Ann Arbor Construction Co. v. United States

126 F. Supp. 161, 130 Ct. Cl. 244, 1954 U.S. Ct. Cl. LEXIS 33
CourtUnited States Court of Claims
DecidedNovember 30, 1954
DocketCongressional No. 17871
StatusPublished
Cited by4 cases

This text of 126 F. Supp. 161 (Ann Arbor Construction Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ann Arbor Construction Co. v. United States, 126 F. Supp. 161, 130 Ct. Cl. 244, 1954 U.S. Ct. Cl. LEXIS 33 (cc 1954).

Opinion

Laramokb, Judge,

delivered the opinion of the court:

This is a congressional reference case referred to the Court of Claims by Senate Eesolution 224, 82d Congress, 1st Session, with instructions to proceed in accordance with sections 1492 and 2509 of Title 28 of the United States Code.1

Pursuant to the aforementioned reference the plaintiff has filed its petition in this court seeking to recover the amount it spent in moving its concrete mixing plant.

[246]*246From 1941 through 194S plaintiff, as a materials supplier, furnished transit-mixed concrete to the prime contractor who had undertaken the building of Willow Nun Bomber Plant. Originally it supplied this demand from its plant in Ann Arbor, Michigan, which is approximately 14 miles from the site of the Willow Eun Bomber Plant.

In order to facilitate deliveries to Willow Eun plaintiff secured a site for its transit-mixed concrete plant near Willow Eun by lease dated May 31,1941, from one Wiard for a term beginning May 10, 1941. The lease provided in part:

The term of this lease shall be one year or the length of time required for the construction and completion of the so-called Bomber Plant, now being erected for the Ford Motor Company on the south side of Ecorse Eoad, whichever is the longer. The party of the second part is to remove all construction both above and below the ground and to place in as near the condition originally found as is possible including reseeding. The fences are to be reset.

Pursuant to the lease, the plaintiff corporation erected a concrete mixing plant on the new site, which we will refer to as Site 1. Said plant was portable, although certain facilities used in conjunction therewith were fixed installations.

In November of 1941 the Michigan State Highway Department undertook to construct access roads to the bomber plant. It notified plaintiff by letter dated November 19, 1941 that Site 1 was being purchased by the state. The letter reads in part as follows:

We have been notified that you are leasing property in Washtenaw County from Lyman E. and Florence P. Wiard, which property is described as follows:
*****
The Michigan State Highway Department is purchasing this property from Mr. and Mrs. Wiard for highway purposes in the vicinity, and as part of the consideration it has been agreed that your monthly payments on the lease are to be made to Mr. and Mrs. Wiard until May 10,1942. If it is necessary for you to use the property after May 10,1942, payments should be made to the Michigan State Highway Department.
[247]*247Will you please acknowledge receipt of this notice by-signing in the space provided below, returning the signed copy of the letter to this office.

The letter was acknowledged by plaintiff.

On January 6, 1942, the State of Michigan filed a condemnation suit to secure possession of land needed for the proposed extension of the highway system, including the land occupied by plaintiff as Site 1.

The Highway Department notified the plaintiff of the necessity of moving from Site 1 by a letter dated January 16, 1942. The state was unable to obtain possession of all of the necessary rights-of-way within the time required by the highway construction program, without the assistance of the Federal Government under the Defense Highway Act, 55 Stat. 765.

On January 30,1942, the Highway Department requested the Federal Government to secure immediate possession and title on behalf of the state of the additional land, including land hereafter referred to as Site 2. The United States condemned the land and was reimbursed by the state for the cost of the acquisition. The United States did not deliver a deed for the property to the State of Michigan until September of 1945.

In May 1942 the state and plaintiff entered into an oral agreement whereby plaintiff moved to Site 2, furnished by the State of Michigan, and the state reimbursed plaintiff $8,498.39 for its moving expenses from Site 1 to Site 2. The oral arrangements provided that the occupancy of Site 2 by plaintiff would be on the same rental and for the same terms as the lease plaintiff had for Site 1. Plaintiff paid the stipulated rent to the Highway Department until October 10,1943.

In July 1942, the Army requested and received authority to use the area including Site 2 for a temporary hospital. The state was aware of plaintiff’s occupancy at the time but apprehended no potential conflict between the uses. Pursuant to this authority the Army constructed a temporary hospital on Site 2.

[248]*248Difficulties arose from the simultaneous use of Site 2 by plaintiff’s plant and the Army’s temporary hospital. The Army complained that the noise from plaintiff’s plant disturbed the hospital patients. Plaintiff was willing to vacate Site 2 if the Army would reimburse its costs of so doing. The dispute was brought to the attention of the Highway Department of the State of Michigan which attempted to explain the situation to the Army by letter dated February 8,1948, reading in part as follows:

Second, It is apparent that two different permissions were given concerning this property, and that in the matter of the presence of the Ann Arbor Construction Company’s buildings on the property, these two permissions overlap and are inconsistent. The permission given to the Army Air Corps to use the Area for con-tonment [sic] purposes was promised in a letter of July 15, 1942, written by State Highway Commissioner Kennedy to Lieutenant Colonel F. I. Kennedy, C. E. Division Real Estate Director, Chicago, and covers the entire area between old Ecorse Koad, Wiard Koad, the Ford Kailroad spur, and our new Expressway on the north.
However, prior to this by a matter of several months, the Chief Engineer of the State Highway Department, learning that the Ann Arbor Construction Company was occupying property on the west side of Wiard Koad under written lease and that it was directly in line of the Expressway, required that Company to move to the Foster property on the east side of Wiard Koad, and agreed that they might remain thereon until the completion of the Bomber Plant. That Company’s rent is paid to May 10,1943.
This was an authoritative commitment by the Highway Department and it appears to me that the later permission to Lieutenant Colonel Kennedy in July 1942, is subject to the prior rights granted the Ann Arbor Construction Company by the Highway Department.
Now as to the practical solution of this matter, I believe that the Ann Arbor Construction Company is getting very close to the end of its operations at that point and will vacate as soon as this time is at hand. Whether that will be before or after March 1, 1943, I have not yet been able to ascertain; but the Company has played a rather vital part in the furtherance of the project, is setting there on the strength of valid permis[249]*249sion from this Department, and in all equity should not be disturbed in carrying out the last few weeks of its activities. I am sure that they will cooperate, as they have always done in the past, and that the entire matter will clear itself up in friendly fashion.
I am seeking expression from Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
126 F. Supp. 161, 130 Ct. Cl. 244, 1954 U.S. Ct. Cl. LEXIS 33, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ann-arbor-construction-co-v-united-states-cc-1954.