Kansas City v. Kansas City Terminal Railway Co.

23 S.W.2d 1006, 324 Mo. 461, 1930 Mo. LEXIS 462
CourtSupreme Court of Missouri
DecidedFebruary 3, 1930
StatusPublished
Cited by3 cases

This text of 23 S.W.2d 1006 (Kansas City v. Kansas City Terminal Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kansas City v. Kansas City Terminal Railway Co., 23 S.W.2d 1006, 324 Mo. 461, 1930 Mo. LEXIS 462 (Mo. 1930).

Opinions

This is an action at law for damages brought by Kansas City, Missouri, against the Kansas City Terminal Railway Company, to recover the amount of certain street grading tax bills issued against an 8½-acre tract known as Union Station Park. The city, in a prior action prosecuted by the owner of the tax bills, had been compelled to pay them, and in this suit asserts the obligation rested on the Terminal Company to discharge the bills under the implied covenants in its franchise, and that it consequently must reimburse the city. The cause was tried to the court, sitting as *Page 466 a jury, and the city had judgment for the full amount claimed, $23,702. The defendant Terminal Company has appealed.

The case turns mainly on the construction to be placed on the appellant's franchise. In July, 1909, by ordinance the respondent city granted and in November, 1909, the appellant Terminal Company accepted, a franchise authorizing it to build a union passenger station in Kansas City and in connection therewith to construct and maintain certain tracks, bridges, viaducts, subways and other structures for a period of 200 years. All this entailed the vacation of certain streets and alleys in the city. As part consideration for the franchise the Terminal Company agreed therein to purchase and transfer or cause to be purchased and transferred to Kansas City within four years the 8½-acre tract above mentioned, which adjoined on the south the site of the proposed union station.

By so agreeing, says the city, the Terminal Company impliedly covenanted that the title to be conveyed should be good and free from liens up to the date of the delivery of the deed. The grading tax bills were issued October 21, 1913. The deed was delivered four days later on October 25, 1913. By express reservation in the deed the special assessment for grading was excepted from its covenants of warranty, and a separate written contract was contemporaneously executed providing the rights and liabilities of both parties with respect thereto should stand as they were under the law and not be prejudiced by the delivery of the deed. This left the matter to be governed by the provisions of the franchise ordinance. The pertinent parts thereto are as follows:

"Sec. 17. (a) In further consideration of the passage of this ordinance, the Kansas City Terminal Railway Company agrees that, within four (4) years from the date when the vacations are made, it will purchase and transfer, or cause to be purchased and transferred to Kansas City, the following described land immediately south of the proposed Union Passenger Station in Kansas City, Missouri, provided for in Section 11 hereof: [Here follows detailed description.]

"(b) The said property shall be transferred and conveyed to Kansas City upon the express conditions, to which Kansas City hereby gives consent, that it shall be graded by Kansas City within twelve years after the date when the vacations are made as provided in Section 2 hereof, in such manner as shall be approved by the Board of Park Commissioners of Kansas City, and that no street-car line or lines shall be located, constructed or operated on said property, or any part thereof, nor shall any public carriage, omnibus or automobile stand be permitted thereon without the consent of the Kansas City Terminal Railway Company; nor shall any buildings or other structures be located thereon, except such as are suitable *Page 467 for the use and ornamentation of said property for park purposes. If Kansas City shall fail to grade said property as above provided the said property shall revert to the Kansas City Terminal Railway Company; and if any of said property shall have been acquired by Kansas City by condemnation as provided in the following paragraph (c) of this section, said property so acquired shall be conveyed to the Kansas City Terminal Railway Company.

"(c) If the Kansas City Terminal Railway Company shall be unable within the said period of four (4) years to purchase, or cause to be purchased, all of said property upon terms satisfactory to it, then Kansas City, at the expiration of said four-year period, or prior thereto, upon receipt of written notice from the Kansas City Terminal Railway Company, requesting it so to do, agrees, so far as it has power so to do, to proceed to condemn said property or so much thereof as the Kansas City Terminal Railway Company may be unable to purchase upon satisfactory terms, in the manner provided by law; and, in that event, the Kansas City Terminal Railway Company agrees that it will pay to Kansas City the cost of instituting such condemnation proceedings and the amount of damages that may be awarded therein; but a decision of the court holding that Kansas City has no power to condemn said land shall not relieve the Kansas City Terminal Railway Company from its agreement to purchase said land, or any part thereof, but in such event, there shall be a reasonable extension of time in which said purchase and conveyance may be made; provided, that all said property that may be so acquired or condemned by the city shall be accepted and received by Kansas City upon the same conditions heretofore in this section set forth. The title to any property condemned by Kansas City in accordance with this paragraph shall be taken and held by Kansas City subject to the express conditions contained in paragraph (b) of this section.

"(d) All lands acquired by Kansas City in accordance with this section shall be forever maintained, improved and adorned without any expense whatever, directly or indirectly, to the Kansas City Terminal Railway Company except as provided in Section 37 hereof; provided, however, that if the Kansas City Terminal Railway Company shall at any time cease to maintain and operate a Union Passenger station upon or adjacent to the site mentioned in Section 11 of this ordinance, then said property shall be and become the absolute property of Kansas City, without any restrictions or conditions whatever. . . .

"Sec. 37. The Kansas City Terminal Railway Company hereby agrees that all its right of way and other property now or hereafter owned may be charged with all taxes and local or special assessments for public improvements that might be lawfully assessed or made *Page 468 a charge against its property if it were not used for railroad purposes, and that it will promptly pay and discharge the same."

The events leading up to the issuance of the grading tax bills were as follows. About a year before the granting of the franchise in 1909, the city had passed an ordinance, in June, 1908, providing for the grading of a part of Main Street. The park site abutted the part of Main Street to be graded. This grading project was separate and independent from the union station development, so far as the record shows. A contract for the street grading work was awarded in July, 1910, somewhere near a year after the franchise ordinance had been passed, and the work was prosecuted to a conclusion and completed in August, 1913. The tax bills therefor were issued October 21, 1913, as heretofore stated. The assignee of that part of the tax bills covering the park site brought suit thereon against the city, the Terminal Company and others, and by agreement and compromise recovered a personal judgment against the city in November, 1919, the cause being dismissed as to the Terminal Company. In consenting to this disposition of the case the Terminal Company expressly stipulated that it did not waive any rights of action or defenses under the contract preserving the status quo ante executed when the deed was delivered on October 25, 1913, as recited in a preceding paragraph of this opinion.

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Bluebook (online)
23 S.W.2d 1006, 324 Mo. 461, 1930 Mo. LEXIS 462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kansas-city-v-kansas-city-terminal-railway-co-mo-1930.