Penn Park, Inc. v. Falls Township Authority

51 Pa. D. & C.2d 360, 1970 Pa. Dist. & Cnty. Dec. LEXIS 302
CourtPennsylvania Court of Common Pleas, Bucks County
DecidedFebruary 17, 1970
Docketno. 1834
StatusPublished
Cited by1 cases

This text of 51 Pa. D. & C.2d 360 (Penn Park, Inc. v. Falls Township Authority) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Bucks County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Penn Park, Inc. v. Falls Township Authority, 51 Pa. D. & C.2d 360, 1970 Pa. Dist. & Cnty. Dec. LEXIS 302 (Pa. Super. Ct. 1970).

Opinion

GARB, J.,

In this action in equity, plaintiff seeks either a rescission or a reformation of a certain contract entered into between it and defendant water and sewer authority1 as well as an injunction against the collection of a 25 percent penalty for the unpaid water consumption and sewer facility use. Defendant has filed preliminary objections in the nature of a motion for more specific pleading, an assertion of an adequate remedy at law and a demurrer. The matter was argued before the court en banc and we dispose herein of the preliminary objections.

The complaint alleges that plaintiff is the owner of certain apartments located in the Township of Falls and that defendant is a municipal authority formed under the Pennsylvania Municipality Authorities Act of 1945. It is alleged that by virtue of an agreement between the parties dated November 24, 1965,2 defendant agreed to supply water to the then proposed apartment development of plaintiff in consideration for which plaintiff was to build and construct the necessary water line to connect such project to the existing water lines of defendant and that defendant was to cause the Board of Supervisors of Falls Township to create a water district encompassing the properties of plaintiff. It is further alleged, and the contract aforesaid would apparently confirm, that it was [362]*362agreed that defendant was to afford plaintiff a certain refund based upon the revenues derived from the sale of water to the properties formerly owned by plaintiff, which refund was to serve the purpose of reimbursing plaintiff the cost of construction of the aforesaid water lines. It is further alleged that plaintiff did construct the necessary water lines at a cost of $51,704.84. The complaint asserts further, and is once again borne out by the provisions of the contract, that the rate for the consumption of water for garden apartments initially would be as set forth in the agreement. The agreement further provided that the authority agreed “that the rate for garden apartments initially will be as follows and will remain at this level so far as economically feasible.” Thereafter followed a proposed rate structure. (Italics supplied.)

The gravamen of plaintiff’s asserted injury arises from the allegation that after the execution of the agreement and subsequent to the construction of the water lines and the apartment complex, defendant authority raised the rates to such an extent that somehow plaintiff will not be able to recoup its investment in the construction of the water lines. It is further asserted that an inequity results from the fact that the water rate is based upon the total number of apartment units without regard to the number of vacancies, and it is lastly contended that plaintiff has refused to pay the bills submitted for water consumed and, therefore, has been assessed a penalty of 25 percent which plaintiff contends is unreasonable. All of the foregoing is encompassed in the first count to the complaint.

The second count of the complaint asserts simply that defendant supplied sewer service to plaintiff originally charging $7 per occupied dwelling unit a quarter. It is alleged that this rate was later modified to provide for $8 per quarter on all dwelling units irrespective of whether they were occupied or not. The [363]*363foregoing rate of $8 was subsequently raised to $10.92. It is further asserted that a 25 percent penalty has been charged as a result of plaintiff’s refusal to pay the aforesaid sewer bill and the further bald assertion that the foregoing sewer rate and penalties are unreasonable and inequitable.3

Directing our attention to count one of the complaint first, it would appear to be plaintiff’s position, essentially, that by virtue of the raise in rates for the consumption of water and the application of the rate to all apartment units irrespective of whether they are occupied or not, it would be unable to recoup its total investment from the construction of the water lines and that therefore it has lost the value of its bargain. Plaintiff, therefore, asks that the contract be rescinded or reformed by the fixing of the rates themselves by this court.

Accepting as true all facts which are well and properly averred in the complaint (Adams v. Speckman, 385 Pa. 308 (1956)), plaintiff has failed to plead sufficient facts upon which the court can decree a rescission of the contract. The powers of a court of equity to compel cancellation or rescission of a contract are exceptional. The purpose of the court is never to interfere with the freedom of contract nor with the proper legal liability created by the contract between the parties. This power of a court of equity will be exercised only in clear cases and only where there is a showing of fraud, mistake or lack of consideration: Du Bois Borough v. Du Bois City Water Works Co., 176 Pa. 430 (1896); Gale Industries, Inc. v. Bristol Farmers Market & Auction Company, 16 Bucks 520 (1967). There is no redress against an improvident contract and even though a contract be unconscionable [364]*364or unreasonable, it will not be set aside unless brought about by fraud, accident, mistake or lack of consideration: Singer’s Estate, 217 Pa. 295 (1907); Cummings v. Lehigh Brickface, Inc., 11 Cumberland 70 (1960). A party cannot avoid his contract because it may become burdensome: Pennsylvania Railroad Co. v. Pennsylvania-Ohio Electric Co., 296 Pa. 40 (1929). Inadequacy of price, improvidence, surprise and mere hardship are insufficient to cause a rescission of a contract. There must be fraud, mistake or illegality: Du Bois Borough v. Du Bois City Water Works Co., supra; Appeal of Lynch, 97 Pa. 349 (1881). Clearly, fraud, accident or mistake have not been alleged in this complaint. They are not set forth with the specificity required by Rule of Civil Procedure 1019(b) (see Bata v. Central-Penn National Bank of Philadelphia, 423 Pa. 373 (1966)), nor, in fact, have they even been asserted generally as conclusions of law. We do not perceive, therefore, that it is on this basis that plaintiff founds its request for .rescission.

At oral argument it became abundantly clear that plaintiff’s theory is based upon failure or lack of consideration. Our result is the same regardless of whether plaintiff claims lack or failure of consideration.4 The total lack or want of consideration will justify a rescission of a contract where the contract is merely executory. Where, however, a contract has been fully executed by the parties, only a showing of fraud or palpable mistake forms a basis upon which it can be rescinded: Rockafellow v. Baker, 41 Pa. 319 (1861). In any event, the complaint does not evidence a lack or want of consideration. Want of consideration embraces transactions wherein none was intended to pass while [365]*365failure of consideration implies that a valuable consideration was contemplated: Conrad’s Estate, 333 Pa. 561 (1938); Killeen’s Estate, 310 Pa. 182 (1932). The complaint clearly shows that defendant did permit plaintiff to connect to its water lines, caused the township to create a water district and sold plaintiff water. Therefore, the inference is plain that consideration was contemplated and at least to that extent that it passed.

It is plaintiff’s contention that the contract was entered into with mutual contemplation of the water rates which it maintained would have afforded plaintiff the opportunity to recoup its investment.

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Cite This Page — Counsel Stack

Bluebook (online)
51 Pa. D. & C.2d 360, 1970 Pa. Dist. & Cnty. Dec. LEXIS 302, Counsel Stack Legal Research, https://law.counselstack.com/opinion/penn-park-inc-v-falls-township-authority-pactcomplbucks-1970.