DuBois Dutch LLC v. Sandy Township Board of Supervisors

6 Pa. D. & C.5th 490
CourtPennsylvania Court of Common Pleas, Clearfield County
DecidedFebruary 23, 2007
Docketno. 05-1983-CD
StatusPublished

This text of 6 Pa. D. & C.5th 490 (DuBois Dutch LLC v. Sandy Township Board of Supervisors) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Clearfield County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DuBois Dutch LLC v. Sandy Township Board of Supervisors, 6 Pa. D. & C.5th 490 (Pa. Super. Ct. 2007).

Opinion

AMMERMAN, P.J.,

Intervening appellee, John A. Guido, purchased a 3.37 acre parcel of ground located along Route 219 North in Sandy Township, Clearfield County, Pennsylvania, from Phillip J. Dieringer and Sherry S. Dieringer by deed dated December 19, 1986, and recorded in the offices of the Register and Recorder of Deeds of Clearfield County, Pennsylvania, in deed book vol. 1130, page 150. (Appellant’s exhibit lb, p. 286a.) The transfer was subject to a certain ease between Phillip J. Dieringer, as lessor and Harley Hotels Inc., as lessee, dated July 7,1982, memorandum of which was recorded in the office of the Recorder of Deeds of Clearfield County, Pennsylvania, in deed book no. 843, page 79. (Appellant’s exhibit lb,pp. 287a, 297a-323a.)

At the time of Guido’s purchase, Harley Hotels Inc. was operating a Dutch Pantry restaurant on 2,605 acres of the 3.37 acre parcel while the Dieringers operated a gasoline service station on the remaining acreage. The 1982 lease also gave Harley Hotels Inc., an option to purchase the 2.605 acre restaurant parcel before the expiration of the 1982 lease scheduled for February 29, 1999. (Appellant’s exhibit lb, 305a, paragraph 9.)

[493]*493A building permit for the restaurant had actually been issued to Hospitality Motor Inns Inc., predecessor in title to Harley Hotels Inc., on October 28, 1970, by Sandy Township. (Appellant’s exhibit lb, p. 327a.) Hospitality Motor Inns Inc. then had to construct its own sanitary sewer plant (appellant’s exhibit lb, p. 342a) before constructing the restaurant which it completed in 1971.

Harley Hotels Inc. sold the Dutch Pantry restaurant to appellant, DuBois Dutch LLC. By assignment and assumption of lease dated July 5,1998, and recorded in the offices of the Register and Recorder of Deeds of Clear-field County, Pennsylvania, in deed book vol. 1951, page 453, assigned all of its right, title and interest in the lease and option to DuBois Dutch LLC. (Appellant’s exhibit lb, pp. 329a-330a.)

By letter dated July 6,1998, addressed to both Harley Hotels Inc. and DuBois Dutch LLC, John A. Guido consented to the assignment of the lease to DuBois Dutch and specifically acknowledged that DuBois Dutch would have all of the rights and privileges under the lease. This included the right to exercise the purchase option for the property upon which the Dutch Pantry restaurant was located. (Appellant’s exhibit lb, p. 290a.)

On June 19,1996, before DuBois Dutch acquired the restaurant parcel and before the 1982 lease’s expiration, Sandy Township repealed its 1964 zoning ordinance which applied when the 1982 lease and option were executed and adopted a new zoning ordinance which required a minimum lot size of45,000 square feet in the C-H-Commercial-Highway District, the zoning district [494]*494where the subject property is located. The DuBois Dutch parcel met the new lot size requirements but the piece remaining to Guido did not since it totaled only 32,910 square feet. (See survey map, appellant’s exhibit 2.) Both parcels met the minimum lot size requirement set forth in the 1964 zoning ordinance.

On November 16,1998, DuBois Dutch gave notice to Guido that it was exercising its option to purchase the subject premises pursuant to the terms of paragraph 9 of the June 16,1982 lease. (Appellant’s exhibit lb, p. 331a.) Immediately thereafter, Guido responded that he would not agree to a subdivision and refused to convey the restaurant parcel to DuBois Dutch on the basis that he would be left with an undersized lot that he felt would be commercially useless.

On November 28,1998, DuBois Dutch sought formal subdivision approval from the Sandy Township Planning Commission. Guido appeared and objected to the grant of such subdivision approval and, accordingly, the Planning Commission recommended rejection of the subdivision request. DuBois Dutch thereafter withdrew its request and on February 12,1999 filed a complaint in specific performance against Guido before the Court of Common Pleas of Clearfield County to no. 99-160 C.D. This action requested the court to order Guido to secure subdivision approval from Sandy Township; release the 2.605 acres from a lien of mortgage held by S&T Bank and direct that Guido be made to convey the premises that were the subject of the option. As a defense to the specific performance action, Guido asserted that he could not perform because subdivision of the property would violate the lot size requirements of the 1996 zoning ordinance.

[495]*495Guido thereafter filed an ejectment action to no 99-263 C.D. on March 10, 1999, seeking possession of the restaurant parcel free of any claim by DuBois Dutch on the basis that the lease between the parties had expired on February 29,1999, and could not be renewed and DuBois Dutch was holding over illegally. The complaint filed in that case made no mention of the fact that DuBois Dutch had exercised its option to purchase the property on November 16, 1998, prior to the expiration of the lease and that John A. Guido had refused to cooperate with DuBois Dutch in securing a subdivision and was refusing to convey the premises. DuBois Dutch filed preliminary objections to that ejectment complaint, raising the pendency of the prior action for specific performance filed on February 12, 1999, to no. 99-160 C.D., and Guido’s answer, new matter and counterclaim thereto raising a claim for ejectment.

On May 17,1999, following argument, then Clearfield County President Judge John K. Reilly, Jr.1 stayed both actions pending a decision by the Sandy Township Board of Supervisors. The court directed DuBois Dutch to apply once again to the Township for subdivision approval on the basis that the lot of John A. Guido was a nonconforming lot that was divided prior to the enactment of the 1996 ordinance.

Pursuant to the trial court’s direction, DuBois Dutch filed for subdivision approval with Sandy Township on the basis of two arguments. First, that the 1982 lease and option effected a per se lawful subdivision at its incep[496]*496tion; or secondly, that once DuBois Dutch exercised the option, its ownership interest reverted back to 1982, making the property held in separate ownership by the two entities at that time and since both lots would lave been lawful under the terms of the 1964 ordinance in effect in 1982, Guido’s lot should be allowed to continue as a nonconforming lot allowable under the 1996 ordinance. The Board of Supervisors of Sandy Township agreed that the Township had always recognized the property as two separate parcels and had always treated the property as two separate parcels (appellant’s exhibit la, p. 6) and did unanimously grant subdivision approval.

On August 3, 1999, Guido filed an appeal from the Township’s grant of subdivision approval to no. 99-867 C.D., and on June 13, 2000, the trial court held a de novo hearing. President Judge Reilly held that the creation of the 1982 lease and option and the exercise of the option by DuBois Dutch constituted a subdivision of the property under the Municipalities Planning Code (MPC) as of the date of the June 16, 1982 lease granting the option. The trial court found that when DuBois Dutch exercised its option to purchase the property, its equitable title related back to the date of the creation of the option.

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Bluebook (online)
6 Pa. D. & C.5th 490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dubois-dutch-llc-v-sandy-township-board-of-supervisors-pactcomplclearf-2007.