Halls Ferry Investments, Inc. v. Smith

985 S.W.2d 848, 1998 Mo. App. LEXIS 2174, 1998 WL 846595
CourtMissouri Court of Appeals
DecidedDecember 8, 1998
Docket73596
StatusPublished
Cited by19 cases

This text of 985 S.W.2d 848 (Halls Ferry Investments, Inc. v. Smith) 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
Halls Ferry Investments, Inc. v. Smith, 985 S.W.2d 848, 1998 Mo. App. LEXIS 2174, 1998 WL 846595 (Mo. Ct. App. 1998).

Opinion

WILLIAM H. CRANDALL, Jr., Judge.

Defendants, Elmo Smith, et al., appeal from the grant of summary judgment in favor of plaintiff, Halls Ferry Investments, Inc., in plaintiffs action seeking a declaration of its rights and duties under a lease and on defendants’ counterclaim for damages for plaintiffs breach of that lease. We affirm.

Defendants, Elmo Smith, Anna E. Smith, A.B.K., Inc., Victor M. Huddleston, Blanche I. Huddleston, Charles E. Huddleston, Barbara Ann Huddleston, and R.Q. & L., Inc. (hereinafter Owners), were owners 1 of more *850 than 100 acres of land in North St. Louis County (hereinafter property). Plaintiff, Halls Ferry Investments, Inc. (hereinafter Halls Ferry), was a corporation formed by the Zykan family for the sole purpose of leasing 62 acres of the property, an abandoned quarry, for the development and operation of a landfill. The Zykans also owned a trash hauling business known as Zykan Bothers, Inc.

On February 29, 1984, Halls Ferry and Owners entered into a lease on the property. Section 1.2 of the lease provided that Halls Ferry use the property only as a “sanitary landfill” in compliance with the permits granted by St. Louis County and the Missouri Department of Natural Resources (hereinafter DNR). Section 1.8 of the lease granted Halls Ferry the following right:

[T]he right, but not the obligation, to construct, install and locate within the Demised Premises [property] such roads, equipment, machinery, buildings, water and sewer lines (“Improvements”) and any and all similar Improvements necessary in the sole opinion of Lessee [Halls Ferry] to carry on the business of a sanitary landfill within the Demised Premises [property].

Section 2.1 of the lease provided that the term of the lease would start on February 29, 1984, “and shall terminate on the date of the permanent closing of the landfill in accordance with the regulations of the State of Missouri ... (“DNR”).”

Section 3 of the lease addressed plaintiffs rental obligations. Rental payments commenced after Halls Ferry opened the landfill to receive solid waste for disposal. Each year thereafter, Halls Ferry was required to pay the greater of $20,000.00 “minimum annual payment” or an amount based on the volume of waste deposited in the landfill. The formula for calculating the amount based on volume was 16 and 21 cents per cubic yard during the first and second years, respectively; and then 10 percent of the gross dollar volume for dumping fees during the third year’ “and each year thereafter until the Demised Premises is filled or the landfill is closed under the regulations of DNR.”

In December 1986, the Zykans sold then-stock in Halls Ferry to Browning-Ferris Industries of St. Louis, Inc. (hereinafter BFI). The only asset BFI acquired was Halls Ferry’s interest in the lease with Owners. In a related transaction BFI acquired the Zykans’ waste disposal business.

In February 1986, Halls Ferry applied to DNR for a permit and submitted an engineering plan. The engineering plan contained a closure plan which provided that after the landfill was filled to capacity with waste, it would be covered with a layer of soil which would be seeded. DNR approved Halls Ferry’s application and issued an operating permit for the sanitary landfill. In August 1988, Halls Ferry opened the landfill for operation. Although small quantities of solid waste were deposited initially in the landfill, no significant volume of waste was deposited after 1989. The last payment to Owners based on volume of waste deposited in the landfill was on May 14,1989. Thereafter, Halls Ferry paid Owners the minimum annual rental of $20,000.00.

Early in 1994, Halls Ferry terminated operation of the landfill. Halls Ferry submitted a decommissioning and closing plan for the landfill to DNR. On August 29, 1994, DNR approved the plan. Halls Ferry then removed the waste and liner and left the property in its original condition. In July 1996, DNR approved the measures taken by Halls Ferry and voided the operating permit for the landfill. In a letter dated November 26, 1996, DNR informed Halls Ferry that it had determined that the landfill had been “properly closed.”

In April 1995, Halls Ferry brought this declaratory judgment action, seeking a declaration that its obligations under the lease would terminate when the landfill was decommissioned and closed sometime thereafter. Owners counterclaimed, seeking damages for Halls Ferry’s failure to operate the landfill and to pay royalties and also for the *851 diminution in the value of the property as a result of having an empty hole at the end of the lease. They alleged that the landfill was not closed until it was completely filled with solid waste and covered with soil, as proposed in the original engineering plans submitted to DNR. The parties filed cross-motions for summary judgment on Halls Ferry’s claim as well as on Owners’ counterclaim. The court denied Owners’ summary judgment motions, finding there were no express or implied covenants in the lease to operate the landfill. The trial court later granted Halls Ferry’s motions for summary judgment on its claim and on Owners’ counterclaim, finding that the lease term “permanent closing” was not ambiguous and that the lease terminated when the landfill permanently closed and DNR revoked the permit to operate.

Initially, we set forth the standard of review of a summary judgment. The propriety of summary judgment is purely an issue of law. ITT Commercial Finance Corp. v. Mid-America Marine Supply Corp., 854 S.W.2d 371, 376 (Mo. banc 1993). Accordingly, the standard of review on appeal regarding summary judgment is no different from that which should be employed by the trial court to determine the propriety of sustaining the motion initially. Id. Summary judgment is designed to permit the trial court to enter judgment, without delay, where the moving party has demonstrated a right to judgment as a matter of law. Id. Summary judgment is particularly appropriate if the issue to be resolved is the construction of a contract that is unambiguous on its face. Daniels Exp. and Transfer Co. v. GMI Corp., 897 S.W.2d 90, 91-92 (Mo.App. E.D.1995).

In their first point, Owners argue the trial court erred in granting summary judgment in favor of Halls Ferry in the declaratory judgment action because there was no “permanent closing” of the landfill under the clear meaning of the lease, such that the lease terminated by its own terms.

The obligation to perform under a contract is measured by the intention of the parties as gathered from the object, nature, and purpose of the agreement, as well as from the terms of the lease as a whole, not merely from a solitary provision. McKnight v. Midwest Eye Institute of Kansas City, Inc., 799 S.W.2d 909, 913 (Mo.App.1990).

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Bluebook (online)
985 S.W.2d 848, 1998 Mo. App. LEXIS 2174, 1998 WL 846595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/halls-ferry-investments-inc-v-smith-moctapp-1998.