to “construct a new fire department substation, public safety building and municipal administration building,” according to the suit.

The township’s municipal authority has incurred or will incur $158,000 when it had to re-route a sewer line.

“The unforeseen costs resulting from (the developer’s) conduct may jeopardize the municipal authority’s ability to make scheduled bond payments,” according to the complaint.

If the municipal authority defaults or is deficient, the responsibility to pay back its debt falls to the township.

In its suit, the township also notes the developers obtained letters of credit totaling $1,056,584 for public infrastructure once plans for Majestic Hills were approved.

Sweat explained the process: “A developer has a plot of ground. They come in with a completed subdivision on paper and show everything they intend to build, but they have to post a bond.

“Once the township approves, it’s like saying to the public, ‘You can go ahead and buy a lot.’

“Had we known they wouldn’t have done the geotechnical in the correct way, with design, inspections and certifications, we wouldn’t have released the bond.

“Our damages would have been reduced had the bond money not been released.”

Named as defendants were Majestic Hills LLC, JND Properties Inc., Joseph DeNardo, doing business as JND Properties, Shari DeNardo, Pennsylvania Soil and Rock Inc., Mark R. Brashear, Alton Industries Inc. and Morris Knowles Associates.