Ernst v. Kwik-Chek Realty Co.

64 Pa. D. & C.2d 10, 1972 Pa. Dist. & Cnty. Dec. LEXIS 7
CourtPennsylvania Court of Common Pleas, Montgomery County
DecidedDecember 6, 1972
Docketno. 70-8355
StatusPublished

This text of 64 Pa. D. & C.2d 10 (Ernst v. Kwik-Chek Realty Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Montgomery County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ernst v. Kwik-Chek Realty Co., 64 Pa. D. & C.2d 10, 1972 Pa. Dist. & Cnty. Dec. LEXIS 7 (Pa. Super. Ct. 1972).

Opinion

STANZIANI, J.,

This is an appeal from an order dated September 29, 1972, in which the court en banc granted plaintiffs’ motion for summary judgment.

Prior to October 21, 1964, Mr. and Mrs. Harold Murphy owned the premises presently owned by plaintiffs and the premises presently owned by defendent, Kwik-Chek Realty Company, Inc. (herein[11]*11after referred to as parcels 2 and 1, respectively). On that date, the Murphys conveyed parcels 2 and 1 to Hexa of Pennsylvania, Inc., taking a purchase money mortgage in the amount of $28,000 on parcel 2 only. Later on that same day, Hexa of Pennsylvania, Inc., conveyed parcel 1 to defendant Kwik-Chek Realty Company, Inc., and in the deed granted an easement for ingress and egress over parcel 2. Subsequently, Hexa of Pennsylvania, Inc., defaulted on the payment of the purchase money mortgage held on parcel 2 and the Murphys foreclosed the mortgage and bought parcel 2 at the sheriff’s sale. On February 20,1969, the Murphys received a deed from the Sheriff of Montgomery County to parcel 2 and on that same day they conveyed parcel 2 to plaintiff for $28,000. On July 2, 1970, plaintiffs filed a complaint to quiet title as to parcel 2 seeking to terminate “all rights which defendant Kwik-Chek and its lessee may have under the deed of Hexa of Pennsylvania, Inc. to Kwik-Chek Realty Company, Inc. dated October 21, 1964 . . .” Defendants filed an answer and new matter on September 25, 1970, in which they aver, as new matter, that the Murphys “knew or had reason to know that the easement in the premises outlined in blue on Exhibit T hereto was being or had been granted to defendant Kwik-Chek Realty Company, Inc. and would be used by defendants in the operation of their convenience store and that a portion of the purchase price to be paid by Hexa of Pennsylvania, Inc. to the Murphys was being given by defendant Kwik-Chek Realty Company, Inc. in exchange for such easement.”

Paragraph 15 of the new matter alleges that prior to plaintiffs’ acquisition of an interest in the premises “defendants had placed improvements on and were openly using in the operation of their convenience store the premises outlined in blue on Exhibit T here[12]*12to.” In their reply to new matter filed October 8, 1970, plaintiffs admit that defendants made certain improvements within the boundaries of the easement but deny that these improvements were made “in accordance with any alleged right under the alleged easement” and further aver that the right to use such easement “was subordinate to the rights of the Murphys, as mortgagees.” On March 20, 1972, plaintiffs filed a motion for summary judgment alleging that “there is no general issue as to any material fact” since:

“The pleadings and records establish that the easement granted to defendant, Kwik-Chek Realty Company, Inc., as set forth in Exhibit ‘C’, attached hereto, was over the lands presently owned by the plaintiffs, and was subordinate by law to purchase money mortgage of Harold S. Murphy and Gertrude I. Murphy (Exhibit ‘B’ attached hereto), and that said easement over the premises of plaintiffs as described in Exhibit ‘C’ was discharged and extinguished by the foreclosure of the mortgage proceedings and Sheriff’s subsequent Deed to the aforesaid Murphys, who were the plaintiffs’ grantors.”

On April 6, 1972, defendants filed their response to motion for summary judgment in which they alleged that “the pleadings and the records attached to plaintiffs’ motion for summary judgment raise genuine issues as to several material facts which, if resolved in favor of defendants, will result in a decree confirming the validity of defendant’s easement over the land presently owned by plaintiffs.” Defendants fail to specify the nature of these “genuine issues.” On May 26, 1972, plaintiffs filed a praecipe directing the prothonotary to list the case for argument. The case was duly scheduled for argument before the court en banc on Monday, September 25, 1972. Briefs were [13]*13filed and the case was argued on September 25, 1972. On September 29, 1972, the court entered an order granting plaintiffs’ motion for summary judgment from which this appeal was taken.

It is well-settled law in Pennsylvania that “the title of a purchaser at a sheriff’s sale [upon foreclosure of a mortgage] relates back to the date of the mortgage and defeats all intervening estates and interests, [including easements] acquired subsequent to the mortgage”: Dexter et al. v. Pennsylvania Power Company, Appellant, 127 Pa. Superior Ct. 419, 421 (1937). The Superior Court of Pennsylvania goes on to say, on page 421, that:

“It naturally follows that a sheriff’s sale on a prior mortgage destroys a subsequently granted easement. It was so held in King v. McCully, 38 Pa. 76, 77, where it is stated that title to the right of way was subject to the mortgage, and as the sheriff’s sale vested title in the purchaser by relation to the date of the mortgage it swept away all title under those deeds as well to the right of way as to the land.’ This seems to be the only Pennsylvania authority on that question, but it is supported by decisions in other jurisdictions: See Mt. Holyoke Realty Corp. v. Holyoke Realty Corp. et al. (Mass.), 187 N. E. 227; Naccash v. Hildansid Realty Corp., 257 N. Y. S. 748; Arterburn v. Beard et al. (Neb.), 126 N. W. 379; Stanislaus Water Co. v. Bachman (Cal.), 93 P. 858; Briggs v. Chicago, K. & W. R. Co. (Kans.), 43 P. 1131; Leavenworth Lodge v. Byers (Kans.), 38 P. 261; 7 Mich. L. R. 595.”

More recently, in Vanderwerff et ux. v. Consumers Gas Company et al., 166 Pa. Superior Ct. 358 (1950), the court, citing the Dexter case, states:

“The security of a mortgage cannot be impaired by an easement subsequently imposed on the land without the consent of the mortgagee.” Page 363.

[14]*14Defendants admit that this is the general rule but claim that this case fits into the exception to the rule which subordinates the mortgage to the easement when the mortgagee consents. Defendant cites Frankford Trust Company v. Manufacturers Life Insurance Company of Toronto, Canada, 47 D. & C. 2d 547 (1968), as authority for that exception. Although it is true that in the Frankford Trust case the Montgomery County court found that the after-acquired easement survived the sheriff’s sale on the foreclosure of a prior mortgage, there are several facts that distinguish that case from the case at bar. First of all, in the Frankford Trust case, Judge Smillie was confronted with the problem of an easement by implication in favor of tenants of an apartment complex. In planning for this large-scale project, the developers intended that all of the buildings would comprise one single complex, and the facilities built to benefit the tenants in one building would benefit the tenants in all of the other buildings. The swimming pool was such a facility. Judge Smillie recognized the problems the developers of such a complex face, when, on page 560, he states:

“Financing of large-scale projects such as the Robert Bruce West Apartments cannot often be obtained from only one lender. Where several lending institutions each take mortgages on different buildings of one apartment complex, they look to the property covered by the mortgage only as security for their loan.

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Related

Vanderwerff v. Consumers Gas Co.
166 Pa. Super. 358 (Superior Court of Pennsylvania, 1950)
Stanislaus Water Co. v. Bachman
93 P. 858 (California Supreme Court, 1908)
Dexter v. Pennsylvania Power Co.
193 A. 94 (Superior Court of Pennsylvania, 1937)
King v. McCully
38 Pa. 76 (Supreme Court of Pennsylvania, 1860)
Arterburn v. Beard
126 N.W. 379 (Nebraska Supreme Court, 1910)
Briggs v. Chicago, Kansas & Western Railroad
43 P. 1131 (Supreme Court of Kansas, 1896)

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Bluebook (online)
64 Pa. D. & C.2d 10, 1972 Pa. Dist. & Cnty. Dec. LEXIS 7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ernst-v-kwik-chek-realty-co-pactcomplmontgo-1972.