Jlg Concrete Products Co. v. Grenada

722 So. 2d 1283, 1998 Miss. App. LEXIS 916, 1998 WL 744728
CourtCourt of Appeals of Mississippi
DecidedOctober 27, 1998
Docket96-CA-00925 COA
StatusPublished
Cited by5 cases

This text of 722 So. 2d 1283 (Jlg Concrete Products Co. v. Grenada) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jlg Concrete Products Co. v. Grenada, 722 So. 2d 1283, 1998 Miss. App. LEXIS 916, 1998 WL 744728 (Mich. Ct. App. 1998).

Opinion

722 So.2d 1283 (1998)

JLG CONCRETE PRODUCTS COMPANY, INC., Appellant,
v.
CITY OF GRENADA, Mississippi, Appellee.

No. 96-CA-00925 COA

Court of Appeals of Mississippi.

October 27, 1998.

*1284 Stephan Land McDavid, Oxford, Attorney for Appellant.

Marian S. Alexander, Greenville, Attorney for Appellee.

Before THOMAS, P.J., KING, AND SOUTHWICK, JJ.

SOUTHWICK, J., for the Court:

¶ 1. The City of Grenada sought a declaratory judgment that JLG Concrete had no current lease entitling it to occupy 40 acres of City property. After a trial, the chancellor declared that no renewal of a 1957 lease granted by the City had ever been properly authorized and that JLG had no rights to the tract. JLG appeals asserting that a valid renewal had been obtained from the City in 1982. The City cross-appeals asserting that the chancellor improperly denied its timely amendment to add a claim for damages to the property. We find no error and affirm.

STATEMENT OF FACTS

¶ 2. On February 23, 1957, the City leased a 30-acre tract to Boyd Construction Company. The lease had a 25-year term. It also granted Boyd "the first right and option to renew said lease for two consecutive periods of twenty-five (25) years each upon the completion *1285 of the primary term, each additional period to be negotiated" by the parties. At least 30 days notice was to be given of the lessee's intent to renew. The property was part of a World War II air base in Grenada that in 1948 was granted to the City and became its airport. Boyd by the 1957 lease was to maintain a water well at the site, from which Boyd had the right to unlimited water, and to maintain the access road that led to its tract as well as to the airport itself. An addendum to the lease five weeks later stated that Boyd was to use the property for the manufacture of concrete products.

¶ 3. In 1974 additional tracts were added to those originally leased, making a total of 36 acres. Each lease or addenda was approved by contemporaneous action of the Grenada City Council. The Council's minutes reflect each approval, though the 1974 addenda itself was not put in the minutes. The rent beginning in 1957 was $400 per year. After 1974 the annual rent was $900. For reasons and on a date not revealed by the record, the rent became $1500 by 1979.

¶ 4. In 1979 Boyd assigned its interest under the lease to Grenada Concrete Products, a company that subsequently changed its name to JLG Concrete Products Company, Inc.. "JLG" is John L. Grantham, the son-in-law of Boyd's owner. The assignee continued to operate a concrete business at the site until 1983. In 1985 JLG assigned to Fluker Enterprises a portion of its leasehold interest comprising 25 acres. JLG retained a deed of trust. Fluker sought bankruptcy protection in 1988 and conveyed the property back to JLG by a deed in lieu of foreclosure.

¶ 5. A pre-stress manufacture facility has been idle since 1989. A separate ready-mix plant closed in 1991, was sold and then moved off the property by the purchaser. No rent was paid on the lease from 1983 until 1989. The City Clerk contacted JLG in 1989 and demanded annual back-rent at $1500 per year. JLG questioned the amount, as the source of that $1500 figure was unknown. The rent for 1984 through 1989 was ultimately paid. Rent for the years of this litigation has been rejected by the City. The parties agree that the property has not been used for a substantial number of years.

¶ 6. The City sought to introduce evidence regarding the substantial damage to the property over the years, including a "mountain" of concrete from washing out ready-mix trucks, buried concrete and rebar rods, and dilapidated structures. Whether the property is worthless, is worse than worthless because of clean-up costs, or is extraordinarily valuable is neither directly apparent from the record nor relevant to our decision. However, two parties have been in litigation over the property since 1993, which at least creates an inference about value.

¶ 7. What occurred in the early 1980's regarding a possible renewal of the 25-year lease is the central factual and legal focus of this appeal. Apparently no concern about the need for or existence of a renewal lease animated the City until the absence of rent payments was noticed by the City Clerk in 1989. In 1979 JLG upon being assigned the leasehold by Boyd attempted to get an early renewal from the City. Audio tapes of a council meeting in 1979 were introduced into the record that revealed a discussion of the issue, concern that the rent was too low, and ultimately no action being taken. In 1980 JLG contacted the Airport Commission for a lease renewal, but was referred to the City as the proper leasing authority. A review of the minutes of the city council following the one previously mentioned 1979 meeting through 1989 revealed no further discussion of a renewal. No renewal document was ever discovered in any party's files or on the official records. Thus 1982—the end of the 25-year lease period—came and went without a formal renewal.

¶ 8. Whether there might have been a renewal granted in another way was the factual question below, and whether there could validly be another form of renewal was the legal issue. JLG argues that no new lease was required in 1982 and the 1957 lease could be renewed by a proper official's agreement to extend the lease for another 25-years. JLG argues that they sent to the City's thenmanager a notice of renewal in early 1982, and the manager responded in writing that the City accepted the renewal. Neither document could be produced in evidence. The City points out that its manager who allegedly *1286 was the recipient of the notice and the sender of the acceptance, was terminated by the City in June 1982 and went to work for JLG.

¶ 9. On March 22, 1993 the City brought its complaint for a declaratory judgement. JLG counterclaimed for various relief. The City moved on September 20, 1995 (five months before trial) to amend to add a claim for damages to the property. The motion was denied. The chancellor after a trial found that the 1957 lease was never renewed and had expired. Both parties appeal.

DISCUSSION

1. Preliminary Matters

¶ 10. The City argues that the original 1957 lease was void from its inception. This argument arises from one city council's grant of a 25-year lease with the right to enter renewals, thereby binding for 75 years all future councils. There is also an argument that the City had only the authority to sell this property and not to lease it. We do not consider these claims because they become academic once we hold that the lease, regardless of whether it was ever alive, is now dead.

¶ 11. The City also argues that the rent paid on the property was so low as to constitute an unconstitutional donation of public property for private use. This too becomes a moot issue.

2. Need for formal renewal

¶ 12. JLG looks to the language of the 1957 lease and says that the chancellor erred in requiring proof of city council approval of a renewal in 1982. We repeat that the lessee received

the first right and option to renew said lease for two consecutive periods of twenty-five (25) years each upon the completion of the primary term, each additional period to be negotiated upon [the lessee's] giving at least thirty (30) days written notice to [the City] of its intention so to renew said original lease.

In order to receive the benefit of this provision, JLG argues that all was necessary was to send notice to the City and no formal action by the City was then necessary.

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Bluebook (online)
722 So. 2d 1283, 1998 Miss. App. LEXIS 916, 1998 WL 744728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jlg-concrete-products-co-v-grenada-missctapp-1998.