217 Pa. Super. 310 | Pa. Super. Ct. | 1970
Opinion by
This is an appeal by Lectronic Distributors, Inc. (Lectronic), from the order of the Court of Common Pleas of Philadelphia which confirmed the report of a Board of View refusing to award business dislocation damages under Section 609 of the Eminent Domain Code, Act of June 22, 1964, Special Sess., P. L. 84, Art. I, 26 P.S. §1-101 et seq., to appellant as tenant of real property which was condemned by the Redevelopment Authority of the City of Philadelphia (Authority) on December 29, 1966.
This appeal involves the construction of §609 of the Eminent Domain Code under the undisputed facts, which follow. For many years prior to the date of taking Lectronic, a retail distributor of electronic manufacturing parts, occupied the first floor and basement of the condemned premises, 727 Arch Street, Philadelpbia,
“1. Condemnee [Lectronic] sustained a substantial loss of patronage upon its vacating of the condemned premises on February 1, 1968.
*313 “2. Condemnee’s vacating of the premises on February 1, 1968, was the result of the condemnation by the Redevelopment Authority of the City of Philadelphia.
“3. Condemnee had eleven months remaining on its lease from the date of condemnation and the monthly rental was $412.50.”
Since the facts are not in dispute, Lectronic appears to rely on the findings of fact of the Board and argues therefrom that, as a matter of law, the Board should have awarded it business dislocation damages under §609 of the Code. Its argument can be summarized as follows. It contends that under §609 it is required to prove only that (1) it is a condemnee, (2) that it has sustained a substantial loss of patronage as a result of vacating the property and (3) that it was required to vacate the premises as a result of the condemnation. It especially relies on the Board’s finding No. 2, to the effect that Lectronic was required to vacate the premises as a result of the condemnation, and argues, moreover, the fact that a condemnee remains on the condemned premises after the condemnation is irrelevant in determining its right to business dislocation damages. In affirming the action of the Board, Hon. Maurice W. Sporkin, Judge, in a carefully reasoned opinion for the court below, held that Lectronic must prove that its business was interfered with or dislocated while it had a property interest in the leased premises and that, since Lectronic has not done so, it is not entitled to damages. The award for machinery and equipment damages has not been appealed by the Authority; so that the only question before us is the propriety of its refusal to award business dislocation damages.
Section 609, providing for business dislocation damages, has not been fully interpreted nor have the facts
Although the lower court stated that Lectronic “was neither a condemnee nor a tenant for the purposes of Section 1-609 at the time its business was dislocated,” we agree with Lectronic that at the time of condemnation it was a condemnee,
Even though Lectronic at the time of condemnation was technically a condemnee under the Code, we believe that the Code contemplates an actual dislocation or interference with its peaceful possession of the property under the original terms of its lease. The facts in the case of Fisher v. Pittsburgh Public Parking Authority, 433 Pa. 113, 248 A. 2d 849 (1969), are analogous but not in point. Fisher, as tenant, occupied real estate which was privately negotiated and sold to the Parking Authority, which had the power of eminent domain. Upon the normal expiration of the lease, the Parking Authority refused to renew the lease and the tenants claimed compensation under the Eminent Domain Code. The Court, denying recovery, stated that a tenant whose lease has expired is not a condemnee under the Eminent Domain Code. Similarly, in the present case, appellant has not shown that its peaceful possession of the premises was ever interfered with by the Authority until after the original lease would have expired.
The second finding by the Board, that its vacation of the premises on February 1, 1968, was the result of the condemnation by the Redevelopment Authority of the City of Philadelphia, is inconclusive for several reasons. First, this is a conclusion of law, which is
The Board of View made no finding on the third point that must be proved by a claimant under §609, i.e., that its business cannot be relocated without a substantial loss of patronage. The Board’s finding that Lectronic suffered a substantial loss of patronage upon its vacation of the premises on February 1, 1968, possi
Order affirmed.
Quoted from Leetronic’s brief on tbis appeal. The lease was not made part of tbe printed record.
“Business dislocation damages — The condemnee shall be entitled to damages, as provided in this section, for dislocation of a business located on the condemned property, but only where it is shown that the business cannot be relocated without substantial loss of patronage. Compensation for such dislocation shall be the actual monthly rental paid for the business premises, or if there is no lease, the fair rental value of the business premises, multiplied by the number of months remaining in the lease, not including unexercised options, not to exceed twenty-four months or multiplied by twenty-four if there is no lease. The amount of such compensation paid shall not exceed five thousand dollars ($5000) and shall not be less than two hundred fifty dollars ($250), regardless of the number of months remaining in the lease or the monthly rental. A tenant shall be entitled to recover for such business dislocation even though not entitled to any of the proceeds of the condemnation.”
We deem it unnecessary to pass upon tlie effect of the provision in the lease providing for its termination upon condemnation. It was not argued in the court below or upon this appeal. See Scholl’s Appeal, 292 Pa. 262, 141 A. 44 (1928).