Trustees of First Presbyterian Church v. Oliver Tyrone Corp.

72 Pa. D. & C.2d 410, 1974 Pa. Dist. & Cnty. Dec. LEXIS 31
CourtPennsylvania Court of Common Pleas, Alleghany County
DecidedOctober 25, 1974
Docketno. 1886
StatusPublished

This text of 72 Pa. D. & C.2d 410 (Trustees of First Presbyterian Church v. Oliver Tyrone Corp.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Alleghany County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trustees of First Presbyterian Church v. Oliver Tyrone Corp., 72 Pa. D. & C.2d 410, 1974 Pa. Dist. & Cnty. Dec. LEXIS 31 (Pa. Super. Ct. 1974).

Opinion

FINKELHOR, J.,

This is an action in equity by the Trustees of the First Presbyterian Church of Pittsburgh, plaintiff (hereinafter called “church”) against Oliver Tyrone Corporation, defendant (hereinafter called “Oliver Tyrone”), to declare void or to reform a 999-year ground lease in connection with a tract of land located along Wood Street in the downtown section of the City of Pittsburgh and which is presently occupied by a building owned by Northwestern Mutual Life Insurance Company known as 300 Sixth Avenue. This case was designated a complex case by order of court dated October 19, 1973.

Defendant filed prehminary objections in the nature of a demurrer and motions to strike and for a more specific pleading. Plaintiff filed prehminary objections to defendant’s prehminary objections. These matters are presently before the court.

It is well established that a demurrer admits as true ah facts which are well and clearly pleaded but not the pleader’s conclusions or averments of law: Landerman v. Churchill Area School District, 414 Pa. 530, 200 A. 2d 867 (1964); Stahl v. First Pennsylvania Bank and Trust Company, 411 Pa. 121, 191 A. 2d 386 (1963); Bogash v. Elkins, 405 Pa. 437, 176 A. 2d 677 (1962); Silver v. Korr, 392 Pa. 26, 139 A. 2d 552 (1958).

In their earnest advocacy of their respective posi[412]*412tions, both parties have included factual allegations within their briefs that are not facts of record. In ruling on defendant’s demurrer, the court cannot consider additional facts which should properly be raised in an answer to the proceedings: 1 Goodrich-Amram, §1017(b)(ll), page 92; Linda Coal and Supply Company v. Tasa Coal Company, 416 Pa. 97, 204 A. 2d 451 (1964); Detweiler v. Hatfield Borough School District, 376 Pa. 555, 104 A. 2d 110 (1954). Defendant, in support of a demurrer, cannot by brief aver, nor can a court consider, the existence of facts not of record: Brennan v. Smith, 6 Pa. Commonwealth Ct. 342, 299 A. 2d 683 (1972).

Therefore, in ruling upon defendant’s demurrer, the court will only consider those facts which have been set forth in the complaint and prior orders of this court.

STATEMENT OF FACTS

The plaintiff church, which was organized in 1787, is the owner of the tract of land located on Sixth Avenue in the Second Ward of the City of Pittsburgh. Between the years 1787 and 1902, the church occupied the leased premises and maintained thereon a meeting house and chapel for the purposes of religious worship. In 1901, the church, interested in replacing the chapel, began negotiations with Henry W. Oliver (“Oliver”), a prominent early Pittsburgh business executive, who, first, offered to purchase a portion of the church property for $600,000 and to lease another portion for a term of 999 years.

For reasons now unknown to plaintiff, this plan was abandoned by the parties and replaced by a lease agreement for a term of 999 years. A copy of [413]*413the lease is attached to plaintiff’s complaint for a term from the year 1902 A. D. totheyear2901 A. D.

Upon delivery of the 1902 lease, Oliver paid $150,000 to the church as hand money and the annual rental for the land was fixed at $30,000 per annum. In addition, under the agreement Oliver was to pay all of the taxes and assessments on the property and to construct a building on the leased premises. Upon the termination of the lease, the building was to return to the church. Plaintiff further alleges that it was the intent of Oliver and the church that the annual rental would constitute a “fair return”1 to the church and would forever solve the financial problems of the church.

This 1902 lease was approved at a meeting of the congregation of the church but not approved by the Presbytery nor any higher church body nor were any of the subsequent modifications to the agreement submitted to any higher ecclesiastical body for approval.

Under the then existing requirements of the Price Act of 1853,2 a petition for approval of the lease was submitted to the Court of Common Pleas of Allegheny County at August term, 1902, no. 563. All subsequent modifications were also submitted by plaintiff and approved by the Common Pleas Court.

Henry Oliver died on February 8, 1904, and his interest under the 1902 lease passed by subsequent [414]*414testamentary and other transfers to defendant, Oliver Tyrone Corporation, a Pennsylvania corporation, and the present defendant in these proceedings.

The first building was erected on the premises, prior to Oliver’s death in 1904, and was subsequently occupied by McCreery Company, a retail department store, as subtenant. The agreed rental of $30,000 per annum was paid under the terms of the lease.

The Modifications

In 1940, due to the economic decline of that period, the building became vacant and substantial renovation, estimated at $1,000,000, was required to secure the new subtenant, Spear and Company. Fearing a loss of the lease, plaintiff agreed with Pittsburgh Business Properties (a predecessor in defendant’s chain of title) to modify the lease as follows: (1) to reduce the $30,000 annual rental in four steps to $15,000 for the year 1943 but with a provision for a percentage of the net sales of the subtenant in excess of $6,000,000; (2) an increase in the size of the leased premises and the elimination of certain building restrictions, and (3) a provision that defendant could cancel the lease upon 60 days notice effective at the end of any calendar year.

Plaintiff alleges that no accounting was received on the sales of subtenant and that payments were not made on the percentage of sales.

The 1940 amendment was approved at a meeting of the congregation of the church and by the Court [415]*415of Common Pleas of Allegheny County at October term, 1940, no. 1106.3

In 1951, afteranew sublease between Pittsburgh Business Properties (“PBP”) and the subtenant (“Spear”) for 21 years, the church and PBP amended the ground lease to increase the annual rental to the church to $40,000 per year for 1952 through 1955, inclusive, and to $45,000 per year for the period 1956 through 1972. PBP further agreed not to cancel the 1902 lease or the 1951 amendment during the term of the Spear sublease of the property. This 1951 agreementwas also approved by the congregation and the Common Pleas Court at January term, 1952, no. 3003.

In 1954, further amendments were negotiated to eliminate certain building restrictions and in a tripartite agreement dated February 1,1954 among the church, PBP and Spear, the parties provided that Spear was to be given the opportunity to cure any default of defendant under the 1902 lease. This amendment was not submitted to the congregation of the church or the Common Pleas Court.

Oliver Tyrone,4 the present defendant, on November 1, 1961, conveyed the building, previously known as the McCreery Building and the Spear Building and located on the church property, to Northwestern Mutual Life Insurance Company (“Northwestern”) and simultaneously took alease [416]*416back for a term of 20 years (1981) with five renewal terms of ten years (2031), each from Northwestern. The rental of the building was fixed at $275,000 for the first five years, with a sliding decrease to a rental of $87,500 for the fifth renewal period.

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72 Pa. D. & C.2d 410, 1974 Pa. Dist. & Cnty. Dec. LEXIS 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trustees-of-first-presbyterian-church-v-oliver-tyrone-corp-pactcomplallegh-1974.