Perry Ross Coal Co. Leasehold Condemnation

48 Pa. D. & C.2d 771, 1970 Pa. Dist. & Cnty. Dec. LEXIS 336
CourtPennsylvania Court of Common Pleas, Lawrence County
DecidedApril 10, 1970
Docketnos. 15, 16
StatusPublished

This text of 48 Pa. D. & C.2d 771 (Perry Ross Coal Co. Leasehold Condemnation) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lawrence County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perry Ross Coal Co. Leasehold Condemnation, 48 Pa. D. & C.2d 771, 1970 Pa. Dist. & Cnty. Dec. LEXIS 336 (Pa. Super. Ct. 1970).

Opinion

LYON, J.,

The Perry Ross Coal Company as plaintiff initiated against the Commonwealth of Pennsylvania, Department of Highways, two separate eminent domain proceedings which are presently before the court on an appeal from an award of the board of view. All parties in interest have stipulated and agreed that the court shall hear evidence before trial and determine whether the owners have a right to join in the respective condemnation proceedings as condemnees.

The evidence disclosed that James F. and Erma Jean Hohman, adult persons who are husband and wife, are the owners of the real property concerned in the appeal at June term, 1966, no. 15, M.D.; that the property concerned in the appeal at June term, 1966, no. 16, M.D., is jointly owned by John and Maude Mathieson, adult persons who are husband and wife; that on the date of condemnation both [773]*773parcels of property were subject to substantially identical leases granting unto the Perry Ross Coal Company the right to remove coal from the respective premises upon payment of the royalties provided for therein; and that the condemnation proceedings were for the purpose of taking an easement over the two properties to construct a limited access highway known as Interstate Route 79. It also appears that the owners of each parcel separately negotiated a settlement for the damages caused by the condemnation and pursuant thereto executed substantially identical written releases in favor of the Commonwealth.

The Commonwealth contends that the owners may not join as condemnees in the eminent domain action concerning the individual property owned by them because the written releases bar recovery of further damages. The two releases executed by the owners are substantially similar in language, if not identical, to the release considered by the Supreme Court in McClelland Appeal, 430 Pa. 284, 242 A. 2d 438 (1968), where the release involved was held to be a full and complete release of all claims for damages and that, therefore, any further recovery was barred. The construction of the release in McClelland Appeal, supra, controls the construction of the release in the present case. Indeed, if the releases executed in the instant case in favor of the Commonwealth could be nullified or circumvented, then every written release and every contract or agreement of any kind, no matter how clear and pertinent and all inclusive, can be set aside whenever one of the parties has a change of mind.

But none of the parties had a change of mind in the present case, for none ever intended the legal consequences of the executed document to be a full and complete release of all claims for future damages occurring by reason of the condemnation. This was [774]*774explicit in the testimony of the four owners as well as that of Paul Zook who negotiated the releases in behalf of the Commonwealth of Pennsylvania, Department of Highways. All conceded Zook told the owners that execution of the releases would not bar all further recovery and that in reliance thereon the owners executed the agreement. However, the misrepresentation appears to have been innocently made and we, therefore, conclude there was no fraud, but rather a mutual misapprehension and mistaken understanding of the legal consequences of the executed releases. Under such circumstances, it would be unfair to deny further recovery by reason of the condemnation and for this reason both written releases, having been executed under almost identical conditions, must be set aside.

Equity will reheve against a pure mistake of law when otherwise gross injustice will result. In Price v. Schultz, 85 Pa. Superior Ct. 78 (1925), the Superior Court declared: “We have examined most, if not all of the cases decided by our Supreme Court involving this question and have found none in which relief against a gross injustice resulting from an innocent mistake of law has not been granted where it could be done without doing injustice to others, this upon the fundamental principle of equity that no one shall be allowed to enrich himself unjustly at the expense of another by reason of an innocent mistake of law, entertained by both parties.”

In Fink v. Farmers’ Bank of Harrisburg, 178 Pa. 154, 35 Atl. 636 (1896), the Supreme Court stated: “. . . equity has so far contented itself with relief in cases of mutual mistake of legal rights where it was possible to restore both parties to statu quo.”

The Restatement of Contracts does not distinguish between a mistake of fact and a mistake of law: Restatement, Contracts, §500. Under the restatement [775]*775view, an innocent material misrepresentation, whether of law or fact, makes a transaction voidable at the option of a party who is induced to enter into the transaction by reason of a material, innocent misrepresentation: Restatement, Contracts, §§470-491.

Of course, the nature of the relief in cases of mutual mistake depend upon the nature of the mistake. Where it prevents a meeting of the minds, there is no contract, and, hence, the remedy would be rescission. Where the mistake lies in the fact that the instrument does not express the true agreement of the parties, the remedy is reformation: Restatement, Contracts, §§491 and 504. The nature of the relief to be afforded the owners constitutes the real issue in the case, and, hence, our inquiry must be directed to a determination of the nature and extent of the mutual mistake of the parties to this action.

The releases executed by the owners, Hohman and Mathieson, were separately negotiated by Zook on different occasions and were signed and concluded on different dates. Nevertheless, the contentions of the owners relative to each release are substantially similar as are the contentions of the Commonwealth. The record indicates that Zook called upon the owners individually at their respective residence on various occasions for the purpose of negotiating a settlement of their claim for damages by reason of the condemnation. He told each, according to the owners, that the release, which they subsequently executed, would be effective as to surface rights only and would not affect their right to additional damages by reason of coal deposits upon the premises. They also recall that during negotiations, Zook mentioned coal remaining in place as necessary support for the highway improvement being constructed as well as the State Mining Commission, but their testimony fails to [776]*776indicate the context in which the terms were employed. Zook’s testimony indicates that these terms were used when he told each of the owners that their release would not affect their right to additional compensation for coal required as support for the highway and that the amount of the additional compensation to which they would be entitled after execution of the releases would be determined by a petition to the State Mining Commission.

Although numerous definitive conflicts exist between the testimony of the owners and that of Zook, a determination of the credibility of witnesses is not necessary to our decision, since much of the contradiction concerns mostly irrelevant subjective understandings of the witnesses on both sides. In contract law, a person’s legal intentions and the meeting of the minds predicated thereon are based on his words and conduct as they would be interpreted by a reasonable man. A meeting of minds in contemplation of law is not necessarily a meeting of minds in fact: Theiss v. Weiss, 166 Pa. 9 (1895); Brown v. Finney, 53 Pa. 373 (1866).

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Related

McClelland Appeal
242 A.2d 438 (Supreme Court of Pennsylvania, 1968)
Moffat Appeal
161 A.2d 352 (Supreme Court of Pennsylvania, 1960)
Price v. Shultz
85 Pa. Super. 78 (Superior Court of Pennsylvania, 1924)
Brown v. Finney
53 Pa. 373 (Supreme Court of Pennsylvania, 1867)
Theiss v. Weiss
31 A. 63 (Supreme Court of Pennsylvania, 1895)
Fink v. Farmers' Bank
35 A. 636 (Supreme Court of Pennsylvania, 1896)
Williams v. Department of Highways
223 A.2d 865 (Supreme Court of Pennsylvania, 1966)

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Bluebook (online)
48 Pa. D. & C.2d 771, 1970 Pa. Dist. & Cnty. Dec. LEXIS 336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perry-ross-coal-co-leasehold-condemnation-pactcompllawren-1970.