Justia Pennsylvania Supreme Court Opinion Summaries
Articles Posted in Real Estate & Property Law
Stuckley v. ZHB of Newtown Twp.
The Supreme Court granted allowance of appeal to determine whether: (1) the repeal of an ordinance mooted any challenges to that ordinance; (2) whether the Commonwealth Court may issue an opinion on the merits of certain issues where it subsequently remands the case for a determination of mootness on another issue; and (3) whether parties to a hearing can continue a challenge to a zoning ordinance once the original challenger has withdrawn. Because “parties to a hearing” are distinct from “party appellants,” unless the former have taken steps to become party appellants, the Supreme Court found they cannot continue the challenge. Accordingly, the Commonwealth Court’s decision permitting parties to the hearing to continue the challenge brought by the original party appellant was reversed, and the attempted challenge was dismissed.
View "Stuckley v. ZHB of Newtown Twp." on Justia Law
Norfolk Southern Railway v. PUC
The issue on appeal before the Supreme Court in this case centered on the limits of the Public Utility Commission's (PUC) authority to allocate costs associated with a rail-highway crossing project. The Commonwealth Court held that the Commission could not allocate costs to a transportation utility that regularly uses a railroad-crossing site and does not own real estate or properties there. The Commission and Intervenors argued that the PUC has broad discretion not only to determine the allocation of costs to "concerned parties," but also to determine which parties are "concerned" in the first instance. Counterbalancing the Commission's and Intervenors' remarks about equities, Norfolk Southern Railway questioned why it should contribute to the remediation of deteriorating infrastructure over which it had no control. Upon review, the Supreme Court held that a transportation utility need not own facilities at a rail-highway crossing to be a concerned party for purposes of the PUC's cost-allocation jurisdiction and authority, at least where the utility conducts regular operations at the crossing and may enforce an easement-based right of way. View "Norfolk Southern Railway v. PUC" on Justia Law
Beneficial Consumer Discount Company v. Vukman
Appellee Pamela Vukman appealed a superior court order that affirmed the Allegheny County Court of Common Pleas. That order granted appellees motion to set aside judgment and sheriff's sale, and dismissed appellant Beneficial Consumer Discount Company's praecipe without prejudice. Beneficial moved to foreclose appellee for being in default of her mortgage. The parties agreed to a settlement whereby Beneficial received judgment for the accelerated amount due on the mortgage as long as appellee made regular payments. Appellee eventually defaulted according to the terms of the settlement; Beneficial filed for a writ of execution. The property was sold at a sheriff's sale, and Beneficial was the successful bidder. Appellee then moved to set aside the sale, arguing Beneficial failed to comply with the requirements under the Homeowner's Emergency Mortgage Act. The court concluded that Beneficial did not follow the Act's requirements, and as a result, it id not have jurisdiction. Therefore the court set aside the sale and dismissed Beneficial's original complaint. Beneficial appealed; the superior court affirmed. Upon review, the Supreme Court concluded that the Act's notice requirement did not implicate subject matter jurisdiction of the trial court, it reversed and remanded the case for further proceedings. View "Beneficial Consumer Discount Company v. Vukman" on Justia Law
Young’s Sales & Service v. Underground Storage Tank Indemnification Board
Appellee Young's Sales & Service submitted a claim with Appellant Underground Storage Indemnification Fund for reimbursement of remediation costs it incurred following the release of certain regulated chemicals stored in underground tanks on its property. The claim was denied, and Appellee appealed. The issue before the Supreme Court in this case was whether the Commonwealth Court correctly held that section 706(2) of the Storage Tank Spill Prevention Act applied on a per tank basis. Upon review, the Supreme Court concluded it did not. Accordingly, the Court reversed the Commonwealth Court and reinstated the Board's order denying Appellee's claim.
View "Young's Sales & Service v. Underground Storage Tank Indemnification Board" on Justia Law
Lower Maker Township v. Lands of Chester Dalgewicz
Appellees owned a 166-acre farm in Lower Makefield Township. On December 6, 1996, Lower Maker Township condemned the property in order to build a public golf course. Appellees filed preliminary objections challenging the validity of using eminent domain for such a purpose. That issue was eventually appealed to the Commonwealth Court, which found the taking was for a legitimate public use. As the parties were unable to agree on damages, the matter proceeded to a jury trial for a calculation of the property's value. The trial lasted six days, and a total of 11 witnesses were called, one of whom was appellee Chester Dalgewicz. Mr. Dalgewicz testified regarding the farm's history and the interest shown by several developers in purchasing the property, and described some of the offers received both before and after the property was condemned, including a 1995 agreement of sale with Ryland Homes for $5.1 million, and a 1998 sales agreement with Toll Brothers for $7 million, contingent upon the condemnation being overturned. During Mr. Dalgewicz's testimony, he described a December, 1998 written offer from Pulte Homes, Inc., including a $8 million offer price; the offer letter was also introduced into evidence. The Township objected arguing the offer was inadmissible as it did not result in a sales agreement and any testimony concerning the offer price would be irrelevant and prejudicial. The Township appealed the Commonwealth Court's order affirming the trial court's ruling that testimony regarding a bona fide offer and the underlying offer letter itself could be introduced into evidence in a condemnation valuation trial. Finding no error, the Supreme Court affirmed the lower courts' decisions. View "Lower Maker Township v. Lands of Chester Dalgewicz" on Justia Law
Butler v. Charles Powers Estate
The issue before the Supreme Court in this case centered on whether a deed executed in 1881 reserving the subsurface and removal rights of "one half of the minerals and petroleum oils" in the grantor included any natural gas contained within the shale formation beneath the subject land. The trial court, relying on the 1882 Supreme Court decision "Dunham & Shortt v. Kirkpatrick," (101 Pa. 36 (Pa. 1882)) and its progeny, held that because the deed reservation did not specifically reference natural gas, any natural gas found within the Marcellus Shale beneath the subject land was not intended by the executing parties to the deed to be encompassed within the reservation. The Superior Court reversed that decision and remanded the case with instructions to hold an evidentiary hearing complete with expert, scientific testimony to examine whether: (1) the gas contained within the Marcellus Shale was "conventional natural gas"; (2) Marcellus shale was a "mineral"; and (3) the entity that owns the rights to the shale found beneath the property also owns the rights to the gas contained within that shale. Upon review, the Supreme Court reversed, finding that the Superior Court erred in ordering the remand for an evidentiary hearing and reinstated the order of the trial court.
View "Butler v. Charles Powers Estate" on Justia Law
Tech One Assoc. v. Bd. of Prop. Assessment Appeal & Review
The issue before the Supreme Court concerned the validity of a single unified tax assessment of both a tract of land, and the buildings of a shopping center, movie theater, and restaurant located on the land. The land was owned by Appellant Tech One Associates, and the buildings and surrounding improvements to the land were constructed and owned by a second entity, "Terra Century Associates" (Lessee). Upon review, Appellees the Board of Property Assessment Appeals and Review of Allegheny County, the Borough of West Mifflin, and the West Mifflin Area School District correctly treated the land, the buildings, and the improvements to the land as real estate subject to taxation under Section 201(a) of the Commonwealth's General County Assessment Law. Further, the Court upheld the rulings of the lower courts that its previous decision in "In re Appeal of Marple Springfield Center, Inc," (607 A.2d 708 (1992)) did not preclude the valuation of real estate owned as a leasehold interest, and that the market value for the land, buildings, and improvements determined at trial accurately reflected the "economic reality" of the impact of the long-term lease between Appellant and its lessee. View "Tech One Assoc. v. Bd. of Prop. Assessment Appeal & Review" on Justia Law
Mesivtah Eitz Chaim of Bobov, Inc. v. Pike Co. Bd. of Assessment Appeals
Appellant Mesivtah Eitz Chaim of Bobov, Inc., a not-for-profit religious entity related to the Bobov Orthodox Jewish community in Brooklyn, appealed a Commonwealth Court ruling, asking that the Supreme Court find it is an "institution of a purely public charity" under Article VIII, sec. 2(a)(v) of the Pennsylvania Constitution, and entitled to exemption from real estate taxes. Appellant operated a summer camp in Pike County, Pennsylvania. Pike County denied Appellant's exemption request, finding that occasional use of Appellant's recreational and dining facilities by Pike County residents was insufficient to prove Appellant was a purely public charity. The Court allowed this appeal to determine if it must defer to the General Assembly's statutory definition of that term. Upon review, the Supreme Court affirmed, holding its prior jurisprudence set the constitutional minimum for exemption from taxes; the legislation may codify what was intended to be exempted, but it cannot lessen the constitutional minimums by broadening the definition of "purely public charity" in the statute. View "Mesivtah Eitz Chaim of Bobov, Inc. v. Pike Co. Bd. of Assessment Appeals" on Justia Law
T.W. Phillips Gas and Oil Co. v. Jedlicka
The issue before the Supreme Court was the determination of the proper test for evaluating whether an oil or gas lease has produced "in paying quantities," as first discussed "Young v. Forest Oil Co.," (194 Pa. 243, 45 A. 1 (1899)). Appellant Ann Jedlicka owned a parcel of land consisting of approximately 70 acres. The Jedlicka tract is part of a larger tract of land consisting of approximately 163 acres, which was conveyed to Samuel Findley and David Findley by deed dated 1925. In 1928, the Findleys conveyed to T.W. Phillips Gas and Oil Co. an oil and gas lease covering all 163 acres of the Findley property which included the Jedlicka tract. The lease contained a habendum clause which provided for drilling and operating for oil and gas on the property so long as it was produced in "paying quantities." Notably, the term "in paying quantities" was not defined in the lease. Subsequently, the Findley property was subdivided and sold, including the Jedlicka tract, subject to the Findley lease. A successor to T.W. Philips, PC Exploration made plans to drill more wells on the Jedlicka tract. Jedlicka objected to construction of the new wells, claiming that W.W. Philips failed to maintain production "in paying quantities" under the Findley lease, and as a result, the lease lapsed and terminated. After careful consideration, the Supreme Court held that when production on a well has been marginal or sporadic, such that for some period profits did not exceed operating costs, the phrase "in paying quantities" must be construed with reference to an operator's good faith judgment. Furthermore, the Court found the lower courts considered the operator's good faith judgment in concluding the oil and gas lease at issue in the instant case has produced in paying quantities, the Court affirmed the order of the Superior Court which upheld the trial court's ruling in favor of T.W. Phillips Gas and Oil Co. and PC Exploration, Inc. View "T.W. Phillips Gas and Oil Co. v. Jedlicka" on Justia Law
Indian Rocks Property Owners Assoc. v. Glatfelter
Indian Rocks Property Owners Association, Inc. developed rules and regulations that were recorded as protective covenants running with the land in a development in Salem Township, Wayne County. Appellees John and Regina Glatfelter purchased a lot within the Indian Rocks community. John died in 1990 leaving Regina as the sole owner of the lot. The lot sat vacant until 2003 when the Glatfelters' son David began constructing a foundation. The Association initially inspected and approved the excavation, but late that year informed the Glatfelters that the work was substandard and inadequate pursuant to the covenants. The Glatfelters were ordered to cease construction until a new plan was approved. The Glatfelters agreed to stop work until they submitted a new application for construction in conformance with the covenants, but they failed to comply with the agreement. The Association brought suit to enforce the covenants, which the trial court approved and entered into its order. Since that suit, the Commonwealth amended the Construction Code to exempt "recreational cabins" from its requirements. Adopting the Construction Code, the Association passed a resolution refusing to recognize the recreational cabin exemption. When the Glatfelters sought to use the changed Construction Code to their advantage, the Association argued that its refusal to recognize the Code's changed cabin exemption did not apply to the Glatfelters' construction project. The trial court granted the Association's contempt petition against the Glatfelters. Upon review, the Supreme Court held that the Glatfelters stipulated that they would comply with the Association's rules prior to the change in the Code. As such, they were bound to the terms of the stipulation when completing their construction project: "the Glatfelters cannot use the recreational cabin exemption as a trump card to bypass the rules and regulations to which they agreed. … Our holding is premised entirely on the Glatfelters' failure to obtain the Association's approval regarding the intended structure." The Court did not address the validity of the Association's resolution refusing the adopt the recreational cabin exemption. View "Indian Rocks Property Owners Assoc. v. Glatfelter" on Justia Law