Title: Vogel v. Berkley
Citation: 354 Pa. Super. 291, 511 A.2d 878
Docket Number: N/A
State: Pennsylvania
Issuer: Pennsylvania Supreme Court
Date: July 11, 1986

354 Pa. Superior Ct. 291 (1986) 511 A.2d 878 John A. VOGEL and Betty L. Vogel, his wife, Appellants, v. Douglas W. BERKLEY, Fred S. Shaulis and PBS Coals, Inc. Supreme Court of Pennsylvania. Argued April 16, 1986. Filed July 11, 1986. *293 Robert P. Ging, Jr., Pittsburgh, for appellants. John J. Dirienzo, Jr., Somerset, for appellees. Before TAMILIA, KELLY and MONTGOMERY, JJ. TAMILIA, Judge: This is an appeal from a pre-trial Order which dismissed with prejudice four of five counts of appellants' complaint and directed the case to trial only on the remaining count. *294 The facts indicate that appellants owned one piece of land (the home property) and subsequently purchased another property (the Adams' property). In 1976, they entered into separate option/lease agreements with appellees concerning the drilling and exploration for coal on both properties. In 1977, appellees exercised the option acquiring rights to surface mine coal for five years on the Adams' property. In 1978, appellants, at appellees' request, executed a consent to entry in favor of Sun Coal Company who was to perform the mining activities. Subsequently, appellees entered into an agreement with Howard Will to mine the coal. Appellants allege that after the mining operation began, they became aware that Will sold coal without paying them their royalties and also left a quantity of coal unrecoverable because of improper mining techniques. On November 16, 1980, the parties entered into a settlement agreement which stated the circumstances of this dispute and expressed the parties' desire to reach a full and final compromise and settlement of all matters arising out of the facts. In June 1984, a complaint in trespass was filed. The five counts alleged were: (1) fraudulent inducement to enter into the lease agreement; (2) fraudulent inducement to enter the land; (3) failure to pay royalties; (4) failure to reclaim the site; and (5) conspiracy to defraud and breach the lease. In new matter, the appellee raised the settlement agreement as a bar to counts 1, 2, 3 and 5. Following a pre-trial conference, the court ruled as a matter of law the release barred the action as to those counts and issued the Order from which this appeal was taken.[1] Appellants contend the court erred in dismissing the counts on its own motion and also in determining no genuine issue of material fact existed concerning the meaning of *295 the agreement. They argue that the agreement is ambiguous and should be interpreted to only apply to the specific activities involving Will. They contend that since appellees drafted the agreement, it should be construed against them and finally they maintain it is for the jury to resolve any ambiguities. The court determined the agreement was not ambiguous and as a matter of law barred four counts of the complaint. The claim regarding reclamation of the land was left because the agreement specifically excluded reclamation from the settlement. Initially, we address the propriety of the action taken by the court in dismissing four of the five counts in a pre-trial Order. We agree with the court that its action was a proper application of Pa.R.C.P. 212 which provides in pertinent part: The purpose of a pre-trial conference is to enable the parties to simplify and expedite the trial. Gill v. McGraw Electric Co., 264 Pa.Super. 368, 399 A.2d 1095 *296 (1979). It is appropriate for the pre-trial conference court to decide issues of law based on admitted or undenied facts appearing of record. See Goodrich-Amram2d § 212:7.2. Here, the court determined that four of the counts in the complaint should be eliminated. In so doing, the court was properly making a ruling of law concerning the settlement agreement, which was part of the record before the court. Finding that the action was authorized, our next determination must be whether the legal decision made was correct. Appellant characterizes the action by the court as the equivalent of a summary judgment. We think it more closely parallels a judgment on the pleadings because the decision was based solely on the pleadings and the settlement agreement which was properly attached. A court, in granting judgment on the pleadings, must confine its consideration to the pleadings and relevant documents. Del Quadro v. City of Philadelphia, 293 Pa. Super. 173, 437 A.2d 1262 (1981). Judgment is proper only when no material facts are in dispute. Dudash v. Palmyra Borough Authority, 335 Pa.Super. 1, 483 A.2d 924 (1984). Courts have found that judgment on the pleadings is appropriate in cases that turn upon the construction of a written agreement. Gallo v. J.C. Penney Casualty Ins. Co., 328 Pa.Super. 267, 476 A.2d 1322 (1984); DiAndrea v. Reliance Savings and Loan Association, 310 Pa.Super. 537, 456 A.2d 1066 (1983). In reviewing the court's decision, we must determine if the action of the court was based on a clear error of law or whether there were facts disclosed by the pleading which should properly go to the jury. The decision will be affirmed only in cases which are clear and free from doubt. Wojciechowski v. Murray, 345 Pa.Super. 138, 497 A.2d 1342 (1985); Zelik v. Daily News Pub. Co., 288 Pa.Super. 277, 431 A.2d 1046 (1981). It is the role of the court to decide whether, as a matter of law, written contract terms are clear or ambiguous. *297 Metzger v. Clifford Realty Corp., 327 Pa.Super. 377, 476 A.2d 1 (1984). In construing a contract, the intention of the parties is the foremost consideration. The court's interpretation must be one which indicates the most reasonable and natural conduct of the parties based upon the intended result of the contract. Id. The effect of a release must be determined from its language. The ordinary meaning must be attributed to the language, unless a different meaning was clearly intended. Wengler v. Ziegler, 424 Pa. 268, 226 A.2d 653 (1967); In re Jones and Laughlin Steel Corp., 328 Pa.Super. 442, 477 A.2d 527 (1984). A contract is not ambiguous if the court can determine its meaning with a knowledge of the facts on which its meaning depends. The fact that the parties do not agree upon the proper interpretation does not necessarily render the contract ambiguous. Metzger, supra. Viewing the lower court's action under the guidelines set forth above, we find dismissal of the four counts to be proper. The settlement agreement provided in pertinent part: We agree with the court that by its terms the agreement is not ambiguous where it states that "all claims, demands, rights and causes of action that appellants' have or may have . . . with respect to the above described dispute are satisfied, discharged and settled". The sole exception set forth is the claim for reclamation which forms the basis of the count not dismissed by the court. The court also properly discounted appellants' contention that because the alleged fraud was discovered after the agreement was entered into, it should not apply. Section four of the agreement prohibits such a claim and was relied on by the court in support of its Opinion. The interpretation of the contract made by the court was certainly reasonable. The ordinary meaning of the words clearly purport to extend the settlement to the entire series of events involving the parties. The counts dismissed directly *300 related to these events and application of the agreement to those claims is dictated by a normal reading of the words in light of the attendant circumstances at the time of the agreement. Finding no abuse of discretion or error of law on the part of the lower court, the pre-trial Order is affirmed. Order affirmed. [1] We agree with appellants that the Order is properly appealable under the criteria set forth in Praisner v. Stocker, 313 Pa.Super. 332, 459 A.2d 1255 (1983). See also Dash v. Wilap, 343 Pa.Super. 584, 495 A.2d 950 (1985).