P.C. Management, Inc. v. Page Two, Inc.

573 N.E.2d 434, 1991 Ind. App. LEXIS 940, 1991 WL 101654
CourtIndiana Court of Appeals
DecidedJune 12, 1991
Docket49A02-8909-CV-480
StatusPublished
Cited by9 cases

This text of 573 N.E.2d 434 (P.C. Management, Inc. v. Page Two, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
P.C. Management, Inc. v. Page Two, Inc., 573 N.E.2d 434, 1991 Ind. App. LEXIS 940, 1991 WL 101654 (Ind. Ct. App. 1991).

Opinions

RATLIFF, Chief Judge.

STATEMENT OF THE CASE

P.C. Management, Inc. appeals the trial court's grant of summary judgment for City of Indianapolis, Department of Metropolitan Development of the City of Indianapolis, and The Metropolitan Development Commission of Marion County (collectively, City) and denial of summary judgment for P.C. Management. We affirm.

ISSUE

Whether the trial court erred in granting summary judgment for the City and in denying P.C. Management's motion for summary judgment against the City.

FACTS 2

In June 1984, LaScala Partnership (LaS-cala) owner of real estate located at 110 South Meridian Street in Indianapolis leased the building on the real estate to Theodore H. Polk (Polk) and Stephen A. Teets (Teets). This was the first master lease executed. Polk and Teets assigned their interest to P & T, Inc., which orally sublet the second floor to Charles and Patricia Perrin in September 1984. The Per-rins then incorporated under the name P.C. Management, Inc. The sublease was reduced to writing in March 1985. P & T assigned its interest to Page Two, Inc. (Page Two), and Page Two thereby became sublessor to P.C. Management. LaScala and Page Two then executed two consecutive substitute master leases for the building on or about March 6, 1986, and March 1, 1987. In addition, the sublease between Page Two and P.C. Management was amended on September 1, 1987. Page Two also had sublessees other than P.C. Management.

On July 26, 1988, the City purchased Page Two's leasehold interest and two of the subleases of Page Two's sublessees. On September 14, 1988, the City purchased from LaScala the fee simple interest in the building. Although the City also initially offered to purchase the sublease interest of P.C. Management and the parties consulted experts in order to value the interest, the City notified P.C. Management by letter of November 17, 1988, that P.C. Management's sublease had terminated or would soon terminate.

The City also asserted the master lease between the owner of the fee and Page Two had terminated by reason of merger when the City acquired the fee simple interest after acquiring Page Two's leasehold interest. In addition, the City stated it would order demolition of the building in the Spring of 1989 and this would cause the master lease to terminate. Finally, the City's letter stated the City's purchase of Page Two's lease under condemnation authority automatically resulted in the termination of the master lease. Later, on January 16, 1989, the City received an opinion from a consulting engineer which stated the building at 110 South Meridian was unsafe for use by the general public.

On December 20, 1988, P.C. Management filed a complaint against the City for declaratory judgment and injunctive relief. The complaint was made a complaint supplemental to the original action filed in 1986 by P.C. Management against Page Two and other parties who are not parties to this appeal. Both the City and P.C. Management filed motions for summary judgment. On June 9, 1989, the trial court awarded summary judgment to the City [437]*437and denied P.C. Management's motion, stating there was no genuine issue of material fact. The court found "that Citys [sic] acquistion [sic] of the fee by exercise of condemnation authority terminated the master lease. Plaintiff has no claim aganist [sic] condemnation process under their sub [sic] lease." Record at 424.

DISCUSSION AND DECISION

P.C. Management contends the trial court's entry of summary judgment for the City was error for numerous reasons. The City argues no genuine issue of fact exists. P.C. Management appears to agree that no factual issue exists.3 Thus, this appeal involves solely questions of law and we review the trial court's judgment to see if it accurately applied the law. We stand in the trial court's shoes and apply the same standard for summary judgment applicable in the trial court. Ayres v. Indian Heights Volunteer Fire Department, Inc. (1986), Ind., 493 N.E.2d 1229, 1234. We will affirm a summary judgment if it is sustainable on any theory or basis found in the record, Willsey v. Peoples Federal Savings & Loan (1988), Ind.App., 529 N.E.2d 1199, 1207, trams. denied, even if the trial court rendered judgment upon a theory different from the one upon which we sustain the judgment. Howard v. H.J. Ricks Construction Co. (1987), Ind.App., 509 N.E.2d 201, 204, trams. denied.

We first examine the theory under which the trial court apparently entered summary judgment for the City: that acquisition of the fee by exercise of condemnation authority terminated the master lease and P.C. Management had no claim under its sublease against the condemnation process.

The City contends and the record reflects that it used IND.CODE § 86-7-15.1-1 et seq., dealing with redevelopment of blighted areas, to acquire the property under consideration. That chapter permits acquisition of real property through the exercise of eminent domain. When an Indiana city condemns land its condemning authority is given an option of proceeding under the General Eminent Domain Act, IND.CODE § 32-11-1-1 et seq. or under eminent domain proceedings for cities and towns, IND.CODE § 32-11-1.5-1 et seq. Under 1.C. § 82-11-1-1(b), the body with the right to exercise the power of eminent domain must make an effort to purchase the real property interests before proceeding to condemn them. A deed executed in lieu of condemnation conveys only the interest stated in the deed. IC. § 32-11-1-1(d). Under I.C. § 32-11-1.5-8 to 5, the works board of a municipality must adopt a resolution describing property to be affected, prepare a list of owners or holders of interests in the property, and award damages for each piece of property listed.

We are persuaded by out-of-state authority that a conveyance in lieu of actual condemnation of real property constitutes a condemnation proceeding because it indicates an intention to acquire the property by condemnation and is tantamount to a taking under the power of eminent domain. See Western Airlines, Inc. v. Lathrop Company (1972), Alaska, 499 P.2d 1013; Vincent v. Redevelopment Authority of the County of Washington (1985), 87 Pa. Commw. 470, 487 A.2d 1024. "If there is a taking by eminent domain of all of the leased property for all of the lease term, the lease is terminated." Restatement (Second) of Property § 8.1(1) (1977). The authorities cited by the City support this proposition. See A.W. Duckett & Co. v. United States (1924), 266 U.S. 149, 45 S.Ct. 38, 69 L.Ed. 216; Pennsylvania Avenue Development Corporation v. One Parcel of Land (D.C.Cir.1980), 494 F.Supp. 45; Beaverton Urban Renewal Agency v. Koning (1981), 58 Or.App. 842, 632 P.2d 1359. Thus, the master lease between the fee owner and Page Two terminated when the City acquired the fee simple title to the building on September 14, 1988.

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P.C. Management, Inc. v. Page Two, Inc.
573 N.E.2d 434 (Indiana Court of Appeals, 1991)

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Bluebook (online)
573 N.E.2d 434, 1991 Ind. App. LEXIS 940, 1991 WL 101654, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pc-management-inc-v-page-two-inc-indctapp-1991.