Village of Four Seasons v. Elk Mountain Ski Resort , 103 A.3d 814 ( 2014 )


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  • J-A07044-14
    
    2014 Pa. Super. 232
    VILLAGE OF FOUR SEASONS                        IN THE SUPERIOR COURT OF
    ASSOCIATION, INC.                                    PENNSYLVANIA
    Appellee
    v.
    ELK MOUNTAIN SKI RESORT, INC.
    Appellant                   No. 996 MDA 2013
    Appeal from the Order entered May 5, 2013
    In the Court of Common Pleas of Susquehanna County
    Civil Division at No: 2011-1736 CP
    BEFORE: GANTMAN, P.J., DONOHUE, and STABILE, JJ.
    OPINION BY STABILE, J.:                            FILED OCTOBER 14, 2014
    Appellant, Elk Mountain Ski Resort, Inc. (Elk) draws water for
    snowmaking from one of its ponds (Elk Pond), which is connected via a
    breached berm to the lake (Village Lake) of the Appellee Village of Four
    Seasons (Village).    As part of a larger dispute between Elk and Village,
    Village moved for an injunction to stop Elk from drawing water from Village
    Lake.    The trial court granted Village’s cross-motion for partial summary
    judgment, enjoined Elk from drawing water, and ordered Elk to close the
    breach in the berm dividing the two bodies of water.      We affirm in part,
    vacate in part, and remand for further proceedings.
    Elk is a ski resort located in Susquehanna County, Pennsylvania.
    Village is a vacation community located directly below the ski resort. The
    land on which Elk is located includes Elk Pond, which is a small pond.
    J-A07044-14
    Similarly, the land on which the Village is located includes a man-made lake,
    Village Lake.    Elk Pond adjoins Village Lake. The two bodies of water are
    separated by a berm, which includes a breach.         Water flows through the
    breach between the two bodies of water. Elk uses Elk Pond and other bodies
    of water to make snow for its ski slopes. Village uses Village Lake for
    recreation, including boating.
    This appeal concerns whether Village can prevent Elk from using water
    from Village Lake.       The trial court found Village owns the land beneath
    Village Lake. Accordingly, the trial court concluded Elk has no riparian right
    to use the water contained in Village Lake.        As a result, the trial court
    granted Village’s cross-motion for partial summary judgment, enjoined Elk
    from using the Village Lake’s water, and further ordered Elk to “physically
    close the opening in the berm between the Village Lake and the adjoining
    pond, the Elk [Pond].”           Trial Court Order, 6/5/13, at 1. This appeal
    followed.1
    On appeal, Elk raises several issues and sub-issues for our review, to
    wit:
    1. Did the trial court commit reversible error in basing its grant
    of summary judgment on the doctrine that a lake-bed owner
    owns all the water lying above his lake bed, when the record
    ____________________________________________
    1
    The trial court’s order was appealable under Pa.R.A.P. 311(a)(4). After Elk
    appealed, the trial court stayed effect of the injunction pending resolution of
    this appeal.
    -2-
    J-A07044-14
    demonstrates that Elk makes snow from water lying above
    the lake bed it owns?
    2. Did the trial court commit reversible error in granting Village’s
    summary judgment motion even though a reasonable fact-
    finder could conclude that Village’s claims are barred by the
    reasonable-use doctrine of riparian law, by laches, and by
    Elk’s acquisition of an irrevocable license?
    3. Did the trial court commit reversible error in granting Village’s
    summary judgment motion on the ground that Elk could not
    establish that it had a prescriptive right to use the water in
    question, when the conclusion was based on the trial court’s
    sua sponte determination that Village had given Elk an
    “indulgence” to use the water?
    4. Did the trial court commit reversible error in issuing an
    injunction ordering Elk to undertake an affirmative act
    (closing the opening in the berm between [Elk Pond] and
    [Village Lake]) without adequately specifying how Elk was to
    do so?
    Appellant’s Brief at 7.
    It is well-settled that
    [o]ur scope of review of a trial court’s order granting or denying
    summary judgment is plenary, and our standard of review is
    clear: the trial court’s order will be reversed only where it is
    established that the court committed an error of law or abused
    its discretion.
    Summary judgment is appropriate only when the record clearly
    shows that there is no genuine issue of material fact and that
    the moving party is entitled to judgment as a matter of law. The
    reviewing court must view the record in the light most favorable
    to the nonmoving party and resolve all doubts as to the
    existence of a genuine issue of material fact against the moving
    party. Only when the facts are so clear that reasonable minds
    could not differ can a trial court properly enter summary
    judgment.
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    Hovis v. Sunoco, Inc., 
    64 A.3d 1078
    , 1081 (Pa. Super. 2013) (quoting
    Cassel-Hess v. Hoffer, 
    44 A.3d 80
    , 84-85 (Pa. Super. 2012)).
    Elk first argues the trial court erroneously “relied on cases holding that
    an owner of a non-navigable lake bed has exclusive rights to all water that
    lies above the bed he owns.”      Appellant’s Brief at 25.   According to Elk,
    these cases “dealt with land-locked lakes that were not part of a tributary
    system[.]” 
    Id. Elk claims,
    because the two bodies of water are part of a
    tributary system, “[i]t seems more appropriate that riparian law as it applies
    to flowing water, rather than riparian law as it applies to land-locked lakes,
    should apply here.” 
    Id. Additionally, according
    to Elk, the same cases are
    distinguishable because they dealt with trespassing onto another’s lake,
    which is not the case here because Elk made no physical intrusion onto
    Village Lake. 
    Id. at 26.
    We agree.
    The trial court, in determining whether Village had the right to prevent
    Elk from utilizing water from Village Lake reasoned as follows. While “the
    Village Lake and the Elk Pond are part of a stream that eventually exits into
    an unnamed tributary,” the “standard riparian law as it relates to lakes must
    be applied since we are ultimately determining what rights attach to a . . .
    lake[,]” not flowing water. Trial Court Opinion, 5/6/13, at 19.
    Having determined the ultimate question here pertains to rights
    attaching to a lake, the trial court went on to note:
    In Pennsylvania, it is well-settled that, if a body of water is
    navigable, it is publicly owned and may only be regulated by the
    -4-
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    Commonwealth; ownership of the land beneath would not afford
    any right superior to that of the public to use the waterway.
    However, if a body of water is not navigable, it is privately
    owned by those who own the land beneath the water’s surface
    and the land abutting it, and may be regulated by them. The
    rule for determining whether bodies of water are navigable is
    whether they are used, or susceptible of being used, in their
    ordinary condition, as highways for commerce, over which trade
    and travel are or may be conducted in the customary modes of
    trade and travel on water.
    Trial Court Opinion, 5/6/13, at 17-18 (internal citations, brackets, and
    quotation marks omitted).
    With this background in mind, the trial court first determined that
    Village Lake was a non-navigable lake. 
    Id. at 18.
    (“In the instant matter,
    the Village Lake is not navigable because it is not used, or susceptible of
    being used, in its ordinary condition, as a highway for commerce.”). It then
    determined Village owned the Village Lake’s bed.        
    Id. (“[I]t goes
    without
    saying that [Village] claims ownership over [Village L]ake. As for [Elk], it
    has acknowledged on multiple occasions that the Village Lake was built by
    [Village] on [Village]’s property.”). Finally, the trial court found that Village,
    as the owner of land under a non-navigable lake, had the right to regulate
    Village Lake as it pleased.     
    Id. at 20
    (citing Shaffer v. Baylor’s Lake
    Ass’n, Inc. 
    141 A.2d 583
    , 585 (Pa. 1958) (“[I]n the case of a non-navigable
    lake or pond where the land under the water is owned by others, no riparian
    rights attach to the property bordering on the water[.]”); Smoulter v.
    Boyd, 
    58 A. 144
    , 146 (Pa. 1904) (The owner of land under water has the
    right to control activities on the surface); Mountain Props., Inc. v. Tyler
    -5-
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    Hill Realty Corp., 
    767 A.2d 1096
    , 1100 (Pa. Super. 2001) (“The common
    law rule provides that ownership of a lakebed includes ownership of the
    water above it, and the owner of the lakebed can prevent others from
    utilizing his or her property.”)).2
    A   riparian       landowner’s    riparian   rights    differ    based    on   the
    characteristics of the adjoining body of water.3 Non-navigable, land-locked
    bodies of water are “privately owned by those who own the land beneath the
    water’s surface and the lands abutting it, and may be regulated by them.”
    Mountain 
    Props., 767 A.2d at 1100
    .                      However, for non-navigable
    watercourses,     i.e.,    bodies   of   water   that   are   flowing    or   “tributary,”
    “[o]wnership of the land does not include ownership of the water which flows
    over or past it.”     Standard Plate Glass Co. v. Butler Water Co., 5 Pa.
    Super. 563, 576 (1897); see also Scranton Gas & Water Co. v. Del.,
    ____________________________________________
    2
    Loughran v. Matylewicz, 
    81 A.2d 879
    , 882 (Pa. 1951) (“[I]n the case of
    a non-navigable lake or pond where the land under the water is owned by
    others, no riparian rights attach to the property bordering on the water[.]”);
    and Miller v. Lutheran Conference & Camp Ass’n, 
    200 A. 646
    , 650 (Pa.
    1938) (same), were also cited by the trial court.
    3
    There is no dispute that Elk Pond and Village Lake are non-navigable. The
    Commonwealth owns navigable bodies of water. Mountain 
    Props., 767 A.2d at 1100
    . Bodies of water are “navigable” if “used, or susceptible of
    being used, in their ordinary condition, as highways for commerce, over
    which trade and travel are or may be conducted in the customary modes of
    trade and travel on water.” Id.; see also Pa. Power & Light Co. v.
    Maritime Mgt., Inc., 
    693 A.2d 592
    , 594-95 (Pa. Super. 1997) (en banc)
    (discussing the test for navigability).
    -6-
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    Lackawanna & W. R.R. Co., 
    88 A. 24
    , 25 (Pa. 1913) (“It is settled law that
    riparian owners have no ownership of running water.”); Irving’s Ex’rs v.
    Burgess & Town Council of the Borough of Media, 
    10 Pa. Super. 132
    ,
    145 (1898) (“Ownership of riparian land does not include ownership of the
    water which flows over or past it, it is true.”), aff’d per curiam, 
    45 A. 482
    (Pa. 1900).
    For flowing watercourses, an upper riparian owner has the right to
    make reasonable use of the water flowing on or past his property.              See
    Lucas v. Ford, 
    69 A.2d 114
    , 116 (Pa. 1949).
    The rule of law is uniform and undoubted that every riparian
    owner is entitled, as an incident to his land, to the natural flow
    of the water of a stream running through it, undiminished in
    quantity and unimpaired in quality, subject to the reasonable
    use of the water by those similarly entitled, for the ordinary
    purposes of life; and any sensible or essential interference
    therewith, if wrongful, whether attended with actual damage or
    not, is actionable.
    Clark v. Pa. R.R. Co., 
    22 A. 989
    , 990 (Pa. 1891) (emphasis added); see
    also Alburger v. Phila. Elec. Co., 
    535 A.2d 729
    , 731 (Pa. Cmwlth. 1988)
    (plurality   opinion)   (noting   that   Pennsylvania   is   a   “reasonable   use”
    jurisdiction).
    Thus, although Village owns the land underneath the waters of Village
    Lake, it may not own the water itself to the exclusion of all others. If Elk
    Pond and Village Lake are part of a flowing watercourse, Elk—as an upper
    riparian owner—has the right to reasonably use the water. Its use cannot
    harm Village’s interest, i.e., it cannot use so much water that Village can no
    -7-
    J-A07044-14
    longer use Village Lake for recreation. If Elk Pond and Village Lake are non-
    flowing bodies of water, however, Village has plenary rights to the water in
    its lake, and it can bar Elk from drawing any water from Village Lake.
    At this stage in the case, summary judgment is appropriate only if Elk
    cannot produce facts necessary to support a prima facie affirmative defense
    of reasonable use. Pa.R.C.P. 1035.2(2); 
    Hovis, 64 A.3d at 1081
    . We hold
    that Village failed to meet the summary judgment standard, because a
    factual dispute exists regarding whether Elk Pond and Village Lake are non-
    flowing bodies of water, or part of a watercourse.
    We also hold that Elk has not waived its affirmative defense of
    reasonable use. The trial court erroneously held that Elk needed to name
    the defense in new matter. This Court has held otherwise. There is no need
    to name an affirmative defense “if facts sufficient to constitute the defense
    are pled.”   Iorfida v. Mary Robert Realty Co., 
    539 A.2d 383
    , 397 (Pa.
    Super. 1988) (finding that a single paragraph of defendant’s new matter
    sufficiently raised abandonment as an affirmative defense).         In this case,
    Elk’s Answer and New Matter to Plaintiff’s First Amended Complaint, 8/1/12,
    ¶¶ 7, 38, and 39 plead that Elk acted “reasonably and in good faith at all
    times,” that Elk has caused no material harm or injury to Village, and that
    the   Susquehanna    River   Basin   Commission      (SRBC)   has   granted   Elk
    consumptive water-use permits to use Elk Pond for snowmaking.              Taken
    together, these paragraphs are “susceptible of the inference,” Iorfida, 539
    -8-
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    A.2d at 387, that the facts alleged, if true, constitute reasonable use of the
    water in Elk Pond.4
    We additionally reject Village’s argument that Elk’s new matter
    constitutes     insufficient    boilerplate    language        and     fails   to   satisfy
    Pennsylvania’s      fact-pleading     standard.    It     is    true    that   boilerplate
    allegations—without sufficient facts—constitute defective pleading. Pa.R.C.P.
    No. 1019(a). However, a party must file preliminary objections to preserve
    a claim that a pleading is insufficiently specific. Pa.R.C.P. No. 1028(a)(3). A
    party who fails to file preliminary objections waives any challenge to the
    specificity of that pleading.       Pa.R.C.P. No. 1032(a); see also 3 Goodrich
    Amram 2d § 1028(b):2 (2014); Pergolini v. Lun, No. 080800249, 
    2012 WL 8530896
    , at *7 (Pa. C.P. Phila. June 27, 2012), aff’d sub nom., McNamara
    v. Tseng, 
    75 A.3d 555
    (Pa. Super. 2013) (unpublished memorandum).5
    Because Village failed to file preliminary objections to Elk’s new matter,
    Village cannot now challenge its factual specificity.
    ____________________________________________
    4
    We need not address Elk’s argument that a plaintiff must prove
    “unreasonable use” as opposed to the defendant proving “reasonable use.”
    5
    Though Village cites Pergolini for the proposition that boilerplate language
    constitutes insufficient fact pleading, the holding of Pergolini directly
    contradicts Village’s position. In Pergolini, the defendants’ new matter
    stated, “Defendant pleads any and all applicable defenses set forth in
    [Pa.R.C.P. No.] 1030 which may apply to this case.” Pergolini, 
    2012 WL 8530896
    , at *7. The trial court ruled that the plaintiffs’ failure to file
    preliminary objections waived their claim that the defense of license was
    improperly raised. 
    Id. -9- J-A07044-14
    Turning to the merits, we hold that Elk put forth sufficient evidence to
    overcome Village’s cross-motion for partial summary judgment.              For
    example, Elk’s general manager testified in deposition that Elk Pond is fed
    by, or eventually flows into, the East Branch of Tunkhannock Creek. Village
    Cross-Motion for Partial Summary Judgment, 1/16/13, Ex. B., Deposition of
    Gregg A. Confer, 1/11/12, at 40-46. Eric Roof, Compliance Manager for the
    SRBC, testified that Elk Pond is an “on-stream” pond, i.e., a wide spot in a
    stream, and that surface water flows into the pond, and eventually out of it
    into the creek. Elk’s Memo of Law in Opposition to Village’s Cross-Motion for
    Partial Summary Judgment, 4/11/13, Ex. C, Deposition of Eric Roof,
    1/15/13, at 68, 77-78. The SRBC does not adjudicate property or riparian
    rights, and therefore its issuance of permits is dispositive neither of the
    nature of Elk Pond as a watercourse nor of the reasonableness of Elk’s use of
    water under riparian law.6 Its issuance of permits, however, is sufficient to
    raise a factual dispute that Elk Pond and, therefore, Village Lake, are part of
    a watercourse that eventually drains into the Susquehanna River.
    To be entitled to reasonable use of the water in Village Lake, Elk had
    the burden of proving that the water is flowing or tributary. We express no
    opinion on whether Elk can meet that burden, but we find that factual issues
    ____________________________________________
    6
    The compact establishing the SRBC disclaims any effect on the riparian law
    of the signatory governments. 32 P.S. § 820.1, Susquehanna River Basin
    Compact, art. 15.19.
    - 10 -
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    exist regarding (1) whether Elk Pond and Village Lake are land-locked bodies
    of water or part of a flowing watercourse; and (2) if the latter is true,
    whether Elk’s use of water is reasonable under riparian law. Therefore, the
    trial court erred in granting Village’s cross-motion for summary judgment.
    See Pa.R.C.P. No. 1035.2 (summary judgment inappropriate where factual
    disputes exist); 
    Hovis, 64 A.3d at 1081
    (same).
    We turn next to Elk’s claim that the trial court erred in rejecting its
    claim of a prescriptive easement to use the water in Village Lake.         “A
    prescriptive easement is created by (1) adverse, (2) open, (3) notorious, (4)
    continuous and uninterrupted use for a period of twenty-one (21) years.”
    Walley v. Iraca, 
    520 A.2d 886
    , 889 (Pa. Super. 1987); see also
    McNaughton Props., LP v. Barr, 
    981 A.2d 222
    , 225 n.2 (Pa. Super.
    2009).   Moreover, the party asserting the easement must demonstrate
    “clear and positive” proof. 
    Walley, 520 A.2d at 889
    ; see also Pittsburgh
    & Lake Erie R.R. Co. v. Township of Stowe, 
    96 A.2d 892
    , 894 (Pa. 1953)
    (“[A prescriptive easement] will be upheld only if there is clear and positive
    proof of its existence[.]”). Permissive use defeats a claim of a prescriptive
    easement. Morning Call, Inc. v. Bell Atl.-Pa., Inc., 
    761 A.2d 139
    , 143
    (Pa. Super. 2000); see also Borens v. Krywoshyja, 
    184 A.2d 378
    , 380
    (Pa. Super. 1962). The landowner has the burden of proving consent, but
    only after the alleged easement holder proves the use was adverse, open,
    - 11 -
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    notorious, and continuous for 21 uninterrupted years. 
    Walley, 520 A.2d at 889
    .
    The trial court ruled Elk could not establish that its use of Village Lake
    was adverse. Trial Court Opinion, 5/6/13, at 10-13. The trial court found,
    based on a photograph, that Village Lake did not exist prior to June 11,
    1960, and that by letter sent on December 12, 1980, Village granted Elk an
    indulgence to use Village Lake for snowmaking. 
    Id. We agree
    with Village
    that the trial court did not err in rejecting Elk’s prescriptive easement claim.
    The 1980 correspondence7 shows that Village consented to Elk’s use of
    Village Lake. Consent defeats a claim of adverse use. Therefore, Elk cannot
    show that its use of Village Lake was adverse for the requisite 21 years.8
    ____________________________________________
    7
    In pertinent part, the 1980 letter, as found by the trial court, states:
    With reference to the water in the lake, we had
    extensive damage to our docks last year, however,
    this year we have made provisions to unhook our
    docks and have them float so that they may rise or
    fall with the water level. We would be happy to
    work with you with whatever water we have
    that you need, providing it doesn’t weaken our
    damn [sic] by taking the pressure off of it or
    ruin our docks or kill our fish.
    Trial Court Opinion, 5/6/13, at 9 (emphasis in original).
    8
    We find no merit to Elk’s attempt to distinguish express consent from
    indulgence. Either defeats the adverse element of a prescriptive easement
    claim. See 
    Walley, 520 A.2d at 889
    (defendant obligated to present clear
    and positive proof that use of plaintiff’s land was adverse to plaintiff’s
    interests); see also Flannery v. Stump, 
    786 A.2d 255
    , 258-59 (Pa. Super.
    (Footnote Continued Next Page)
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    Next, we address whether the trial court erred in rejecting Elk’s claim
    of laches. A defendant raising laches must show “that because of delay in
    enforcing a right, some change has occurred to the prejudice of the
    defendant, which makes inequitable the enforcement of the plaintiff’s claim.”
    Mariner v. Rohanna, 
    92 A.2d 219
    , 221 (Pa. 1951); see also In re Estate
    of Aeillo, 
    993 A.2d 283
    , 287 (Pa. Super. 2010).
    The doctrine of laches:
    is an equitable doctrine which bars relief when the complaining
    party is guilty of want of due diligence in failing to promptly
    institute the action to the prejudice of another. In order to
    prevail on an assertion of laches, respondents must establish: a)
    a delay arising from petitioner’s failure to exercise due diligence;
    and, b) prejudice to the respondents resulting from the delay.
    The question of laches is factual and is determined by examining
    the circumstances of each case. Prejudice in the context of a
    claim of laches means that the party must change his position to
    his detriment in order to invoke laches. Furthermore, laches is
    an equitable doctrine that should not be applied in favor of a
    person who has failed to take required action on his own.
    In re Estate of Aiello, 
    993 A.2d 283
    , 288 (Pa. Super. 2010) (internal
    citations omitted).
    Here, Elk had the burden to establish, by competent evidence in its
    opposition to summary judgment, that Village’s delay in enforcing its water
    _______________________
    (Footnote Continued)
    2001) (“[T]o establish a property right by prescription, the use upon which
    it is based must be adverse to the rights of the owner of the land. If the
    use is the result of some lease, license, indulgence, or special contract
    given by the owner, it is not adverse.”) (first emphasis in original; second
    and third emphases added) (quoting Margolin v. Pa. R.R. Co., 
    168 A.2d 320
    , 322 (Pa. 1961)).
    - 13 -
    J-A07044-14
    rights caused prejudice to Elk under circumstances that would make it
    inequitable to enforce Village’s claim.
    The trial court concluded that Elk waived the defense of laches by
    failing to plead it in new matter. Trial Court Opinion, 5/6/13, at 14. The
    trial court was mistaken.        Elk in fact raised this defense in its defensive
    pleadings. See Elk Mountain Ski Resort, Inc.’s Answer and New Matter to
    Plaintiff’s First Amended Complaint, 8/1/12, ¶ 44 (“Plaintiff’s claims are
    barred, in whole or in part, by the doctrine of laches.”).9
    The trial court’s error in finding this claim waived is harmless, since we
    find, in any event, Elk did not meet its burden to establish its laches claim.
    Elk maintains it was error to dismiss its laches claim because it spent
    considerable effort and money creating its ski resort dependent upon water
    from Elk Pond. Elk assets Village, aware of Elk’s efforts, sat on its purported
    water rights for decades before seeking to enjoin Elk from using Village’s
    water (which Elk denies).10 Elk claims it spent millions of dollars to install
    snowmaking equipment specially tailored for Elk Pond.          Initially, we note
    ____________________________________________
    9
    Village argues that Elk failed to satisfy Pennsylvania’s fact-pleading
    standard by pleading no material facts in support of laches in new matter.
    Village waived this argument by failing to file preliminary objections. See
    the discussion concerning waiver of defects in a pleading by failure to file
    preliminary 
    objections, supra
    .
    10
    Of course, should the fact-finder ultimately determine Elk is not using
    Village’s water as Elk at times contends, Elk’s laches argument becomes
    moot.
    - 14 -
    J-A07044-14
    that while Elk recites numerous general improvements to its snowmaking
    operations, it falls short of demonstrating the extent to which these changes
    related to its dependence upon use of water from Village Lake to sustain its
    laches argument. Elk apparently draws water from several sources. More to
    the point, Elk’s laches claim fails because, like its prescriptive easement
    claim, Village’s consent or indulgence for Elk’s use of water, as reflected in
    the 1980 letter, clearly stated Village was willing to work with Elk on water,
    providing it does not weaken Village’s dam, ruin its docks, or kill Village’s
    fish.   Elk was on notice since 1980 it did not possess an unfettered and
    indefinite right to rely upon Village’s water. Village, in effect, informed Elk
    should Village suffer adverse consequences from Elk’s drawing of water from
    Village’s lake, it would object. Therefore, Elk did not demonstrate Village sat
    upon and delayed enforcing its rights to establish the required prejudice to
    support its laches claim under circumstances that would render enforcement
    of Village’s claim inequitable.
    We finally address whether the trial court erred in rejecting Elk’s claim
    that it had an irrevocable license to use the water in Village Lake. A license
    is a “personal privilege to perform an act or a series of acts on the land of
    another.” Kovach v. Gen. Tel. Co., 
    489 A.3d 883
    , 885 (Pa. Super. 1985).
    A license may be written, but is usually oral.        
    Id. Licenses are
    freely
    revocable, and become irrevocable only when the licensee relies on it to his
    detriment, by expending money, labor, or treating his property differently
    because of the license.     Zivari v. Willis, 
    611 A.2d 293
    , 296 (Pa. Super.
    - 15 -
    J-A07044-14
    1992); see also Morning 
    Call, 761 A.2d at 144
    (“The Pennsylvania
    Supreme Court adopted the equitable doctrine of irrevocable license in the
    mid-nineteenth century stating that a license to do something on the
    licensor’s land when followed by the expenditure of money on the faith of it,
    is irrevocable, and is to be treated as a binding contract.”) (internal
    quotation omitted). The use of water in a stream can be the subject of a
    license. Thompson v. McElarney, 
    82 Pa. 174
    , 177-78 (1876). Irrevocable
    license is an affirmative defense. Pa.R.C.P. No. 1030(a). As such, it must
    be pleaded in new matter, or it is waived. Pa.R.C.P. No. 1032(a); 
    Iorfida, 539 A.2d at 386
    .
    The trial court correctly concluded that Elk waived the affirmative
    defense of irrevocable license by failing to plead it in new matter. Although
    Elk directs this Court’s attention to three paragraphs of its new matter, none
    of those paragraphs—or indeed any of Elk’s pleadings—mentions irrevocable
    license.   Iorfida, 
    discussed supra
    , does not apply, because there are no
    facts and no legal conclusions pleaded that could plausibly support a defense
    of irrevocable license.       By failing to plead this affirmative defense, Elk
    waived this potential defense.11
    ____________________________________________
    11
    Assuming, arguendo, that Elk did not waive its claim of irrevocable
    license, summary judgment was proper. The justifiable reliance necessary
    to make a license irrevocable requires proof that (1) reliance was after the
    grant of a license; (2) the licensee cannot be restored to his original
    position; (3) and the expenditures outweigh the benefits. See Buffington
    v. Buffington, 
    568 A.2d 194
    , 200-01 & n.7 (Pa. Super. 1989). Elk failed to
    (Footnote Continued Next Page)
    - 16 -
    J-A07044-14
    Having reviewed the briefs and record, we conclude that the trial court
    erred in granting summary judgment to Village on Elk’s claim that it is an
    upper riparian owner with the right of reasonable use of water from Village
    Lake for snowmaking. The trial court correctly granted summary judgment
    on Elk’s remaining claims of prescriptive easement, laches, and irrevocable
    license.12   Accordingly, we affirm in part, vacate in part, and remand for
    further proceedings.
    Order affirmed in part and vacated in part.          Case remanded.
    Jurisdiction relinquished.
    Judgment Entered.
    Joseph D. Seletyn, Esq.
    Prothonotary
    Date: 10/14/2014
    _______________________
    (Footnote Continued)
    meet its burden of showing justifiable, detrimental reliance. Aside from
    general statements that use of Village Lake allowed Elk to improve its
    snowmaking operations, no evidence of record exists as to when Elk made
    improvements, how much they cost, whether they were related to the water
    drawn from Village Lake, or whether Village knew about them. Thus, Elk
    failed to present prima facie evidence of justifiable reliance.
    12
    Given our disposition, we do not need to address at this time Elk’s
    argument that the trial court’s injunction is too vague.
    - 17 -