Kansas City Area Transportation Authority v. 4550 Main Associates, Inc.

742 S.W.2d 182, 1986 WL 96
CourtMissouri Court of Appeals
DecidedSeptember 30, 1987
DocketWD 37398
StatusPublished
Cited by17 cases

This text of 742 S.W.2d 182 (Kansas City Area Transportation Authority v. 4550 Main Associates, 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
Kansas City Area Transportation Authority v. 4550 Main Associates, Inc., 742 S.W.2d 182, 1986 WL 96 (Mo. Ct. App. 1987).

Opinion

CLARK, Chief Judge.

This appeal by 4550 Main Associates is from a judgment entered on a jury verdict finding the Kansas City Area Transportation Authority (ATA), to be the owner of a railroad right-of-way along an eight mile corridor, one segment of which crosses appellant’s land. The judgment also operated to eject appellant from the property and to enjoin future trespass. The disposition mooted appellant’s counterclaims for rents and incidental relief. This appeal followed.

The right-of-way easement here in controversy has spawned extensive litigation and generated in this case 800 pages of trial transcript. Appellant presents fifteen points of error and the parties have filed 195 pages of briefs and argument. The pivotal issue, however, is readily identified as turning on the question of whether the claimed right-of-way has in fact been abandoned for railroad use and thus lost to those claiming the easement. Four of appellant’s points deal with this question and urge that appellant was entitled to a directed verdict because abandonment in fact had been established and ATA was es-topped to claim otherwise. The contention is dispositive of the case, but must be preceded by a recitation of some background detail.

HISTORY OF THE COUNTRY CLUB RIGHT-OF-WAY

Records of deeds and other documents introduced in evidence show the right-of-way in issue to have originated in 1873 by a conveyance to the Kansas City, Memphis and Mobile Railroad Company. The property was described as a strip of land fifty feet on each side of the center line of a railroad “as the same is or may be located.” In 1926, the right-of-way was acquired by the Kansas City Public Service Company and later by Kansas City Transit, both being municipally franchised street car and bus companies providing local passenger service.

In 1962, when use of street cars had ended in Kansas City, thereby making a rail line surplus to the municipal transit company, the right-of-way was sold and assigned to parties named Ashley. During the six years which followed, the Ashleys continued a rail freight operation, previously offered by the municipal transit company as an adjunct to its passenger service. The freight service moved rail cars to and from mercantile businesses along the route providing connections to other carriers at either end of the route. The freight service provided by the Ashleys ended in 1968 and was never resumed. No rail traffic along the route has moved since that date and no customer demand for the service has existed.

The subject right-of-way is frequently referred to as the Country Club line. This name stems from the route designation of the street car service which formerly used the track in municipal transit service. Under Ashley ownership of the right-of-way, the freight transport business was referred to as the Kansas City Public Service Freight Operation, apparently a partnership. That entity held a certificate from the Interstate Commerce Commission as an interstate common carrier and served customers along the right-of-way by delivering and picking up freight which was interchanged with other rail carriers coming from or destined to shippers throughout the country. When the Ashleys ended rail service in 1968, they gave notice to the Interstate Commerce Commission that service on the line was “embargoed.” Such notice indicates that the certificated carrier will no longer accept freight for delivery along the embargoed route. Customarily, an embargo indicates a temporary suspension of service attributable to conditions beyond the carrier’s control.

The Country Club railroad line continued under embargo status from 1968 until 1981 when the ICC issued its certificate of abandonment. During the period of embargo, the Ashleys paved over areas of the right-of-way for use as automobile parking lots and leased locations where advertising billboards were erected.

*185 The ATA is a bistate transit authority which operates buses in the greater Kansas City vicinity. It has long had the objective of acquiring the Country Club line for future development of mass transit. In 1970, after attempts to negotiate a purchase of the right-of-way from the Ashleys had failed, the ATA brought proceedings to take the property by condemnation. A jury awarded compensation to the Ashleys, the money was paid and the ATA took possession, but on appeal, the Missouri Supreme Court ruled that a right-of-way held under certification of an interstate common carrier by the Interstate Commerce Commission was under the exclusive jurisdiction of the Commission and could not be condemned under state law. Kansas City Area Transportation Authority v. Ashley, 555 S.W.2d 9, 10 (Mo. banc 1977). The property was thereby restored to the Ash-leys under their claim to ownership of the easement.

Despite the absence of any use of the right-of-way for railroad purposes since 1968, the certificate of public convenience and necessity issued to the Ashleys by the ICC remained in effect after 1968 continuing jurisdiction over the route in the Commission, as the Supreme Court opinion cited above recognized. To remove this impediment to condemnation, the ATA instituted proceedings before the Commission in 1980 to decertify the route. These proceedings before the Interstate Commerce Commission will be described below in detail. It suffices for this summary to say that a finding of abandonment in fact was made by the Commission sustaining the ATA contention that the Ashleys had neither the capability nor intent to resume rail service along the route of the right-of-way easement.

As a final development in history of the Country Club right-of-way, on October 27, 1981, the Ashleys agreed with the ATA upon terms of sale and sold to the ATA their interest in the right-of-way. The claim which the ATA asserts in this suit is based on that transaction.

NATURE OF PROPERTY RIGHT AT ISSUE

Before proceeding to a discussion of the issues presented to the trial court, it is necessary to define the interest in real estate represented by the Country Club right-of-way.

As was noted in the previous section of this opinion, the first record of ownership in the right-of-way appears in a deed from Wyatt and Mary Webb to Kansas City, Memphis and Mobile Railroad Company. The deed recited a valuable consideration and contained no restrictions on the use of the property or limitation on the quantum of title transferred. It may therefore be assumed that the grantee acquired a fee simple estate, Nigro v. Ashley, 690 S.W.2d 410, 417 (Mo.App.1984), if the description of where the railroad was situated could be supplied. The Kansas City, Memphis and Mobile Railroad did not, however, survive. It entered bankruptcy and on a sale of the assets by the bankruptcy trustee, the interest in the right-of-way was conveyed to James I. Brooks on December 15, 1879.

It is not shown in this record whether the Kansas City, Memphis and Mobile Railroad was ever built or what use, if any, was made of the right-of-way by the grantee, Brooks. Moreover, the chain of title ends with the conveyance to Brooks. No deed from Brooks appears and there is no record in Jackson County of any administration on his estate. There is no title record on the property for the next twenty-two years.

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Bluebook (online)
742 S.W.2d 182, 1986 WL 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kansas-city-area-transportation-authority-v-4550-main-associates-inc-moctapp-1987.