Lamar Advertising of Tennessee, Inc. v. Metropolitan Development & Housing Authority

803 S.W.2d 686, 1990 Tenn. App. LEXIS 743
CourtCourt of Appeals of Tennessee
DecidedOctober 10, 1990
StatusPublished
Cited by3 cases

This text of 803 S.W.2d 686 (Lamar Advertising of Tennessee, Inc. v. Metropolitan Development & Housing Authority) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lamar Advertising of Tennessee, Inc. v. Metropolitan Development & Housing Authority, 803 S.W.2d 686, 1990 Tenn. App. LEXIS 743 (Tenn. Ct. App. 1990).

Opinion

CRAWFORD, Judge.

Plaintiff, Lamar Advertising of Tennessee, Inc., (Lamar) appeals from the order of the trial court which denied its motion for summary judgment and granted summary judgment to defendant Metropolitan Development and Housing Authority (MDHA) on its counterclaim.

Lamar’s complaint, filed August 28, 1986, alleges that Lamar had a valid property interest in sign structures and a portion of the real property on which the sign structures were located at 614 Second Avenue South and 510 Commerce Street in Nashville, Tennessee. Plaintiff avers that MDHA, a governmental entity, condemned the underlying real property on which the signs were located and failed to pay any compensation to plaintiffs for the loss thereof. Lamar further avers that defendant’s actions violated Article I, Sec. 21 of the Tennessee Constitution and the Fifth [687]*687and Fourteenth Amendments to the Constitution of the United States. MDHA’s answer, as amended, admits that it condemned the property at 614 Second Avenue North, but avers that it acquired the property at 510 Commerce Street by negotiation. The answer further admits that the signs were removed from the property as alleged, but were removed only after Lamar refused to remove them as MDHA alleges they were contractually obligated to do. The answer joins issue on the remaining material allegations of the complaint.

By way of countercomplaint, MDHA sues Lamar and avers that at the time of the condemnation of one parcel and the purchase of the other parcel, the existing lease agreements between Lamar and the then property owners allowed for the erection of billboard signs on the properties, but contained cancellation privileges upon 30 or 60 days notice. The counterclaim avers that Lamar was obligated to remove the signs at its expense, but after Lamar received proper notice and refused to move the signs, MDHA removed the signs and incurred expenses for which they seek recovery.

Lamar filed a motion for summary judgment and in support of the motion, relies upon the pleadings filed in the case and the affidavits of Bob Howard of MDHA. MDHA filed a motion for summary judgment and in support thereof relies upon the pleadings, affidavit and supplemental affidavit of Bob Howard of MDHA and admission made by Lamar in its Response to Request for Admissions.

Since the circumstances differ as to each of the two properties involved, our* examination of the proof in support of the motions for summary judgment will be separated as to each of the properties.

COMMERCE STREET PROPERTY

The affidavit and supplement thereto of Bob Howard, Assistant Director of Real Estate for MDHA, states, contrary to the allegations of its answer, that the Commerce Street Property was condemned on November 7, 1983, and that shortly thereafter MDHA terminated the previous owner’s lease agreement with Lamar. This lease agreement, attached as an exhibit to the affidavit, provides for a term of one year from the first day of August, 1979, to continue in force “year to year at the above rental until terminated by written notice served by either party not less than 30 days before the end of such term, or additional year.”

Howard further deposes that on November 11, 1983, MDHA entered into a month' to month lease agreement with Lamar, a copy of which is attached to the affidavit and which lease agreement provides that either party may terminate the lease by 30 days written notice, prior to the intended date of termination. The lease also contained the following provision: “By execution of- this agreement, lessee does not forfeit any rights as to ownership and/or relocation expense payments for the designed improvements.” Notice was given by MDHA on April 18, 1985 for termination of this lease agreement on June 1, 1985. Lamar was also given notice to remove the sign on the Commerce Street Property by June 1, 1985, but failed to do so. The affidavit further states that signs on Commerce Street were moved in October, 1985, after Lamar refused to move them.

The cost of removing the Commerce Street signs was stipulated at $660.00.

Lamar responded to requests for admissions and admitted that it entered into a lease agreement with MDHA on the Commerce Street Property and that they received 30 days written notice of cancellation thereof. It further admitted that it was requested to remove the two signs, but did not do so.

SECOND AVENUE PROPERTY

The affidavit of Bob Howard states as to the Second Avenue Property, contrary to the allegations of the answer, that MDHA acquired this property by purchase on July 27, 1984. The property owners had an existing lease with Lamar dated July 31, 1983, which provided, among other things, that it could be terminated on 60 days notice. The lease was attached as Exhibit [688]*688D and the precise wording of the termination clause states:

The lessor may terminate this lease by giving written notice of termination and refunding any unearned rental paid in advance. In the event of termination of the lease under this paragraph, the lease shall terminate 60 days after receipt of the notice of termination and any unearned rental, and said lessee further agrees to remove all advertising structures and displays within 60 days from receipt of said notice.

Howard continues deposing that he gave notice of termination on June 25, 1984, and attached as an exhibit to his affidavit a copy of the notice which states:

Please accept this letter as your notification that this Agency, on June 19, 1984, entered into a contract with Mr. J.D. Wright, Jr. and others to purchase the above referenced parcel of land. We understand that your firm has two advertising structures on this property (Lease No. 10063) and your lease states that the Lessor may terminate the Lease Agreement upon giving written notice of termination and the signs will be removed at the Lessee’s expense within 60 days after receiving the notice. It is the intention of this Agency to cancel this Lease Agreement as soon as possible after the acquisition of this property.
If your firm wishes to continue to lease this property on a month-to-month basis, our Agency will consider such a lease arrangement if received from you. If you have any questions regarding these comments, please contact me personally.

Howard further deposes that Lamar refused to move the signs and MDHA had the signs removed at its expense.

The parties stipulated that the cost to remove these signs was $440.00.

The trial court in granting MDHA’s summary judgment, and denying Lamar’s summary judgment motion made the following findings:

******
The Court finds that there are no material issues of fact in dispute and the matter is ripe for summary judgment. The Court finds that this is not a civil rights case, covered by 42 U.S.C. § 1983; nor is it an inverse condemnation case, wherein it is alleged that MDHA has taken the property of the Plaintiff by inverse condemnation. The Court finds that this is a contract case, wherein the relationship of the parties is governed by the contract between the parties, or the contract to which Defendant MDHA acceded when it acquired the property in dispute.

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Bluebook (online)
803 S.W.2d 686, 1990 Tenn. App. LEXIS 743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lamar-advertising-of-tennessee-inc-v-metropolitan-development-housing-tennctapp-1990.