Hunter, S. v. Glenn O. Hawbaker, Inc

Superior Court of Pennsylvania·Decided January 28, 2026·No. 1473 MDA 2024·Unpublished·Bowes

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37

SUSAN R. HUNTER, SARA A. : IN THE SUPERIOR COURT OF FOGELMAN AND REBECCA A. : PENNSYLVANIA MEIFERT :

:

Appellants :

:

v. :

:

GLENN O. HAWBAKER, INC. AND : No. 1473 MDA 2024 CENTRE LIME AND STONE, INC. :

Appeal from the Order Entered May 20, 2024 In the Court of Common Pleas of Mifflin County Civil Division at No(s): CP-44-CV-1121-2018

BEFORE: BOWES, J., OLSON, J., and SULLIVAN, J. MEMORANDUM BY BOWES, J.: FILED: JANUARY 28, 2026 In this interlocutory appeal by permission, Susan R. Hunter, Sara A.

Fogelman, and Rebecca A. Meifert (collectively “Plaintiffs”) challenge the order that granted the motion for partial summary judgment filed by Glenn O. Hawbaker, Inc. (“GOH”) as to Plaintiffs’ claim for breach of contract.1 We reverse and remand for further proceedings consistent with this memorandum.

Plaintiffs are successors in interest to parties who made what, in retrospect, was a bad deal. Plaintiffs have spent the past seven years litigating grounds to renegotiate, reform, or terminate agreements pertaining

 This case was reassigned to the author on November 21, 2025.

1 Centre Lime & Stone, Inc. has not participated in this appeal.

to the mining of limestone from the Naginey quarry now operated by GOH.2 The trial court summarized the background as follows:

Plaintiffs in this case are owners, through inheritance or otherwise, of rights in two parcels of land in Mifflin County which we will refer to as the “McClintic parcel” and the “Winegardner parcel”, so named because of the mineral leases to which they are subject. The lease controlling the McClintic parcel (the “McClintic Lease”) is dated April 14, 1930. The lease controlling the Winegardner parcel (the “Winegardner Lease”) is dated November 5, 1913. The parties in this case are co-tenants in the surface and minerals rights as to the Winegardner parcel. While [GOH] is the fee owner, the parties have co-rights to the limestone royalties as to the McClintic parcel.

Trial Court Opinion, 5/20/24, at 1 (cleaned up, some articles omitted).

Pursuant to the Winegardner Lease, Plaintiffs’ predecessors were entitled to $0.01 per ton of limestone mined and removed from the parcel, to be paid monthly along with a statement showing the royalties due. See Winegardner Lease at 1 (pagination supplied).3 The agreement further provided that they would receive a $35 minimum monthly payment regardless of the amount of limestone mined in the preceding month. If $35 was more than a penny for each ton mined in a given term, the lessee was permitted to deduct the excess from future payments in months “when the royalties on the

2 According to GOH, five separate parcels comprise the open pit quarry, the

mining of which is governed by two permits issued by the Pennsylvania Department of Environmental Protection (“DEP”). See GOH’s Answer and New Matter, 10/15/21, at ¶ 11.

3 The Winegardner Lease is included in the certified record as Exhibit C to Plaintiffs’ September 21, 2018 complaint.

mineral actually mined and removed [were] in excess of the said sum of [$35], and then only for such excess.” Id. In 1990, different predecessors to the interests of Plaintiffs and GOH amended the Winegardner Lease to redefine a ton as 2,000 pounds rather than 2,240 pounds, to raise the monthly minimum payment from $35 to $70, and to specify an increasing tonnage-based royalty of, inter alia, $0.15 per ton from April 2010 through March 2020, and $0.20 per ton thereafter until the end of March 2030.

The Winegardner Lease contains provisions for cancellation of the lease by the lessor or the lessee. The latter, which GOH became when it assumed the lease on September 1, 2015, retained broad rights to void the agreement upon delivering or recording written notice thereof, subject to the lessors’ right to recover any royalties that accrued beforehand. The contract states as follows as to Plaintiffs’ right to terminate the agreement:

In case [GOH] shall fail to pay any of the moneys or royalties for the space of thirty days after the time the same should have been paid under the provisions of this agreement, [Plaintiffs] shall have the option to forfeit, cancel and make void this agreement provided he or they shall first give [GOH] a notice in writing declaring said forfeiture, and if [GOH] shall then pay up all moneys or royalties due within thirty days after receiving said notice, the said forfeiture and cancellation [shall not take effect and the agreement shall continue in force].

Id. at 2. If the agreement “is cancelled, becomes void as hereinbefore provided for, or is terminated in any manner,” GOH nonetheless retains the right to maintain any rail lines traversing the parcel for $100 per year. Id.

The McClintic Lease, which has not been amended since it was executed in 1930, contained similar, but not identical, provisions. It called for the lessors to receive $0.01 per gross ton of 2,240 pounds of “all limestone quarried, mined, removed[,] and marketed” from the McClintic parcel, specifying that stone that was mined and stockpiled was subject to royalties only when removed and marketed. See McClintic Lease at 4.4 It also had a $35 minimum royalty to be paid each month whether or not the corresponding amount of limestone was removed, with the following caveat:

[I]f [GOH] shall, pursuant to the foregoing obligation, pay with to respect to any month or months royalties on more stone than shall have actually been quarried, removed[,] and marketed as aforesaid during such month or months, it shall be entitled to a credit . . . in any subsequent month or months in excess of the amount which at said rate of [$0.01] per ton would equal the minimum royalty for such subsequent month or months.

Id. at 5.

This lease detailed how the amount of stone attributable to the McClintic parcel was to be determined by reference to railroad scale weights or other scales if transported by truck or other means. Id. It further stated that when stone quarried from that parcel was mingled with stone quarried from other lands, the amounts originating from the respective parcels

shall for all purposes of this lease be determined by apportioning the total weight of all stone shipped (ascertained from the railroad scale weights or otherwise as aforesaid) to the various lands from which stone is being quarried and removed on the basis of the

4 The McClintic Lease is included in the certified record as Exhibit D to Plaintiffs’ September 21, 2018 complaint.

number of quarry carloads of stone removed from such lands respectively to [GOH’s] crushing plant; it being agreed by [GOH]

that it will keep a true and accurate record of the number of quarry carloads of stone coming from said lands of [Plaintiffs] and from other lands, which records shall be open to the inspection of [Plaintiffs] at all reasonable times.

Id. at 5-6.

GOH had a unilateral right to terminate the McClintic Lease at the end of any quarter upon at least three months’ notice, again with the option to pay $100 per year thereafter to maintain and use their rail lines. The procedure for Plaintiffs to void the McClintic Lease was stated as follows:

In case [GOH] shall default in the payment of any royalties or other moneys hereunder when and as the same shall be due and payable in accordance with the terms hereof, [Plaintiffs] may at their option give to [GOH] notice in writing calling attention to such default and unless such default shall be fully cured within sixty days thereafter, this lease may be terminated by [Plaintiffs]

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Hunter, S. v. Glenn O. Hawbaker, Inc, (Pa. Ct. App. 2026).

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