Northern Liberties Gas Co. v. United Gas Improvement Co.

Opinion by

Mr. Justice Linn,

It is well established that a lessee will not be held liable for his lessor’s taxes unless the obligation is stated in “clear and specific terms:” Catawissa R. R. Co. v. Phila. & Reading Ry. Co., 255 Pa. 269, 271, 99 A. 807, and cases following it. A “covenant by a lessee to pay the income taxes of the iessor is not within the terms of the contracts unless the obligation is clearly and directly specified.” U. S. v. Warren Ry. Co., 127 F. 2d 134, 136 (C. C. A. 2d, 1942). “Unless the lease expressly provides for the payment of taxes on the income from rentals received…