Kansas City Area Transportation Authority v. Ashley

485 S.W.2d 641, 1972 Mo. App. LEXIS 714
CourtMissouri Court of Appeals
DecidedOctober 2, 1972
DocketKCD 26190
StatusPublished
Cited by14 cases

This text of 485 S.W.2d 641 (Kansas City Area Transportation Authority v. Ashley) 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. Ashley, 485 S.W.2d 641, 1972 Mo. App. LEXIS 714 (Mo. Ct. App. 1972).

Opinion

WASSERSTROM, Judge.

This suit was instituted by plaintiff Area Transportation Authority (respondent here, and hereinafter referred to as ATA) to enjoin defendants (appellants here) from blocking access to three certain parking lots. The issue presented is whether the parking rights which ATA claims were legally assignable to it. An injunction was granted as prayed in the trial court, and defendants pursue this appeal.

Both parties claim their rights from Kansas City Transit, Inc., (hereinafter referred to as “Transit”) or its wholly owned subsidiary Kansas City & Westport Belt Railway Co. (hereinafter referred to as “Belt”). Prior to 1962, Transit not only operated the public bus transportation system in Kansas City, but in addition it operated through its subsidiary Belt a 12½ mile switching railroad in the southern part of the city. On December 4, 1962, Belt entered into a contract to sell to the defendants that switching operation and all premises and property rights in connection therewith, including the railroad right-of-way. The Agreement of Sale specifically provided that the sale and transfer to the defendants was being made “for the purchase price set forth in paragraph 2 here-inbelow and the consideration set forth in paragraph 3 hereinbelow”. Paragraph 3, so referred to, contained an agreement by defendants “to grant a license to Kansas City Transit, Inc. and its successors, for the exclusive use, at a fixed charge of One Dollar ($1.00) per year,” of the three parking lots now in question, which are located on the railroad right-of-way. That paragraph continues “said license to commence upon the consummation of said sale and to continue so long as said fixed charge is paid each year.”

That Agreement of Sale was thereafter implemented by various documents, one of which is denominated License Agreement and which was executed December 27, 1962. Under the terms of that document, defendants granted a license to Transit to use the three parking lots mentioned, to be used “for parking lot purposes or for such other purpose or purposes as desired by Licensee in connection with the operation of Licensee’s business”. The License Agreement further provides, consistent with the provisions of the December 4, 1962 Agreement, that the license “shall continue from year to year hereafter so long as the Licensee pays the sums provided for in paragraph 3 below”. The License Agreement also contains provision in customary form that Transit was to indemnify and save defendants harmless by reason of any damage to property or injuries or death growing out of Transit’s use of the premises, and there was also an agreement by Transit to conform to all laws and keep the premises free from filth and nuisance.

Thereafter, and until the early part of 1969, Transit continued to operate a mass transportation bus line in Kansas City. A major element of this bus system was the Country Club line. The three parking lots covered by the agreements hereinabove described were located adjacent to the Country Club bus line, and Transit made those lots available free of charge to patrons of the bus line so that these patrons could park their cars and then ride a bus into the downtown area. The parties have stipulated that the use of parking lots in this fashion provided an advantage in connection with mass bus transportation. The record shows that an average of 55 automobiles utilized these parking lots daily. It is without dispute that Transit duly paid the *644 required One Dollar per year to maintain the License Agreement in continuous existence.

On February 1, 1969, Transit sold its entire bus operation to ATA. As part of that sale, Transit conveyed and assigned to ATA all of Transit’s rights under the License Agreement between it and the defendants, dated December 27, 1962.

Shortly after the Contract of Sale from Transit to ATA, the defendants’ attorney wrote to ATA demanding payment for the use of the parking lots of approximately $6,000.00 a year. A telephone conversation then followed between defendants’ attorney and one of the ATA officials, in which the attorney stated that defendants would not accept the assignment from Transit to ATA and that defendants would not permit the use of the parking lots by ATA except upon the payment mentioned, which the attorney stated was the standard and going rate. When no affirmative response to this demand was forthcoming from ATA, the defendants barricaded the entrances to the lots. This lawsuit for an injunction followed.

In opposition to the request for injunction, defendants contended in the trial court and continue to contend here that the right granted by them to Transit for the use of the three parking lots was a bare license, which as a matter of law is nonassignable. In support of that contention, defendants make two arguments: (a) that the title of and the language used in the document is solely that of license; and (b) that the arrangement between defendants and Transit was one upon personal trust and confidence.

I

If defendants are correct in their position that all which they granted to Transit was a bare license to use the parking lots, then it follows that the parking rights were nonassignable. 25 Am.Jur.2d, Easements and Licenses, § 126, p. 528; Williams v. Diederich, 359 Mo. 683, 223 S.W.2d 402. However, a determination as to the true nature and legal character of the rights granted to Transit cannot rest solely on the matter of terminology used in the document of transfer. Rather, that determination must be made upon a consideration of the intention of the parties as gathered from all the provisions in the agreements between them and all the surrounding circumstances. 53 C.J.S. Licenses § 79, pp. 806-807; 28 C.J.S. Easements § 2 b, p. 627.

In attempting to develop the true nature of the rights which were granted to Transit as part of the December 19, 1962 transaction, ATA places considerable stress on the fact that the grant runs to Transit “and its successors”. From this ATA argues that the parties intended Transit’s rights to be transferable. On the other hand, defendants argue that the phrase “and its successors” does not appear in the License Agreement itself and therefore cannot be considered. We are of the opinion that the License Agreement dated December 27, 1962 must be read together with and in light of the underlying Agreement of Sale dated December 4, 1962, and that the phrase “and its successors” is some evidence that .the parties intended Transit’s rights to be transferable. However, we need not pursue this point, because there are other factors here, which are even more compelling to that ultimate conclusion.

One of those additional factors is that the “license” is not revocable at the will of the grantor, but instead by its express terms was to remain in effect so long as Transit continued to pay $1.00 a year. The essential attribute of a bare license is the right of the grantor to freely revoke it any time. 25 Am.Jur.2d, Easements and Licenses, § 128, p. 530; First Trust Co. v. Downs, Mo.App., 230 S.W.2d 770, 1. c. 775. The absence of revocability at the option of the defendants is sufficient in itself to demonstrate that the rights conveyed to *645 Transit in this case were greater than that of a bare license.

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Bluebook (online)
485 S.W.2d 641, 1972 Mo. App. LEXIS 714, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kansas-city-area-transportation-authority-v-ashley-moctapp-1972.