Lovell Land, Inc. v. State Highway Administration

952 A.2d 414, 180 Md. App. 725, 2008 Md. App. LEXIS 87
CourtCourt of Special Appeals of Maryland
DecidedJuly 3, 2008
Docket1594, September Term, 2007
StatusPublished
Cited by4 cases

This text of 952 A.2d 414 (Lovell Land, Inc. v. State Highway Administration) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lovell Land, Inc. v. State Highway Administration, 952 A.2d 414, 180 Md. App. 725, 2008 Md. App. LEXIS 87 (Md. Ct. App. 2008).

Opinion

DAVIS, Judge.

Appellant, Lovell Land, Inc., filed a complaint for declaratory and injunctive relief in the Circuit Court for Howard County on April 25, 2006 against appellees, the State Highway Administration (SHA) and Howard County (County). Appellant sought a declaratory judgment that (1) its predecessor-in-interest, King’s Meade Limited Partnership (King’s Meade), is a third party beneficiary of a deed executed by appellees, under which the SHA conveyed 17.337 acres of land to the County subject to the condition that, if the County should cease using the property for a public purpose, the property would revert to the SHA and that (2) the County has not used the property for a public purpose. Accordingly, appellant requested that the circuit court issue a permanent injunction, *730 requiring the County to convey the property at issue to the SHA and order the SHA, within thirty days after such conveyance, to offer appellant the right of first refusal to reacquire the property at not more than its current market value, pursuant to § 8-309(c)(l)(i) of the Maryland Code (1977, 2001 RepLVol., 2007 Supp.), Transportation Article. 1

Appellees subsequently moved for summary judgment on various grounds. On March 23, 2007, the circuit court (Leasure, J.), conducted a hearing on the motions. By Order and Memorandum Opinion dated August 17, 2007, the circuit court found that appellant was not an intended third party beneficiary to the deed entitled to maintain an action and, thus, granted summary judgment in favor of appellees. Appellant timely noted an appeal, presenting the sole question for our review:

Is [appellant], as the successor-in-interest to King’s Meade, a creditor third party beneficiary of the Reverter Clause in the SHA/County Deed where: (1) under the express terms of the Reverter Clause interpreted in light of the applicable statute, [§ 8-309], King’s Meade is the only party that can benefit from the Reverter Clause; and (2) the SHA included the Reverter Clause in the SHA/County Deed in direct response to King’s Meade’s claim that the SHA was required to convey the property to King’s Meade under § 8-309 because the County did not have a public purpose for the property?

Appellees also filed a cross-appeal in order to preserve alternative grounds for summary judgment, which were either resolved in favor of appellant or left undetermined by the trial court. In its cross-appeal, appellees present the following two questions for our review:

I. Are [appellees] entitled to summary judgment on the alternative ground that the Subject Property was transferred to [the County] as an adjacent property *731 owner as part of the consideration of a right-of-way transaction pursuant to [§ 8-309(f) ] under which conveyance for a public purpose was not required?
II. Are [appellees] entitled to summary judgment on the alternative ground that [appellant’s] claims are barred by the statute of limitations where the Complaint in this action was filed (1) more than five years after [appellant] first put [appellees] on notice of the claims asserted in the Complaint and that it would take any and all actions to protect its rights and; (2) more than three years and five months after counsel for [appellant] demanded that [the SHA] exercise the Reverter Clause, regain title to the Subject Property, and convey it to [appellant]?

For the reasons that follow, we affirm the grant of summary judgment in favor of appellees only on the grounds relied upon by the Circuit Court for Howard County.

FACTUAL & PROCEDURAL BACKGROUND

On January 26, 1988, appellees entered into a Bi-Party Agreement which effectively formalized their plans to cooperate with one another in the construction of Maryland Route 100 from Interstate 95 to U.S. Route 29 in Howard County. The Bi-Party Agreement sets forth the duties and obligations of appellees with respect to roadway design, construction, acquisition of land and allocation of costs associated with the construction of the Route 100 project.

In furtherance of the project, on January 18, 1989, the SHA entered into an agreement with BritAm Development Group (BritAm) to exchange parcels of land. At the time, BritAm’s general partners were the Brantley Development Corporation and King’s Meade. It was agreed that BritAm would convey land to the SHA for the Route 100 project and that, subject to the approval of the Board of Public Works, the SHA would convey land that it owned to BritAm for the expansion of BritAm’s proposed residential subdivision known as “Bright-field.”

*732 Meanwhile, the County desired to acquire land near the planned alignment of Route 100, located in the vicinity of Maryland Route 108 and Montgomery Road for an “important public purpose.” Specifically, the property included land that was immediately to the South of and adjacent to the 19.982 acres of land that the SHA was in the process of acquiring from King’s Meade. By deed dated March 29, 1990, the County acquired approximately 28.5686 acres from the “State of Maryland for to [sic] the use of the University of Maryland System (formerly the Board of Regents of the University of Maryland)” for the sum of $799,920.80. The property was transferred to the County subject to covenants running with the land, restricting the County’s use of the land so that it shall not be utilized for “any commercial or other non-governmental purposes” and that, in the event of a breach of that covenant, the property would revert to the State of Maryland.

Three years after the agreement between BritAm and the SHA, King’s Meade, pursuant to a series of deeds dated April 9, 1992, transferred approximately 19.982 acres of land to the SHA and the SHA transferred approximately 8.2 acres of land to King’s Meade for the purposes of its residential subdivision. The SHA paid King’s Meade the additional sum of $139,600.

Following these initial acquisitions of land, the alignment of Route 100 shifted to the South. Under the new alignment, most of the 19.982 acres of land acquired from King’s Meade was not needed for the Route 100 right-of-way. Instead, approximately 12.354 acres of land acquired by the County from the University of Maryland System was used in the construction. As a result of the realignment, 17.337 acres of land (Subject Property) were no longer needed for the Route 100 project. The Subject Property is comprised of approximately 15.849 acres that the SHA acquired from King’s Meade, approximately .732 acres that the County acquired from the University of Maryland System and .756 acres that the SHA acquired from James Haker. 2

*733 To accommodate the southern realignment of the Route 100 project, on November 26, 1996, appellees entered into a Supplemental Agreement to the Bi-Party Agreement (1996 Supplemental Agreement), wherein the parties agreed to exchange twelve separate parcels of land. The County, subject to the approval of the County Council, agreed to transfer nine parcels, totaling approximately 47.050 acres, to the SHA.

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Lovell Land, Inc. v. State Highway Administration
969 A.2d 284 (Court of Appeals of Maryland, 2009)
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969 A.2d 284 (Court of Appeals of Maryland, 2009)
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962 A.2d 1046 (Court of Special Appeals of Maryland, 2008)

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Bluebook (online)
952 A.2d 414, 180 Md. App. 725, 2008 Md. App. LEXIS 87, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lovell-land-inc-v-state-highway-administration-mdctspecapp-2008.