Franklin Associates v. F-M Oil Co.

21 Pa. D. & C.3d 680, 1981 Pa. Dist. & Cnty. Dec. LEXIS 281
CourtPennsylvania Court of Common Pleas, Bucks County
DecidedDecember 30, 1981
Docketno. 10941-03-1 of 1978
StatusPublished

This text of 21 Pa. D. & C.3d 680 (Franklin Associates v. F-M Oil Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Bucks County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franklin Associates v. F-M Oil Co., 21 Pa. D. & C.3d 680, 1981 Pa. Dist. & Cnty. Dec. LEXIS 281 (Pa. Super. Ct. 1981).

Opinion

BECKERT, P.J.,

In October 1978, plaintiff, Franklin Associates, Inc., hereinafter referred to as “Franklin,” instituted suit against defendants, F-M Oil Company, Inc., hereinafter referred to as “F-M,” and Robert J. Finney, hereinafter referred to as “Finney,” in trespass and assumpsit.

Franklin had entered into an agreement of sale calling for it to purchase certain real estate owned by F-M and located in Doylestown Borough, Bucks County, Pa. At the time that agreement was executed, those premises were subject to a lease agreement, under which an individual named Kurt Harnik, hereinafter referred to as “Hamik,” was authorized to utilize the premises as a gasoline service station. At the time of settlement pursuant to that agreement of sale, the premises were con[681]*681veyed to plaintiff under and subject to that lease agreement. The tenant refused to vacate the premises at the end of the then-current lease term, basing his refusal on the protection to which he claimed to be entitled under the Gasoline, Petroleum Products and Motor Vehicle Accessories Act of November 26, 1975, P.L. 454, 73 P.S. §202-1 et seq.

As a result of its inability to secure possession of the service station at the end of the lease term which was in effect at the time of settlement, plaintiff-purchaser now attempts to recover damages from both the individual and corporate defendants on the basis of alleged misrepresentations as to the terminability of the lease. Defendants, on the other hand, deny the existence of any franchise relationship which would justify the tenant’s holding over after the expiration of the lease term, and further deny having made any misrepresentation, as to termination of that lease agreement.

After a bench trial before the undersigned on July 21, 1981 and after consideration of the parties’ legal memoranda, the matter is now ripe for decision.

FINDINGS OF FACT

1. Plaintiff, Franklin Associates, is a Pennsylvania Limited Partnership with its principal place of business at 16 North Franklin Street, Doylestown, Pa.

2. Defendant, F-M Oil Company, Inc., is a Pennsylvania corporation with its principal place of business at Route 463, M.R. 1, Lansdale, Pa.

3. Defendant, Robert J. Finney, deceased, was an individual employed by defendant, F-M Company, Inc., as its president at all times relevant hereto.

[682]*6824. Prior to November 30, 1976, defendant, F-M Oil Company, Inc., was the owner of certain real property being County Parcel No. 8-4-97 situate on the northwest comer of State and Franklin Streets in the Borough of Doylestown, Bucks County, Pa.

5. Sometime before August 1, 1968, defendant F-M entered into an agreement with Harnik whereby Harnik agreed to purchase certain petroleum products from F-M. That agreement covered the period commencing August 1, 1968 through July 1, 1969, and was to continue thereafter from year to year, provided that Harnik could terminate the purchasing agreement by providing F-M with 90 days’ written notice and F-M could terminate at any time by giving five days written notice to Harnik.

6. On or about July 6, 1976, defendant F-M entered into an agreement of sale with one John David Stitzer, or his nominee, for the aforementioned State and Franklin Streets premises for the agreed consideration of $135,000. Subsequent to execution of that agreement of sale it was assigned to plaintiff.

7. Settlement pursuant to the aforesaid agreement of sale between plaintiff and corporate defendant was to occur on or before November 30, 1976.

8. Plaintiff was aware of the lease agreement between corporate defendant and its tenant, Harnik, at the time the agreement of sale was assigned by John David Stitzer, to plaintiff.

9. Plaintiff was aware that possession of the premises would not be delivered upon settlement with corporate defendant.

10. Plaintiff decided to proceed with the agreement of sale notwithstanding the existence of the lease between Harnik and corporate defendant and [683]*683the provision in plaintiff’s (as assignee) agreement of sale providing for possession of the premises at settlement.

11. Settlement between plaintiff and defendant, F-M occurred on November 29, 1976.

12. At the time of settlement plaintiff was unaware of the existence of the aforementioned petroleum products sales agreement between defendant F-M and its tenant, Harnik.

13. At the time of settlement an agreement was entered into by and between F-M and plaintiff, wherein F-M warranted that the Harnik lease was the only lease agreement then in effect concerning the subject premises, and that it was terminable at the end of the current term upon 30 days’ written notice to the tenant. F-M further warranted therein that there were no other agreements, either written or oral, in existence between F-M and Harnik which “may prevent or interfere with Seller’s right to terminate the lease, as aforesaid.” Also included in that agreement was a committment by F-M to “. . . save and hold harmless Buyer from any loss incurred by reason of any lease not herein specified or any misrepresentation herein contained.”

14. On February 18, 1977 the tenant, Harnik, was given notice that plaintiff did not intend to renew his lease at the end of the then-current term. However, Harnik failed and refused to surrender the premises at the end of that term on July 31, 1978.

15. Plaintiff instituted ejectment proceedings against Harnik, wherein F-M was joined as an additional defendant. That action was called for trial in the Court of Common Pleas of Bucks County but never proceeded to a verdict, because the parties negotiated among themselves.

16. On or about June 15, 1978, F-M and Harnik [684]*684entered into a settlement agreement whereby Harnik agreed to phase out his occupancy of the premises and to release Franklin and F-M from all further liability to him, waiving any rights and benefits to which he may have entitled under the Gasoline, Petroleum Products and Motor Vehicle Accessories Act. In consideration for his said agreement and releases F-M and Franklin agreed to pay to Harnik certain designated sums of moneys.

CONCLUSIONS OF LAW

1. The Gasoline, Petroleum Products and Motor Vehicle Accessories Act of November 26, 1975, P.L. 454, 73 P.S. §202-1 et seq., is inapplicable to the lease relationship which existed between defendant F-M and its tenant, Harnik, and no franchise agreement as contemplated under that act existed between those parties.

2. Defendant Robert J. Finney at all times relevant to this proceeding acted in his capacity as a corporate officer and, therefore, incurred no personal liability for any acts undertaken by him, and plaintiff has failed to prove that defendant Finney made any misrepresentations of material fact to plaintiff. Defendants did not in any way breach the November 30, 1976 settlement agreement, and plaintiff is not entitled to any recovery against defendants on the basis of that agreement.

3. Plaintiff is not entitled to recover damages from any defendants as a result of representations made by those defendants.

DISCUSSION

The controlling issue here is whether or not there was in existence at the time the parties entered into [685]

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21 Pa. D. & C.3d 680, 1981 Pa. Dist. & Cnty. Dec. LEXIS 281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franklin-associates-v-f-m-oil-co-pactcomplbucks-1981.