Fairchild Corp. v. Metropolitan Washington Airports Authority

50 Va. Cir. 127, 1999 Va. Cir. LEXIS 397
CourtLoudoun County Circuit Court
DecidedJune 23, 1999
DocketCase No. (Chancery) 18746
StatusPublished
Cited by2 cases

This text of 50 Va. Cir. 127 (Fairchild Corp. v. Metropolitan Washington Airports Authority) is published on Counsel Stack Legal Research, covering Loudoun County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fairchild Corp. v. Metropolitan Washington Airports Authority, 50 Va. Cir. 127, 1999 Va. Cir. LEXIS 397 (Va. Super. Ct. 1999).

Opinion

By Judge Thomas D. Horne

This is an action for declaratory relief brought by the Fairchild Corporation and its wholly-owned subsidiary, RHI Holdings, Inc. Fairchild and RHI Holdings seek a declaration of rights and injunctive relief. They suggest that the defendant, Metropolitan Washington Airports Authority (“MWAA” or the “Authority”), is without authority to acquire by eminent domain all or part of complainants’ leasehold interest in certain property located at Washington Dulles International Airport.

In June of 1983, Fairchild entered into a contract with the United States to lease 223,489 square feet of land at Dulles Airport. Pursuant to its agreement with the United States, Fairchild began construction of an office building on the site. The forty-year term provided for in the lease commenced upon a determination by the United States that the building was ready for occupancy. The initial term of the lease is to expire on November 30, 2024.

[128]*128There is a dispute between the parties as to extensions of the lease.

In 1985, the Commonwealth and the District of Columbia enacted enabling legislation authorizing the creation of a regional airport authority for the metropolitan Washington area, the MWAA, which would lease Dulles and National (now Reagan National) Airports from the United States. 1985 Va. Acts, Ch. 598; 1985 D.C. Law 6-67. The Metropolitan Washington Airports Authority was created as:

a public body corporate and politic and independent of all other bodies, having the powers and jurisdiction hereinafter enumerated, and such other and additional powers as shall be conferred upon it by the legislative authorities of both the Commonwealth of Virginia and the District of Columbia.

1985 Va. Acts, Ch. 598, § 2.

The Virginia Act creating the authority provided that it would consist of eleven members to be appointed by the Governor of Virginia, the Governor of Maryland, the Mayor of the District of Columbia, and the President of the United States. It was expressly provided that:

the Authority ... is hereby granted full power to exercise the right of eminent domain in the acquisition of any lands, easements, privileges, or other property interests which are necessary for airport and landing field purposes, including the right to acquire by eminent domain aviation easements over lands or water outside the boundaries of its airports or landing fields where necessary in the interests of safety for aircraft to provide unobstructed air space for the landing and taking off of aircraft utilizing its airports and landing fields even though such aviation easement be inconsistent with the continued use of such land, or inconsistent with the maintenance, preservation and renewal of any structure or any tree or other vegetation standing or growing on the land at the time of such acquisition. Proceedings for the acquisition of such lands, easements and privileges by condemnation may be instituted and conducted in the name of the Authority in accordance with Title 25 of the Code of Virginia.

1985 Va. Acts, Ch. 598, § 9(C).

Subsequent to such action by the Virginia General Assembly, Congress passed the Metropolitan Washington Airports Act (Transfer Act). 49 U.S.C. § 49101, et seq. On two occasions, the federal act permitting the lease of Dulles and National Airports has undergone judicial scrutiny resulting in [129]*129various provisions of the Act being declared unconstitutional. Metropolitan Washington Airports Authority v. CAAN, 501 U.S. 252 (1991) (conditioning transfer to MWAA on creation of Congressional Review Board with veto power over decisions of Board of Directors declared unconstitutional); Hechinger v. Metropolitan Washington Airports Authority, 36 F.3d 97 (D.C. Cir. 1994) (Board of Review under amended Transfer Act again found unconstitutional as violative of separation of powers). Complainants argue that the instant case presents yet another opportunity for judicial nullification.

This is a case of first impression. Counsel have furnished no authority where the right of the Authority to exercise the power of eminent domain has been challenged. Condemnation proceedings have been conducted in the past without question as to defendant’s authority to exercise the power of eminent domain.

Complainants’ arguments raise significant questions as to the Authority’s ability to proceed with condemnation of the leasehold interest. First, complainants note that the Authority seeks to condemn an interest that arises out of a contract with the United States which was executed prior to the Authority’s acquisition of its interest in the airport property. Although granted the power of eminent domain, the Authority is required, according to complainants, to honor leases that were extant at the time it acquired its interest in the airport property. Complainants suggest in their papers that the term of their lease may be extended beyond the term of the lease between the Authority and the United States. It is asserted that to permit the Authority to proceed would thus run afoul of the terms of the Transfer Act, the constitutional prohibition against impairment of contracts, and the Supremacy Clause of the United States Constitution. U. S. Const., art. VI.

Second, the Complainants draw the Court’s attention to the limiting terms of the Transfer Act by highlighting the distinction between the provisions of the Transfer Act relating to the exercise of the power of eminent domain and the related provisions of the Washington Metropolitan Area Transit Authority Compact. Like those of the Airports Authority, the actions of the Transit Authority have a profound impact on interstate commerce. The Transit Authority is involved in the planning and regulation of mass transit for the metropolitan Washington area. In the case of the Transfer Act, the compact gives to the MWAA the power of eminent domain “conferred on it by Virginia.” In the case of the WMATA, the compact grants the power of eminent domain to the Authority without qualification. This unfettered grant to the Transit Authority has been interpreted as a grant of the federal power of eminent domain. Thus, the Transit Authority may exercise a “quick take” power of eminent domain even when such power violates the constitutional [130]*130provisions of one of the signatory states. Conversely, the Airports Authority may not.

This limiting language in the Transfer Act forms the centerpiece of complainants’ challenge to the Authority’s power to condemn their leasehold interest. They note that the compact should be reviewed using familiar contract principles. As the Court noted in Cuyler, supra,

The requirement of congressional consent is at the heart of the Compact Clause. By vesting in Congress the power to grant or withhold consent, or to condition consent on the States’ compliance with specified conditions, the Framers sought to ensure that Congress would maintain ultimate supervision power over cooperative state action that might otherwise interfere with the full and free exercise of federal authority.

Id. at 439, 440 (authority omitted).

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Cite This Page — Counsel Stack

Bluebook (online)
50 Va. Cir. 127, 1999 Va. Cir. LEXIS 397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fairchild-corp-v-metropolitan-washington-airports-authority-vaccloudoun-1999.