Justia Pennsylvania Supreme Court Opinion Summaries

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

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 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