Hunter, S. v. Glenn O. Hawbaker, Inc
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Opinion
J-S10032-25
NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37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. J-S10032-25
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.
-2- J-S10032-25
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.
-3- J-S10032-25
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.
-4- J-S10032-25
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:
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J-S10032-25
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. J-S10032-25
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.
-2- J-S10032-25
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.
-3- J-S10032-25
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.
-4- J-S10032-25
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] at any time after the expiration of such sixty days by notice in writing to [GOH] whereupon this lease and the estate hereby granted, together with all rights and privileges appertaining thereto shall be and become absolutely void and of no effect, and it shall and may be lawful for [Plaintiffs] at once to re-enter and take possession of the demised estate and to eject [GOH] therefrom; it being understood that such forfeiture and re-entry shall not preclude [Plaintiffs] from proceeding to recover any moneys due them in accordance with the provisions hereof by distraint or otherwise. It is expressly understood and agreed, however, that [GOH] shall not be considered in default because of non-payment of any royalties or other moneys so as to permit termination by [Plaintiffs] by reason of such non-payment if there shall be a dispute as to the proper amount due and payable and [GOH] shall have paid the amount by it admitted to be due[.]
Id. at 8 (cleaned up). Subject to cancellation or termination, the McClintic
Lease remains in effect until all the limestone has been mined and removed
from the parcel. Id. at 9.
-5- J-S10032-25
On September 21, 2018, Plaintiffs and other lessors filed a complaint
against GOH alleging that both leases were oppressively one-sided and
provided for unconscionably low payments, given that a reasonable royalty of
$0.62 per ton results from applying a typical five percent rate to the $12 per
ton market value of crushed limestone. See Complaint, 9/21/18, at 10-12.
Contending that the millions of tons of stone remaining on the parcels would
take fifteen to thirty years to be depleted, Plaintiffs requested that the court
either set aside the leases or reform them to reflect a fair royalty rate. Id. at
13. They further claimed as damages the difference between what GOH had
paid and the fair rate, and sought an accounting and “all records used to
determine what share of royalty was paid for stone from each of the
properties” compared to other lands within the quarry. Id. at 11.
After the filing of the sheriff’s return of service, the parties engaged in
mediation such that there was no docket activity in the case until January
2021, when the prothonotary issued notice of proposed termination of the
case. Plaintiffs, through new counsel, responded with a statement of intention
to proceed, and GOH filed its answer and new matter.
On April 30, 2021, Plaintiffs sent to GOH a notice of default and intent
to terminate the McClintic Lease. Therein, they stated that they had been
informed by an unidentified source that GOH was observed “consistently
removing and transporting substantial rock from the McClintic property” while
-6- J-S10032-25
only paying the minimum royalty of $35 per month. See Brief in Support of
Motion for Partial Summary Judgment, 10/19/21, at Exhibit B.
Shortly thereafter, Plaintiffs sought leave to file an amended complaint,
contending that GOH’s failure to act in good faith in negotiations for an out-
of-court resolution, and its unrelated criminal indictment for failing to pay its
employees in accordance with prevailing wage laws, left Plaintiffs with no
confidence that GOH would properly report tonnage and royalties if the
contracts were reformed. See Brief in Support of Motion for Leave to file
Proposed Amended Complaint, 5/3/21, at 9-12. Therefore, Plaintiffs wished
to abandon their request for reformation as an alternative to setting aside the
agreements due to unconscionability, and to instead pursue an action for
equitable partition of the real estate. Id. at Exhibit A.
Plaintiffs’ motion was granted and their amended complaint filed. GOH
filed preliminary objections asserting that Plaintiffs improperly omitted some
parties from the caption of the amended complaint and failed to join Centre
Lime & Stone Company, Inc. (“CL&S”), an indispensable party with implicated
ownership interests. Plaintiffs then filed a motion to amend the complaint
again to omit settled parties from the caption and to add CL&S, which the
court granted.5
5 The changes were a result of some plaintiffs to the original complaint settling
with GOH and CL&S acquiring their interests in the leases. Our review of the certified record did not reveal the precise ownership of CL&S, but its pleadings (Footnote Continued Next Page)
-7- J-S10032-25
Before the pleadings were closed, Plaintiffs filed a first and a second
motion for partial summary judgment. In the former, they contended that it
was undisputed that GOH failed to pay the full royalties due under the
McClintic Lease after notice was given and, therefore, the court should rule
that it was terminated and issue an injunction prohibiting GOH from mining
any more from the McClintic parcel. See Motion for Partial Summary
Judgment, 10/19/21, at 7-13. In their second motion, Plaintiffs took the
position that both leases should be declared terminated because they are
impermissibly perpetual. See Second Motion for Partial Summary Judgment,
11/15/21, at 6-8.
GOH filed responses to the motions, asserting, inter alia, that Plaintiffs
were seeking judgment on a breach of contract claim that they had not pled,
that their request was procedurally defective in multiple respects, that there
were disputed issues of material fact, and that the leases were expressly
intended to continue until all the limestone was removed. See Response to
Motion for Partial Summary Judgment, 11/24/21, at 3; Response to Second
Motion for Partial Summary Judgment, 12/14/21, at 2. By order of May 10,
2022, the trial court denied both summary judgment motions, set a discovery
deadline for October 31, 2022, and indicated that Plaintiffs could thereafter
renew their motions.
were verified by D. Michael Hawbaker, who indicated in a deposition that CL&S has the same management as GOH.
-8- J-S10032-25
Discovery proceeded, during which Plaintiffs sought court intervention
to compel responses from GOH and CL&S. Following the piecemeal production
of thousands of documents and the multi-part deposition of GOH
representative James White, Plaintiffs again moved to amend their pleadings.
Plaintiffs asserted that it was only through the compelled discovery that they
obtained evidence to substantiate their suspicions that GOH was not paying
the royalties due under the leases. In particular, they cited a spreadsheet and
Mr. White’s later deposition testimony about it which they claimed reflected
an arbitrary allocation of royalties based upon Mr. White’s discretion rather
than the application of a consistent methodology to the stone actually quarried
and sold from the various parcels. For example, they highlighted Mr. White’s
indication that stone shot from the Winegardner parcel, as reported by GOH
to the DEP, was not included in royalty payments to Plaintiffs because GOH
elected to use that stone to build ramps within the quarry rather than to sell
it.
Based upon this newfound knowledge, Plaintiffs alleged that, at the time
the original complaint was filed, more than 50,000 tons were improperly
allocated to a parcel owned by GOH instead of to the McClintic parcel, and the
Winegardner parcel was likewise shorted 55,000 tons. They maintained that,
as of September 2022, GOH still owed royalties pursuant to the McClintic
Lease for 47,000 tons, while the full amount had been paid on the
Winegardner Lease, although well after the various payments had been due.
-9- J-S10032-25
Plaintiffs also averred that GOH had failed to make the mandatory minimum
payments of $35 and $70 each month from September 2022 through January
2023. Thus, they sought to file a third amended complaint, adding a count
for breach of contract, seeking not to be paid outstanding royalties or interest
thereon pursuant to the terms of the leases, but for the leases to be set aside
and to be awarded damages in the amount of a reasonable royalty for stone
marketed before partition. See Motion for Leave to File Third Amended
Complaint, 3/6/23, at 6-9, 12.
The trial court granted Plaintiffs’ motion by order of April 18, 2023,
deeming the third amended complaint to be filed on that date. 6 GOH filed
preliminary objections thereto contending, among other things, that
Pennsylvania does not recognize unconscionability as a cause of action rather
than a defense, and that Plaintiffs’ breach of contract claim was premature
because they did not give GOH notice and an opportunity to cure before
injecting the cause of action into the law suit. Plaintiffs responded to the
objections by noting that they had been unable to provide notice earlier
because GOH withheld the necessary information despite Plaintiffs’ pre-
6 Frustratingly, each of Plaintiffs’ amended complaints did not present a complete snapshot of their claims moving forward, but incorporated enumerated paragraphs of prior versions by reference and only spelled out the new or different averments and requests for relief. Therefore, rather than being able to examine the third amended complaint to understand Plaintiffs’ case at the time of the final amendment, one is required to examine four separate documents.
- 10 - J-S10032-25
complaint requests, and that termination without an opportunity to cure was
warranted in this case based upon our Supreme Court’s holding in LJL
Transportation, Inc. v. Pilot Air Freight Corporation, 962 A.2d 639 (Pa.
2009) (holding that a material breach may be so serious to allow immediate
termination of a contract despite an express notice-and-cure provision).
Plaintiffs further contended that, to the extent notice was required, GOH
received it through Plaintiffs’ motion for leave to amend the complaint to add
the breach of contract count. Additionally, they argued that, while
Pennsylvania had to date not recognized an affirmative claim of
unconscionability, it was gaining traction in other jurisdictions and was
warranted in this case.
The trial court sustained GOH’s objections in part. Specifically, the court
concluded that Pennsylvania does not recognize unconscionability as a cause
of action and dismissed that count. The court declined to jettison the breach
of contract claim, citing issues of fact. See Order, 8/23/23, at 1.
GOH then filed its answer and new matter. In addition to other
averments not pertinent to this appeal, GOH denied that it had committed any
breach of the leases, explaining that it did not make payments after August
2022 because in that month it had inadvertently overpaid Plaintiffs such that
the amounts due in the following months had been satisfied in advance. GOH
maintained its position that Plaintiffs had not provided the notice and
opportunity to cure it believed a condition precedent to suing for breach of the
- 11 - J-S10032-25
leases, and, in any event, any breach had been cured by the August 2022
overpayment.
Before CL&S filed its answer to Plaintiffs’ latest complaint, and prior to
answering GOH’s new matter, Plaintiffs filed their third motion for partial
summary judgment. Rather than reasserting the grounds the court had earlier
denied without prejudice, Plaintiffs’ sole basis for seeking judgment as a
matter of law this time was GOH’s alleged default in failing to pay royalties
from September 2022 to April 2023. GOH responded to the motion by
reiterating the issues it offered in opposing the amendment. It also argued
that the third amended complaint could not be deemed proper notice because
it did not declare forfeiture as mandated by the leases, and that Plaintiffs’
motion was supported by “unverified narratives without citation” rather than
evidence demonstrating their entitlement to judgment as a matter of law. See
Response to Plaintiffs’ Third Motion for Partial Summary Judgment, 11/30/23,
at 3. The trial court denied Plaintiffs’ motion by order of January 24, 2024,
indicating that Plaintiffs’ claim for breach of contract was premature.
Contrasting cases cited by Plaintiffs involving the statutory notice provisions
of Pennsylvania’s Uniform Commercial Code, the court opined:
In the kind of matter sub judice the breach of contract has not occurred until after there has been notice and a failure to cure. In other words, there is no basis for a lawsuit until after the notice procedure has been followed. To say that the filing of the lawsuit provides the notice for its prerequisite puts the cart decidedly before the horse.
Memorandum, 1/24/24, at 3.
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On February 13, 2024, Plaintiffs sent GOH default notices pursuant to
the respective provisions of the leases. In each notice, they cited as defaults:
(1) GOH’s failure to pay proper royalties from 2016 onward, as detailed in the
third amended complaint; (2) its failure to pay monthly minimum royalties
from September 2022 to April 2023, as detailed in the third amended
complaint; and (3) its decision to stop paying royalties when the stone was
quarried and removed in favor of paying as soon as the rock was blasted. See
GOH Summary Statement, 4/5/24, at Exhibit A.
Before the expiration of the post-notice cure period, GOH filed its own
motion for partial summary judgment on March 1, 2024. Therein, GOH
asserted, in congruence with the trial court’s January 24, 2023 memorandum,
that Plaintiffs’ breach of contract claim was premature, observing that
“[c]ourts applying Pennsylvania law routinely enforce notice-and-cure
provisions like the ones in the McClintic and Winegardner Leases.” GOH’s
Motion for Partial Summary Judgment, 3/1/24, at 4 (citing McWreath v.
Range Res.--Appalachia, LLC, 81 F.Supp.3d 448 (W.D. Pa. 2015), aff’d,
645 Fed.Appx. 190 (3d Cir. 2016)). It argued that our High Court’s LJL
Transportation decision was inapt due to differences in contract language
and Plaintiffs’ failure to adduce evidence of a material breach as opposed to
minor, curable issues. See GOH’s Brief in Support of Motion for Partial
Summary Judgment, 3/1/24, at 16-18.
- 13 - J-S10032-25
GOH also contended that the claim for breach of contract was moot
because Plaintiffs’ February 13, 2024 notices sought “to resolve the purported
breaches outside of the [c]ourt by giving GOH the opportunity to cure[.]”
GOH’s Motion for Partial Summary Judgment, 3/1/24, at 6. Additionally, GOH
asserted that Plaintiffs’ count for an accounting was merely incident to their
claim for breach of the leases, such that it should be dismissed along with the
contract count. Id. at 3.
In response, Plaintiffs reiterated the arguments about their ability to
timely address GOH’s breaches by providing the notice proscribed in the leases
being thwarted by GOH’s “years-long obstructionist behavior, . . . denying
Plaintiffs access to information they needed to determine whether they were
being paid correctly under the terms of the leases.” Response in Opposition
to GOH’s Motion for Partial Summary Judgment, 3/15/24, at 2. They
supported this allegation with the affidavit of Susan R. Hunter, who attested
that she and her sister, Sara A. Fogelman, “made multiple requests to GOH
on behalf of Plaintiffs for documentation establishing the basis for the monthly
royalty statements provided by GOH[,]” but that “GOH never provided the
requested documentation prior to the filing of suit by us against GOH.” Id. at
Exhibit C. Plaintiffs contended that GOH could not hide its breaches then
complain that it did not have notice opportunity to cure them.
Plaintiffs further asserted that they had provided GOH with notice of
their allegations of breach and their intent to terminate the leases multiple
- 14 - J-S10032-25
times after compelled discovery disclosed them, dating back to their March 6,
2023 motion for leave to amend the complaint to assert their claim for breach
of contract. Plaintiffs maintained that the trial court erred insofar as it
determined that the provision of notice was a condition precedent for initiating
a claim for breach of the leases. They observed that, unlike the contracts at
issue in the cases proffered by GOH, such as McWreath, neither the
Winegardner Lease nor the McClintic Lease specified a requirement that notice
precede litigation. Id. at 9-12. Plaintiffs posited that, since the breaches
were discovered or occurred while the case was already pending, and GOH
suffered no unfair prejudice because it still had the ability to cure during the
litigation but did not, GOH was not entitled to prevail as a matter of law purely
on the basis of the absence of pre-complaint notice. Id. at 18.
At oral argument on GOH’s motion, the court initially focused on whether
there were any disputed facts to be resolved by the jury. Plaintiffs pointed to
the issues of whether GOH had made it impossible for them to earlier comply
with the leases’ notice provisions and whether GOH had cured the defaults as
it alleged to have done. See N.T. GOH Motion for Summary Judgment,
4/10/24, at 26-28. GOH again insisted that the notice and cure mechanisms
of the leases provided the only means for Plaintiffs to terminate them, and
there was no question that Plaintiffs failed to give the requisite notice before
filing for breach. Id. at 31-35. Upon questioning by the court, GOH indicated
that even if it lied and falsified records, but then cured after Plaintiffs supplied
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notice that they discovered the deception, their remedy was “to file suit for
fraud, but they wouldn’t be able to say breach of lease forfeiture.” Id. at 58.
For its part, the trial court reiterated its opinion that Plaintiffs’ claim for
breach of the leases did not ripen until after it gave GOH notice and it failed
to cure, such that if Plaintiffs believed that GOH was still in default thirty and
sixty days after they supplied their February 2024 notices, they had to file a
new lawsuit at that time. Id. at 21-22. However, the court directed Plaintiffs
to submit evidence in addition to Susan Hunter’s affidavit supporting their
claim that GOH obstructed their ability to give notice. Id. at 61.
Plaintiffs produced documents detailing their efforts, beginning in June
2017, to obtain explanations from GOH for its royalty payments, including
letters sent to GOH and the necessity for them to initiate these proceedings
to obtain an accounting because GOH was uncooperative. See Proffers,
4/25/24, at 1-2. Plaintiffs also produced evidence that, viewed in the light
most favorable to Plaintiffs, reflected GOH’s perceived bad faith in the post-
complaint mediation process and its “game” playing such as responding to
Plaintiffs’ 2021 default notice by asking for factual support for the claimed
default while still withholding access to the information they required to supply
it. Id. at 3-4. Plaintiffs further referenced the two years of formal discovery
that was necessary for them to finally learn that GOH was paying royalties at
Mr. White’s whim rather than based upon the actual, documented sale of stone
sold that month from each parcel. Id. at 4-5.
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On May 20, 2024, the court entered a memorandum and an order
granting GOH’s motion, referencing its reasoning in the memorandum denying
Plaintiffs’ third motion for partial summary judgment.7 The court
acknowledged that it had “not infrequently observed during arguments in this
case, that [P]laintiff[s’] ability to become aware of a default is hampered by
their lack of ready access to appropriate records.” Memorandum and Order,
5/20/24, at 4. Although only the McClintic Lease contained an entitlement for
Plaintiffs to review GOH’s records, the court indicated that the “lease
agreements,” plural, “do guarantee [P]laintiffs’ access to the records for their
inspection.” Id. The court further stated on this subject:
[W]e could foresee a situation where the Plaintiffs, faced with the leases sub judice, could argue that [GOH] engaged in such purposefully obstructive behavior so as to excuse the notice requirement. The leases in this case, while making the notice of a default a prerequisite of termination, also provide that it is incumbent upon [GOH] to make its records open for inspection. Conceivably, the purposeful obstruction of the right of inspection of [GOH]’s records, or purposeful and fraudulent manipulation of its data, could operate to excuse the Plaintiffs from anything other than a general averment of default. Neither side to this litigation has provided us with any legal authority on that question. Even assuming, however, that the duplicity of a [d]efendant could rise to such a level, at least warranting the submission of the question to a jury, there is no evidence of such wrongdoing in the record of this case.
Id. at 6.
7 The court dismissed GOH’s motion for judgment on the accounting claim, indicating that it did not brief or argue that aspect of the motion. See Memorandum and Order, 5/20/24, at 8.
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Plaintiffs requested that the court certify its order for an interlocutory
appeal, which the court granted by order of June 17, 2024. Plaintiffs timely
filed a petition for permission to appeal, which a motions panel of this Court
granted by order of October 10, 2024.8
Plaintiffs present the following issues for our interlocutory review:
1. In concluding that [GOH] was entitled to summary judgment as a matter of law, did the trial court err in dismissing [Plaintiffs’] breach of contract claim on the ground that a precondition for filing such a claim is that the claimant must notify the counter-party of the breach and provide it a right to cure before the claim can be made in a lawsuit, regardless of whether or not pre-suit notice is required by the language of the contract in question?
2. Similarly, did the trial court err in the same way in ruling that a subsequent separate written notice sent in February 2024 after another alleged breach of contract also failed to satisfy the alleged notice requirement?
3. Alternatively, did the trial court err by treating as an issue of law rather than an issue of fact whether [Plaintiffs’] claim of impossibility of performance due to their inability to obtain information about the contractual breaches in the sole possession, custody and control of [GOH], negated any notice requirement [Plaintiffs] might otherwise have had?
8 The trial court did not order Plaintiffs to file a Pa.R.A.P. 1925(b) statement,
and none was filed. The court submitted a Rule 1925(a) statement incorrectly stating that the denial of Plaintiffs’ summary judgment motion was at issue in this appeal, yet nonetheless pointing us to its apt May 2024 memorandum and order disposing of GOH’s motion for partial summary judgment. See Memorandum Pursuant to Pa.R.A.P. 1925(a), 10/17/24, at 2.
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Plaintiffs’ brief at 9.9 Although they state three questions, we perceive that
Plaintiffs’ position is, at bottom, that the court should have allowed their
breach of contract claim to continue because they gave GOH all the notice that
they were due.
Before considering the substance of these issues, we address GOH’s
arguments that the instant appeal is untimely and improper. Specifically, GOH
asserts that, to obtain interlocutory review of the court’s ruling that the
provision of notice and an opportunity to cure was a precondition to suing for
breach of contract, Plaintiffs were required to seek permission to appeal the
first order that reached it, namely the January 23, 2024 order denying
9 While Plaintiffs filed their appellate brief in accordance with this Court’s schedule, they did not designate or file a reproduced record in accordance with Pa.R.A.P. 2154 and 2186. GOH moved to dismiss the appeal on that basis pursuant to Pa.R.A.P. 2188, which we denied without prejudice. GOH renewed the motion after the appeal was assigned to the instant panel such that we address it before considering the appellate issues raised by Plaintiffs.
We have explained: “Compliance with the Pennsylvania Rules of Appellate Procedure . . . regarding contents of reproduced records on appeal is mandatory, not directory. This Court will quash an appeal when the appellant’s violations substantially impede the appellate process.” Fulano v. Fanjul Corp., 236 A.3d 1, 12 (Pa.Super. 2020) (cleaned up). Conversely, when the Rules violations do not substantially encumber review, we may decline to refuse merits review. Id.
While we conclude that our review has been rendered more time-consuming by Plaintiffs’ failure to comply with the rules, we do not deem the impediment substantial enough to warrant the extreme sanction of dismissal. Accord Rush v. Philadelphia Newspapers, Inc., 732 A.2d 648, 651 n.1 (Pa.Super. 1999) (denying a motion to dismiss due to the appellant’s failure to file a reproduced record because its absence did not hamper review of the issues). Therefore, we deny GOH’s renewed motion to dismiss.
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Plaintiffs’ third motion for partial summary judgment. See GOH’s brief at 22-
24. GOH further argues that the doctrine of judicial estoppel precludes
Plaintiffs from now arguing that their third amended complaint served as the
requisite notice of default because they earlier took the position that it was
impossible to provide notice. See GOH’s brief at 24-26.
Addressing the latter point first, GOH’s judicial estoppel argument is
plainly specious. “The purpose of the judicial estoppel doctrine is to uphold
the integrity of the courts by preventing parties from abusing the judicial
process by changing positions as the moment requires.” McWilliams v.
McWilliams, 324 A.3d 602, 610 (Pa.Super. 2024) (cleaned up). Critically, it
is well-settled that “judicial estoppel is properly applied only if the court
concludes the following: (1) that the appellant assumed an inconsistent
position in an earlier action; and (2) that the appellant’s contention was
successfully maintained in that action.” Id. (cleaned up). Here, Plaintiffs
neither successfully maintained in a prior proceeding that providing notice was
impossible, nor subsequently took an inconsistent position. Rather, when
adding their claim for breach of contract and contending that its pleading
satisfied the termination mechanisms of the leases, Plaintiffs pled that they
could not have provided notice earlier based upon GOH’s control of the
requisite information, not that notice continued to be impossible after GOH
was compelled to disclose their records. Accordingly, judicial estoppel is in no
way implicated here.
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We are also wholly unpersuaded that Plaintiffs’ failure to seek
interlocutory review of the order denying their third motion for partial
summary judgment renders the instant appeal improper. Even assuming that
the prior interlocutory order became the law of the case binding the trial judge
in considering the second interlocutory order now before us,10 this Court
recently made it plain that waiting for a subsequent ruling may inform our
adjudication of a petition for permission for an interlocutory appeal, but is of
no moment once we have granted review.
Specifically, in Brader v. Allegheny Health Network, ___ A.3d ___,
2025 WL 3456422 (Pa.Super. Dec. 2, 2025), one judge on preliminary
objections made a ruling as to the applicable statute of limitations, and a
second judge six years later likewise resolved that legal issue against the
defendant in denying summary judgment. The defendant filed a petition for
permission to appeal asking this Court to review the later order, and we
granted it. We noted that the defendant offered no explanation why it did not
pursue interlocutory review when the ruling was first made, and admonished
the tardiness, observing that “[d]elaying seeking review causes judicial
resources to be wasted and undermines the expectations of the other party.”
10 The law of the case doctrine “refers to a family of rules which embody the
concept that a court involved in the later phases of a litigated matter should not reopen questions decided by another judge of that same court or by a higher court in the earlier phases of the matter.” Commonwealth v. Starr, 664 A.2d 1326, 1331 (Pa. 1995). It does not restrict a jurist’s ability to reconsider his or her own non-final prior ruling.
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Id. at *6 n.11. We cautioned that this Court might “be less likely to permit
an interlocutory appeal if we surmise that the petitioner is manipulating the
timeliness requirements for seeking such interlocutory review.” Id. Despite
the defendant’s failure “to seek our interlocutory review of these controlling
questions of law at the first opportunity to do so,” we abided by the decision
of a motions panel of this Court to grant review of the later order because it
was not “clearly erroneous.” Id. (citing, inter alia, Basile v. H&R Block,
Inc., 973 A.2d 417, 422 n.6 (Pa. 2009) (acknowledging that the failure to
seek an earlier interlocutory appeal by permission does not result in waiver
“because to find waiver would create a ‘self-contradictory mandatory,
permissive interlocutory appeal’”) (citation omitted; emphasis in original)).
Here, a motions panel of this Court opted to grant Plaintiffs’ petition for
permission to appeal an order filed mere weeks, not years, after the court’s
initial opinion indicating that they could not file a claim for breach of contract
until after they provided GOH with notice and GOH failed to timely cure. We
discern no basis to overrule that panel’s decision. Thus, this appeal is properly
before us.
Having disposed of these preliminary matters, we turn to the substance
of Plaintiffs’ challenges to the trial court’s holding that GOH was entitled to
summary judgment on the claim for breach of contract. The following legal
principles govern our consideration of these matters:
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In reviewing an order granting summary judgment, our scope of review is plenary, and our standard of review is the same as that applied by the trial court.
An appellate court may reverse the entry of a summary judgment only where it finds that the lower court erred in concluding that the matter presented no genuine issue as to any material fact and that it is clear that the moving party was entitled to a judgment as a matter of law. In making this assessment, we view the record in the light most favorable to the non-moving party, and all doubts as to the existence of a genuine issue of material fact must be resolved against the moving party. As our inquiry involves solely questions of law, our review is de novo.
Thus, our responsibility as an appellate court is to determine whether the record either establishes that the material facts are undisputed or contains insufficient evidence of facts to make out a prima facie cause of action, such that there is no issue to be decided by the fact-finder. If there is evidence that would allow a fact-finder to render a verdict in favor of the non-moving party, then summary judgment should be denied.
Sampathkumar v. Chase Home Fin., LLC, 241 A.3d 1122, 1144 (Pa.Super.
2020) (cleaned up).
Rule 1035.2, which governs motions for summary judgment, provides
as follows:
After the relevant pleadings are closed, but within such time as not to unreasonably delay trial, any party may move for summary judgment in whole or in part as a matter of law
(1) whenever there is no genuine issue of any material fact as to a necessary element of the cause of action or defense which could be established by additional discovery or expert report, or
(2) if, after the completion of discovery relevant to the motion, including the production of expert reports, an adverse party who will bear the burden of proof at trial has failed to produce evidence of facts essential to the cause of
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action or defense which in a jury trial would require the issues to be submitted to a jury.
Pa.R.Civ.P. 1035.2. In sum, before a court is permitted to enter judgment as
a matter of law rather than allow the jury to decide the case, it must be clear
and free from doubt that there is no combination of facts to be gleaned from
the evidence that would support a finding for the non-moving party. See,
e.g., Braswell v. Wollard, 243 A.3d 973, 977 n.3 (Pa.Super. 2020)
(“Summary judgment will be granted only in those cases which are free and
clear from doubt. Where the facts can support conflicting inferences, it cannot
be said that the case is free from doubt and thus ripe for summary judgment.”
(cleaned up)).
Here, the trial court entered judgment as a matter of law in favor of
GOH on Plaintiffs’ claim for breach of contract upon concluding that the leases
each required Plaintiffs to provide notice and an opportunity to cure before
they may initiate a claim for breach of contract seeking the remedy of
termination. Hence, we are presented first and foremost with a question of
contract interpretation.
As our Supreme Court succinctly summarized: “The whole point of
contract law is to effectuate the intent of the parties.” Glover v. Junior, 333
A.3d 323, 355 (Pa. 2025). In this vein:
When interpreting agreements containing clear and unambiguous terms, we need only examine the writing itself to give effect to the parties’ intent. The language of a contract is unambiguous if we can determine its meaning without any guide other than a knowledge of the simple facts on which, from the nature of the
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language in general, its meaning depends. When terms in a contract are not defined, we must construe the words in accordance with their natural, plain, and ordinary meaning. As the parties have the right to make their own contract, we will not modify the plain meaning of the words under the guise of interpretation or give the language a construction in conflict with the accepted meaning of the language used.
On the contrary, the terms of a contract are ambiguous if the terms are reasonably or fairly susceptible of different constructions and are capable of being understood in more than one sense. Additionally, we will determine that the language is ambiguous if the language is obscure in meaning through indefiniteness of expression or has a double meaning. Where the language of the contract is ambiguous, the provision is to be construed against the drafter.
Riverview Carpet & Flooring, Inc. v. Presbyterian SeniorCare, 299 A.3d
937, 983–84 (Pa.Super. 2023) (cleaned up).
In moving for summary judgment on Plaintiffs’ contract claim, GOH
noted that the Winegardner Lease and the McClintic Lease each has a notice-
and cure provision. Relying on federal court cases such as McWreath and
Linder v. SWEPI, LP, 1:11-CV-1579, 2013 WL 521898 (M.D.Pa. Feb. 11,
2013), aff’d, 549 Fed.Appx. 104 (3d Cir. 2013), GOH suggested that any
notice-and-cure term necessarily establishes “a condition precedent which
must be met prior to even filing a lawsuit and if plaintiffs fail to fulfill such
provisions, their claim should be dismissed.” GOH’s Brief in Support of Motion
for Partial Summary Judgment, 3/1/24, at 11 (cleaned up).
The trial court agreed that no breach of contract claim could be initiated
by Plaintiffs until notice had been given and the time for cure had elapsed,
stating:
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Both of the leases in this case rather clearly provide that, before the Plaintiffs may terminate or seek forfeiture of the lease, or, in our view, seek same in a court of law, there must have been a written notice of default and a failure on the part of [GOH] to cure the default. Because this is a clear requirement in both leases[,] it is an element of proof necessary at trial to grant relief to the Plaintiffs.
See Memorandum and Order, 5/20/24, at 3 (emphasis added). The
emphasized aspect of the above interpretation appears to stem not from the
language used in each lease detailing the respective notice-and-cure
procedures, nor by comparing their terms with those at issue in GOH’s cited
authority, but because “[i]n the kind of matter sub judice the breach of
contract has not occurred until after there has been notice and a failure to
cure.” Memorandum and Order, 1/24/24, at 3. Since Plaintiffs added their
breach of contract claim before this condition precedent had occurred, it
necessarily failed, and could not be cured by the subsequent issuance of
notice. See Memorandum and Order, 5/20/24, at 5-6.
Plaintiffs argue that the trial court erred in so holding because the cases
cited by GOH are inapposite due to material differences in the language
employed. See Plaintiffs’ brief at 17-18. They further maintain that the trial
court’s creation of a general requirement, independent of the actual terms of
the contract, that a party must exhaust a notice-and-cure mechanism before
filing a breach of contract claim lacks support in Pennsylvania law. Id. at 18-
19. Plaintiffs insist that the notice mandate should be excused under the
circumstances, but, if notice was necessary, they provided it to GOH through
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their third amended complaint, noting that “there is little sense in requiring
the non-breaching party to bring an entirely new breach of contract action just
so it could be preceded by a separate notice.” Id. at 27-28.
For its part, GOH asserts that Plaintiffs “fail to explain how the lower
court erred in construing the clear terms of the Leases to hold that compliance
with the notice and cure provisions was required prior to their filing of their
breach of contract claim and summary judgment was appropriate.” GOH’s
brief at 34. It further argues that, even if the notice-and-cure procedure was
not a prerequisite to filing their claim for breach, summary judgment was still
properly granted because Plaintiffs did not come forth with evidence to prove
their right to terminate the leases because: (1) the allegations of the third
amended complaint itself do not satisfy the notice requirements of the leases,
id. at 35-36; (2) all purported breaches had been cured at the time the breach
of contract claim was filed, id. at 37-38; and (3) the February 14, 2024 notice
letters mooted the claims for breach by offering to resolve any outstanding
disputes out of court, leaving Plaintiffs, if still unsatisfied, with the right “to
seek forfeiture in a new and separate action and GOH is entitled to test [their]
claim with motions and discovery.” Id. at 40.
We begin by re-examining the language of the leases, starting with the
terse provisions of the Winegardner Lease:
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
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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 force11].
Winegardner Lease at 2 (pagination supplied). Meanwhile, the McClintic Lease
states more elaborately:
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] at any time after the expiration of such sixty days by notice in writing to [GOH] whereupon this lease and the estate hereby granted, together with all rights and privileges appertaining thereto shall be and become absolutely void and of no effect, and it shall and may be lawful for [Plaintiffs] at once to re-enter and take possession of the demised estate and to eject [GOH] therefrom; it being understood that such forfeiture and re-entry shall not preclude [Plaintiffs] from proceeding to recover any moneys due them in accordance with the provisions hereof by distraint or otherwise. It is expressly understood and agreed, however, that [GOH] shall not be considered in default because of non-payment of any royalties or other moneys so as to permit termination by [Plaintiffs] by reason of such non-payment if there shall be a dispute as to the proper amount due and payable and [GOH] shall have paid the amount by it admitted to be due[.]
McClintic Lease at 8 (cleaned up).
The plain language of each contract calls for its termination upon the
expiration of the respective time for GOH to cure following the provision of
11 This portion of the lease is mostly illegible in every copy we have located
within the certified record. However, our ruling does not turn upon the precise terminology of this aspect of the notice-and-cure provision.
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notice without mention of any need for litigation to finalize its demise. More
particularly, the Winegardner Lease allows Plaintiffs to declare forfeiture upon
GOH’s default and gives GOH thirty days to cure and thereby prevent that
forfeiture from becoming permanent. The McClintic Lease conversely requires
Plaintiffs to merely bring a default to GOH’s attention and, if they do not cure
within sixty days, Plaintiffs’ notice of termination at any time thereafter
renders the contract absolutely void, leaving them the option to go to court
not to finalize the forfeiture, but to recover damages for non-payment prior to
termination.
Notably absent from either lease is any specific form for the termination
notice or an admonition that Plaintiffs shall not file a lawsuit against GOH
unless and until they have given GOH an opportunity to cure. This is in
marked contrast to the terms of the leases in the federal cases upon which
GOH founded its summary judgment motion. For example, the instrument in
Linder contained the following language:
LIMITATION OF FORFEITURE. The Lease shall never be subject to a civil action or other proceeding to enforce a claim [for f]orfeiture due to Lessee’s alleged failure to perform as specified herein, unless Lessee has received written notice of Lessor’s demand and thereafter fails or refuses to satisfy Lessor’s demand within [sixty] days from the receipt of the notice.
Linder, 2013 WL 521898, at *7. In McWreath, the contract detailed that
the notice must be sent to a certain address by certified mail and addresses
litigation thusly:
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Service of the Notice shall be precedent to the bringing of any action by Lessor on this Lease for any cause, and Lessor shall bring no such action until the lapse of sixty days after service of the Notice on Lessee. In the event a matter is litigated and there is a final judicial determination that a breach or default occurred, this Lease shall not be forfeited or cancelled in whole or in part unless Lessee is given a reasonable time after such final judicial determination to remedy the breach or default and Lessee fails to do so. Notwithstanding anything to the contrary contained in this Lease, this Lease shall not terminate or be subject to forfeiture or cancellation if there is located on lands pooled, unitized, or combined with all or a portion of the Leasehold, a well capable of producing oil and/or gas, or on which Operations are being conducted and, in that event, Lessor’s sole remedy for any default under this Lease shall be damages.
McWreath, 81 F.Supp.3d at 454 (cleaned up).
The parties in Linder and McWreath thus plainly manifested an intent
that the contractual notice-and-cure procedure be exhausted before litigation
may commence. There is simply nothing in the leases at issue in this case
remotely similar to that language. Indeed, the terms of the leases sub judice
are more akin to those at issue in Glover v. EQT Corporation, 5:19-CV-223,
2020 WL 13094071 (N.D.W.Va. June 1, 2020), which stated:
Lessor shall not declare Lessee in default under any provision of this Agreement, unless Lessor shall first notify Lessee in writing at the addresses above of Lessor’s intention to declare such a default, which shall specify the nature of the default in detail, and Lessee fails to cure said default within thirty days after receipt of said notice.
Id. at *4 (cleaned up). When the plaintiffs sued for breach of the lease, the
defendants moved for summary judgment, contending the claim for breach
“must be dismissed for failure to satisfy a condition precedent to filing suit.”
Id. Citing McWreath and other federal district court decisions from
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Pennsylvania and West Virginia, the defendants insisted that notice-and-cure
clauses, generally speaking, are strictly enforced and rendered the claim in
Glover premature. Id. Rather than looking at the results in these types of
cases, the court considered the operable language in discerning the parties’
intent, and found McWreath and the other cases distinguishable:
The applicable provisions of the leases involved in the above cases were clear that compliance was a condition precedent. [See] Stricklin v. Fortuna Energy, Inc., [2014 WL 2619587, at *2 (N.D. W.Va. June 12, 2014)] (“Service of the Notice shall be precedent to the bringing of any action by Lessor on this Lease for any cause and Lessor shall bring no such action until the lapse of sixty days after service of the Notice on Lessee”); Chambers v. Chesapeake Appalachia, L.L.C., [2018 WL 3387997, at *3 (M.D. Pa. July 12, 2018)] (“The service of said notice shall be precedent to the bringing of any action by Lessor on said lease for any cause, and no such action shall be brought until the lapse of thirty days after service of such notice on Lessee”); Addison v. CNX Gas Co., LLC, [2011 WL 4553090, at *2 (W.D. Pa. May 13, 2011)] (“No litigation shall be initiated by Lessor with respect to any breach or default by Lessee hereunder, for a period of at least [ninety] days after Lessor has given Lessee written notice fully describing the breach or default[.]”).
Id. (cleaned up). Meanwhile, the court found the terms of the Glover lease
to be “somewhat unclear,” citing an ambiguity about how the plaintiffs were
to declare a default that had to be construed against the defendants. Id.
Ultimately, the Glover court found “that the defendants [we]re
attempting to place form over substance, perhaps to delay the progress of
this proceeding[,]” and listed what would happen if it granted their summary
judgment motion:
If this court were to dismiss the Glovers’ complaint, the dismissal would be without prejudice.
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The plaintiffs would have provided the notice, as the same was received by defendants [during the pendency of the case].
The plaintiffs would immediately file a new case.
The plaintiffs would then move to consolidate.
There would be no statute of limitations ramifications[.]
The only thing to be gained is delay.
Id. at *5 (cleaned up). Accordingly, the court denied the motion to grant
summary judgment as to the breach of contract claim.
Looking at the actual language used in the Winegardner and McClintic
Leases, we like the Glover court discern no manifestation of an intention to
make the notice-and-cure procedure a condition precedent to suing for breach
of the contract such that the count had to be dismissed and re-filed. Hence,
the trial court’s conclusion that both leases established conditions precedent
to be fulfilled before Plaintiffs could resort to litigation, in the absence of any
textual support for that view, was an error of law.
Instead, we conclude that Plaintiffs’ declaring default and bringing the
default to GOH’s attention while the contract count was pending sufficiently
satisfied their obligations under the leases and defeated GOH’s form-over-
substance argument. As we have painstakingly detailed supra, the certified
record establishes that GOH was made aware, long before it filed its summary
judgment motion, that Plaintiffs deemed it to be in default and sought to
terminate both leases. GOH claims that it cured the breaches after Plaintiffs
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litigated this action for years and obtained the information necessary to flesh
out their default suspicions, while Plaintiffs maintain that the breaches have
not been cured. This is a factual issue that may not be decided at summary
judgment.
Moreover, this wrangle-the-proof-out-of-us-and-then-we-will-pay-you
dynamic highlights another reason summary judgment is inappropriate in this
case. Plaintiffs have been asserting since at least 2021 that GOH’s conduct
has left them with no confidence that GOH will accurately allocate and
calculate royalties. See, e.g., Brief in Support of Motion for Leave to file
Proposed Amended Complaint, 5/3/21, at 9-12. They contend that they
should not be required to expend the extensive resources that it has taken to
uncover what they claim to be no fewer than fifty breaches over seven years
to monitor GOH’s compliance with their contractual obligations. See, e.g.,
N.T. Leave to Amend Complaint, 4/18/23, at 4-6; Proffers, 4/25/24, at 1-5.
The trial court itself observed the difficulty Plaintiffs had in accessing the
records necessary to determine whether GOH was paying them properly. See
Memorandum and Order, 5/20/24, at 4. Moreover, the court elicited from
GOH’s counsel its position that GOH could intentionally cheat Plaintiffs by lying
and falsifying records and nonetheless preclude Plaintiffs from terminating the
leases by simply curing any defaults they eventually are able to discover. See
N.T. GOH Motion for Summary Judgment, 4/10/24, at 58. Yet, while the court
was able to “foresee a situation” in which GOH engaged in such fraudulent or
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“purposefully obstructive behavior so as to excuse the notice requirement[,]”
it perceived that neither party cited legal authority to support that, and, in
any event, “there is no evidence of such wrongdoing in the record of this
case.” Memorandum and Order, 5/20/24, at 6.
However, as our procedural history documented, both Plaintiffs and GOH
discussed LJL Transportation at various points in the proceedings. In that
case, our High Court was “called upon for the first time to consider whether a
party’s conduct in breaching a contract may justify its immediate termination,
even if the contract includes an express provision granting the breaching party
the right to cure before the contract is terminated.” LJL Transportation,
962 A.2d at 641. LJL was a franchisee of Pilot, a company engaged in air-
freight forwarding through a network of freight stations throughout the
country. Pursuant to LJL’s agreement with Pilot, LJL was required to place all
shipments through Pilot’s system and was forbidden from conducting other
business at the franchise location or delivering freight under another carrier’s
name. However, LJL’s owners created a separate trucking company to
compete with Pilot and systematically diverted shipments to that company to
increase profits by avoiding Pilot’s franchise fee and the profit-splitting
elements of the contract. When Pilot discovered LJL’s malfeasance, it sent a
letter indicating that it was terminating the agreement.
LJL sued Pilot, admitting to the breaches but asserting that it had a right
under the contract to cure them and avoid termination. Id. at 643 (“This
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Agreement immediately terminates upon receipt by [LJL] of written notice of
termination from Pilot. Pilot shall allow [LJL] an opportunity to cure a default
within ninety days of receipt of written notice of a particular default.” (cleaned
up)). The trial court granted summary judgment to Pilot, holding that LJL
“had no right to cure due to the dishonest and untrustworthy nature of their
actions.” Id. at 644 (cleaned up). This Court affirmed, ruling that “there are
circumstances where the nature of the breach permits the aggrieved party to
immediately terminate the contract despite a ‘cure’ provision” Id. at 645. We
spurned LJL’s argument that it “had an absolute right to cure any default,
noting it was rejected by the trial court, and has been rejected by every other
state that has considered it, and we reject it as well.” Id. (cleaned up). The
Pennsylvania Supreme Court affirmed our decision, summarizing its holding
[W]e have no difficulty in concluding that when there is a breach of contract going directly to the essence of the contract, which is so exceedingly grave as to irreparably damage the trust between the contracting parties, the non-breaching party may terminate the contract without notice, absent explicit contractual provisions to the contrary.[12] . . . [R]equiring such notice before termination ____________________________________________
12 GOH’s position is that LJL Transportation is inapposite because the notice-
and-cure term of the contract in that case was not the exclusive remedy available for a breach. See GOH’s Brief in Support of Motion for Partial Summary Judgment, 3/1/24, at 16-18. However, in holding that a party may immediately terminate a contract in the event of an incurable breach, our High Court cited, inter alia, authority indicating that “[u]nder general contract law principles, . . . a contractual provision requiring an opportunity to cure does not bar immediate termination based on a breach that goes to the essence of the contract.” LJL Transportation, 962 A.2d at 651 (quoting Jason J. Stover, (Footnote Continued Next Page)
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under such circumstances would be a useless gesture, as such a breach may not reasonably be cured. Such a breach is so fundamentally destructive, it understandably and inevitably causes the trust which is the bedrock foundation and veritable lifeblood of the parties’ contractual relationship to essentially evaporate. We find our law does not require a non-breaching party to prolong a contractual relationship under such circumstances.
Id. at 652 (cleaned up).
Here, Plaintiffs have alleged that GOH engaged in a years-long,
deliberate scheme to falsely allocate blasted stone to different parcels within
the quarry and to divert royalties to other parties. Unlike the franchisee in
LJL Transportation, GOH denies Plaintiffs’ accusations, maintaining that
there are reasonable explanations for discrepancies among the various
records and reports and that any breaches are not only curable but have been
cured. That removes the instant case not from the ambit of our High Court’s
LJL Transportation holding, but from resolution at the summary judgment
stage, given the factual disputes left to be resolved.
In sum, it may be that GOH has acted in good faith in performing its
contractual obligations and that Plaintiffs’ claims for breach may ultimately
No Cure, No Problem: State Franchise Laws and Termination For Incurable Defaults, 23 American Bar Association Franchise Law Journal 217, at 220 (Spring 2004)). This legal maxim is available “for incurable breaches that frustrate the purpose of the parties’ contract,” which includes material breaches that are incapable of cure, “even if the contract requires that an opportunity to cure be given for all breaches, without exception[.]” Id. We do not perceive the leases at issue to contain explicit provisions mandating a right to cure incurable breaches.
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fail. However, our review of the certified record in the light most favorable
to Plaintiffs as the non-moving party reveals that the non-viability of their
breach of contract claim is by no means clear and free from doubt. Issues of
fact remain regarding whether GOH has (1) cured all defaults for which they
have received notice, or (2) committed such a serious, incurable breach that
termination without a right to cure is warranted. Consequently, the trial court
erred in holding that GOH was entitled to judgment as a matter of law because
Plaintiffs failed to give notice and an opportunity to cure before amending their
complaint to state a claim for breach of contract.
Order reversed. Case remanded for further proceedings consistent with
this memorandum. Jurisdiction relinquished.
Judge Olson joins this Memorandum.
Judge Sullivan notes dissent.
Judgment Entered.
Benjamin D. Kohler, Esq. Prothonotary
Date: 1/28/2026
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Related
Cite This Page — Counsel Stack
Hunter, S. v. Glenn O. Hawbaker, Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunter-s-v-glenn-o-hawbaker-inc-pasuperct-2026.