Banyan Construction Co. v. Union Electric Co.

840 S.W.2d 298, 1992 Mo. App. LEXIS 1699, 1992 WL 321419
CourtMissouri Court of Appeals
DecidedNovember 10, 1992
DocketNo. 61377
StatusPublished
Cited by3 cases

This text of 840 S.W.2d 298 (Banyan Construction Co. v. Union Electric Co.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Banyan Construction Co. v. Union Electric Co., 840 S.W.2d 298, 1992 Mo. App. LEXIS 1699, 1992 WL 321419 (Mo. Ct. App. 1992).

Opinion

PUDLOWSKI, Judge.

Appellant Banyan Construction Company built a duplex that encroached on Respondent Union Electric Company’s transmission line easement. Banyan appeals the trial court’s grant of Union Electric’s motion for summary judgment. We affirm.

Banyan initially acquired the original parcel of real estate in St. Louis County in March 1987, and constructed thereon a sixteen unit townhome development known as Banyan Townhomes. Union Electric owned a nearby substation and many of the properties surrounding the development. In March 1988, Banyan acquired from Union Electric a “triangular tract” of land that adjoined the original parcel to the southwest. Abutting the original parcel of real estate on the east was a section of Old Fee Fee Road that was vacated by St. Louis County in June 1988. Reversionary interests in this parcel, referred to in this case as the “.53 acre,” were left to Banyan and Union Electric as the adjoining property owners. On July 1, 1988, Banyan acquired Union Electric’s interest in the .53 acre by quitclaim deed. On that same day, Banyan granted Union Electric a transmission line easement over the .53 acre, which is the focus of this case. The acquisition of the triangular tract and the .53 acre was negotiated as a package for which Banyan paid Union Electric $20,000.

[300]*300The electrical transmission easement that Banyan granted to Union Electric was Union Electric’s standard form for such easements. Negotiations over this easement were carried on and evidenced by a letter dated March 12, 1987, from Don Niemeyer, a Union Electric representative, to Bud Mi-celli, Banyan’s president. Micelli signed the easement, and his attorney notarized it. The one hundred fifty foot wide easement ran northwesterly across the northeastern most portion of the .53 acre.

The acquisition of the .53 acre allowed Banyan to construct a seventeenth unit on the easternmost edge of the original parcel in mid-1989. Banyan also decided to build one duplex, units eighteen and nineteen, on the northernmost portion of the .53 acre. Prior to this time, Banyan had no plans to build on the .53 acre.

Banyan knew that before building it should request easement releases from all utilities who had easements over the construction area. By the time construction of units eighteen and nineteen began, however, Banyan maintained it had forgotten about the transmission line easement. Banyan began construction of the duplex in March 1990.

In preparation for this construction Banyan sought surveys and title commitments. Banyan’s engineers and surveyors prepared sketches showing the additional units and existing easements. The drawings did not, however, show Union Electric’s transmission line easement. Banyan also secured a title commitment for the .53 acre. Again, the transmission line was not listed as an encumbrance. There were also several instances of contact between Banyan and Union Electric or third parties regarding the duplex. These facts will be developed in the context of the relevant points on appeal.

On April 26, 1990, Banyan contacted Lee Baalman, a Union Electric employee, for assistance regarding a drainage swale in connection with the construction on the .53 acre. The next day, Baalman spoke with Banyan’s attorney, Michael Kern and stated his concern that Banyan was building on the easement. Baalman informed Kern that Union Electric had a transmission line easement over the .53 acre, and that Banyan should request release of the easement. Because the shell of the duplex was substantially complete and encroached nearly fifty feet onto the easement, Banyan immediately requested release of the transmission line easement.

On July 18, 1990, Union Electric advised Banyan that it would not release the easement. Union Electric determined that although the duplex was not located on the centerline of the easement, where the transmission lines would likely run, it lay within fifty feet of the centerline. Union Electric also based its refusal to release on the uncertainty of future disputes and the importance of maintaining flexibility to install future lines. Releasing any of the easement was unacceptable to Union Electric. Thus, Union Electric demanded that Banyan remove the duplex from the .53 acre.

Banyan incurred many construction and legal expenses. In order to make the duplex weathertight, Banyan continued construction after Union Electric’s demand for removal. Banyan expected to make a profit on the sale of units eighteen and nineteen, but now believes its return will be diminished. Banyan brought suit in the Circuit Court of St. Louis County.

In the trial court, Banyan sought a declaration of its right to complete the building in count I of its petition. Banyan also claimed damages against Union Electric for tortious interference with Banyan’s effort to complete and sell the units in count II and for Union Electric’s breach of the easement contract in count III. Union Electric counterclaimed for a declaration that the easement remained in full force and effect and that the duplex constituted an illegal encroachment on the easement and must be removed. Union Electric also sought an injunction compelling Banyan to remove the duplex. Cross motions for summary judgment were submitted based upon depositions, joint stipulations and affidavits. On December 5, 1991, the trial court granted judgment in favor of Union Electric [301]*301Company on all counts. Banyan appeals alleging four points of error.

Review of summary judgment is equivalent to review of a court-tried case and if, as a matter of law the judgment is sustainable on any theory, it will be sustained. J.R. Green Properties, Inc. v. Meixner, 778 S.W.2d 342, 343 (Mo.App.1989). A genuine issue of material fact, which would preclude the entry of summary judgment, does not exist where the case was submitted to the trial court on cross motions for summary judgment supported by stipulations of fact and affidavits. Id. The entry of summary judgment by the trial court in court-tried cases of an equitable nature will be sustained, therefore, unless there is no substantial evidence to support it, it is against the weight of the evidence or it erroneously declares or applies the law. Cervantes v. Ryan, 799 S.W.2d 111, 115 (Mo.App.1990) (reh’g, transfer denied 1990).

In its first point, Banyan argues that the trial court erroneously granted summary judgment in favor of Union Electric and against Banyan on count I of Banyan’s petition and on Union Electric’s counterclaims because that judgment is inequitable, incorrectly applies the law, is not supported by substantial evidence, and is against the weight of the evidence. Banyan asserts that the easement permits structures which do not interfere with Union Electric’s reasonable use of the easement, and Banyan’s building does not interfere with Union Electric’s reasonable use of the easement.

The transmission line easement sets forth Union Electric’s rights and establishes limitations on Banyan’s rights. The easement language provides:

... the perpetual right, ... in Grantee to survey, stake, construct, reconstruct, erect, place, keep, operate, maintain, inspect, patrol, add to the number of and relocate at will, at any time,

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Bluebook (online)
840 S.W.2d 298, 1992 Mo. App. LEXIS 1699, 1992 WL 321419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banyan-construction-co-v-union-electric-co-moctapp-1992.