Ohio Midland, Inc. v. Ohio Department of Transportation

286 F. App'x 905
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 1, 2008
Docket07-3575
StatusUnpublished
Cited by16 cases

This text of 286 F. App'x 905 (Ohio Midland, Inc. v. Ohio Department of Transportation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohio Midland, Inc. v. Ohio Department of Transportation, 286 F. App'x 905 (6th Cir. 2008).

Opinion

ROGERS, Circuit Judge.

In this 42 U.S.C. § 1983 action, the plaintiffs appeal the district court’s denial of their motion for leave to amend their complaint and appeal the district court’s grant of summary judgment to defendant Norfolk Southern Railway on its counterclaim for breach of contract. Plaintiffs are the owners of a bridge spanning the Ohio River, and have sought to compel the Ohio Department of Transportation either to rebuild the bridge ramp it demolished in 1991 or to pay the plaintiffs damages resulting from lack of the ramp, including the bridge’s long-term non-use and the plaintiffs’ potential liability to tear the bridge down pursuant to a demolition order from the United States Coast Guard. For the following reasons, we uphold both the district court’s denial of leave to amend and its grant of summary judgment to Norfolk Southern.

I. Factual Background

On September 12, 1922, Congress authorized the Interstate Bridge Company (IBC) to construct, maintain, and operate a toll bridge over the Ohio River between Bellaire, Ohio, and Benwood, West Virginia, reserving to itself the authority to alter, amend, or repeal the act. See H.B. 11901. Before constructing the bridge, IBC leased from the Pennsylvania Railroad Company a parcel of land on the Ohio side of the river for construction of one of the bridge’s piers. The lease agreement provided that IBC “shall at its own cost and expense construct, maintain, renew, and ultimately remove said bridge and pier and each and every part thereof, upon, over and across the tracks and property owned or controlled by” the Pennsylvania Railroad Company, and also provided that the agreement would be binding on both parties’ successors and assigns. Defendant Norfolk Southern Railway Company is a successor of the Pennsylvania Railroad Company.

The Bellaire Bridge operated as a toll bridge until 1991, when the Ohio Department of Transportation (ODOT) purchased from IBC the bridge ramp on the Ohio side of the river and its underlying land for the purpose of constructing Ohio Route 7, which construction would require that the bridge ramp be torn down. The plaintiffs in the instant case allege that two contracts were involved in this purchase. According to the plaintiffs, the first contract — executed on December 5, 1990— made no provision for damages to the residue of the bridge owned by IBC. Plaintiffs also claim that the December 5 con *907 tract entitled IBC to salvage materials from the area of the ramp acquired by ODOT. A later contract executed on January 7, 1991, however, allegedly required compensation for damages to the residue of the bridge. The plaintiffs claim that the second contract is void for lack of consideration and because IBC did not sign it. Accordingly, the plaintiffs claim that the first contract, in which compensation for damage to the bridge residue is not provided, is controlling.

Following sale of the bridge ramp to ODOT, plaintiff Roger Barack purchased IBC’s remaining interest in the bridge on March 21, 1991. Barack and IBC acknowledged in the purchase agreement that “the liabilities assumed clearly exceed the assets transferred,” and in consideration for Barack’s assumption of IBC’s liabilities, IBC paid Barack $700,000, less the amount it would cost IBC to terminate a demolition, contract. The agreement specifically acknowledged ODOT’s purchase of the bridge ramp and provided that Barack would assume, among other liabilities, all liabilities of IBC

arising by reason of that certain Purchase Agreement whereby the Ohio Department of Transportation purchased the Ohio ramp to the Bellaire Bridge owned by [IBC] and conveyed therewith by Agreement dated the 5th day of December, 1990, and as supplemented by letter addendum to said Agreement dated December 17, 1990, and as supplemented by Contract of Sale and Purchase dated January 7, 1991, by and between [ODOT] and [IBC]....

JA 182-88. The agreement also provided that Barack would assume “[a]ll liabilities or future obligations of [IBC] arising by reason of the ownership of the Bellaire Bridge, including any obligation on the part of [IBC] to demolish, raze and remove the remaining bridge structure.... ” Plaintiffs claim that, around the same time that ODOT tore down the ramp and constructed Route 7 in its place, ODOT bought land and prepared plans to rebuild the ramp over the newly constructed Route 7, which would have allowed the bridge to continue operation as a toll bridge. Barack claims that, believing ODOT intended to rebuild the ramp, he intended to resume operation of the bridge as a toll bridge.

ODOT denies having had any plans to rebuild the ramp, however, and has not rebuilt the ramp. In his original complaint, Barack alleged that after he purchased the remaining portion of the bridge, ODOT “aborted its plans to build a ramp over State Route 7 in its newly acquired right-of-way obtained especially for the ramp,” and that ODOT would not permit him to build his own ramp. In his unsuccessful attempt to amend his complaint, Barack alleged that he “observed that ODOT did not proceed with its plans to build a new ramp” and that he “then made repeated requests to ODOT over a number of years to grant him permission to build the ramp,” which ODOT did not act on and “neither granted [n]or refused Plaintiffs permission to build a new ramp.” It is difficult to pinpoint exactly when these events or non-events occurred, but all parties appear to operate on the assumption that if ODOT had plans to rebuild the ramp after constructing Route 7, such plans were abandoned in the early 1990s. In 1996, Barack assigned all of his interest in the remaining portion of the bridge to co-plaintiff Ohio Midland, Inc.

In November 1998, upon an initial determination that the bridge was an unreasonable obstruction to navigation given that it had long ceased to operate, the United States Coast Guard issued Barack a notice to demolish the bridge and provide demolition plans within 60 days. According to *908 the Coast Guard, Barack “neither submitted demolition plans ... nor made any attempts to discuss the matter with the Coast Guard.” As a result, on November 14, 2001, the Coast Guard ordered Barack to remove the bridge. Barack did not remove the bridge, and in September 2002 the Coast Guard brought an administrative action against Barack to impose civil penalties, which were imposed by a hearing officer on April 21, 2004. On October 18, 2005, the Coast Guard Commandant affirmed the order to remove the bridge, but reduced Barack’s civil penalties from $598,200 to $300,000 plus interest and costs.

On November 17, 2005, Barack filed a complaint against the Commandant under the Administrative Procedure Act, challenging the Coast Guard’s October 18, 2005, decisions (Case No. C2-05-1044). Three weeks later, plaintiffs Barack and Ohio Midland filed another complaint against numerous defendants, including the Commandant (Case No. C2-05-1097). 1 Case 1097 is the case currently before this court. The district court consolidated Cases 1044 and 1097, finding that the cases contained common questions of law and fact.

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286 F. App'x 905, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-midland-inc-v-ohio-department-of-transportation-ca6-2008.