Krebs v. United Refining Co. of Pennsylvania

893 A.2d 776, 2006 Pa. Super. 31, 2006 Pa. Super. LEXIS 106
CourtSuperior Court of Pennsylvania
DecidedFebruary 16, 2006
StatusPublished
Cited by401 cases

This text of 893 A.2d 776 (Krebs v. United Refining Co. of Pennsylvania) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krebs v. United Refining Co. of Pennsylvania, 893 A.2d 776, 2006 Pa. Super. 31, 2006 Pa. Super. LEXIS 106 (Pa. Ct. App. 2006).

Opinion

OPINION BY

McCAFFERY, J.:

¶ 1 Appellants, Daniel P. Krebs and Cristen M. Krebs, appeal from the judg *780 ment entered February 12, 2004, in the Court of Common Pleas of Butler County, following a jury verdict in their favor on counts in common law nuisance, negligence, trespass, and liability under the Storage Tank and Spill Prevention Act (“STSPA”). 1 Specifically, Appellants allege that three interlocutory orders issuéd by the trial court during the course of litigation are erroneous and served to significantly reduce their recovery. These orders are: 1) the January 25, 2002 order denying Appellants’ motion to enforce a settlement agreement; 2) the December 2, 2003 order denying Appellants’ motion for attorneys’ fees and costs; and 3) the December 2, 2003 order granting in part and denying in part Appellants’ motion for delay damages. 2 For the reasons set forth below, we vacate in part the judgment of the trial court, and remand this matter with instructions to revisit the issues of attorneys’ fees and costs and delay damages, and arrive at a determination on these issues in a manner consistent with this opinion. In all other respects, the judgment is affirmed.

¶2 Appellants lived immediately adjacent to a Kwik-Fill Service Station owned by Appellee, United Refining Company, in Evans City, Pennsylvania. 3 The station’s three underground gasoline storage tanks were situated approximately 75 feet from Appellants’ house. (Notes of Testimony (“N.T.”), 5/5/03, at 57-58, 91-92; R.R. at 262a-263a, 289a-290a). In the summer of 1994, Appellants began to notice a persistent musty odor in their basement, which, by March 15, 1995, they determined came from gasoline fumes. (Id. at 61, R;R. at 265a). By the next day, the odor emanating from the basement had spread to every room in the house. Appellants immediately reported the problem to employees at the Kwik-Fill Station and evacuated the house with their children. (Id. at 63-66, 69-71; R.R. at 267a-270a, 273a-275a). Appellants were informed that day by an individual working at the station that a gas leak in the station’s underground storage system had been previously detected on February 20, 1995. (Id. at 66; R.R. at 270a).

¶ 3 Evidence admitted at trial established that the gasoline fumes originated from a leak in the station’s underground storage tanks and them fines, and that Appellee had indeed first detected this leak in February 1995. (N.T., 5/7/03, at 121-122, 130; R.R. at 419a-420a). Approximately 200 to 300 gallons of gasoline had spilled before the leak was sealed. (Id. at 205-206; R.R. at 434a-435a). The gasoline fumes detected by Appellants entered into them basement through a sewer line, and on March 19, 1995, testing at Appellants’ house confirmed high levels of benzene, a carcinogen. (N.T., 5/6/03, at 116-119; R.R. at 319a-322a). Upon learning of the problem from Appellants, Appel-lee took remedial steps to correct and prevent any additional leaking (Id. at 115— 116; R.R. at 318a-319a), and the Department of Environmental Protection *781 (“DEP”) was notified of the spill. (Id. at 137; R.R. at 327a).

¶4 After Appellee refused Appellants’ written request for compensation beyond the substantial remediation efforts which Appellee had taken with respect to Appellants’ property, Appellants commenced litigation by filing a complaint on March 10, 1997, seeking recovery against Appellee under theories of common law nuisance, negligence, trespass, and liability under the STSPA. At a 1999 pre-trial conference, Appellee offered Appellants $30,000 in settlement. Appellants declined the offer, but the parties agreed to postpone litigation in order to mediate their dispute.

¶ 5 On March 22, 2000, the parties participated in a full-day mediation session, but were unable to reach an agreement on the underlying issues. (N.T., 10/20/00, at 85, 197; R.R. at 201a, 245a). A written mediation agreement executed by the parties on that date, however, expressly provided that “no settlement is final and/or binding until formal documents are fully executed or a final Order of Court is entered.” (Mediation Agreement, dated 3/22/00, at 1; R.R. at 104a). The parties continued to discuss settlement of the case, and eventually orally agreed to generally settle the dispute for $187,500. (N.T., 10/20/00, at 92-93; R.R. at 204a-205a). No written settlement agreement was executed, however, because the parties could not agree on the issue of the extent of the release Appellants would grant Appellee in exchange for the settlement amount. Ap-pellee sought a release which would cover claims including any potential future personal injuries attributable to the gasoline leak. Appellants specifically wanted to reserve the right to bring any potential future medical claims to cover any latent illnesses possibly caused by exposure to the gasoline fumes. (Id. at 94-95, 198-199; R.R. at 206a-207a, 246a-247a). Appellants ultimately filed a motion to enforce settlement, which the trial court denied by opinion and order dated January 25, 2002.

¶ 6 The parties having failed to resolve their differences, a jury trial in this matter commenced on May 5, 2003, presided over by the Honorable William R. Shaffer. At the conclusion of Appellants’ four-day case-in-chief, Appellants moved for a directed verdict, at which point Appellee conceded liability. The trial court accordingly found Appellee hable on all counts, leaving the issue of damages for the jury to resolve. (N.T., 5/8/05, at 70; R.R. at 449a). The jury awarded Appellants $37,000 as compensation for their loss of enjoyment and use of land, and for discomfort and annoyance.

¶7 Appellants thereafter filed motions for attorneys’ fees of $275,378 and costs of $13,345.79, pursuant to Section 1305(f) of the STSPA, 35 P.S. § 6021.1305(f), and delay damages in the amount of $16,165.66 pursuant to Pa.R.C.P. 238. On December 2, 2003, the trial court entered two orders, one denying Appellants’.motion for attorneys’ fees and costs in its entirety, and one awarding delay damages of only $5,199.26. In arriving at its decision to deny attorneys’ fees and costs under the STSPA, the trial court reasoned that such relief was unwarranted because (1) Appellants failed to show a compelling reason why such relief was justified, particularly when Ap-pellee took remedial measures to clean and repair Appellants’ property in conformance with DEP regulations; and (2) Appellants’ fee agreement with their attorney was on a contingency basis, and therefore Appellants purportedly “absorbed no cost to themselves in enforcing this action.” (Trial Court Opinion, dated 12/2/03 (re: attorneys’ fees and costs), at 4).

¶ 8 In arriving at its decision to limit delay damages to $5,199.26, the trial court *782 rejected Appellants’ argument that such damages should be calculated for the period commencing one year after the date of service of the complaint through the date of the verdict.

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Bluebook (online)
893 A.2d 776, 2006 Pa. Super. 31, 2006 Pa. Super. LEXIS 106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krebs-v-united-refining-co-of-pennsylvania-pasuperct-2006.