Edison Illuminating Co. v. Eastern Pennsylvania Power Co.

98 A. 652, 253 Pa. 457, 1916 Pa. LEXIS 871
CourtSupreme Court of Pennsylvania
DecidedMay 1, 1916
DocketAppeal, No. 220
StatusPublished
Cited by25 cases

This text of 98 A. 652 (Edison Illuminating Co. v. Eastern Pennsylvania Power Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edison Illuminating Co. v. Eastern Pennsylvania Power Co., 98 A. 652, 253 Pa. 457, 1916 Pa. LEXIS 871 (Pa. 1916).

Opinion

Opinion by

Mr. Justice Frazer,

Plaintiff, engaged in the business of furnishing electric light and power to the City of Easton, on February 1, 1900, leased its plant and system, for a period of ninety-nine years, to the Easton Power Company, a competitor, at the annual rental of $30,000. Pursuant to [460]*460the terms of the lease, an inventory was made and the property valued at f168,823.33. The lessee operated the plant for ten years, and in 1810 consolidated with certain other lighting companies forming a new corporation, under th,e name of the Easton Gas & Electric Company, which company, in 1911, conveyed its property to the Eastern Pennsylvania Power Company, the defendant in this case. Since filing this hill defendant was merged into the Pennsylvania Utilities Company, and that corporation was made a party to the record. The lease contained a provision forbidding its assignment, or the selling or subletting of the premises, without consent of the lessor in writing. The Eastern Pennsylvania Power Company, by agreement, also in writing, undertook the performance of all the covenants of the lease “including not only those which it would be bound to perform as assignee of the lease during its occupancy but also those which have not been performed by the prior lessee, The Easton Power Company, or the Easton Gas & Electric Company.” It was also provided that the lessor “by the execution and delivery hereof does not waive thereby any rights, preferences, contracts, privileges, powers or causes of action now vested in it in respect to said lease.”

At the time of the execution of the lease the capacity of plaintiff’s plant, taking the rate of all its generators whether fit for use or not, was 2,000 kilowatts. On March 26, 1900, by agreement, not in writing however, the lessee was permitted to remove a certain machine from the leased property to a plant owned by lessee. Subsequently, consent was asked and granted to remove other machinery and make certain changes in connection with the plant, and, in 1903, the lessee proposed to sell part of the machinery, which the testimony shows was obsolete, and substitute therefor electrical appliances of modern construction. Upon refusal of the lessor to accede to this proposition the plant was abandoned for generating purposes, and used only as a substation to convert the current generated at another plant owned by [461]*461lessee. On April 5,1909, request was made by the lessee for permission to sell a portion of the old apparatus in the leased plant; this request, however, was also refused, and since that time the plant has not been maintained and preserved in a state of efficiency as provided in the lease; and in 1912, according to an inventory taken at that time, the depreciation in value amounted to $74,-175.62, which amount at the time of the trial had increased to $93,105.16. The bill sets forth the above facts, and asks an order on defendant directing that it maintain a general efficiency of the plant, and make renewals and repairs to like extent of the depreciation, or pay to plaintiff the amount of the falling off in value, as ascertained by the inventory. The answer admits the plant has not been operated since 1904, and avers plaintiff had full knowledge of the fact, and, further, that the machinery of the leased plant had to a considerable extent deteriorated at the time the lease was made, and for this reason its operation was found to be inexpedient, although, since the use of the electrical machinery and appliances has been discontinued, the buildings and machinery have been properly cared for and preserved. Defendant also alleges plaintiff has an adequate remedy at law. Consideration of this question in limine resulted in upholding the court’s equitable jurisdiction, and, after a hearing on the merits, a decree whs entered ordering defendant to specifically perform the covenants of thé lease by putting the plant “in the same condition of general efficiency as it was at the time of the said demise” and to “preserve the buildings and make all necessary repairs and renewals of the machinery, equipment, poles, wires, conduits, appliances and franchises of the value set forth in the inventory and appraisement” made at the time the lease was executed. From the decree so entered defendant appealed, and the principal questions raised by the numerous assignments of error are — (1) whether the court had jurisdiction to order specific performance and (2) as to the construction of [462]*462the lease. So far as the facts are concerned the findings of the trial judge are supported by evidence and will, therefore, not be disturbed: Duffey v. Jennings, 247 Pa. 388; Martin v. First Nat. Bk. of Pittsburgh, 247 Pa. 493; Hathaway v. Newell, 247 Pa. 460.

The rights and liabilities of the parties must necessarily depend upon the construction of the lease. An examination of that instrument shows the lessee was given power, with the written consent of the lessor, to remove machinery or other materials from the plant on condition that they remain the property of the lessor, unless sold with the latter’s consent, in which event the proceeds were to be paid to the lessor, and it was also given the right, with the consent of lessor, which was not to be “unreasonably withheld,” to make necessary alterations and improvements for the convenient and economical management of the plant “either by the reconstruction-of the lines or any such other way as may best effect the result desired.” The tenth paragraph reserves to lessor the right to declare the lease ended, and resume possession of the premises on thirty days’ notice, in the event of default by the lessee in payment of rent “or in case of any breach of the covenant” on the part of lessee, in which contingency the lessee agrees to deliver the premises to the lessor, except any property that may have been purchased and paid for by the lessee during the term. The eleventh paragraph provides that in case the lessor should resume possession “as hereinbefore provided” the lessee “shall restore all the property herein demised as per schedule hereto annexed......in as good order as taken, reasonable wear and tear excepted.” The twelfth paragraph provides for the taking of an inventory and appraisement “and that upon the expiration or sooner determination of the term of this lease, the said party of the first part shall be put in possession of the fixtures or personal property of similar character, and of the value equal to that herein leased......except in so far as the same may have been accounted for by a [463]*463sale.” In the thirteenth clause the lessee agreed “during the continuance of this lease” to “maintain and preserve the buildings and the general efficiency of the plant hereby demised, making all necessary repairs and renewals of machinery, equipment, poles, wires, conduits, appliances and franchises as may be required, and that-it will properly care for and preserve all engines, boilers, machinery and appliances not used, and will replace any or any part thereof broken, injured or worn out after its) possession under this lease, subject, however, to the other' provisions of this agreement with reference to the sale of machinery or fixtures.” In the fourteenth paragraph the lessee also agreed during the continuance of the lease to “keep and maintain the said demised premises in good order and repair.”

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Bluebook (online)
98 A. 652, 253 Pa. 457, 1916 Pa. LEXIS 871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edison-illuminating-co-v-eastern-pennsylvania-power-co-pa-1916.