Affordable Outdoor, LLC v. Tri-Outdoor, Inc.

210 A.3d 270
CourtSuperior Court of Pennsylvania
DecidedApril 24, 2019
Docket2388 EDA 2018
StatusPublished
Cited by21 cases

This text of 210 A.3d 270 (Affordable Outdoor, LLC v. Tri-Outdoor, Inc.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Affordable Outdoor, LLC v. Tri-Outdoor, Inc., 210 A.3d 270 (Pa. Ct. App. 2019).

Opinion

OPINION BY BENDER, P.J.E.:

Appellant, Tri-Outdoor, Inc., appeals from the July 23, 2018 judgment entered in favor of Appellee, Affordable Outdoor, LLC. We affirm.

This case arises out of a dispute over an advertising billboard between two parties in the billboard business. On October 4, 2017, Affordable Outdoor purchased property located at 4952 PA Route 378, Upper Saucon Township, Pennsylvania (referred to herein as "the Property"), at a Judicial Tax Claim Bureau sale for $ 30,150.38. At the time of the sale, Glenmore M. Matz owned the Property. 1 Two billboards are located on the Property, the larger of which forms the basis of this litigation (referred to herein as "the Billboard"). Upon purchasing the Property, Affordable Outdoor believed that it had also purchased the billboards thereon. However, Appellant had been advertising on the Billboard and claimed to own it.

On November 30, 2017, Affordable Outdoor filed a complaint against Appellant. Its complaint contained two counts: unjust enrichment (Count I) and a demand for equitable relief (Count II). Specifically, in Count II, Affordable Outdoor sought an order enjoining Appellant from entering upon its real estate and prohibiting Appellant from altering, destroying, or removing the Billboard located on the real estate. 2 In Count II, Affordable Outdoor also requested an order ruling that it is the lawful owner of the Billboard, and an order requiring Appellant to provide an accounting of all income generated from its use of the Property since October 5, 2017 (the day after Affordable Outdoor's purchase of the Property). In response, on January 3, 2018, Appellant filed an answer, new matter, and counterclaim to Affordable Outdoor's complaint. In this filing, Appellant raised multiple counterclaims against Affordable Outdoor, seeking declaratory relief, a prescriptive easement, and a judgment against Affordable Outdoor for tortious interference with contractual relations.

On February 13, 2018, this case proceeded to a non-jury trial. The trial court found that Affordable Outdoor presented no evidence *272 of unjust enrichment at trial, as Appellant had not been receiving any rent from the Billboard during the relevant time period. With regard to Affordable Outdoor's demand for equitable relief, the trial court reasoned that "[t]he tax sale was a judicial sale so, when [Affordable Outdoor] purchased the Property at that sale, it took an absolute title to the Property free and clear of any claims and estates of any kind." Trial Court Opinion (TCO), 3/9/2018, at 4. Additionally, it explained that "the evidence indicates that the Billboard is cemented at least three ... feet into the ground. Chattels that are annexed to realty in such a manner that they cannot be removed without materially damaging either the realty or the chattels are always fixtures." Id. (citation omitted). It determined that the Billboard was a fixture and concluded that Affordable Outdoor "is the owner of the Property and the Billboard annexed to said Property, unless [Appellant] can prove a leasehold interest in the Billboard." Id. 3

Ultimately, the trial court rejected Appellant's argument that it owned the Billboard as personal property through a lease agreement, assignment, and bill of sale. It explained:

On March 1, 1952, Charles G. Stehly ("Stehly") entered into an alleged lease agreement with Mark Matz that purportedly leased to Stehly "as much of the premises located at Route 12, 1 mile north of Center Valley as may be necessary for the construction of a ground advertising structures or displays ... with the right to maintain advertisements on said structures for a term of 3 years from the first day of March 1952, at the yearly rent of $ 25.00...[.]" However, no evidence was presented to prove the identity of the owner of the Property at the time of this alleged lease agreement. Therefore, [this court] cannot enforce the alleged lease agreement. Further, the evidence indicates that [Appellant] failed to abide by the terms of the alleged lease agreement by failing to pay the required yearly rent under the alleged lease agreement terms.
[Appellant] asserts that, on March 25, 1993, [Appellant] and Stehly Signs entered into an agreement whereby [Appellant] would be able to access, maintain, and use the Billboard ("Alleged Agreement"). The Alleged Agreement is signed by Otho James, President, Treasurer, and Secretary of Stehly Signs, and William P. Bakos, President, Treasurer, and Secretary of [Appellant.] No evidence was presented to show that Stehly Signs had any interest in the Property at the time of the Alleged Agreement. Therefore, we cannot conclude that Stehly Signs transferred any property interest to [Appellant] through the Alleged Agreement.
Similarly, the [c]ourt cannot conclude that the 2001 Bill of Sale that Stehly Signs executed, purportedly transferring certain of Stehly Signs['s] assets to [Appellant], conveyed the Billboard because no evidence was presented to establish that Stehly Signs had any interest in the Billboard at the time of the 2001 Bill of Sale. Therefore, [this court] cannot conclude that Stehly Signs transferred any property interest to [Appellant] through the Bill of Sale.

Id. at 4-5 (internal citations omitted). Accordingly, the trial court found that Appellant "did not possess a valid lease at the *273 time of the [t]ax [s]ale and, thus, had no leasehold property interest in the Billboard at the time of the [t]ax [s]ale." Id. at 6. After making that finding, it then went on to reject Appellant's claim that it had acquired a prescriptive easement over the Property because Mr. Bakos - the sole owner of Appellant - testified that he thought Appellant had permission to access the Billboard. Id. at 7. Therefore, the trial court concluded that Appellant "lacked the hostile intent necessary for the use to be adverse." Id.

Following the nonjury trial, on March 9, 2018, the trial court entered the following order:

AND NOW , this 9 th day of March, 2018, upon consideration of [Affordable Outdoor's] Complaint filed November 30, 2017, [Appellant's] Answer, New Matter And Counterclaim to [Affordable Outdoor's] Complaint filed January 3, 2018, after Non-Jury Trial, and for the reasons set forth in the accompanying Opinion;
IT IS ORDERED as follows:
1. On Count I, the [c]ourt finds in favor of [Appellant] and against ... Affordable Outdoor ... in no amount; and
2. On Count II, the [c]ourt finds in favor of ... Affordable Outdoor ... and against [Appellant] in that ... Affordable Outdoor ... is declared the lawful owner of the [Property] and all billboards and other fixtures located thereon and [Appellant] is enjoined from entering upon the Property and from altering, destroying or removing any billboards or other fixtures located on the Property.

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Cite This Page — Counsel Stack

Bluebook (online)
210 A.3d 270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/affordable-outdoor-llc-v-tri-outdoor-inc-pasuperct-2019.