Catawissa Railroad v. Philadelphia & Reading Railway Co.

Citations

• 255 Pa. 269
• 99 A. 807
• 1916 Pa. LEXIS 555
• 4 A.F.T.R. (P-H) 4761

Syllabus

<p>Contracts — Construction—Intention—Leases—Corporations—Income tax — Agreement to pay — Act of May li¡., 1915, P. L. 183.</p> <p>1. Where a lease specifically designates certain taxes which the lessee is to pay, and subsequently other taxes of a different character are levied upon the property, the principle expressio unius est exclusio alterius applies and the lessee will not be required to pay the additional taxes.</p> <p>2. In an action by the lessor of a railroad property to recover from the lessee a tax levied by the Federal government upon the income which plaintiff derived from the property and which plaintiff had paid, it appeared that the lease provided thqt the lessee should “punctually and faithfully pay all taxes, charges and assessments which, during the continuance of the term hereby demised, shall be assessed or imposed under any existing or future law on the demised premises or any part thereof, or on the business there carried on, or on the receipts, gross or net, derived therefrom, or upon the franchises of said company, for the payment or collection upon the capital stock of the (lessor) or the dividends thereon, or upon the franchises of said compapy for the payment or collection of any of which said taxes the (lessor) may otherwise be or become liable or accountable under any lawful authority whatever.” Held, that such tax on income was not within the clear and specific terms of the lease, and was not contemplated by'the parties at the time of its execution, and that the plaintiff could not, require payment thereof by defendant; and defendant was given leave to move for judgment under the Act of May 14,1915, P. L. 483.</p> <p>Mr. Justice Frazer dissents.</p>