S. O'Layer McCready v. DCED ( 2019 )


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  •            IN THE COMMONWEALTH COURT OF PENNSYLVANIA
    Sarah O’Layer McCready,                      :
    :
    Petitioner       :
    :
    v.                      : No. 778 C.D. 2018
    : Argued: February 14, 2019
    :
    Department of Community                      :
    and Economic Development,                    :
    :
    Respondent       :
    BEFORE:       HONORABLE PATRICIA A. McCULLOUGH, Judge
    HONORABLE MICHAEL H. WOJCIK, Judge
    HONORABLE ELLEN CEISLER, Judge
    OPINION BY JUDGE WOJCIK                                   FILED: March 5, 2019
    Sarah O’Layer McCready (McCready) petitions for review of the
    Final Adjudication and Order of the State Board of Property (Board) of the
    Department of Community and Economic Development (Department)1 denying her
    motion for summary judgment; granting the cross-motion for summary judgment
    of the Pennsylvania Turnpike Commission (Commission); entering judgment in the
    Commission’s favor; and dismissing her complaint to quiet title. We affirm.
    In 1978, McCready and her husband were conveyed title to a parcel of
    property in New Beaver Borough, Lawrence County, and Big Beaver Borough,
    1
    The Board is a departmental administrative board of the Department. Sections 202 and
    901 of the Administrative Code of 1929, Act of April 9, 1929, P.L. 177, as amended, 71 P.S.
    §§62, 1709.901; McCullough v. Department of Transportation, 
    578 A.2d 568
    , 571-72 (Pa.
    Cmwlth. 1990).
    Beaver County. McCready became the sole owner of the property upon the death
    of her husband in 1983. On March 2, 1990, McCready conveyed title to a portion
    of the property in Lawrence County to the Commission by deed in lieu of
    condemnation2 for the construction of an extension of Highway 376, known as the
    2
    The Commission’s authority to obtain title to McCready’s real property was found in
    the former Section 7(a)(6) of the Turnpike Organization, Extension and Toll Road Conversion
    Act (Turnpike Act), Act of September 30, 1985, P.L. 240, 36 P.S. §651.7, repealed and replaced
    by Section 8107(a)(6) of the Turnpike Act, 74 Pa. C.S. §8107(a)(6), which states, in pertinent
    part, that “[t]he commission may . . . [a]cquire, hold, accept, own, use, hire, lease, exchange,
    operate and dispose of . . . real property and interests in real property and make and enter into all
    contracts and agreements necessary or incidental to the performance of its duties and the
    execution of its powers under this chapter . . . .” See also Section 1 of the Pennsylvania
    Turnpike Commission Act (Commission Act), Act of May 21, 1937, P.L. 774, as amended, 36
    P.S. §652d, repealed insofar as inconsistent with the Turnpike Act (“The commission . . . shall
    have power and authority to acquire, own, use, hire, lease, operate and dispose of . . . real
    property and interests in real property, and to make and enter into all contracts and agreements
    necessary or incidental to the performance of its duties in the execution of its powers under this
    act . . . .”); Section 5 of the Commission Act, 36 P.S. §652e (“The commission . . . is hereby
    authorized and empowered to acquire by purchase, whenever it shall deem such purchase
    expedient, . . . interests in lands, as it may deem necessary for the construction and operation of
    the turnpike, upon such terms and at such price as may be considered by it to be reasonable and
    can be agreed upon between the commission and the owner thereof, and to take title thereon in
    the name of the commission.”).
    In turn, at the time of the conveyance in this case, the Commission’s authority to
    condemn and purchase property was found in the former Section 9(a) and (b) of the Turnpike
    Act, 36 P.S. §651.9(a), (b), repealed and replaced by Section 8109(a), (b)(1) of the Turnpike Act,
    74 Pa. C.S. §8109(a), (b)(1), which states, in relevant part:
    (a) Condemnation.—The commission may condemn, pursuant to
    26 Pa. C.S. (relating to eminent domain), any lands, interests in
    lands, property rights, rights-of-way, franchises, easements and
    other property deemed necessary or convenient for the construction
    and efficient operation of the turnpikes and the toll road
    conversions . . . .
    (b) Purchase.—
    (Footnote continued on next page…)
    2
    “Beaver Valley Expressway” for the payment of $50,000.00. In relevant part, the
    deed states that McCready conveyed the following to the Commission:
    [McCready] for and in consideration of the sum of ONE
    DOLLAR ($1.00) AND OTHER GOOD AND
    VALUABLE CONSIDERATION, . . . unto them well
    and truly paid by the [Commission] at or before the
    sealing and delivery hereof, the receipt whereof is hereby
    acknowledged, have granted, bargained and sold,
    released and confirmed, and by these presents do grant,
    bargain and sell, release and confirm unto the
    [Commission], its successors and assigns,
    ***
    All that certain tract or parcel of land situate in New
    Beaver Borough, Lawrence County, and in Big Beaver
    Borough, Beaver County, being bound and described
    according to [Commission] Plan No. R/W 11102 . . . .
    ***
    Containing 28.527 acres.
    ***
    Together with all and singular the improvements, ways,
    streets, alleys, roads, lanes, passages, (public or private),
    (continued…)
    (1) The commission may acquire by purchase, whenever it shall
    deem the purchase expedient, . . . any lands, interests in lands,
    property rights, rights-of-way, franchises, easements and other
    property deemed necessary or convenient for the construction and
    efficient operation of the turnpikes and toll road conversions . . .
    upon terms and at a price as may be considered by the commission
    to be reasonable and can be agreed upon between the commission
    and the owner thereof and to take title thereto in the name of the
    commission.
    3
    waters, water-courses, rights, liberties, privileges,
    hereditaments and appurtenances, whatsoever unto the
    hereby granted premises belonging or in anywise
    appertaining thereto and the reversions and remainders,
    rents, issues, and profits thereof and all the estate, right,
    title, interests, property, claim and demand whatsoever
    of [McCready], as well at law as in equity, of, in and to
    the same.
    To have and to hold the said lot or piece of ground above
    described, the hereditaments and premises hereby
    granted, or mentioned and intended so to be, with the
    appurtenances, unto the [Commission], its successors and
    assigns, to and for the only proper use and behoof of the
    [Commission], its successors and assigns forever.
    And [McCready] for [her] heirs, executors,
    administrators, successors and assigns, do hereby release,
    quitclaim and forever discharge the [Commission], its
    successors and assigns of and from any and all actions,
    rights-of-action, suits demands, claims and damages of
    every type or character whatsoever which in law or
    equity [McCready] ever had, now have or may hereafter
    have for or by reason of the construction, operation and
    maintenance of the Pennsylvania Turnpike through or
    upon the land herein conveyed and any incidental or
    consequential damage to any remaining portion of the
    lands of [McCready] of which the herein conveyed land
    may form a part or parcel.
    And [McCready], [her] heirs, executors, administrators,
    successors and assigns do covenant and agree to and with
    the [Commission], its successors and assigns, by these
    presents that [McCready] and [her] heirs, executors,
    administrators, successors, and assigns all and singular
    the hereditaments and premises hereby granted or
    mentioned and intended to be, with the appurtenances
    unto the [Commission], its successors and assigns against
    them, [McCready] and [her] heirs, executors,
    administrators, successors, and assigns and against all
    and every person and persons whomever lawfully
    claiming or to claim the same or any part thereof shall
    and will WARRANT AND FOREVER DEFEND.
    4
    This Deed is being granted in lieu of condemnation.
    Reproduced Record (R.R.) at 12a-13a (emphasis added).
    In February 2012, McCready filed a complaint in the Lawrence
    County Common Pleas Court (trial court) to quiet title to the mineral estate in the
    land conveyed to the Commission in 1990. McCready alleged that although the
    deed conveying title to the Commission did not expressly reserve any mineral
    interest, she believed that it would only convey an interest in the surface rights to
    the Commission. R.R. at 6a-7a. She asserted that the land was conveyed in
    anticipation of condemnation by the Commission and that the Commission was not
    required to own the mineral rights “in order to ‘perform its duties’ or ‘execute its
    powers’ with regard to the ‘construction, operation, or maintenance of the
    turnpike.’” 
    Id. at 7a.
    She claimed that she did not intend to transfer any greater
    interest in the property than the Commission “was authorized to acquire or would
    have otherwise been entitled to take by eminent domain,” and that the
    consideration paid by the Commission only reflected the value of the surface rights
    in the property and did not adequately compensate her for value of the minerals
    below the surface. 
    Id. at 7a-8a.
                 As a result, McCready asked the trial court to: (1) create a separate
    interest in the minerals below the surface of the property; (2) declare that she is the
    owner of all of the minerals below the surface of the property; (3) declare that the
    deed is reformed; (4) direct the Commission to execute a deed conveying all
    interest in the minerals below the surface of the property; (5) direct the Lawrence
    County Recorder of Deeds to accept for recording a copy of the court’s order; and
    (6) such other relief as the court deemed proper. R.R. at 9a.
    The Commission filed an answer to the complaint denying, inter alia,
    that McCready believed that the deed only conveyed an interest in the surface
    5
    rights of the property; that the acquisition of mineral rights is not necessary to
    perform its duties with respect “to the ‘construction, operation or maintenance of
    the turnpike;’” and that the consideration paid reflected only the value of the
    surface rights and not the mineral rights in the property. R.R. at 18a-19a.
    In 2014, McCready and the Commission filed cross-motions for
    summary judgment.          The Commission asserted that the deed conveying the
    property is an unambiguous written document that speaks for itself, that it is
    irrelevant what McCready believed at the time that she executed the deed, and that
    she has no interest in the property. See R.R. at 26a-27a. McCready argued that the
    Commission lacked the authority to acquire a fee simple interest in the property,
    including the mineral rights, through its eminent domain powers so that the deed in
    lieu of condemnation conveying such an interest is a nullity. See 
    id. at 44a-47a.
                  Following oral argument on the cross-motions, the trial court ordered
    an evidentiary hearing to determine whether the Commission’s acquisition of the
    property in fee simple was excessive.              R.R. at 106a-107a.       At the hearing,3
    McCready presented August Arnold, a former construction engineer for the
    Pennsylvania Department of Transportation, who testified that the Commission did
    not need to own or control the mineral formations under the surface for the
    stability of a highway to construct, maintain, or operate the highway over the
    property. 
    Id. at 163a-165a.
    He also stated that in 1990, at the time of conveyance,
    technology only permitted vertical drilling for oil and gas and not horizontal. 
    Id. at 170a-172a,
    174a.
    3
    Prior to the evidentiary hearing, the judge recused himself and was replaced by another
    judge of the trial court.
    6
    McCready also presented Dan Billman, a consulting geologist, who
    testified that he was not aware of drilling beneath a highway prior to 2004. R.R. at
    197a-198a.    He stated that the owner of a surface estate does not have any
    reasonable need to own or control the mineral formations below 1,000 feet to
    protect vertical or lateral support for the surface and that fracking, or hydraulic
    fracturing, does not cause any measurable geological impact on the surface of the
    land. 
    Id. at 206a-207a.
                 The Commission presented Samuel Lobins, district manager for the
    Department of Environmental Protection’s oil and gas program, who testified that
    in 1990, the one permit application for a vertical well in Lawrence County was
    granted. R.R. at 229a, 231a. He stated that he was not aware of a permit being
    issued for a wellhead within the turnpike’s right-of-way and raised safety as a
    concern. 
    Id. at 232a.
                 The Commission also presented Kenneth Heirendt, the Commission’s
    manager for geotechnical engineering, who testified that it was necessary for the
    Commission to obtain a fee simple interest in the property to have full control to
    build, maintain, and operate the turnpike and to prevent others from impeding its
    safe physical operation. R.R. 243a-244a. He opined that the Commission needs to
    have full control of the property to prevent other owners of subsurface interests
    from coming onto the surface for extraction or production of oil and gas. 
    Id. at 247a.
    He stated that due to the technological changes since 2004, while the
    Commission still needs to control the surface, it is no longer efficient to purchase
    the subsurface rights, but that it is necessary to have an agreement restricting the
    surface activities. 
    Id. at 249a.
    7
    On September 20, 2016, the trial court issued an opinion and order
    disposing of the cross-motions for summary judgment. The trial court rejected
    McCready’s assertion that the deed is ambiguous with respect to the conveyance of
    mineral rights or that the Commission’s acquisition of a fee simple interest was
    beyond its authority. R.R. at 341a, 348a-349a (citations omitted). As a result, the
    trial court concluded that the 1990 deed in lieu of condemnation conveyed a fee
    simple interest in the property to the Commission, and the Commission’s taking
    title to the property in fee simple was a proper exercise of its discretion. 
    Id. at 354a.
      Accordingly, the trial court denied McCready’s motion for summary
    judgment; granted the Commission’s cross-motion for summary judgment; and
    dismissed McCready’s complaint. 
    Id. However, on
    appeal to this Court, we held that the trial court was
    without jurisdiction to dispose of the action to quiet title and that the Board was the
    proper tribunal to adjudicate McCready’s action. See McCready v. Pennsylvania
    Turnpike Commission (Pa. Cmwlth., No. 1762 C.D. 2016, filed April 26, 2017),
    slip op. at 8-10. Accordingly, we vacated the trial court’s order and remanded the
    matter to that court to transfer the record to the Board for disposition.
    Following remand, the parties agreed that the Board could
    appropriately dispose of the cross-motions based on the trial court record and the
    filing of supplemental motions. Initially, the Board rejected McCready’s assertion
    that she intended to convey only the surface rights and not the mineral rights in the
    property that was conveyed by the deed. The Board explained that “in construing a
    deed the intent must be gleaned solely from its language,” and that “[i]n the
    absence of fraud, accident or mistake, parol evidence is inadmissible to vary or
    limit the scope of a deed’s express covenants, and the nature and quantity of the
    8
    interest conveyed must be ascertained by the instrument itself and cannot be orally
    shown; it is not what the parties may have intended by the language used but what
    is the meaning of the words.” R.R. at 428a (footnote and citations omitted). The
    Board determined that “[McCready]’s deed is clear on its face: it grants to the
    Commission the described real estate ‘Together with all [. . .] the estate, right, title,
    interests, property, claim and demand whatsoever of [McCready], [. . .] and
    without any reservation of mineral rights. This language is not capable of being
    understood as excluding the mineral rights.” 
    Id. at 428a-429a.
                 The Board also rejected McCready’s assertion that the deed is
    ambiguous because the Commission could not condemn the subsurface mineral
    rights because they were not needed for the construction or operation of its
    highway system. The Board noted that “no more property may be taken [by
    eminent domain] than the public use requires – a rule that applies both to the
    amount of property and the estate or interest to be acquired,” but that “[w]here the
    condemnor has a valid reason to prefer taking in fee simple rather than an
    easement, the taking is not excessive and not an abuse of discretion.” R.R. at
    429a-430a (citations and footnote omitted).
    The Board explained that McCready “has pointed to no evidence to
    support a finding that at the time of the condemnation and deed the Commission
    would have abused its discretion in choosing to acquire the property in fee simple
    (including both surface and mineral estates), rather than acquiring only the surface
    estate and not the mineral estate,” that McCready’s “construction engineer testified
    that horizontal drilling was not available technology being utilized in 1990,” “[a]nd
    [that] her consulting engineer was not aware of drilling beneath a highway prior to
    2004.”    R.R. at 430a (citations omitted).        The Board observed, “[n]or has
    9
    [McCready] identified any evidence that – in addition to being not necessary – it
    was not convenient for the Commission to acquire both the surface and mineral
    estates,” and “[w]ithout being able to point to evidence to support her burden of
    proof, [McCready] cannot identify any genuine issue of material fact to defeat the
    Commission’s motion for summary judgment.” 
    Id. at 430a-431a.
                   Based on the foregoing, the Board concluded:
    In the absence of evidence to show that acquiring the
    mineral estate would be excessive, an abuse of discretion
    or otherwise unlawful, reciting merely that the “deed is
    being granted in lieu of condemnation” without reference
    to any mineral estate does not make the deed susceptible
    to an alternate construction that the mineral estate is
    excepted from the conveyance. Because the language of
    [McCready]’s deed is not capable of any alternate
    construction, it is not ambiguous.                Therefore,
    [McCready] may not present parol evidence that she did
    not intend to convey the mineral estate. Without such
    evidence, [McCready] cannot overcome the clear
    language of the deed and cannot prevail on her claim that
    she did not convey the mineral estate. The Commission
    is therefore entitled to judgment as a matter of law.
    R.R. at 431a. Accordingly, the Board issued the instant Final Adjudication and
    Order denying McCready’s motion for summary judgment; granting the
    Commission’s cross-motion for summary judgment; entering judgment in the
    Commission’s favor; and dismissing McCready’s action to quiet title. 
    Id. at 432a.
    McCready then filed the instant petition for review.4
    4
    The Department filed a Notice of Non-Participation in McCready’s appeal, but the
    Commission filed a Brief of Intervenor. This Court’s scope of review on appeal requires that we
    affirm the Board’s adjudication in a quiet title action unless the adjudication is in violation of
    McCready’s constitutional rights, or it is not in accordance with the law, or if any of the Board’s
    findings of fact necessary to support its adjudication is not supported by substantial evidence;
    however, we exercise de novo review over questions of law. Long Run Timber Company v.
    (Footnote continued on next page…)
    10
    On appeal, McCready claims that the Board erred in considering the
    conflicting testimony at the trial court evidentiary hearing regarding whether the
    Commission’s purchase of a fee simple estate was excessive and in granting
    summary judgment based on its finding that the Commission’s taking was not
    excessive or an abuse of discretion. Specifically, McCready contends that the
    Commission was not statutorily empowered to obtain a fee simple estate because
    the mineral rights in the property were not necessary or convenient for the
    Commission’s construction or efficient operation of the Turnpike, and that the
    Board was required to resolve the material questions of fact in McCready’s favor
    as the non-moving party.
    However, McCready’s reliance on the summary judgment provisions
    of the Pennsylvania Rules of Civil Procedure as a basis for reversing the Board’s
    Final Adjudication and Order in this matter is misplaced. Pursuant to Section
    35.54 of the General Rules of Administrative Practice and Procedure, “[a]
    respondent may . . . file . . . a motion to dismiss a complaint because of lack of
    legal sufficiency appearing on the face of the complaint.” 1 Pa. Code §35.54. As
    this Court has stated:
    The [Department] has not adopted inconsistent rules or
    regulations nor has the [Department] adopted the
    Pennsylvania Rules of Civil Procedure. Thus, with
    regard to quiet title actions before the [Board], the Rules
    of Administrative Practice and Procedure apply.
    According to 1 Pa. Code §35.54, ‘a respondent may also
    file with his answer a motion to dismiss a complaint
    (continued…)
    Department of Conservation and Natural Resources, 
    145 A.3d 1217
    , 1226 n.7 (Pa. Cmwlth.
    2016).
    11
    because of lack of legal sufficiency appearing on the face
    of the complaint.’       Thus, it was proper for the
    Department to have filed a motion to dismiss and it was
    not error for the Board to have granted the motion.
    
    McCullough, 578 A.2d at 572
    . See also Malt Beverages Distributors Association
    v. Pennsylvania Liquor Control Board, 
    966 A.2d 1188
    , 1197-98 (Pa. Cmwlth.
    2009) (“[T]he Pennsylvania Rules of Civil Procedure do not apply to proceedings
    before administrative agencies and commissions.”) (citations omitted).
    With respect to the merits of the claims raised in McCready’s
    complaint, as the Superior Court has noted:
    In the absence of fraud, accident or mistake, the nature
    and quantity of the real estate interest conveyed must be
    ascertained from the deed itself and cannot be shown by
    parol. When the language of the deed is clear and free
    from ambiguity, the intent of the parties must be
    determined from the language of the deed. With respect
    to unambiguous deeds, a court must ascertain what is the
    meaning of the words used, not what may have been
    intended by the parties as shown by parol. To permit a
    variation of a deed description which is complete and
    unambiguous on its face, there must be evidence of a
    mutual mistake which is clear, precise and convincing.
    Pennsylvania Electric Company v. Waltman, 
    670 A.2d 1165
    , 1169 (Pa. Super.
    1995) (citations omitted). Thus, the Board was first required to determine whether
    the deed is ambiguous, and whether it explicitly conveyed a fee simple estate to the
    Commission or whether McCready explicitly retained the mineral estate.5
    5
    The Superior Court has explained:
    The terms “exception” and “reservation” have been used
    interchangeably in deeds. Walker v. Forcey, [
    151 A.2d 601
    , 606
    (Pa. 1959)]. A reservation pertains to incorporeal things that do
    not exist at the time the conveyance is made. 
    Id. See Lauderbach–
                   Zerby Co. v. Lewis, [
    129 A. 83
    , 84 (Pa. 1925)] (reservation is
    (Footnote continued on next page…)
    12
    As outlined above, the deed states, in relevant part, that McCready
    conveyed the following property to the Commission:
    All that certain tract or parcel of land situate in New
    Beaver Borough, Lawrence County, and in Big Beaver
    Borough, Beaver County, being bound and described
    according to [Commission] Plan No. R/W 11102 . . . .
    ***
    Containing 28.527 acres.
    ***
    (continued…)
    creation of a right or interest that did not exist prior to grant).
    However, even if the term “reservation” is used, if the thing or
    right reserved is in existence, then the language in fact constitutes
    an exception. 
    Walker, 151 A.2d at 606
    ; Silvis v. Peoples Natural
    Gas Co., [
    126 A.2d 706
    , 708 (Pa. 1956)] (where no new rights are
    created, language treated as exception). If there is a reservation, it
    ceases at the death of the grantor, because the thing reserved was
    not in existence at the time of granting and the thing reserved vests
    in the grantee. [126 A.2d at 708]. An exception, on the other
    hand, retains in the grantor the title of the thing excepted. 
    Id. Because the
    exception does not pass with the grant, it demises
    through the grantor’s estate absent other provisions. 
    Id. at 709.
    Instantly, paragraph 1 speaks to coal, oil, timber, gas and
    minerals. These are things that are corporeal, and in existence
    prior to the deed. Paragraph 1 did not create a new right.
    Therefore, paragraph 1 created an exception. . . . The trial court did
    not err in concluding that the language of paragraph 1 created an
    exception, rather than a reservation.
    Ralston v. Ralston, 
    55 A.3d 736
    , 742-43 (Pa. Super. 2012). Additionally, “[t]he intent of the
    grantor must be disclosed by the words used.” Lauderbach–Zerby 
    Co., 129 A. at 84
    .
    13
    Together with all and singular the improvements, ways,
    streets, alleys, roads, lanes, passages, (public or private),
    waters, water-courses, rights, liberties, privileges,
    hereditaments and appurtenances, whatsoever unto the
    hereby granted premises belonging or in anywise
    appertaining thereto and the reversions and remainders,
    rents, issues, and profits thereof and all the estate, right,
    title, interests, property, claim and demand whatsoever
    of [McCready], as well at law as in equity, of, in and to
    the same.
    R.R. at 12a (emphasis added).
    As conceded by McCready in her complaint, there is absolutely no
    retention of the mineral rights by her through an exception or reservation that is
    stated in the deed. See R.R. at 6a-7a, 12a-13a. As a result, in the absence of any
    additional allegation of mutual mistake in the complaint by McCready, she may
    not alter the express and unambiguous deed provisions through parol evidence
    regarding her intent with respect to the deed. Pennsylvania Electric Company.
    Moreover, with respect to McCready’s assertion that the conveyance
    of a fee simple interest to the Commission was excessive and an abuse of
    discretion, and that the Board erred in its allocation of the burden of proof in this
    regard, this Court has explained:
    In its review of a decision to condemn property
    and the extent of the taking, the trial court is limited to
    determining whether the condemnor is guilty of fraud,
    bad faith, or has committed an abuse of discretion. In re
    Condemnation of Property of Waite, [
    641 A.2d 25
    , 28
    (Pa. Cmwlth.), appeal denied, 
    651 A.2d 543
    (Pa. 1994)].
    The burden of proving that the condemnor has abused its
    discretion is on the objector or condemnee and the
    burden is a heavy one. 
    Id. In such
    cases, there is a
    strong presumption that the condemnor has acted
    properly. 
    Id. In re
    Pennsylvania Turnpike Commission, 
    84 A.3d 768
    , 776 (Pa. Cmwlth. 2014).
    14
    McCready has failed to allege or demonstrate the requisite fraud, bad
    faith or abuse of the Commission’s discretion6 in the estate that the Commission
    purchased from her in 1990 for $50,000.00.                  Contrary to McCready’s bald
    assertions, the allegations raised in her complaint are that the Commission was
    only required or authorized to obtain a lesser estate and that it should have paid
    more for the estate that was purchased.               However, there are no allegations
    regarding the Property’s true value in 1990 at the time of the Commission’s
    purchase.
    Clearly, the Commission had the authority and discretion to obtain a
    fee simple estate in the Property at the time of its purchase. See 74 Pa. C.S.
    §8109(b)(1) (“The commission may acquire by purchase, whenever it shall deem
    the purchase expedient, . . . any lands, interests in lands, [or] property rights . . .
    deemed necessary or convenient for the construction and efficient operation of the
    turnpikes and toll road conversions . . . upon terms and at a price as may be
    considered by the commission to be reasonable . . . .”); Section 5 of the
    Commission Act, 36 P.S. §652e (“The commission . . . is hereby authorized and
    empowered to acquire by purchase, whenever it shall deem such purchase
    expedient, . . . interests in lands, as it may deem necessary for the construction and
    operation of the turnpike, upon such terms and at such price as may be considered
    by it to be reasonable . . . . ”).
    Moreover, the reasonableness of the Commission’s exercise of
    discretion in this regard at the time of purchase is supported by the testimony of
    6
    An abuse of discretion “is not merely an error of judgment, [but is a] judgment [that is]
    manifestly unreasonable, or the result of partiality, prejudice, bias or ill-will, as shown by the
    evidence or the record . . . .” Mielcuszny et ux. v. Rosol, 
    176 A. 236
    , 237 (Pa. 1934).
    15
    Kenneth Heirendt, its manager for geotechnical engineering, who stated that it was
    necessary for the Commission to obtain a fee simple interest in the property to
    have full control to build, maintain, and operate the turnpike and to prevent others
    from impeding its safe physical operation. R.R. 243a-244a. He further opined that
    the Commission needs to have full control of the property to prevent other owners
    of subsurface interests from coming onto the surface for extraction or production
    of oil and gas. 
    Id. at 247a.
    He stated that due to the technological changes since
    2004, while the Commission still needs to control the surface, it is no longer
    efficient to purchase the subsurface rights, but that it is necessary to have an
    agreement restricting the surface activities.            
    Id. at 249a.
          Thus, the Board’s
    determination that the Commission did not abuse its discretion or exceed its
    authority in obtaining the Property in fee simple is supported by substantial record
    evidence and will not be disturbed by this Court on appeal.                    See, e.g., In re
    Condemnation of Property of 
    Waite, 641 A.2d at 27-28
    n.1 (“A finding by the trial
    court that a condemnor acted in good faith precludes this Court from scrutinizing
    the wisdom of the condemnor’s exercise of its power.”) (citation omitted).7
    Finally, in the absence of any credible evidence that the compensation
    paid by the Commission for the Property in 1990 was inadequate, we will not
    disturb the Board’s determination that the Commission properly purchased a fee
    simple estate for $50,000.00. See, e.g., Fuller v. Lehigh-Northampton Airport
    Authority, 
    172 A.3d 1166
    , 1171-72 (Pa. Cmwlth. 2017), appeal denied, 
    183 A.3d 7
              See also Department of Transportation v. Brown, 
    576 A.2d 75
    , 77 (Pa. Cmwlth. 1990)
    (“The Board, as fact-finder, is entitled to accept or reject the testimony of any witness, in whole
    or in part. If evidence is such that a reasonable mind might accept it as adequate to support the
    conclusion reached, we are precluded from disturbing the finding even though this Court might
    have resolved the conflict differently.”) (citations omitted).
    16
    970 (Pa. 2018) (“As our Supreme Court has stated, a property owner should
    receive the value of his or her property [under the Eminent Domain Code, 26 Pa.
    C.S. §§101-1106,] as nearly as may be to the date of the loss.”) (citation omitted
    and emphasis in original); In re Pennsylvania Turnpike 
    Commission, 84 A.3d at 776
    (“In the present case, Condemnees have offered no evidence that the
    Commission acted fraudulently, in bad faith, or that it abused its discretion.
    Instead, Condemnees assert that even Schwab, the Commission’s engineer, agreed
    with their engineer, Magalotti, that all work could be done by simply acquiring an
    easement.”).
    Accordingly, the Board’s order is affirmed.8
    MICHAEL H. WOJCIK, Judge
    8
    It is well settled that this Court may affirm the Board’s Final Adjudication and Order on
    other grounds where grounds for affirmance exist. Miller v. State Employees Retirement System,
    
    137 A.3d 674
    , 680 n.6 (Pa. Cmwlth.), appeal denied, 
    160 A.3d 758
    (Pa. 2016) (citations
    omitted).
    17
    IN THE COMMONWEALTH COURT OF PENNSYLVANIA
    Sarah O’Layer McCready,              :
    :
    Petitioner     :
    :
    v.                  : No. 778 C.D. 2018
    :
    :
    Department of Community              :
    and Economic Development,            :
    :
    Respondent     :
    ORDER
    AND NOW, this 5th day of March, 2019, the Final Adjudication and
    Order of the State Board of Property of the Department of Community and
    Economic Development dated April 20, 2018, is AFFIRMED.
    MICHAEL H. WOJCIK, Judge
    

Document Info

Docket Number: 778 C.D. 2018

Judges: Wojcik, J.

Filed Date: 3/5/2019

Precedential Status: Precedential

Modified Date: 3/5/2019