Abboud v. Lakeview, Inc.

466 N.W.2d 442, 237 Neb. 326, 1991 Neb. LEXIS 89
CourtNebraska Supreme Court
DecidedMarch 1, 1991
Docket88-903
StatusPublished
Cited by98 cases

This text of 466 N.W.2d 442 (Abboud v. Lakeview, Inc.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abboud v. Lakeview, Inc., 466 N.W.2d 442, 237 Neb. 326, 1991 Neb. LEXIS 89 (Neb. 1991).

Opinion

White, J.

This is the second appearance of this case before this court. Abboud’s original action was for declaratory and injunctive relief against the defendants-appellees, Lakeview, Inc., and the City of Ralston (City). Abboud prayed for a permanent injunction prohibiting the sale of real property from the City to Lakeview, for a permanent injunction preventing the City from selling or using the property for anything other than a park, and for a finding that a 1967 lease between the City and Lakeview was void. The district court sustained the defendants-appellees’ demurrer, and Abboud appealed to this court. This court reversed and remanded the action for further proceedings. See Abboud v. Lakeview, Inc., 223 Neb. 568, 391 N.W.2d 575 (1986). On remand the district court denied Abboud relief, and this appeal followed.

This action concerns real property, commonly referred to as the “Seymour Lakebed,” on which Lakeview, under a lease with the City, built and maintained a golf course. The City subsequently sold the land to Lakeview under a purchase option in the lease. It is this sale that Abboud seeks to enjoin. Lakeview also leased and later purchased under the lease option an adjoining piece of property that was not part of the lakebed property we are concerned with in this action. The golf course is *328 built on both pieces of property. The boundaries of each piece of property are depicted in the diagram below. Abboud is a resident and former city councilman of Ralston. He also owns property located directly across the street from the golf course. This court has already decided that Abboud has standing to bring suit against the City. See Abboud, supra.

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*329 On May 8, 1937, the Cudahy Packing Company, for consideration, conveyed by warranty deed to the City (then a village) the lakebed property. The grant of the property was in the form of a fee simple subject to condition subsequent. The land, by the terms of the deed, was restricted to park or public recreation area use and subject to a right of reentry by the grantor in the event the property was ever used for a different purpose. Cudahy Packing thus held a future interest called a right of reentry. On October 27,1944, Cudahy sold this interest (consisting of the right of reentry) to Mr. and Mrs. Fred Eipperle. On April 1,1947, the voters of the City authorized the board of trustees to issue a general obligation bond in the amount of $5,000 to purchase the right of reentry from the Eipperles. The minutes of the Ralston City Council dated February 4, 1947, refer to the bond issue as “Park Bonds for purchasing land for park purposes.” The minutes also state that the purpose for obtaining the Eipperles’ interest was so that a dry lake on the property could be revived. Additionally, the minutes note that Fred Eipperle had been attempting for several months to cause the land to revert back to him, leaving the City without any interest in the land. The City subsequently obtained the Eipperles’ title to the land by quitclaim deed. Because the City then owned both the present possessory and future interests, under the doctrine of merger the two estates became a fee simple absolute. See Abboud, supra. Therefore, the restriction in the deed from Cudahy Packing no longer existed, and the City owned the land in fee simple free of restriction. Id.

The testimony is conflicting as to the uses made of the lakebed property prior to construction of the golf course. Eldon Murray, the City’s maintenance superintendent for 18 years and a resident of Ralston since 1949, testified that the property was not a park and was not treated as a park during that period. He stated that much of the property was marshy and full of mosquitoes and rodents. Murray testified that during his years as the maintenance superintendent there were no bathroom facilities, water fountains, improved trails, picnic tables, or flowers present on the property. A former mayor of Ralston, Wendell Kronberg, testified that the property was *330 abandoned, was used as a dump by residents of Ralston, and was an “eyesore.” According to the May 20, 1952, city council minutes, the councilmen voted to permit Don Fucinaro to raise corn on the lakebed.

In support of his contention that the property was used as a park, Fred Abboud testified that his sons played football in the area and that he observed the area being used for fishing, hiking, and camping. Fern Taylor, a longtime resident of Ralston, testified that children ice-skated on the lakebed when there was water in it and that men trained hunting dogs in the area. Hugh Hamilton, a former city councilman and resident of Ralston, testified that in the 1950’s water was pumped from Big Papillion Creek into the lakebed and that children swam and people fished there when the lake was full. He also testified as to the existence of a clubhouse on the property that was later torn down.

There is evidence in the record that the City did expend a small amount of money on the property prior to 1967. Murray, the maintenance superintendent, testified that his department mowed parts of the property when it was able to and that the area was sprayed for mosquitoes. The city council minutes during the years 1948 and 1949 mention plans for the installation of pumping equipment for the lake, which at that time contained water. The minutes also mentioned rental of the clubhouse to various organizations. There is no evidence in the record, however, that the City ever attempted to permanently revive the lake or develop the property into a park. Pictures of the property taken prior to the development of the golf course depict the land as overgrown and left primarily in its natural state. The City did not formally dedicate the land as a park or improve the land with the usual park amenities such as parking, landscaping, or bathroom facilities. The land remained in an undeveloped state until 1967, when the City entered into the lease with Lakeview.

Prior to and after entering into the lease of the property with Lakeview, the City sold three portions of the lakebed property to private parties: the first to William Dodson in June 1957, the second to W.C. Foxley in February 1965, and the third to the American Legion in July 1984. The boundaries of these parcels *331 are depicted in the diagram. Fred Abboud was a member of the city council and voted in favor of the sale to Foxley in 1965.

In 1963, a member of the city council suggested that the lakebed property be used to build a golf course. The council then began to actively seek bids from private developers interested in building and operating a golf course on the property. In 1967, the City leased the lakebed property, as well as an adjoining piece of property, to Lakeview after an earlier lessee, Miller, failed to develop the land as required in his lease agreement. The City-Lakeview lease specified that Lakeview was to develop and maintain the property as a golf course. The term of the lease was for 25 years, with an option to renew.

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Bluebook (online)
466 N.W.2d 442, 237 Neb. 326, 1991 Neb. LEXIS 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abboud-v-lakeview-inc-neb-1991.