Pilotti v. Mobil Oil Corp.

565 A.2d 1227, 388 Pa. Super. 514, 1989 Pa. Super. LEXIS 3333
CourtSupreme Court of Pennsylvania
DecidedNovember 8, 1989
Docket1121
StatusPublished
Cited by14 cases

This text of 565 A.2d 1227 (Pilotti v. Mobil Oil Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pilotti v. Mobil Oil Corp., 565 A.2d 1227, 388 Pa. Super. 514, 1989 Pa. Super. LEXIS 3333 (Pa. 1989).

Opinion

KELLY, Judge:

In this case we are called upon to determine whether a trial court abused its discretion in denying a motion to amend pursuant to Pa.R.C.P. 1033 in order to cure answers *516 deemed to have the effect of admissions due to their inadequacy under Pa.R.C.P. 1029(b), and in granting judgment on the pleadings where the request to amend was promptly made and the amendment would have presented a viable defense sufficient to withstand judgment on the pleadings.

The relevant facts and procedural history are as follows. Appellee, Samuel J. Pilotti, discovered that appellant, Mobil Oil Corporation, had decided to sell the real estate upon which Charles D. Fretz was operating a gasoline station under a franchise-lease agreement that was about to expire.

Mobil Oil and Pilotti entered into a brokerage agreement whereby Pilotti was to receive a six percent commission if he could find a buyer for the premises. The agreement was specifically conditioned upon Pilotti closing the sale. The agreement also specifically acknowledged Mobil Oil’s rights were subject to lessee Fretz’ right of first refusal under the Petroleum Marketing Practices Act, 15 U.S.C.A. §§ 2801 et seq., and that if Fretz chose to exercise this right, Pilotti would not receive a commission.

Pilotti found that Henry Katra and Mark Szilagyi, the owners of the property adjacent to the gasoline station, were interested in purchasing the station when Fretz’s lease expired, and Pilotti pursued that interest in hopes of a commission. On December 24, 1985, an agreement of sale was drawn up between Mobil Oil .and Katra and Szilagyi. The price for the property was to be two hundred thousand dollars, and :the agreement was to become effective when Fretz’s lease expired.

However, in accordance with the Petroleum Marketing Act, the agreement was subject to Fretz’s right of first refusal. On April 3, 1986, Mobil Oil informed Fretz of the offer by Katra and Szilagyi to purchase the property for two hundred thousand dollars. On July 21, 1986, Mobil Oil notified Pilotti by letter that Fretz had chosen to exercise his option to purchase the property, and the names of Katra and Szilagyi would not appear as grantees on the deed. In this letter, Mobil Oil also informed Pilotti that it was going to reduce the price of the property to Fretz by twelve *517 thousand dollars in order not to receive any extra profit from the savings on what would have been Pilotti’s commission. On August 5, 1986, Mobil Oil and Fretz made settlement on the property with Fretz’s name appearing as grantee on the deed. Fretz then conveyed the property to Katra and Szilagyi for two hundred and fifteen thousand dollars. Pilotti did not receive a commission from either Mobil Oil or Fretz, and points to the July 21, 1986 letter as evidence of Mobil Oil’s intent to deceive him and cheat him out of the commission he believes he earned by securing Katra and Szilagyi as the ultimate purchasers of the property-

On February 17, 1988, Pilotti served Mobil Oil with a lengthy complaint seeking a twelve thousand dollar commission. In his complaint, he alleged breach of contract, fraud, unjust enrichment, and civil conspiracy. He also sought punitive damages. 1 On May 9, 1988, Mobil Oil filed its answer in which it admitted some allegations and denied others. Many of the denials were phrased either “Denied” or “Denied, Legal conclusion.” On December 9, 1988, Pilot-ti motioned for a judgment on the pleadings, contending that such answers were inadequate under Pa.R.C.P. 1029(b). 2 Pilotti argued that these inadequate answers coupled with other admissions contained in the pleadings entitled him to judgment on the pleadings. Mobil Oil responded that the motion for judgment on the pleading should be denied, and sought leave from the trial court to amend its answer. The trial court granted Pilotti’s motion for judgment on the pleadings. This timely appeal followed.

On appeal, Mobil Oil presents the following four issues for our review:

(b) Averments in a pleading to which a responsive pleading is required are admitted when not denied specifically or by necessary implication. A general denial or a demand for proof ... shall have the effect of an admission.
*518 1. Did the Court below abuse its discretion in refusing to allow Mobil to amend its answer to the complaint?
2. Was plaintiff entitled to judgment on the pleadings on his claims for breach of contract, misrepresentation and unjust enrichment?
3. Was plaintiff entitled to judgment on the pleadings on his claim that Mobil unlawfully conspired with its vendee/lessee to deprive plaintiff of a real estate brokerage commission?
4. Did Mobil admit by improper denials certain averments of plaintiffs complaint such that Mobil effectively admitted liability to Pilotti?

(Appellant’s Brief at 4). After a thorough review of the record, the applicable authority, the briefs, and the trial court opinion, we conclude the trial court abused its discretion in denying Mobil Oil’s request to amend, and erred in granting judgment on the pleadings in favor of Pilotti.

Our Supreme Court has held that the policy in this Commonwealth is to allow amendment where there is a reasonable possibility that an amendment can be accomplished successfully. Otto v. American Mutual Insurance, 482 Pa. 202, 205, 393 A.2d 450, 451 (1978); see Pa.R.C.P. 1033. Although the granting of leave to amend the pleadings is committed to the sound discretion of the trial judge, that discretion is not unfettered. A court may disallow leave to amend the pleadings only where prejudice to the other party would result. Gallo v. Yamaha Motor Corp. U.S.A., 335 Pa.Super. 311, 314, 484 A.2d 148, 150 (1984). Prejudice must amount to something more than the removal of the procedural defect that the amendment is intended to cure. Cf. W.I. Snyder Corp. v. Caracciolo, 373 Pa.Super. 486, 492, 493, 541 A.2d 775, 778 (1988). Rather, a trial court may not deny a party leave to amend unless unfair surprise or some comparable prejudice will result from the amendment. Robinson Protective Alarm Co. v. Bolger and Picker, 512 Pa. 116, 516 A.2d 299 (1986). The timeliness of the request to amend is a factor to be considered, but it is to be considered only insofar as it presents *519 a question of prejudice to the opposing party, as by loss of witnesses or eleventh hour surprise. See Brooks v. McMenamin, 349 Pa.Super. 436, 503 A.2d 446 (1986).

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Bluebook (online)
565 A.2d 1227, 388 Pa. Super. 514, 1989 Pa. Super. LEXIS 3333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pilotti-v-mobil-oil-corp-pa-1989.