AmeriCanada TeleFerry Co. v. Detroit

196 N.W.2d 854, 38 Mich. App. 466, 1972 Mich. App. LEXIS 1672
CourtMichigan Court of Appeals
DecidedFebruary 23, 1972
DocketDocket No. 10584
StatusPublished

This text of 196 N.W.2d 854 (AmeriCanada TeleFerry Co. v. Detroit) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AmeriCanada TeleFerry Co. v. Detroit, 196 N.W.2d 854, 38 Mich. App. 466, 1972 Mich. App. LEXIS 1672 (Mich. Ct. App. 1972).

Opinion

O’Hara, J.

This is an appeal from a summary judgment entered in favor of defendant city. Plaintiffs appeal of right.

The issues pleaded, the defenses raised, the motions made, the affidavits filed in opposition and support thereof, and the admixture of alleged conflict between the legislative and executive branches of defendant city suggests a controversy of great complexity.

As we view it, on appeal at least, the issue is extremely limited. Though appellants assign eight claims of error, we think in the composite they amount to two.

(1) On the basis of the complaint, the answer, the exhibits and motions, and the affidavits pro and contra, was summary judgment properly granted?

(2) Did plaintiff Detroit-Windsor Teleferry, Ltd., have standing as a party plaintiff?

This is how it all came about. In October of 1956 plaintiff AmeriCanada TeleFerry Company, a Dela[468]*468ware corporation and defendant city, a municipal corporation, executed a document which is entitled “Lease”. It contains an impressive number of signatures; the Controller of defendant city, the Director of the Civic Center Commission (a sort of offshoot of the municipal corporation exercising some measure of control over real estate owned by the city, but subject to continuing control by the common council), the president of plaintiff corporation, AmeriCanada, and the city clerk as the executing amanuensis of the Detroit Common Council.

That it binds both parties there can be no doubt. What, if anything, it binds them to is another matter. The city, by its Corporation Counsel, drew the lease. Perforce, it must be construed the more strictly against the city.1

The instrument purports to lease to plaintiff AmeriCanada, city-owned land for a “Teleferry Building Site” and a “Pylon Site”. The involved land was subject to some measure of delegated control by the Civic Center Commission. The idea was that the lessee would finance and construct an aerial high-wire ferry connecting Detroit and Windsor. During the period of construction, the contractors were to pay the city for 45 parking spaces at 50 cents per day. When construction was completed, this portion of the lease was to terminate. Thereafter, and commencing on the “operational date of the facility”, the lessor was to pay a minimum annual rental of $25,000, and a sliding scale of percentages of gross revenue ranging from 12% to 35%. There were elaborate requirements for bookkeeping, turnstile counts, and audit procedures. One detail seems to have been overlooked or intentionally omitted. [469]*469No date was set upon which the aerial device had to be completed.

As far as we can glean from the record, the parking lot fees were never paid. Construction however was never begun.

It cannot be gainsaid1 that the lessee expended time, effort and money, to be exact $162,000, in preliminary surveys and obtaining permits of one sort or another including presidential approval. As this aspect of the project went on (for four years at least), financing difficulties seemed to have been encountered. But finally, so plaintiffs claim, financing was guaranteed by Swiss financiers and the city council was approached again. After a study by the city’s Auditor General, the Corporation Counsel (city attorney) was ordered to prepare an instrument that would be more specific than the one previously mentioned herein and submit it to the council.

We quote the resolution dated November 6, 1969.

“Resolved, That the Corporation Counsel be and he is hereby authorized and directed to prepare a lease between the City of Detroit and Americanada Teleferry Company based on the analysis of the Auditor General indicating the guidelines for said proposed negotiated lease which shall be subject to review and approval of the Common Council # # * (Emphasis supplied.)

It has been stipulated that for some unspecified refason, the Corporation Counfeel never prepared the lease which the resolution directed him to. In obvious consequence the council never did review and approve or disapprove it. This gave rise to plaintiffs’ prayer for mandamus in addition to specific performance and money damages.

While this apparent city legislative-executive stalemate continued, the lessor wrote the Civic Center Commission as follows:

[470]*470“22 January 1969.
“Secretary Civic Center Commission
“1 Washington Blvd., Detroit, Michigan
“Dear Sir:
“We are the developers of the AmeriCanada TeleFerry, the aerial cable tramway system intended1 to link Detroit and Windsor across the Detroit River. We have obtained all of the necessary licenses, permits and leases from the various federal, municipal, and state governments, both in USA and Canada. For financial reason however, we cannot proceed with our project.
“We are convinced that for the next few years it will not be possible to develop the AmeriCanada TeleFerry by private capital. Our efforts, including private financing as well as public stock issue, were not successful. We feel that it can indeed be a successful venture if it is sponsored by a suitable governmental agency. We therefore would1 like to relinquish our control of the company to the Civic Center Commission.
“When can we present our offer in person before the Commission? All we want in return is the return of our dollar investment plus a modest finder’s fee for obtaining the necessary documentation, which I repeat is 100 percent complete.
“Cordially,
“AMERICANADA TELEFERRY COMPANY
“/s/ George H. Amber
“George H. Amber, President.”

Nothing seems to have happened in the way of a written response to this letter. On March 20, 1970, plaintiffs filed their complaints seeking, as herein-before noted, mandamus, specific performance and money damages.

The city countered, alleging nonperformance, lack of mutuality of obligation, abandonment, breach, unenforeeability and nonliability generally.

[471]*471The able trial judge applied himself diligently to the matter and favored us with a comprehensive opinion.

In substance he held:

(1) The letter of January 22 to the Civic Center Commission was in fact a confession of inability to proceed under the original contract, hence that the city was relieved of its obligations, if any, thereunder.

(2) Mandamus did not lie because no clear legal duty to perform a specific act was established and because no mutuality of obligation arose from the terms of contract and thus specific performance could not be compelled.

(3) The plaintiff, Detroit-Windsor Teleferry, Ltd of Windsor, was neither an assignee, nor a third-party beneficiary and that it had no direct contractual relationships with defendant city, and thus was without standing as a party plaintiff.

In this case, as in all summary judgment matters, our scope of review is extremely limited.

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Cite This Page — Counsel Stack

Bluebook (online)
196 N.W.2d 854, 38 Mich. App. 466, 1972 Mich. App. LEXIS 1672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/americanada-teleferry-co-v-detroit-michctapp-1972.