City of Laurel v. Powers

366 So. 2d 1079
CourtMississippi Supreme Court
DecidedJanuary 10, 1979
Docket50659
StatusPublished
Cited by7 cases

This text of 366 So. 2d 1079 (City of Laurel v. Powers) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Laurel v. Powers, 366 So. 2d 1079 (Mich. 1979).

Opinion

366 So.2d 1079 (1979)

The CITY OF LAUREL, a Municipal Corporation, the Laurel Urban Renewal Agency, a Body Corporate and Politic,
v.
Viola D. POWERS and Curtis N. Jones.

No. 50659.

Supreme Court of Mississippi.

January 10, 1979.

*1080 Pickering & McKenzie, Franklin C. McKenzie, Jr., Gibbes, Graves, Mullins, Bullock & Ferris, Ernest W. Graves, Laurel, for appellant.

Lunsford Casey, Thomas Gene Clark, Laurel, for appellee.

Before PATTERSON, SUGG and BOWLING, JJ.

SUGG, Justice, for the Court:

This is an appeal from a final decree of the Chancery Court of Jones County, awarding damages to complainants, Curtis N. Jones and Viola D. Powers, for taking private property by the City of Laurel by inverse condemnation. The complainants owned Lot 7 of the Commercial Block Addition to the City of Laurel, and on September 18, 1959, Jones executed a deed which conveyed his one-half interest in Lot 7 to the city. His deed provided for a reverter in the following language:

This conveyance is made in order that the grantee may establish thereon a public parking lot and is made only for so long as the property conveyed is used for a public parking lot, and if, at any time, it shall cease to be used for such purpose, title shall automatically and immediately revert to the grantor, his heirs, successors or assigns.

On September 1, 1959, Viola D. Powers, executed a lease contract with the city leasing her one-half interest in Lot 7 to it. The lease contained a provision giving the city an option to purchase her interest which was exercised by the city on September 20, 1973. Her deed contained the same provision for reverter as the Jones deed.

Complainants alleged in their bill of complaint that title to a part of Lot 7 reverted to them when the city conveyed part of Lot 7 to the Laurel Urban Renewal Agency (hereinafter LURA) for the purpose of using that part of the lot for a street rather than for parking; that acquisition of the property by LURA was made with federal or federal aid funds; that the ultimate result will be that LURA will return the property to the city, thus enabling the city to accomplish indirectly what it could not do directly because of the reverter provisions in the deeds from complainants; that the action of the city amounts to inverse condemnation; that complainants are entitled to compensation for the property taken with damages to the remainder, and are also entitled to reasonable expenses, including reasonable attorneys' fees, appraisal and engineering fees. Complainants prayed for a decree adjudging them to be the true owners of Lot 7, for cancellation of the deed from the city to LURA. In the alternative, they prayed for a decree for the fair market value of the property, including damages to the remainder with interest together with costs, reasonable attorneys' fees and appraisal and engineering fees.

At the trial the parties stipulated the following:

1. That Lot 7 contained 7500 square feet.

*1081 2. That the city conveyed to LURA 3,264.39 square feet of Lot 7 on December 11, 1973.

3. That LURA used the portion of Lot 7 deeded to it by the city for widening Fifth Street and Auburn Avenue, as a part of the "Laurel Central Business District Urban Renewal Area Project R-27."

4. That federal funds were used in Project R-27. That in consideration of the conveyance by the city to LURA of a part of Lot 7, the city received as credit toward payment of its part of the cost of Project R-27 the amount of $23,831.00 which amount was arrived at as follows:

  A. Fair market value of the
     fee simple title to that
     portion of Lot 7 conveyed
     by the city to LURA ............ $ 14,690.00
  B. Severance damages to the
     remainder of Lot 7 ............. $  7,836.00
  C. Value of the improvements
     on that portion of Lot 7
     conveyed by the city to LURA ... $  1,305.00
                                      ___________
                                      $ 23,831.00

From the exhibits attached to the stipulation it was established that the number of parking spaces on Lot 7 was reduced from twenty-four to six after widening Fifth Street and Auburn Avenue.

The final decree adjudged that the complainants were entitled to recover compensation damages in the amount of $23,831.00 for the inverse condemnation with interest from December 11, 1973 at the rate of 6 percent per annum until July 1, 1977 in the amount of $5,004.51. The decree further provided that the interest should be added to the damages making a total of $28,835.51, plus $3,000.00 attorneys' fees which was allowed for a total judgment of $31,835.57. The decree also provided that the judgment should bear interest at the rate of 8 percent per annum from the date of the decree, July 1, 1977, until paid.

The city appealed and assigns the following as error:

1. The trial court erred in finding as a matter of law that the use of the property for street widening purposes constituted a violation of a reverter provision limiting the use of the property to a public parking lot.
2. The trial court erred in finding as a matter of law that the conveyance of the property by the City to the Urban Renewal Agency constituted a voluntary abandonment of the property for use as a public parking lot, thereby causing title to the property to revert to Appellees.
3. The trial court erred in awarding judgment to Appellees for damages to the remainder of the property not used for street widening purposes and in awarding damages for paving improvements on the property used.
4. The trial court erred in awarding interest on the judgment from the date the property was conveyed by the City to the Urban Renewal Agency.

Before treating the assignments of error, the respective interests of the complainants and the city under the deeds should be noted. Complainants conveyed to the city Lot 7,

[F]or so long as the property conveyed is used for a public parking lot, and if, at any time, it shall cease to be used for such purpose, title shall automatically and immediately revert to the grantor, his heirs, successors or assigns.

These deeds created a determinable fee estate[1] in the city, with a possibility of reverter, in fee simple absolute, remaining vested in the complainants. Jones v. Burns, 221 Miss. 833, 74 So.2d 866 (1954). When complainants conveyed Lot 7 to the city "so long as" it might be used for public parking, it was not a conveyance of a fee simple title cut down by a later limitation. The only title the city ever had was during the time the property should be used for public parking. The title ceased when the public parking use ended. The cessation of the *1082 use of the property for public parking was a condition subsequent and not a covenant.

We have also held that a reservation to the grantor or his heirs is a vested interest and is not within the rule against perpetuities. St. Regis Pulp & Paper Corp. v. Floyd, 238 So.2d 740 (Miss. 1970); Jones v. Burns, supra. The protected status granted a possibility of reverter from the rule against perpetuities has been the subject of much criticism. In the City of Klamath Falls v. Bell, 7 Or. App. 330, 490 P.2d 515 (1971), the Court stated in footnote 3 the following:

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Bluebook (online)
366 So. 2d 1079, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-laurel-v-powers-miss-1979.