Juniata Valley Bank v. Martin Oil Co.
| Decision Date | 04 August 1999 |
| Citation | 736 A.2d 650 |
| Parties | The JUNIATA VALLEY BANK v. MARTIN OIL COMPANY v. Angela T. Dalton, Zeigler & Weizer Real Estate Partnership, Herbert Weizer and Edgar K. Ziegler. Appeal of Martin Oil Company (at 1138). The Juniata Valley Bank, Appellant (at 2), v. Martin Oil Company v. Angela T. Dalton, Zeigler & Weizer Real Estate Partnership, Herbert Weizer and Edgar K. Ziegler, Appellees. |
| Court | Pennsylvania Superior Court |
Mark D. Bradshaw, Harrisburg, for Martin Oil Co.
Robyn K. Bowman, Harrisburg, for Juniata Valley Bank.
Before POPOVICH, SCHILLER and OLSZEWSKI, JJ.
¶ 1 In this action, Juniata Valley Bank advanced claims of misrepresentation, negligence, trespass, nuisance and violation of the Storage Tank Spill Prevention Act ("STSPA"), 35 P.S. § 6021, against Martin Oil Company ("Martin Oil") in an effort to recover costs it has and will incur due to the presence of an underground storage tank and the discharge of fuel oil on one of its properties. The trial court granted the bank relief on its STSPA claim. Upon review, we vacate the final decree, reverse the entry of summary judgment in favor of the bank, affirm the denial of Martin Oil's motion for summary judgment and remand for further proceedings consistent with this opinion.
¶ 2 On December 24, 1996, Juniata Valley Bank filed a motion for partial summary judgment with respect to Martin Oil's liability under the STSPA. In response, Martin Oil filed a cross-motion for summary judgment as to all claims. The court of common pleas granted partial summary judgment in favor of Juniata Valley Bank. Martin Oil Company then requested certification of the case for immediate interlocutory review, which the trial court denied.1
¶ 3 Instead, the trial court held a bench trial limited to the issue of damages, and, on October 20, 1997, entered a final decree which required Martin Oil to pay costs of abatement in the amount of $182,253.07. Additionally, the court awarded Juniata Valley Bank sixty percent of its attorneys' fees. Both parties filed motions for post-trial relief, which were denied, and Martin Oil's timely appeal and Juniata Valley Bank's cross-appeal followed.
¶ 4 Our scope of review of a grant or denial of summary judgment is plenary, and we apply the same standard of review that the trial court employs. See Cunningham v. McWilliams, 714 A.2d 1054, 1056 (Pa.Super.1998), appeal denied, ___ Pa. ___, 734 A.2d 861, 1999 Pa. Lexis 40 (Pa.1/12/99). That is, we view the record in the light most favorable to the non-moving party and resolve all doubts as to the existence of a genuine issue of material fact in its favor. See id. Summary judgment is appropriate if the moving party is entitled to judgment as a matter of law and there is no genuine issue of any material fact as to a necessary element of the cause of action or defense. See Pa. R.Civ.P. 1035.2. Since this is an equity matter, our review is limited to a determination of whether there has been an abuse of discretion or an error of law, and we will not disturb the final decree unless it is unsupported by the evidence or demonstrably capricious. See Soderberg v. Weisel, 455 Pa.Super. 158, 687 A.2d 839, 842 (1997).
¶ 5 The subject of this dispute is a property located on Route 32 in Milroy, Pennsylvania ("the Milroy property"). Martin Oil leased this property from 1981 through 1986 and then purchased it in December of 1986 from Angela Dalton. At the time of purchase, Martin Oil was aware that since at least 1950, its predecessors had operated a gasoline service station there and that a number of abandoned underground storage tanks remained on the Milroy property. Throughout its occupancy, Martin Oil continued to run the service station and stored the petroleum products for its operations in four of several previously installed underground storage tanks. Martin Oil vacated the property on August 10, 1989.
¶ 6 In November of 1989, Martin Oil entered negotiations for the sale of the premises with the Zeigler-Weiser Real Estate Partnership ("the partnership"). During the negotiations, Martin Oil informed the partnership that both it and the predecessor owners had operated a gasoline service station on the premises. The partnership subsequently sought financing for the purchase of the property from Juniata Valley Bank. The bank agreed to extend a $120,000 mortgage to the partnership.2 The bank's branch manager, Randy French, testified in his deposition that he instructed the partnership to obtain indemnity from Martin Oil for any liability that might arise from the prior storage of gasoline and petroleum products at the site.
¶ 7 Originally, the partnership requested the inclusion of an indemnification provision in the contract of sale, but Martin Oil adamantly refused and asserted it would only sell the property on an "as is" basis. As a result of the parties' negotiations, the contact of sale included an addendum, which stated:
All underground tanks from the Milroy property were removed from the property on November 22, 1989. Martin Oil Company purchased said property on December 22, 1986 from Angela T. Dalton. During the period beginning December 22, 1986 and the date the tanks were removed, November 22, 1989, Martin Oil Company records confirm that tanks in use showed no loss of petroleum product. Inasmuch as all tanks have been removed, the sale of the building and real estate is on an "as is" basis. Martin Oil Company makes no warranty of any kind.
Addendum to the Agreement of Sale, 1/5/90, at 1.
¶ 8 Closing took place on February 2, 1990. A representative from Juniata Valley Bank attended the closing. Like the agreement of sale, the deed included a provision which stated, "The premises are conveyed in an `as is' condition." At closing, the bank's representative did not review the agreement of sale or deed.
¶ 9 The partnership operated an automobile dealership on the Milroy property until it filed for bankruptcy. Juniata Valley Bank instituted foreclosure proceedings on January 8, 1991, and later purchased the property at sheriff's sale. In June of 1992, the bank received an expression of interest in the Milroy property. However, the prospective buyer refused to purchase it absent assurances of environmental soundness.
¶ 10 Pursuant to this request, the bank hired consultants to conduct a preliminary environmental assessment. This assessment revealed the presence of petroleum hydrocarbon contamination in both the soil and groundwater. In January of 1993, the bank hired a second group of consultants to perform a more extensive assessment. Upon completion of the second assessment, the consultants advised the bank to complete soil and groundwater remediation, which would eliminate the high levels of hydrocarbon contamination detected at the site.3
¶ 11 GeoServices, Ltd. ("GeoServices") commenced remediation on July 1, 1996, and discovered corroded, tank-related pipes and dissolved petroleum product when it excavated one of the contaminated soil areas. Approximately one week later, GeoServices uncovered an underground storage tank filled with water, a related network of pipes and more dissolved petroleum product. The tank was heavily corroded and had holes in its sidewalls and bottom. The pipes were in equally poor condition.
¶ 12 On appeal, Martin Oil presents two arguments. It first argues that the trial court erred in granting summary judgment in favor of Juniata Valley Bank when the bank lacked standing to recover under the STSPA. Second, Martin Oil argues that the trial court erroneously denied its motion for summary judgment, which was based upon the bank's status as a foreclosure purchaser and the agreement of sale between the partnership and Martin Oil. In its cross-appeal, Juniata Valley Bank challenges the amount of damages and attorneys' fees awarded by the trial court.
¶ 13 We first consider whether the trial court properly granted partial summary judgment in favor of Juniata Valley Bank with respect to Martin Oil's liability under the STSPA. Both parties frame the primary issue as one of standing. Martin Oil asserts that neither the express language of the STSPA nor relevant case law permits a successor owner of a property to recover damages from a former owner. In addition, Martin Oil contends that the bank, as current owner of the property, is the party liable for the costs of cleanup under the STSPA. Juniata Valley Bank, on the other hand, argues that the STSPA imposes no limitations on standing and that judicially imposed restrictions on standing would be inconsistent with both the language and purpose of the STSPA. The bank further claims that Martin Oil is strictly liable under the STSPA, be it as an "operator" or an "owner" of an underground storage tank.
¶ 14 The principles set forth in the Statutory Construction Act, 1 Pa. C.S.A. §§ 1501-1991, guide our resolution of this issue.
The object of all statutory interpretation is to ascertain and effectuate the intention of the General Assembly. While the object of statutory interpretation is ascertaining and effectuating the intention of the General Assembly, every statute shall be construed to give effect to all of its provisions. Notwithstanding, when the words of the statute are clear and free from all ambiguity, we will not disregard the letter of the law under the pretext of pursuing its spirit.
Centolanza v. Lehigh Valley Dairies, Inc., 540 Pa. 398, 404-05, 658 A.2d 336, 339 (1995) (citations omitted), rehearing denied, 1995 Pa. Lexis 515 (Pa.7/13/95).
¶ 15 Both Juniata Valley Bank and Martin Oil seize upon our supreme court's holding in Centolanza to support their arguments on appeal. In Centolanza, our supreme court held that a private citizen could maintain an action against a neighboring property owner under the STSPA for future costs...
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