OHIO MIDLAND, INC. v. Proctor

480 F. Supp. 2d 1025, 2007 U.S. Dist. LEXIS 25304, 2007 WL 942112
CourtDistrict Court, S.D. Ohio
DecidedMarch 30, 2007
DocketC2-05-1097
StatusPublished

This text of 480 F. Supp. 2d 1025 (OHIO MIDLAND, INC. v. Proctor) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio 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. Proctor, 480 F. Supp. 2d 1025, 2007 U.S. Dist. LEXIS 25304, 2007 WL 942112 (S.D. Ohio 2007).

Opinion

OPINION & ORDER

MARBLEY, District Judge.

I. INTRODUCTION

This matter comes before the Court on the following motions: (1) Defendant Norfolk Southern Railway Company’s (“Norfolk”) Motion for Summary Judgment on its counterclaims; and (2) Plaintiffs’ Cross *1027 Motion for Summary Judgement on Norfolk’s counterclaim for unjust enrichment. For the reasons set forth herein, this Court GRANTS in part and DENIES in part Norfolk’s Motion for Summary Judgment, and GRANTS Plaintiffs’ Cross-Motion for Summary Judgment.

II. BACKGROUND

A. Facts 1

On September 12, 1922, the United States Congress enacted House Bill 11901, which authorized the Interstate Bridge Company (“IBC”) to construct, operate, and maintain a bridge across the Ohio River to connect the City of Benwood, West Virginia and the City of Bellaire, Ohio. IBC constructed such a bridge, commonly referred to as the “Bellaire Bridge” (hereinafter, the “Bridge”) and operated it as a toll bridge until 1990 when the Ohio Department of Transportation (“ODOT”), having the right of appropriation, purchased the existing bridge ramp on the Ohio side of the river from IBC and demolished the ramp for the construction of Ohio Route 7. This action left no physical access to traffic and rendered the Bridge fully inoperable, a state in which it has remained throughout this civil action.

On March 13, 1925, prior to building the Bridge, IBC entered into an agreement with the Pennsylvania Railroad Company (“PRC”), a predecessor to Norfolk, whereby PRC leased to IBC a 16' x 47' tract of land located directly under and immediately surrounding what is now the remaining pier of the Bridge located on Ohio soil (the “Lease Agreement”). Specifically, the Lease Agreement declared that in consideration for an annual payment, PRC “grants to [IBC] the right to construct, maintain, operate, use, renew and remove the [proposed] highway and traction bridge over an across the tracks and property” owned by PRS. The Lease Agreement also specifies that PRC leases such land “throughout and during the period that [IBC] shall use and require the [leased property] for location of its [proposed] pier” and that rights and obligations under the agreement “shall be binding upon the parties hereto, their respective successors and assigns.”

The Lease Agreement also addressed the duty to remove the Bridge from the property leased by PRC, now owned by Norfolk: “[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 [PRC]____” In addition, the Lease Agreement grants the lessor PRC the right to remove the Bridge:

It is understood and agreed between the parties hereto that for the protection and safety of the property owned or in possession, custody or control of, as well as the protection and safety of the employees, patrons and licensees of [PRC], [PRC] may in its option at any time ... do and perform any or all work whether of the original construction, maintenance, repair, removal or ultimate removal of said bridge, pier ... in or upon or over the property of [PRC], and in such event may furnish and provide any materials and supplies necessary therefore, and [IBC] covenants and agrees that it will promptly pay or refund the entire cost therefore, plus fifteen per *1028 cent for overhead to [PRC] upon rendition of proper bills therefore.

On March 22, 1991, Plaintiff Roger Barack (“Barack”) and IBC entered into an Asset Purchase and Liability Assumption Agreement (“Purchase Agreement”), whereby IBC transferred, conveyed and assigned to Barack all, or substantially all, of its remaining properties, including the remaining portion of the Bridge. Pursuant to Section 2, Items (B)-(D) of the Purchase Agreement, entitled Assumption of Liabilities, Barack assumed:

[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 ... and [a]ll future obligations under any validly assigned leases ... and [a]ll future obligations arising by reason of the ownership of said Bellaire Toll Bridge.

Under Section 4 of the Purchase Agreement, Barack received for his “assumption ... of the liabilities of [IBC] ... including any obligation to demolish, raze or remove the said Bellaire Bridge ... the sum of Seven Hundred Thousand Dollars ($700,-000.00).... ” Subsequent to the sale of the Bridge to Barack, IBC became defunct.

Norfolk asserts that Plaintiffs, through Barack’s Purchase Agreement with IBC, assumed the liabilities set forth in the Lease Agreement originally entered into by IBC and PRC, and that Plaintiffs are, therefore, liable to Norfolk, a successor entity of PRC, to comply with the Lease Agreement. Plaintiffs make no objection to this assertion.

When Barack purchased the Bridge in 1991, he purportedly believed that ODOT planned to reconnect the Ohio side of the Bridge to the main part of the Bridge so that the Bridge could reopen to traffic. Thereafter, in 1996, Barack assigned any and all interest he had in the remaining Bridge assets to co-plaintiff, Ohio Midland, Inc. (“Midland”). 2 In 1997, Barack requested that the State of Ohio rebuild the ramp on Ohio Route 7 in order to allow the Bridge to resume operation as a toll bridge between Ohio and West Virginia. ODOT denied the request and indicated that it would neither reconnect the Bridge in Ohio, nor allow Barack to build a ramp to the Bridge.

In November 1998, because the Bridge had long been inoperable, the U.S. Coast Guard (the “Coast Guard”), upon an initial determination that the Bridge represented an unreasonable obstruction to navigation, issued a “60-Day” letter to Barack, which afforded Barack sixty days to provide the Coast Guard with demolition plans for the Bridge. While the Coast Guard allegedly continued to request demolition plans from Barack — in January of 1999, May of 1999, and June of 2001 — Barack did not respond to the Coast Guard until February 2002, in a correspondence that explained that Barack was “looking for demolition contractors” to satisfy the Coast Guard’s request.

Meanwhile, in April 2001, because Barack had neither provided demolition plans to the Coast Guard nor made any attempts to discuss the matter with the Coast Guard, the Coast Guard’s Bridge Program Administrator requested that the Coast Guard Commandant approve an order to require the removal of the Bridge. The Commandant approved the request and, thereafter, on November 14, 2001, the *1029 Coast Guard issued an Order to Barack requiring the removal of the Bridge. On September 25, 2002, after Barack made no effort to begin the removal process, the Coast Guard initiated a civil penalty action.

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480 F. Supp. 2d 1025, 2007 U.S. Dist. LEXIS 25304, 2007 WL 942112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-midland-inc-v-proctor-ohsd-2007.