Orange State Oil Company v. Jacksonville Expressway Authority

143 So. 2d 892, 1962 Fla. App. LEXIS 3129
CourtDistrict Court of Appeal of Florida
DecidedJuly 12, 1962
DocketD-111
StatusPublished
Cited by19 cases

This text of 143 So. 2d 892 (Orange State Oil Company v. Jacksonville Expressway Authority) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Orange State Oil Company v. Jacksonville Expressway Authority, 143 So. 2d 892, 1962 Fla. App. LEXIS 3129 (Fla. Ct. App. 1962).

Opinion

143 So.2d 892 (1962)

ORANGE STATE OIL COMPANY, a Corporation, Appellant,
v.
JACKSONVILLE EXPRESSWAY AUTHORITY and W.C. Berrier, Appellees.

No. D-111.

District Court of Appeal of Florida. First District.

July 12, 1962.
Rehearing Denied September 18, 1962.

McCarthy, Adams & Foote, and Yardley Drake Buckman, Jacksonville, for appellant.

Charles R. Hess and Donald G. Nichols, and David W. Foerster, Jacksonville, for appellees.

*893 WIGGINTON, Acting Chief Judge.

Appellant Orange State Oil Company and appellee W.C. Berrier were defendants in an eminent domain proceeding brought by appellee Jacksonville Expressway Authority. Orange State has appealed from two orders entered in a supplemental proceeding held subsequent to entry of judgment for the purpose of apportioning the compensation award made by the jury.

Berrier was the fee simple owner of a parcel of land in Jacksonville, Florida, which he leased to Orange State for the operation of a gasoline service station business. The Expressway Authority instituted this action in eminent domain to condemn a portion of the land covered by the lease. As a result of the taking in this proceeding it would have been necessary to redesign and construct a new building on the remaining property in order for Orange State to continue utilizing the leasehold estate as a filling station site. The lease contract contained no provision fixing the rights and obligations of the parties in the event of a total or partial taking of the property by eminent domain. Upon learning that Expressway intended to institute this action Orange State wrote a letter to Berrier advising that it had vacated the property and had no desire to reopen the station. The letter expressed Orange State's understanding that the taking by eminent domain would cover approximately one-half of the land and practically the entire service station building, thereby rendering the property unuseable and unsuitable for gasoline service station purposes. Orange State stated its assumption that the institution of the condemnation suit would constitute a cancellation of the lease at which time possession of the property would be returned to Berrier and thereafter no further rentals under the lease would be paid. Orange State offered to cooperate with Berrier in defending the suit and in making claim for such damages as each party would be entitled as a result of the taking. Berrier did not reply to this letter and no further agreement was reached between the parties regarding continuance or termination of the lease. Orange State removed its personal property from the premises and returned possession thereof to Berrier who thereafter exercised exclusive control over the property by repairing the portion of the building not taken, and entering into a new lease agreement with another party for the remaining part of the parcel. Each party filed an answer in the suit claiming compensation for the taking of their property. Upon trial the jury awarded full compensation for the property condemned together with attorneys fees.

After judgment in conformity with the jury's verdict was entered, supplemental proceedings were held for the purpose of apportioning the award of compensation as fixed in the judgment. Upon the evidence adduced an order was entered finding that Orange State had committed an anticipatory breach of the lease contract prior to the institution of this suit and was therefore not the owner of a leasehold estate in the property condemned for which it was entitled to compensation. In addition the trial judge found that even had the lease contract not been breached by the voluntary act of Orange State prior to the institution of the suit, the evidence revealed that the leasehold estate held by Orange State had no compensable value. Berrier was adjudged to be entitled to the entire compensation awarded by the jury.

Upon motions filed by the parties for the taxation of costs incurred in connection with the supplemental proceedings, the trial court entered an order holding as a matter of law that these costs were not taxable against Expressway, and refusing to tax costs in favor of or against either of the defendants, leaving each party to absorb such costs as had been incurred in connection with the supplemental proceedings. It is from the two mentioned orders that this appeal is taken.

Appellant contends that the evidence does not support, but in fact contradicts, *894 the finding by the trial judge that under the circumstances revealed by this record Orange State was guilty of an anticipatory breach of its lease contract with Berrier. Had the entire parcel of land constituting Orange State's leasehold estate been taken in this proceeding, we would be forced to agree that in this respect the trial judge committed error. Considering, however, that the suit constituted only a partial taking of the leasehold estate, we must agree that there is sufficient evidence in the record from which the trial court could have concluded as a matter of law that Orange State had breached its lease contract with Berrier prior to the institution of this suit, and therefore owned no leasehold estate for the appropriation of which it was entitled to compensation.

As alluded to above this proceeding constituted only a partial taking of the leasehold estate. The lease contract contained no provision fixing the rights and obligations of the parties upon the happening of such contingency. The general rule appears to be that a partial taking of a leasehold estate under the power of eminent domain does not constitute an eviction of the lessee and he remains bound to perform the obligations assumed by him under the terms and provisions of the lease. Nothing short of a surrender, a release or an eviction will discharge him from his covenants in this behalf.[1] Even though a lessee may be entitled to a reduction in the reserve rental to the extent that a partial taking has diminished the value of his leasehold estate,[2] he is not privileged to unilaterally declare the lease contract terminated, abandon the leasehold estate and refuse to meet the obligations assumed by him in the lease contract. That the remainder of the property was capable of being utilized for a commercial purpose is established by the evidence which reveals that after the partial taking, Berrier repaired what remained of the existing building and rented the remaining portion of the property to another person.

In the Kanter case the Supreme Court held that where a lease agreement contains mutually dependent executory covenants to be performed on either side, there appears to be no valid reason for refusing to apply the doctrine of anticipatory breach to a repudiation of the contract by the lessee, and in such event the lessor has a right to consider the contract ended insofar as further performance by the lessee of its terms is concerned and may resume possession of the leasehold premises.[3] It has also been held upon the weight of authority that the breach, abandonment or renunciation of a lease by the lessee before the expiration of the term gives the lessor the right to treat the lease as terminated and resume possession, thereafter using the same exclusively for his own purpose.[4]

The record in this case reveals that the lessor Berrier expressed no objection to Orange State's written notification that it was abandoning the property covered by the lease, removing its personal property and electing to pay no further rental under the lease, which declaration of intention occurred prior to the institution of this suit.

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Bluebook (online)
143 So. 2d 892, 1962 Fla. App. LEXIS 3129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orange-state-oil-company-v-jacksonville-expressway-authority-fladistctapp-1962.