GTA v. Shell Oil Co.

358 N.E.2d 750, 171 Ind. App. 647, 1977 Ind. App. LEXIS 715
CourtIndiana Court of Appeals
DecidedJanuary 10, 1977
Docket1-676A93
StatusPublished
Cited by9 cases

This text of 358 N.E.2d 750 (GTA v. Shell Oil Co.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GTA v. Shell Oil Co., 358 N.E.2d 750, 171 Ind. App. 647, 1977 Ind. App. LEXIS 715 (Ind. Ct. App. 1977).

Opinion

Robertson, C.J.

Plaintiffs-appellants, GTA, a partnership, (hereinafter GTA), appeal from a negative judgment of the trial court, which refused to find that the determinable *648 easement granted to defendant-appellee, Shell Oil Company (Shell), had terminated and reverted to GTA. 1

The facts necessary for our disposition of this appeal are as follows: On January 4, 1967, GTA leased to Shell Oil Company, for an initial term of fifteen years, a lot along the northerly boundary of State Road 131 which was bounded on the east by a shopping center owned by GTA, known as Green Tree Mall. On February 27, 1967, GTA and Shell Oil Company executed an instrument entitled “Agreement Amending Lease”, which in pertinent part reads:

“3. So long as the [leasehold] premises are used as an automobile service station, Shell shall have two drive entrances per Shell’s plans and specifications to provide ingress and egress to and from leased premises and the westerly entrance to Green Tree Mall Shopping Center.”

Subsequent to January 18, 1969, when Shell completed its construction of the service station on the leasehold, Shell actively used said premises exclusively for automobile service station purposes. On April 4, 1973, Shell temporarily closed the station, and, for a time thereafter, reopening was made impractical due to a gasoline shortage. However, the station was reopened by Shell approximately a year and a half later.

■ From November 1973 through March 1974, Shell and River City Restaurants, Inc., a subsidiary of Ollie’s Trolley, Inc., negotiated for the construction and operation of a fast-food restaurant on the leasehold. Before negotiations were completed, representatives of Ollie’s Trolley removed the gasoline islands and pumps on the east side of the station and replaced them with a foundation for the fast-food restaurant. This activity and a notice in the local newspaper were the first notices to GTA that a different use of the leasehold was being considered by Shell. A few weeks later, in April 1974, GTA filed suit for a declaratory judgment to establish the *649 respective rights of the parties under the lease and amendments thereto, and for a permanent injunction to prevent further use by Shell of the westerly entrance to the Green Tree Shopping Center.

The trial court specifically found, among other things, that all negotiations between Shell and Ollie’s Trolley, Inc. had been terminated; that Shell had not executed any sublease at any time with any person or corporation; that the rent under the lease was a fixed amount and Shell’s payments were made continuously during the period in which the service station was temporarily closed; and that the automobile service station was reopened for business on October 28, 1974, and has continued in operation since that time.

GTA’s sole contention of error is that the judgment of the trial court is contrary to law. In support of its contention, GTA argues that the folio-wing stipulated events terminated Shell’s determinable easement: (1) Shell ceased all automobile service station use of the leasehold in April, 1973, and commenced negotiations in November 1973, for location of a fast-food restaurant on the leasehold; and (2) Shell allowed gasoline pump islands on the leasehold to be removed and replaced with the foundation for the fast-food restaurant on or about March, 1974.

GTA also alleged by affidavit a third event that, for two or more days in March, 1975, “a pet shop was operated from a van-type vehicle located on the northeasterly corner of” the leasehold and it was connected to an electric utility line servicing the leasehold. Shell’s answering affidavit produced conflicting evidence concerning the pet shop.

In reviewing an assignment of error specifying that the trial court’s decision was contrary to law, this Court may consider only that evidence which is most favorable to the trial court’s decision. The decision will be affirmed unless the evidence is without conflict and *650 leads to only one conclusion and the trial court arrived at a different conclusion. Marshall v. Ahrendt (1975), 165 Ind. App. 359, 332 N.E.2d 223. We cannot say that it affirmatively appears that reasonable men could not have arrived at the same conclusion reached by the trial court concerning each of the three events. Dyer Construction, Inc. v. Ellas Construction, Inc. (1972), 153 Ind. App. 304, 287 N.E.2d 262.

.The issue concerns the proper construction to be given to the lease and its amendments which created the easement. “The nature, extent and duration of an easement created by an express agreement or grant must be determined by the provisions of the instrument creating the easement.” Erie-Haven, Inc. v. First Church of Christ (1973), 155 Ind. App. 283, 292 N.E.2d 837.

It is the duty of the court, in construing instruments creating easements, to discover and give effect to the intention of the parties. Where the language is not uncertain or ambiguous the intention of the parties is determined by a proper construction of the language of the instrument. L. & G. Realty & Construction Co. v. City of Indianapolis (1957), 127 Ind. App. 315, 139 N.E.2d 580, 585. The language establishing the limitation of the easement in this case, however, is not clear.

The language of paragraph three, which includes the words “so long as”, in the February 27, 1967 amendment to the lease, establishes that the easement was intended to be a qualified easement determinable upon the happening of a particular event. That an easement, like any other estate in land, may be determinable was discussed and recognized in Erie-Haven, Inc., supra; See also: Budnick v. Indiana National Bank (1975), 165 Ind. App. 457, 333 N.E. 2d 131.

Having established that the easement is determinable, we must now determine whether Shell extinguished its easement merely by temporarily discontinuing its use or whether an actual change of use was required to extinguish the easement.

*651 The trial court found that the service station was temporarily closed on April 4, 1973, and remained unused until it was reopened one and a half years later. It further found that although Shell negotiated with Ollie’s Trolley, Inc. concerning the possibility of subleasing all or a portion of said premises to Ollie’s Trolley, Inc., Shell never executed a sublease with any person or corporation. 2 We cannot hold that simply by talking about and negotiating for a change in the use of the lot Shell automatically lost its determinable easement.

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Bluebook (online)
358 N.E.2d 750, 171 Ind. App. 647, 1977 Ind. App. LEXIS 715, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gta-v-shell-oil-co-indctapp-1977.