City of Miami v. Florida East Coast Railway Co.

428 So. 2d 674, 1983 Fla. App. LEXIS 18452
CourtDistrict Court of Appeal of Florida
DecidedJanuary 11, 1983
DocketNos. 81-1107, 81-1306
StatusPublished

This text of 428 So. 2d 674 (City of Miami v. Florida East Coast Railway Co.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Miami v. Florida East Coast Railway Co., 428 So. 2d 674, 1983 Fla. App. LEXIS 18452 (Fla. Ct. App. 1983).

Opinion

BASKIN, Judge.

For more than a decade, extensive litigation1 has hampered the City of Miami’s attempts to acquire the P & O Port docks as part of the expansion of Bayfront Park through a bond issue approved by Miami voters. In this appeal and cross-appeal from a Final Judgment and an Amended Final Judgment, we are asked to review: (1) the commencement date for the accrual of interest on the jury award to condemnee Florida East Coast Railway Company (FEC) in a “quick take” condemnation proceeding; (2) the 10% interest rate allowed by the court; and (3) the amount upon which interest was computed. Arguing that FEC’s letter tendering the property to the City did not afford it complete possession, the City maintains that interest on the jury award should not have accrued prior to the date on which it obtained complete possession of the condemned property. Upon consideration of the record, we find the date selected by the trial court to be appropriate under the stipulation between the parties. In addition, we find the 10% rate of interest to be correct under the condemnation statute. Accordingly, we affirm the trial court’s decision concerning the commencement date for the accrual of interest; however, we modify the amount upon which interest is to be paid and vacate that [676]*676portion of the order restraining FEC from collecting the funds.

The property sought by the City in “quick take” condemnation proceedings consists of the land located in Miami between Bayfront Park and Bicentennial Park. In its defense to the City’s declaration of taking filed pursuant to section 74.051, Florida Statutes (1977), FEC contended that the City’s failure to obtain an ICC certificate authorizing abandonment of the railroad tracks situated on the property precluded the City from maintaining condemnation proceedings. The City responded that the railroad lines were spur tracks and therefore not subject to ICC jurisdiction. Following a hearing on the question of necessity, the trial court ruled that the tracks were spur tracks over which the ICC lacked jurisdiction and granted condemnation. This court affirmed. Florida East Coast Ry. v. City of Miami, 372 So.2d 152 (Fla. 3d DCA 1979), cert. denied, 385 So.2d 756 (Fla.1980).2 The order of taking entered by the trial court included a stipulation by the parties. The stipulation required the City to deposit in escrow $14,500,000 representing its good-faith estimate of the value of the land. The escrowed funds and interest were to compensate defendants.3 According to the agreement, FEC remained in possession until entry of the final condemnation judgment at which time the City would take possession.

Subsequently, a jury assessed the value of the condemned property at $23,350,000, and the trial court entered judgment for FEC in that amount, with interest at the rate of 10% commencing April 2, 1981, the effective date of the Final Judgment. On April 9, 1981, FEC “tendered possession” to the City claiming entitlement to the funds on deposit as well as to the difference between the amount of judgment and the funds held in escrow. Although the City objected to the April 2, 1981 date for commencement of interest on the ground that the federal court had enjoined it from taking possession of the property and that it had not actually accepted possession until November 13, 1981, the trial court entered the judgment upon which this appeal is predicated, allowing 10% interest accruing from April 2, 1981. In its Amended Final Judgment, the court stated:

3. Interest on the Final Judgment shall bear simple interest at the rate of Ten Percent (10%) per annum from the date of April 2, 1981, pursuant to F.S. 55.03 and shall accrue at the same rate until paid.
FINDING OF COURT
6. This Court finds as a matter of law that the taking of possession of the property is incomplete by virtue of “Railroad Tracks” running through a portion of the subject property. Whether said railroad tracks are capable of being removed or “abandoned” without the authority of the Interstate Commerce Commission (ICC), a branch of the Federal Government, is an issue that is the subject of three sepa[677]*677rate lawsuits; first, a consolidated appeal in the Fifth Circuit Court of Appeal;1 second, a lawsuit presently pending in the United States District Court in and for the Southern District of Florida.2
7. Whether an ICC certificate of abandonment is necessary depends on whether the subject property involves spur tracks or a “line of railroad.” If the tracks located on the subject property are spur, the ICC lacks jurisdiction and no certificate is necessary.
8. During the proceedings herein culminating in the Order of Taking, this Court determined that the subject tracks are spur tracks. That holding was affirmed by the Third District Court of Appeal in Florida East Coast Railway Co., 372 So.2d 152 (Fla. 3d DCA 1979), appeal dismissed and cert. den., 385 So.2d 756 (Fla.1980). This Court makes no further finding on this issue.
9. Upon the petition of the Florida East Coast Railway Company, the ICC later adjudicated that the subject property is a “line of railroad” and requires a certificate of abandonment. The City’s appeal from these ICC orders are the appeals referred to in Paragraph 6, supra.
10. The ICC then filed its pending action in the federal district court seeking to enjoin the trial of this cause on evaluation. The federal court refused to enjoin the trial which resulted in this judgment. However, the federal court on February 24, 1981, ordered:
FURTHER ORDERED AND ADJUDGED that as certain issues relating to this case are presently pending before the Fifth Circuit, the parties to this cause shall be prohibited from taking any further action with respect to the property at issue prior to the next hearing on this matter before this Court. The only exception to this in-junctive order shall be participating by any or all of the parties in the state valuation proceeding which is currently scheduled for March 23, 1980.
IT IS FURTHER CONSIDERED, ORDERED AND ADJUDGED:
11. That the Defendant, Florida East Coast Railway Company is restrained and prohibited from drawing, accepting, or collecting any funds from depository until such time as the removal of the “Railroad Tracks” has been authorized or permitted by the federal court.
12.

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428 So. 2d 674, 1983 Fla. App. LEXIS 18452, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-miami-v-florida-east-coast-railway-co-fladistctapp-1983.