Crestwood Commons Redevelopment Corp. v. 66 Drive-In, Inc.

882 S.W.2d 319, 1994 Mo. App. LEXIS 1327, 1994 WL 424643
CourtMissouri Court of Appeals
DecidedAugust 16, 1994
Docket64369
StatusPublished
Cited by8 cases

This text of 882 S.W.2d 319 (Crestwood Commons Redevelopment Corp. v. 66 Drive-In, Inc.) 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
Crestwood Commons Redevelopment Corp. v. 66 Drive-In, Inc., 882 S.W.2d 319, 1994 Mo. App. LEXIS 1327, 1994 WL 424643 (Mo. Ct. App. 1994).

Opinion

PUDLOWSKI, Judge.

This is an appeal from a ruling of the trial court awarding interest pursuant to § 523.-045 RSMo 1986 in an abandoned condemnation proceeding. We affirm.

This litigation involves the condemnation of a tract of land located in the heart of Crestwood, Mo. The property was leased by 66 Drive-in Inc. (respondent) which operated a drive-in movie theater on the premises for approximately forty years. The lease was due to expire in the year 2010. The Crain family owned the property. On April 12, 1988, the Crestwood Board of Alderman enacted ordinances blighting the property and invited bidding for redevelopment. Two groups submitted plans for the redevelopment, Crestwood Commons Redevelopment Corp. (appellant) and Crestwood Festival Associates (Crestwood Festival). Appellant’s plan was selected and awarded the right to develop the property.

Two months after appellant acquired the right to redevelop from the city, the Crain family sold the property to respondent for $3,500,000.0o. 1 Shortly after the purchase, appellant and respondent entered into negotiations for the sale of the property. Appellant alleges the parties reached agreement on a contract but it was never signed. However, respondent did sign a sales contract with Crestwood Festival for $7,000,000.00 plus a ten percent retained interest. When appellant learned of the Crestwood Festival contract, it filed a petition in the circuit court seeking to acquire the property by eminent domain. The court, after hearing, denied the condemnation on October 18, 1989.

. After the trial, appellant filed an appeal but continued to negotiate with respondent. They reached an agreement whereby appellant agreed to withdraw from the condemnation proceedings and allow Crestwood Festival to develop the property. However, Crestwood Festival had to withdraw its contract because it could not obtain financing for the project.

Appellant followed through with its appeal of the trial court’s denial of condemnation and the trial court’s judgment was reversed. Crestwood Commons Redevelopment Inc. v. 66 Drive-in, 812 S.W.2d 903 (Mo.App.E.D.1991). The trial court was instructed to order the condemnation and appoint eommis- *321 sioners to determine the value of the property. Id. at 912. The parties continued to negotiate a settlement but to no avail.

In December, 1991 the commissioners dé-termined the value of the property to be $7,399,990.00. Appellant did not pay the amount of the commissioners’ award into the court or to respondent nor did it file an election to abandon the condemnation action until July, 1993.

As a result of appellant’s inaction, respondent filed a petition seeking interest of six percent of the condemnation award for the 206 days between the time of the commissioners’ award and the time of notice of abandonment. The trial court awarded interest of $250,582.55. 2 The property has since sold for almost $8,000,000.00. This appeal followed.

The parties agree the sole issue in this controversy is whether the trial court abused its discretion in awarding interest to respondent pursuant to § 623.045 RSMo 1986. In reviewing discretionary rulings this court presumes the ruling is correct and the burden is on the party alleging abuse of discretion. Anglim v. Missouri Pacific Railroad Co., 832 S.W.2d 298, 303 (Mo. banc 1992). Judicial discretion is abused when the trial court’s ruling is clearly against the logic of the circumstances then before the court and is so arbitrary and unreasonable as to shock the sense of justice and indicate a lack of careful consideration. Id. If reasonable persons could differ about the propriety of the action taken by the trial court, then it cannot be said to be an abuse of discretion. Id. We find no abuse of discretion in this case.

Appellant first argues the evidence did not support the findings of the trial court and, therefore, the trial court abused its discretion in awarding interest. At the hearing, respondent argued damages relating to costs incurred during the 206 days between the commissioners’ award and the abandonment. The trial court found respondent was entitled to interest because the condemnation proceeding hindered its ability to sell the property during the condemnation proceeding and respondent suffered financial loss. To address appellant’s argument we turn to the statute at issue and the Missouri Supreme Court’s interpretation of its purpose.

Section 523.045 RSMo 1986 vests the trial court with discretion to award interest in condemnation suits where the condemnor abandons the condemnation proceeding more than thirty days after the commissioners’ award. The statute reads in relevant part:

... If, within 30 days after the filing of any such commissioners’ report, the con-demnor shall have neither paid the amount of the award to said persons or to the clerk for them nor filed its written election to abandon the appropriation, but shall thereafter timely file such written election to abandon, then the court may, upon motion filed by said persons within ten days after the filing of said election, assess against the condemnor six percent interest on the amount of the award from the date of the filing of the commissioners’ report to the date of the filing of such election, enter judgment thereon and enforce payment thereof by execution or other appropriate proceeding.

The Missouri Supreme Court discussed the purpose of the interest award provided for in § 523.045 in Missouri State Park Bd. v. McDaniel, 513 S.W.2d 447, 451 (Mo.1974). The Supreme Court found the allowance for interest was compensation for the loss incurred when a condemnee does not have use of the money awarded by the commissioners while the condemnation proceeding is pending. Id. at 451. Once a commission determines the value of condemned property, the condemnor must decide on a course of action. It can abandon the condemnation, accept the commissioners’ award or file an exception to the commissioners’ report. 3 Washington University Medical Center Redevelopment Corp. v. Otis E. See, 654 S.W.2d 192, 194 (Mo.App.E.D.1983). If it files an exception, it must either pay the *322 commissioners’ award to the condemnee or the court, or be subject to interest charges in § 523.045. Id. In the case of an abandonment after exceptions have been filed but not adjudicated, the award of interest is within the discretion of the court. McDaniel, 513 S.W.2d at 451.

In this case the condemnor did not elect to abandon until 206 days after the commissioners’ report was filed nor did the condemnor pay the award to the condemnee or the court. There is no dispute about these facts. Respondent did not have use of the $7,399,-990.00 award after the commissioners’ report was issued.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

St. Louis County v. Berck
322 S.W.3d 610 (Missouri Court of Appeals, 2010)
St. Louis County, Missouri v. Watson
311 S.W.3d 886 (Missouri Court of Appeals, 2010)
66, Inc. v. Crestwood Commons Redevelopment Corp.
130 S.W.3d 573 (Missouri Court of Appeals, 2004)
66, Inc. v. Crestwood Commons Redevelopment Corp.
998 S.W.2d 32 (Supreme Court of Missouri, 1999)
City of Cottleville v. American Topsoil, Inc.
998 S.W.2d 114 (Missouri Court of Appeals, 1999)
City of St. Charles v. Imperial Catering Co.
6 S.W.3d 151 (Missouri Court of Appeals, 1999)
Watson v. City of St. Louis
956 S.W.2d 920 (Missouri Court of Appeals, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
882 S.W.2d 319, 1994 Mo. App. LEXIS 1327, 1994 WL 424643, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crestwood-commons-redevelopment-corp-v-66-drive-in-inc-moctapp-1994.