Deynzer v. Columbia Gas of Pennsylvania, Inc.

875 A.2d 298, 2005 Pa. Super. 122, 2005 Pa. Super. LEXIS 731
CourtSuperior Court of Pennsylvania
DecidedApril 4, 2005
StatusPublished
Cited by6 cases

This text of 875 A.2d 298 (Deynzer v. Columbia Gas of Pennsylvania, 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
Deynzer v. Columbia Gas of Pennsylvania, Inc., 875 A.2d 298, 2005 Pa. Super. 122, 2005 Pa. Super. LEXIS 731 (Pa. Ct. App. 2005).

Opinion

PANELLA, J.:

¶ 1 Appellants, Adolf Deynzer and Barbara Deynzer, appeal from the order entered on October 15, 2003, by the Honorable William R. Nalitz, Court of Common Pleas of Greene County, which denied the Deynzers’ request for a preliminary injunction against Appellees Columbia Gas of Pennsylvania, Inc., Columbia Natural Resources, Inc., and Columbia Gas Transmission Corporation (collectively, “Columbia”). After careful review, we affirm.

¶ 2 This case reignites the controversies surrounding a onetime common practice in Pennsylvania in which many thousands of landowners leased their land to gas producers, for the extraction of natural gas, and in exchange received free gas service for their homes, known as the “Free Gas Clause” in the lease. The factual history of this matter spans over one hundred years, while the procedural history requires reference to a related, but separate, case in the trial court. 1 With this in mind, the background of this case may be summarized as follows. On April 18, 1900, S.B. Eagon, his wife Sarah A. Eagon, and Sarah J. Eagon, leased their farm in Center Township to George Rice for the production of oil and gas. As compensation, the Eagons received, among other compensation, free gas for use in the house *300 located on the property. George Rice assigned his rights and responsibilities under the lease to Manufacturer’s Light and Heat Company (“Manufacturers”).

¶ 3 The Eagons’ interest in the lease was assigned to Jay Hoskins and Elizabeth Hoskins. In August 1932 the lease was modified to limit the amount of free gas due under the lease, and provide that the free gas would be supplied from “present connections”. The lease was again modified in 1941, committing Manufacturers to drilling another well on the property. The Hoskins’ interest in the lease was eventually assigned to the Deynzers, who, in 1983, entered into an agreement to subdivide the property and the lease. Under this agreement, the wells subject to the lease were conveyed to J. Kenneth Willi-son and J. Kenneth Willison, Jr., while the free gas benefit under the lease remained with the Deynzers.

¶ 4 Manufacturers’ rights and responsibilities under the lease were assumed by Columbia Gas Transmission Corporation. 2 Columbia Gas Transmission Corporation conveyed its rights and responsibilities under the lease to Columbia Natural Resources in 1990.

¶ 5 In 1999, Columbia Natural Resources, Inc., conveyed the oil and gas lease to Nicole Energy. This conveyance explicitly transferred the obligation to provide free gas under the lease, however, after assigning the lease to Nicole Energy, Columbia Natural Resources, Inc. continued to provide free gas to the Deynzers. In 2002, Nicole Energy conveyed the leases to Appellee Pennsylvania Land Holdings Corporation (“PLHC”). On November 14, 2002, a representative of Columbia Natural Resources, Inc. notified PLHC that the free gas service to the Deynzers, among others, would be discontinued on November 29, 2002.

¶ 6 On November 21, 2002, PLHC filed a motion for a preliminary injunction as well a complaint seeking declaratory judgment against Columbia Natural Resources, Inc. After a hearing, the trial court enjoined Columbia Natural Resources, Inc. from taking any steps to interfere with the supply of gas to PLHC’s customers. On April 15, 2003, the trial court entered an order granting Columbia Natural Resources partial summary judgment on PLHC’s complaint. The trial court found that PLHC was the party responsible for providing free gas under the lease as the duty was clearly assigned.

¶ 7 On October 6, 2003, the Deynzers commenced the instant action by filing a complaint in equity as well as a petition seeking to require PLHC and Columbia to provide free gas service to their property. The trial court held a hearing on October 14, 2003. On October 15, 2003, the trial court entered an order denying the Deyn-zers any relief against Columbia while ordering PLHC to connect the Deynzers to a source of free gas or to make alternate arrangements within 30 days. The Deyn-zers timely filed the instant appeal on November 14, 2003.

¶ 8 The Deynzers question whether the trial court had reasonable grounds to deny the request for a temporary mandatory injunction against Columbia Natural Re *301 sources, Inc., considering that the free gas provision has been in effect “as long as anyone remembers” and the equity litigation between PLHC and Columbia has not been concluded. Appellant’s Brief, at 6.

¶ 9 Our standard of review of a trial court’s order granting or denying a preliminary injunction is a highly deferential one. Warehime v. Warehime, 580 Pa. 201, 208-209, 860 A.2d 41, 46 (2004). As such, our review is directed at an examination of the record to determine if there were any apparently reasonable grounds for the action taken by the trial court. Id. We will affirm the trial court’s ruling if the trial court denied relief based upon a proper finding that one of the essential prerequisites for a preliminary injunction was lacking. Id.; Kessler v. Broder, 851 A.2d 944, 947 (Pa.Super.2004), appeal denied, — Pa. —, 868 A.2d 1201, 2005 WL 405791 (Pa.2005) (Table).

¶ 10 The six essential prerequisites that a plaintiff must establish in order to qualify for injunctive relief are: (1) absent an injunction, the plaintiff will suffer an immediate and irreparable harm that cannot be adequately compensated by damages; (2) that such harm to plaintiff is greater than any harm that any interested party will suffer if the injunction is granted; (3) that the injunction will return the parties to the status quo that existed before any the occurrence of any wrongful conduct; (4) that the plaintiff is likely to succeed on the merits of the underlying claim; (5) that the injunction sought is reasonably suited to abate the offending activity; and (6) that the injunction will not adversely affect the public interest. Warehime, supra, 860 A.2d at 46-47; see also Summit Towne Centre, Inc. v. Shoe Show of Rocky Mount Inc., 573 Pa. 637, 646-647, 828 A.2d 995, 1000-1001 (2003).

¶ 11 In the case sub judice, the trial court’s 1925(a) opinion does not explicitly address the essential prerequisites laid out in Warehime. However, it is clear that the trial court concluded that the Deynzers were not likely to prevail on the merits, as Columbia no longer has any liability to the Deynzers under the lease. Based upon the record before us, we agree.

¶ 12 Although we sympathize with the dilemma facing the Deynzers, there is well established case law which bars their action against Columbia. A close review of the record reveals that there is nothing to support a finding of contractual privity between the Deynzers and Columbia. Columbia is hable to the Deynzers, and responsible to continue the free gas service, only if there is privity of estate between the Deynzers and Columbia. See Beach v. Morris, 12 Serg.

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Bluebook (online)
875 A.2d 298, 2005 Pa. Super. 122, 2005 Pa. Super. LEXIS 731, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deynzer-v-columbia-gas-of-pennsylvania-inc-pasuperct-2005.