Thompson Coal Co. v. Pike Coal Co.

412 A.2d 466, 488 Pa. 198, 1979 Pa. LEXIS 600
CourtSupreme Court of Pennsylvania
DecidedJune 1, 1979
Docket191
StatusPublished
Cited by615 cases

This text of 412 A.2d 466 (Thompson Coal Co. v. Pike Coal Co.) 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
Thompson Coal Co. v. Pike Coal Co., 412 A.2d 466, 488 Pa. 198, 1979 Pa. LEXIS 600 (Pa. 1979).

Opinions

OPINION OF THE COURT

NIX, Justice.

Appellants argue that the Court of Common Pleas of Clearfield County erred in granting defendant-appellees’ motions for summary judgment, because, appellants allege, [202]*202there existed genuine issues of material fact as to each appellee. The Superior Court affirmed the order of the Court of Common Pleas in a per curiam order without an opinion. This Court granted review and after consideration of the briefs of the respective parties and oral argument, we share the view that the trial court reached the correct result.1

Appellant, Leroy Thompson (Leroy) and appellee, Ralph S. Thompson (Ralph), are brothers who were formerly associated in the Thompson Coal Company until they parted company in October, 1965. At that time, Ralph left Thompson Coal and formed the Pike Coal Company. Both brothers desired to obtain ownership of the surface and subsurface rights in the tract of land known as the “Kreska Tract.”2 The surface rights were owned by Adolph Kreska. The coal and other mineral rights in the Kreska Tract were owned by Harry Boulton, Harold J. Boulton and Raymond J. Hess, each owning an undivided one-third interest. On May 15, 1965, Leroy leased the mining rights under the Kreska Tract from the three subsurface rights owners under a year-to-year lease which the parties agreed to extend to March 1, 1975. ■

In August of 1972, Adolph Kreska sold the surface rights to Ralph. Ralph began mining operations, but ceased these operations upon being informed by his attorney, Clifford Johnston, that he owned less than all of the rights in the Kreska Tract. Ralph thereafter began efforts designed to purchase the outstanding rights to the Kreska Tract. On August 27, 1974, George Scott, the surviving executor of the Estate of Harry Boulton, sold the estate’s one-third interest in the mineral rights underlying the Kreska Tract to Ralph, [203]*203“Subject ... to a lease of said mineral rights to Thompson Coal Company. . . .’’On the same date, Clearfield Bank and Trust Company and George Scott, co-guardians for Harold J. Boulton, sold their ward’s one-third interest in the mineral rights to Ralph subject to the lease of Thompson Coal Company. The interest of both former owners in the lease to Leroy and Thompson Coal was assigned to Ralph at the time of the conveyance of the mineral rights. On September 10, 1974, Raymond J. Hess leased his mineral rights under the Kreska Tract to Ralph and can-celled his lease with the Thompson Coal Company, the cancellation to be effective March 1, 1975. In the above manner, Ralph, trading as Pike Coal Company, became sole owner of the surface and two-thirds of the subsurface rights, and lessee of the remaining one-third of the subsurface rights subject to the lease rights held by Leroy and Thompson Coal.

Appellants Leroy and Thompson Coal Company filed a civil action against Ralph, Pike Coal Company, Clearfield Bank and Trust Company, George Scott and Clifford Johnston, alleging that the above appellees engaged in various acts constituting inter alia, negligence, conspiracy to defraud and tortious interference with contractual business relationships. The court of Common Pleas of Clearfield County granted a motion for summary judgment filed by Clearfield Bank and Trust Company, George Scott and Clifford Johnston as to the counts of negligence and tortious interference with business relationships, and granted summary judgment to Ralph, Pike Coal Company and Clifford Johnston on Count IV of the complaint which charged a conspiracy to defraud.3

The underlying theme of appellants’ contentions is that the summary judgments entered pursuant to Pennsylvania Rule of Civil Procedure 1035 were improper because there remained genuinely disputed issues of material fact in [204]*204each of these instances. Rule 1019 requires that the material facts on which a cause of action or defense is based shall be stated in a concise and summary form. Rule 1035 permits the entering of a summary judgment only if the pleadings, depositions, answers to interrogatories, admissions and affidavits, if any, “show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Summary judgment is granted only in the clearest of cases, where the right is clear and free from doubt. Kotwasinski v. Rasner, 436 Pa. 32, 258 A.2d 865 (1969); Prince v. Pavoni, 225 Pa.Super. 286, 302 A.2d 452 (1973). The moving party has the burden of proving the nonexistence of any genuine issue of fact. Kent v. Miller, 222 Pa.Super. 390, 294 A.2d 821 (1972); Moore v. Zimmerman, 221 Pa.Super. 359, 292 A.2d 458 (1972); Schacter v. Albert, 212 Pa.Super. 58, 239 A.2d 841 (1968). All doubts as to the existence of a genuine issue of a material fact must be resolved against the moving party. Ritmanich v. Jonnel Enterprises, Inc., 219 Pa.Super. 198, 280 A.2d 570 (1971).

The counts sounding in negligence allege that Scott and Clearfield, as guardians of the Estate of Harold S. Boulton, and Scott, as executor of the Estate of Harry Boulton, breached various duties owed by them as fiduciaries.4 It is argued by appellants that there is dispute as to whether these alleged breaches in fact occurred and that absent the resolution of. these factual issues the entry of summary judgment was improper. However, even if we were to accept the appellants’ averments as fact, these fiduciaries violated no duty owed to the appellants who were merely lessees of the mineral rights. The Restatement (Second) of Trusts, § 200 (1959) states:

[205]*205No one except a beneficiary or one suing on his behalf can maintain a suit against the trustee to enforce the trust or to enjoin or obtain redress for a breach of trust.

We have had occasion in the past to express our “grave doubt as to the standing . . . ” of a stranger to object to the waste of trust assets. Curtis Estate, 437 Pa. 123, 126 n. 3, 261 A.2d 589, 591 n. 3 (1970) (dictum).5 Since the court could properly find that a resolution of the disputed facts would, as a matter of law, establish neither the existence of a duty owed by the fiduciaries to the appellants nor a breach thereof, the entry of summary judgment as to these counts was entirely appropriate. See Boyce v. U. S. Steel Corp., 446 Pa. 226, 285 A.2d 459 (1971); Engel v. Parkway Co., 439 Pa. 559, 266 A.2d 685 (1970).

Appellants allege that summary judgment was wrongfully entered against them in favor of Clifford Johnston, Esquire, who represented Ralph in his successful negotiations and transactions to acquire the Kreska Tract. Appellants' claim against Johnston is essentially a suit in trespass for tortious interference with existing as well as prospective contractual relationships.

Under Count II of the Second Amended Complaint, it is alleged that Ralph, aided by his attorney, Clifford Johnston, engaged in wrongful acts, principally in the form of misrepresentations to the former holders of the rights, which induced them to convey the rights to him.6 Thereafter, it is [206]

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Bluebook (online)
412 A.2d 466, 488 Pa. 198, 1979 Pa. LEXIS 600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-coal-co-v-pike-coal-co-pa-1979.