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Steuart v. McChesney

Supreme Court of Pennsylvania
444 A.2d 659 (1982)


Steuart (defendant) and her late husband entered into an agreement with Mr. and Ms. McChesney (plaintiffs) granting the McChesneys a right of first refusal on a parcel of farmland. Under the agreement, the McChesneys would have the right to purchase the property if the Steuarts ever found another purchaser for the property. The sale price was set at the market value according to county and state tax assessment rolls. The property had been appraised at a value of $50,000. When the Steuarts received offers of $30,000 and $35,000, the McChesneys offered a price of $7,820, which was twice the value listed on the county tax rolls. The Steuarts refused to sell for that price, and the McChesneys brought suit to compel performance. The trial court held that double the assessed value was "a mutual protective minimum price" and determined that the McChesneys had the right to buy the property for $35,000. The Superior Court reversed. The Steuarts appealed.

Rule of Law


Holding and Reasoning (Flaherty, J.)

Dissent (Roberts, J.)

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