Cities Service Oil Co. v. Union Real Estate Co.

36 Pa. D. & C.2d 1, 1964 Pa. Dist. & Cnty. Dec. LEXIS 60
CourtPennsylvania Court of Common Pleas, Alleghany County
DecidedJuly 9, 1964
Docketno. 804
StatusPublished

This text of 36 Pa. D. & C.2d 1 (Cities Service Oil Co. v. Union Real Estate Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Alleghany County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cities Service Oil Co. v. Union Real Estate Co., 36 Pa. D. & C.2d 1, 1964 Pa. Dist. & Cnty. Dec. LEXIS 60 (Pa. Super. Ct. 1964).

Opinion

Brosky, J.,

On October 18, 1962, plaintiffs, the Cities Service Oil Company, Charles Birosack, and Charles J. Curry, filed a complaint in equity seeking to have defendants, Union Real Estate Company and Joseph Horne Company, enjoined from maintaining the Horne’s Auto Center in the East Hills Shopping Center in Penn Hills Township, Allegheny County, Pa., and to have them pay damages for the losses caused to the plaintiffs by reason of the construction of the Horne’s Auto Center in violation of the provisions in the leases to Cities Service Oil Company of two service-station properties in the East Hills Shopping Center. At the hearing upon plaintiff’s petition for a preliminary injunction, this court refused to act without a full hearing in the matter. Thereafter preliminary objections to the complaint were filed by the defendants and dismissed. Testimony in full having [3]*3been heard in open court in October, 1963, the cause is now before us for final disposition.

In the interim the parties have by stipulation set forth certain facts in which there is no disagreement. They are as follows:

1. Plaintiff, Cities Service Oil Company (“Cities Service (Del.) ”), is a Delaware corporation having its principal office in Tulsa, Oklahoma, and an office for the transaction of business at 2350 Noblestown Road, Pittsburgh 5, Pa. Its business includes the refining, manufacturing and distribution, for resale by gasoline service station operators, of petroleum products and tires, batteries and accessories.

2. Plaintiff, Charles Birosack (“Birosack”), is an individual residing in Allegheny County, Pa., and is the operator of the “Eastwood” gasoline service station located on Robinson Boulevard near its intersection with Frankstown Road, in the Township of Penn Hills, Allegheny County, Pa., under a sublease from plaintiff Cities Service (Del.).

3. Plaintiff, Charles J. Curry (“Curry”), is an individual residing in Allegheny County, Pennsylvania, and is the operator of “Curry’s” gasoline service station located at 8900 Frankstown Road, in the City of Pittsburgh, Allegheny County, Pa., under a sublease from plaintiff, Cities Service (Del.).

4. Defendant Union Real Estate Company (“Union”), is a Pennsylvania corporation having its principal place of business in the City of Pittsburgh, Allegheny County, Pa.

5. Defendant, Joseph Horne Company (“Horne’s”), is a Pennsylvania corporation having its principal place of business in the City of Pittsburgh, Allegheny County, Pa., which operates a department store business with its main store, in downtown Pittsburgh and other stores at suburban shopping centers.

6. In July 1955, White & Cunningham, a partnership [4]*4composed of W. J. White, Jr. and Theodore W. Cunningham, had title to the sites of what subsequently became the Eastwood and Curry’s gasoline service stations and also the site of what subsequently became East Hills Shopping Center. Both gasoline service station sites are adjacent to the site of East Hill Shopping Center.

7. By two leases dated July 18, 1955, White and Cunningham leased the gasoline service stations involved and their sites to Cities Service Oil Company, a Pennsylvania corporation (“Cities Service (Pa.)”). Both leases are on printed forms of the lessee, Cities Service (Pa.).

8. Each of the leases is for a term of 20 years beginning upon White and Cunningham’s completion of gasoline service station facilities to the satisfaction of Cities Service (Pa.), the lessee. In addition, the leases grant to Cities Service (Pa.) options for four successive renewals of the leases for additional periods of five years each, and the right of first refusal in the event that the lessor receives a bona fide offer for purchase of the demised premises.

9. Plaintiff, Cities Service (Del.), is now the lessee of the two gasoline service stations and their sites by assignment from Cities Service Oil Company (Pa.), the original lessee.

10. Each of the leases contains the following provision as paragraph 15 thereof:

“15. Landlord agrees that during the original and extended period hereof and in the event the Tenant or its nominee shall purchase the demised premises it will not use as a gasoline service station, nor will it lease or convey without prohibiting such use, or the storage or handling of petroleum products, tires, tubes and automotive accessories usually sold at a gasolene service station, any premises leased, controlled or owned by Landlord, directly or indirectly within 1500 feet of the [5]*5demised premises or within the proposed shopping center located on the said 52.2 acre tract. In the event the Tenant or its nominee acquired title to the demised premises, this covenant shall survive the closing of title and shall be deemed to bind the land to which it relates.”

11. The leases were recorded on August 31, 1955, in the Recorder’s Office of Allegheny County, Pa., in Deed Book, vol. 3408, pp. 76 and 88, respectively.

12. White & Cunningham organized a Pennsylvania corporation known as East Crossroads Center, Inc. (“Crossroads”), of which Messrs. White and Cunningham were president and secretary, respectively, and they deeded to Crossroads the land upon which East Hills Shopping Center was to be constructed.

13. By lease dated May 21, 1958, Horne’s leased from Crossroads a two-story department store building containing 148,400 square feet of floor area, to be constructed by Crossroads in East Hills Shopping Center on a 4-7-acre tract fronting on the western side of Robinson Boulevard and the southerly side of Franks-town Road near their intersection. In the lease, Crossroads also agreed to construct “the entire regional shopping center containing at least 50 stores having a total area of at least 400,000 square feet (and) a parking area having a minimum capacity of at least 2,500 automobiles.”

14. A store room, identified as Store Room A-2, was built as part of East Hills Shopping Center according to plans prepared for an auto supply company which did not enter into occupancy of the space. Store Room A-2 contained approximately 7,600 square feet of floor area and had a double-width overhead “drive-in” door for automobiles, a “battery room” and a “service room.”

15. In the year 1959, Mellon National Bank and Trust Company was mortgagee in possession of the land and buildings occupied by the two Cities Service [6]*6gasoline service stations under the leases which are the subject of this proceeding. Prior to March, 1960, Union became managing agent for the successor mortgagee in possession of the two gasoline service stations and their sites and for new owners of the adjoining East Hills Shopping Center and its site.

16. East Hills Shopping Center, including the Horne’s department store building, opened for business in March, 1960.

17. Since September, 1960, Horne’s has been engaged through a concessionaire in the sale of tires and other auto accessories at its store in East Hills Shopping Center. In addition, Horne’s maintained facilities in said center for the installation of tires and the performance of other automotive services. Until the spring of 1962, such facilities were located and services performed in Store Room A-2.

18. Curry and Birosack knew of the existence of the Horne’s department store building in East Hills Shopping Center. Birosack knew of the operation of Horne’s automotive facilities in Store Room A-2 in the latter part of 1961.

19.

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Bluebook (online)
36 Pa. D. & C.2d 1, 1964 Pa. Dist. & Cnty. Dec. LEXIS 60, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cities-service-oil-co-v-union-real-estate-co-pactcomplallegh-1964.