Laughead v. Commonwealth, Department of Transportation

657 S.W.2d 228, 1983 Ky. LEXIS 301
CourtKentucky Supreme Court
DecidedJuly 6, 1983
StatusPublished
Cited by7 cases

This text of 657 S.W.2d 228 (Laughead v. Commonwealth, Department of Transportation) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Laughead v. Commonwealth, Department of Transportation, 657 S.W.2d 228, 1983 Ky. LEXIS 301 (Ky. 1983).

Opinions

JAMES G. WOLTERMANN, Special Justice.

The facts of this case are largely undisputed. The movant, John Laughead, was the sole owner of a ferry boat operation, commonly referred to as the Coney Island Ferry, from its inception in 1933 to its closing in 1978. The ferry operated from Brent, Kentucky in Campbell County, across the Ohio River to a landing on Eldorado Avenue on the Ohio shore. The operation was essentially seasonal in nature and coincided with the schedule of Coney Island Amusement Park, Sunlite Swimming Pool and River Downs Race Track. Although the nature of the franchise was the transportation of the general public, it is apparent that the patrons of these enterprises made up the bulk of the ferry boat’s business. Also it is clear that the ferry boat operation was for the benefit of pedestrians and did not transport automobiles or other types of vehicles. The original ferry franchise was granted to the movant by the Commonwealth of Kentucky in 1937 for a period of twenty (20) years and was renewed in 1957 for an additional twenty (20) year period.

In 1975, movant became aware that he might be entitled to compensation from the respondent, Commonwealth of Kentucky, by virtue of the construction of the Combs-Hehl Interstate 275 Bridge crossing the Ohio River at Brent, Kentucky. The statutory authority for such compensation is contained in KRS 180.276 as follows:

“Prior to the opening for public use of any interstate bridge, the construction of which is authorized by any law of the Commonwealth of Kentucky, regardless of the state agency, commission or administrative body so authorized to make such construction, the state agency, commission or administrative body so authorized to construct, operate and maintain such interstate bridge shall purchase the ferry, equipment, franchises, rights and privileges used in connection with the operation of any ferry which has been in continuous operation for at least fifteen (15) years prior thereto and which is located within five (5) miles of the site of said bridge, and pay the owner therefor a fair cash value; provided, that in the event such agency, commission or administrative body and the owner of such ferry shall be unable to agree upon a fair cash value, the valuation of such property shall be determined by three (3) persons; one (1) to be selected by the agency authorized to make such construction, one (1) to be selected by the owners of the ferry and the third to be selected by these two (2). The ferry shall be valued as a going concern, but no allowance shall be made for future growth. In the event the owner of such ferry shall not agree to the establishment of such valuation according to the foregoing method, then in such event, the agency, commission or administrative body shall not be required to purchase such assets from the owner of the ferry”.

Based on the statutory language, movant wrote to the respondent on December 26, 1975 and requested the respondent to begin negotiations pursuant to this statute. It is uncontroverted that the ferry operation is within1 five (5) miles of the location of the Combs-Hehl Interstate 275 Bridge. The response of the respondent was that it would not negotiate pursuant to the statute in that the respondent held the position that KRS 180.276 was unconstitutional. Movant continued his request to negotiate in subsequent years and the respondent refused to [230]*230negotiate based on its opinion concerning the statute.

In 1977, the movant failed to renew his franchise for an additional twenty (20) year period. At the time that his franchise came up for renewal, the bridge construction had already been two (2) years in progress and the completion was set for approximately 1979. Despite his lack of a franchise, the movant continued to operate his ferry boat until August 30, 1978 on which date the movant sold the two (2) ferry boats that were used in his business. On December 19, 1979, the Combs-Hehl Interstate 275 Bridge was opened for vehicular use by the general public.

On May 13, 1980, movant filed his complaint in the Franklin Circuit Court requesting a mandatory injunction to compel the respondent to follow the legislative mandate set out in KRS 180.276. The respondent maintained that it was not required to purchase the ferry operation under KRS 180.276 because movant had allowed his franchise to lapse in 1977 and sold his equipment in 1978, therefore, at the time the bridge was opened for public use, movant was not in continuous operation for the immediately preceding fifteen (15) years. The Franklin Circuit Court concurred with the position of the respondent and entered judgment on behalf of the respondent, and the Court of Appeals affirmed. We reverse.

The doctrine of equitable estoppel is controlling in this case. The doctrine is well stated in 31 C.J.S. Estoppel § 108, pages 548-549 as follows:

“The doctrine of equitable estoppel precludes a person from maintaining a position or attitude inconsistent with another position or attitude which is sought to be maintained at the same time or which was asserted at a previous time; and, as a general rule, where a person has, with knowledge of the facts, acted or conducted himself in a particular manner, or asserted a particular claim, title, or right, he cannot afterward assume a position inconsistent with such act, claim, or conduct to the prejudice of another who has acted in reliance on such conduct or representations. The doctrine requires of a party consistency of conduct, when inconsistency would work substantial injury to the other party.”

Kentucky cases are in concurrence with this position. See Hicks v. Combs, 311 Ky. 149, 223 S.W.2d 379 (1949); Cleveland Wrecking Co. v. Aetna Oil Co., 287 Ky. 542, 154 S.W.2d 31 (1941); Pettit’s Adm’r. v. Goetz, 261 Ky. 107, 87 S.W.2d 99 (1935); American Oak Leather Co. v. Cleveland, C.C. & St. Louis Railroad Company, 216 Ky. 611, 288 S.W. 347 (1926).

The respondent, in 1975, held to the position that it was not required to negotiate with movant, in spite of the direct requirements of KRS 180.276. Respondent continuously held to this position until October 1979 when this Court upheld the constitutionality of the statute. Following the decision upholding the constitutionality of the statute, the respondent took the position that it was not required to purchase the ferry operation from the movant because the operator failed to meet the continuity of ownership requirement of the statute. In essence, the respondent first concluded that there was no valid statute and then took the inconsistent position of relying on a defense existing in the statute to which it had previously ascribed no validity.

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Bluebook (online)
657 S.W.2d 228, 1983 Ky. LEXIS 301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/laughead-v-commonwealth-department-of-transportation-ky-1983.