Land v. Cloister Pure-Spring Water Co.

3 Pa. D. & C.3d 126, 1975 Pa. Dist. & Cnty. Dec. LEXIS 9
CourtPennsylvania Court of Common Pleas, Lancaster County
DecidedNovember 7, 1975
DocketEquity Docket no. 16
StatusPublished

This text of 3 Pa. D. & C.3d 126 (Land v. Cloister Pure-Spring Water Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lancaster County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Land v. Cloister Pure-Spring Water Co., 3 Pa. D. & C.3d 126, 1975 Pa. Dist. & Cnty. Dec. LEXIS 9 (Pa. Super. Ct. 1975).

Opinion

BROWN, J.,

In this case, presently before the court are preliminary objections of defendant to the complaint of plaintiff. Included in the preliminary objections was a motion for a more specific pleading. This motion has been abandoned.

This is an action in equity to compel specific performance of a lease with an option to purchase the land on which plaintiffs now, and have for the past five years, operated their spring water bottling plant.

[127]*127On September 23, 1970, plaintiffs and defendant executed a lease for approximately six acres on which there was erected a building housing some machinery and the plumbing for operating a spring water bottling plant. Plaintiffs assumed possession and operated as tenants for five years. The lease contained an option to purchase the premises for the sum of $45,000. Throughout the lease, plaintiffs had the obligation to maintain and repair the machinery and equipment. In fact, they spent $74,000 for repair and maintenance of the equipment plus modifications and improvements to building and equipment therein. On at least three occasions throughout the last two years of the lease, plaintiffs and defendant had discussions wherein plaintiffs communicated their intention to acquire the premises pursuant to the option.

On July 15, 1975, plaintiffs hand-delivered to defendant a writing giving notice of plaintiffs’ “intention to exercise” the option. On July 28, 1975, plaintiffs received from defendant a letter in which they were advised that they had not effectively exercised their option. Plaintiffs have at all material times been ready, willing and able to acquire the premises.

The complaint was filed on August 12, 1975; service was effected on August 20, 1975. On August 29, 1975, defendant filed preliminary objections in the nature of a demurrer and for a more specific statement, the latter as heretofore stated having been abandoned.

The preliminary objections of defendant to the complaint of plaintiffs are as follows: A. Pursuant to paragraph sixteen of the agreement the exer[128]*128cise of the option to purchase must be in writing and delivered 90 days prior to the expiration of the original term. B. The agreement on its face expires on September 30, 1975, and accordingly, to be effective the option must be exercised prior to July 3, 1975. C. Plaintiffs’ complaint fails to allege an exercise of the option in writing prior to July 3, 1975.

In their brief and argument plaintiffs contend that the lease does not require plaintiffs to communicate in writing their “intention to exercise” the option before July 3, 1975, or suffer the loss of their rights. This argument goes to the merits of plaintiffs’ action and will not be considered in this opinion which is confined to the validity of defendant’s demurrer. Rather, the court will now decide if the complaint pleads all the elements for a cause of action for specific performance, because in this posture of the case the only problem before the court is the validity of the demurrer.

Defendant’s preliminary objections in the nature of a demurrer attack the sufficiency of the complaint insofar as it seeks to invoke the equity jurisdiction of the court to afford the remedy of specific performance. In this posture the allegations of the complaint must be taken as true, as well as all inferences reasonably deductible therefrom: Kutsenkow v. Kutsenkow, 414 Pa. 610, 613, 202 A.2d 68 (1964); Hyam V. Upper Montgomery Joint Authority, 399 Pa. 446, 449, 160 A.2d 539 (1960). The allegations must also be measured to this standard: “ ‘ . . . when the sustaining of defendants’ preliminary objection will result in a denial of plaintiffs’ claim, or a dismissal of plaintiffs’ suit, preliminary objections should be sustained only in cases which are clear and free from doubt/ ” [129]*129Schrader v. Heath, 408 Pa. 79-83, 182 A.2d 696 (1962). (Emphasis supplied.)

In this setting this court must consider whether the elements justifying the remedy are pleaded. The general rule is stated by Corbin, who distinguishes between an option contract and a lease containing an option to purchase. With respect to the latter he writes that the plaintiff". . .should not be compelled to forfeit (leasehold) improvements to the lessor merely because he has forgotten to give notice until a few days after the specified time is expired. If the delay is great, or if the lessor has reasonably changed his position, the decision may properly be otherwise.” Corbin, Contracts, §1.77.

The equity jurisprudence of Pennsylvania would appear to require that a complaint seeking specific performance aver the following facts: (a) The existence of a contract involving real estate; (b) Performance by the plaintiff or the tender of performance, that is, that plaintiff is ready, willing and able to perform: Detwiler v. Capone, 357 Pa. 495, 504, 55A.2d 380 (1947); (c) That plaintiff will suffer a forfeiture whereas defendant will experience no hardship if the contract is performed: Restatement Contracts §374; (d) That the rights of third persons have not intervened nor has the defendant changed his position following the delay: Restatement Contracts §367(b); Ginsburg v. Collins, 84 Pa. Superior Ct. 221 (1924).

The court determines that all of the foregoing elements are present in the amended complaint.

The complaint indicates that the parties’ rights arise out of a written lease for real property pursuant to a contract.

Plaintiffs have alleged that they are ready, willing and able to consummate the purchase, and [130]*130would, but for the refusal of defendant. The amended complaint clearly avers that plaintiffs will suffer a forfeiture. They have been in possession of the bottling plant for almost five years. They have expended $149,000 in anticipation of their owning it. In addition, they have paid $60,000 in rent for the privilege of occupying the premises and the right to acquire the property by option. No court in equity could require that they forfeit this investment all for the lapse of twelve days with respect to a nonmaterial term.

In a case in which plaintiff was 39 days late in exercising a renewal option in a lease the court in granting plaintiff relief made the following pertinent statement which applies here with equal force:

“ ‘A court of equity will, however, grant relief to a tenant who has failed to give the required notice if his delay has not been so great as to constitute laches, and the failure to give notice was attributable to an honest mistake where the tenant has a valuable interest in the property and the delay has caused no injury to lessor.’ ” Sosanie v. Pernetti Holding Corp., 115 N. J. Super. 409, 279 A.2d 904 (1971).

There is no indication that defendant has suffered any hardship except that it is no longer willing to sell. While defendant has not filed an answer, Exhibit “C” indicates that there has been no change in position by defendant and no intervention of the rights of third parties.

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Related

Sosanie v. Pernetti Holding Corp.
279 A.2d 904 (New Jersey Superior Court App Division, 1971)
Kutsenkow v. Kutsenkow
202 A.2d 68 (Supreme Court of Pennsylvania, 1964)
Bogojavlensky v. Logan
124 A.2d 412 (Superior Court of Pennsylvania, 1956)
Schrader v. Heath
182 A.2d 696 (Supreme Court of Pennsylvania, 1962)
Reilly v. City Deposit Bank & Trust Co.
185 A. 620 (Supreme Court of Pennsylvania, 1936)
Detwiler v. Capone
55 A.2d 380 (Supreme Court of Pennsylvania, 1947)
Vittor Et Ux. v. Szymanski
184 A. 27 (Supreme Court of Pennsylvania, 1936)
Ginsburg v. Collins
84 Pa. Super. 221 (Superior Court of Pennsylvania, 1924)
Hyam v. Upper Montgomery Joint Authority
160 A.2d 539 (Supreme Court of Pennsylvania, 1960)

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3 Pa. D. & C.3d 126, 1975 Pa. Dist. & Cnty. Dec. LEXIS 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/land-v-cloister-pure-spring-water-co-pactcompllancas-1975.