244 A.3d 823
Pa. Super. Ct.2021Background
- Parties: Seller/Appellee Joan P. Grove and Buyers/Appellants Perry A. & Lana R. Lutz (with NCWPCS also involved) dispute rights arising from a deed and an existing communications-tower lease.
- Deed (2003) contained clause reserving “the rent for the communication tower … for the remainder of the term of the lease and for the additional term extensions as set forth in the lease dated December 21, 1993.”
- Buyers contend the deed conveyed all rights attendant to the property, including the right to lease and to control lease extensions or amendments.
- Seller contends the deed reservation preserved her (and her assigns’) rent rights and, implicitly, rights to renew or amend the underlying lease.
- Trial court granted judgment for Buyers; the Superior Court majority reversed that decision, holding the Seller transferred her right to lease; Judge Nichols concurred in the reversal but dissented from the majority’s reasoning.
- Judge Nichols argued the deed language is latently ambiguous (two reasonable readings) and would remand for deed construction rather than grant outright relief to Buyers.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the deed reservation of “rent for the communication tower … as set forth in the lease dated December 21, 1993” reserved Seller’s ongoing right to lease/extend the lease | Grove: reservation preserves rent and does not unambiguously terminate Seller’s renewal/amendment rights | Lutz: deed conveyed all property rights, including the right to lease and to control extensions/amendments | Majority: deed conveyed the right to lease to Buyers, terminating Seller’s lease-rights (Judge Nichols: would find latent ambiguity and remand to construe the deed) |
| Whether the deed clause should be read as an exception/reservation that survives sale | Grove: clause should be treated as a reservation/exception (reservation can encompass rent) | Lutz: broad conveyance language transferred all attendant rights despite the clause | Majority: favored broad conveyance reading; concurrence: points to precedents (e.g., Wright) showing reservations can survive and require careful construction |
| Whether the trial court properly granted judgment on the pleadings rather than remanding for deed construction | Grove: judgment on the pleadings was premature given latent ambiguity; remand required | Lutz: pleadings support summary relief in Buyers’ favor | Held: Superior Court reversed trial court’s judgment for Buyers; concurring judge would instead remand for further proceedings to construe deed ambiguity |
Key Cases Cited
- Butler v. Charles Powers Estate ex rel. Warren, 65 A.3d 885 (Pa. 2013) (reservation language can encompass rent)
- Ralston v. Ralston, 55 A.3d 736 (Pa. Super. 2012) (distinguishes reservation and exception; exception retains title in grantor)
- Willcox, 55 A.2d 522 (Pa. 1947) (discusses property as right to possess, use, enjoy, and dispose; cited on scope of ownership)
- Wright v. Misty Mountain Farm, LLC, 125 A.3d 814 (Pa. Super. 2015) (deed exceptions can preserve mineral/lease rights for grantor despite later expirations or lessee actions)
- Synthes USA Sales, LLC v. Harrison, 83 A.3d 242 (Pa. Super. 2013) (latent ambiguity standard: if deed language admits two reasonable interpretations, summary disposition is improper)
