Aloe Coal Co. v. Department of Transportation

643 A.2d 757, 164 Pa. Commw. 453, 1994 Pa. Commw. LEXIS 266
CourtCommonwealth Court of Pennsylvania
DecidedJune 2, 1994
Docket2058 C.D. 1992
StatusPublished
Cited by13 cases

This text of 643 A.2d 757 (Aloe Coal Co. v. Department of Transportation) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aloe Coal Co. v. Department of Transportation, 643 A.2d 757, 164 Pa. Commw. 453, 1994 Pa. Commw. LEXIS 266 (Pa. Ct. App. 1994).

Opinions

COLINS, Judge.

Aloe Coal Company (Aloe Coal) appeals from the August 31, 1992 decision and order of the Board, of Claims (Board) which granted judgment in favor of the Pennsylvania Department of Transportation (DOT) and dismissed Aloe. Coal’s action against DOT. We affirm.

Aloe Coal is a Pennsylvania corporation engaged in the business of mining, transporting, and marketing coal and coal-related products. This dispute arises out of Aloe Coal’s usage of a state roadway known as LR02003 (the roadway or LR02003) to transport coal to distribution points. LR02003 is a 2.46-mile stretch of road located in Allegheny County between station 62+ and station 191 + 96. The roadway is constructed mostly of dirt with some areas of blacktop or oil and chip paving. Although the roadway was used by many industries throughout its existence, by 1983, Aloe Coal was its primary heavy industrial user.

On July 13, 1983, Aloe Coal and DOT entered into an Excess Maintenance Agreement (EMA), which DOT drafted, whereby Aloe Coal agreed to perform or pay for any maintenance of LR02003 necessitated by its coal truck traffic. Aloe Coal also agreed to post a bond as security for performing its maintenance obligation. A memorandum dated December 8, 1982 was attached to the EMA. This memorandum provides, in pertinent part:

An inspection of the subject route was made on December 8, 1982, by Mr. Pat Belculfine, of Aloe Coal Company and Stanley Popovich and Lorraine E. Keller, of the Department of Transportation ... Station 62+ to 80+ (sic) this section was reconstructed by the company and continues to be used as access to their facility. A gate at Station 80 + [457]*457gives the appearance that this is a private road. It is a stabilized roadway and is in good condition.
Station 80 + to 191 + 96 (sic) this section has been used by the company for many years although no official agreement was executed, the company has provided periodic maintenance of the pavement surface and shoulders until the present time and is responsible for the existing conditions. The Department will have a crew remove the buildup of debris at the edge of shoulder and repair and or install drainage facility if the damage was a direct result of the company’s operation.

Both parties agreed before the Board that the memorandum should have indicated that DOT would repair and/or install the drainage facility if the damage was not a direct result of Aloe Coal’s operations. Prior to the time when Aloe Coal entered into the EMA with DOT, Aloe Coal often undertook voluntary repairs on LR02003. Aloe Coal alleges that these voluntary repairs were undertaken because DOT historically ignored the condition of the road.

In the spring of 1984, a landslide occurred causing the collapse of three sections of the western side of LR02003. DOT closed the roadway from May of 1984 until August of 1985, because the conditions on the roadway were so hazardous that they precluded use by the public. DOT closed the road pursuant to Paragraph 11 of the EMA which provides, in pertinent part: “This Agreement shall not prohibit the Department from closing a road or bridge to any vehicle or combination in excess of a specific weight if such closing is authorized by law and is necessary for safety, or is a temporary closing due to climatic conditions or act of God.”

In a letter written by William Sacco and dated May 4, 1984, DOT advised Aloe Coal that it was unable to schedule repairs for the landslide damage to LR02003 in the near future.1 DOT maintained that it did not have sufficient funds available to make the repairs, because the road was considered a low priority project since it was used only by a small sector of the [458]*458public. After LR02003 was closed down, Aloe Coal used alternative roads, but use of these roads increased the costs in time and money needed for Aloe Coal to service its customers, because LR02003 was the shortest route for Aloe Coal to take its coal to the major markets.

Aloe Coal eventually determined that if it wanted to use LR02003 in the near future it would have to repair the roadway itself. Reluctantly, Aloe Coal repaired LR02003 because it decided that fixing the road would save the company money. At the time it made the repairs to LR02003, Aloe Coal knew that it was not obligated by the EMA to make those repairs, because Paragraph 5 of the EMA provided: “The USER [Aloe Coal] shall have no obligation for maintenance to remedy damage resulting from washout, landslide or act of God or for removal of snow or ice.” After Aloe Coal repaired the roadway, DOT reopened the roadway and permitted Aloe Coal to resume hauling on it.

In the spring of 1986, part of LR02003 was washed out, and DOT closed the roadway in April, 1986 for two months. DOT reiterated to Aloe Coal that it did not have the resources to repair the roadway. Aloe Coal again undertook the repairs of the washed out area of the roadway to save money and to avoid using alternate roads for an extended period of time.

On October 20, 1987, Aloe Coal filed a claim against DOT for damages in the amount of $231,723. In its claim statement, Aloe Coal averred that by the terms of the memorandum attached to the EMA, DOT was obligated to repair or install the drainage facility for LR02003. Aloe Coal alleged that DOT’s failure to undertake the repairs of LR02003’s drainage system caused the 1984 landslide and the 1986 washout and, therefore, DOT was liable for reimbursing Aloe Coal for the cost of repairs and for Aloe Coal’s increased transportation costs while LR02003 was damaged and closed. On March 17, 1988, Aloe Coal filed an amended claim but did not change the amount of damages it sought from DOT. After preliminary objections were ruled upon by the Board, DOT filed its answer on May 12, 1988.

[459]*459The Board held hearings on the matter on May 22 and May 23, 1991. At these hearings, Aloe Coal presented the testimony of three witnesses, David Aloe, President of Aloe Coal, Pascal F. Belculfine, a registered professional engineer and expert witness who had participated on Aloe Coal’s behalf in the process of forming the EMA between Aloe Coal and DOT, and David Wain, a licensed civil engineer and soil engineering expert.

David Aloe (Mr. Aloe) testified about the business operations of Aloe Coal and how the closure of LR02003 affected Aloe Coal’s business decisions. Specifically, Mr. Aloe testified that: (1) after entering into the EMA, DOT never contacted Aloe Coal to inform him that DOT considered the damage to the drainage facility on LR02003 to be Aloe Coal’s responsibility; (2) DOT never repaired or replaced the drainage facility on LR02003; (3) when DOT closed LR02003, Aloe Coal made the repairs after DOT refused to do so, because Mr. Aloe thought that action would save money in the long term and believed that area residents would be displeased with Aloe Coal’s prolonged use of alternative roads; and (4) Aloe Coal made the repairs despite the fact that DOT had not ordered it to make the repairs and had not promised or otherwise indicated that it would reimburse Aloe Coal for the cost of the repairs.

Pascal Belculfine (Belculfine) testified about the physical condition of LR02003 at different times relevant to the history of this case and about the damages that Aloe Coal incurred during the closure of LR02003.

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Aloe Coal Co. v. Department of Transportation
643 A.2d 757 (Commonwealth Court of Pennsylvania, 1994)

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Bluebook (online)
643 A.2d 757, 164 Pa. Commw. 453, 1994 Pa. Commw. LEXIS 266, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aloe-coal-co-v-department-of-transportation-pacommwct-1994.