Pensacola Scrap Processors, Inc. v. State Road Dept.

188 So. 2d 38, 1966 Fla. App. LEXIS 5061
CourtDistrict Court of Appeal of Florida
DecidedJune 2, 1966
DocketH-138
StatusPublished
Cited by16 cases

This text of 188 So. 2d 38 (Pensacola Scrap Processors, Inc. v. State Road Dept.) 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
Pensacola Scrap Processors, Inc. v. State Road Dept., 188 So. 2d 38, 1966 Fla. App. LEXIS 5061 (Fla. Ct. App. 1966).

Opinion

188 So.2d 38 (1966)

PENSACOLA SCRAP PROCESSORS, INC., Appellant,
v.
STATE ROAD DEPARTMENT of Florida et al., Appellees.

No. H-138.

District Court of Appeal of Florida. First District.

June 2, 1966.

*39 Shell, Fleming & Davis, Pensacola, for appellant.

P.A. Pacyna, Tallahassee, for appellees.

JOHNSON, Judge.

Pensacola Scrap Processors, Inc., who was plaintiff in the trial court, has appealed a final decree dismissing its complaint on the ground that it fails to state a cause of action. It is the basic contention of appellant that by its complaint it has adequately stated a cause of action for the relief prayed, and that the court erred by the rendition of its decree of dismissal.

Appellant, at all times pertinent to the cause of action sued upon, was a corporation operating under the corporate name of Pensacola Junk Company, Inc., which name was subsequently changed by authority of the Secretary of State pursuant to the provisions of law. From the allegations of the complaint, the following facts are clearly alleged, or may reasonably be inferred therefrom.

*40 After its incorporation in 1947 appellant entered into an oral lease with fee owners of a certain described parcel of land in Escambia County for an annual rental of $4,800.00, payable in installments of $400.00 a month. This lease agreement continued down through the years, and was in full force and effect at the time of the filing of this action. Upon acquiring the leasehold estate, appellant utilized the property in the operation of a scrap material business which involved the acquisition, storage, processing, and sale of scrap metal. In connection with its business appellant installed on the property necessary buildings, an underground oxygen system, an underground hydraulic press and a spur railroad track. Appellant was engaged in this business, and had been for a period of some seventeen years, when in 1963 the defendants-appellees instituted an action in eminent domain for the purpose, among others, of acquiring a strip of land across the property leased by appellant for a public road right of way. The fee owners of the land were named as parties defendant in the eminent domain proceedings, but the plaintiffs in that action failed and refused to also join appellant as a defendant therein. Appellant made application to the trial court for an order permitting it to intervene as a party defendant so that it might assert its right to such compensation as it was lawfully entitled for the partial loss of its leasehold estate, and for the damages it would suffer to its established business as a result of the taking of the fee title to the proposed public road right of way. In response to objections interposed by appellees, appellant's application for leave to intervene was denied.

As a consequence of the eminent domain action brought and litigated to a conclusion by appellees, appellant was required to remove at its own expense a large quantity of scrap metal and other materials owned by it and which had been stored on that portion of the land being acquired for the public road right of way. As a result of the taking, appellant's business was damaged in that part of its oxygen lines installed under, across, and through the strip of land condemned by appellees was lost or destroyed, and the spur line railroad was shortened to such an extent as to substantially reduce its utility value in the conduct of appellant's business on the part of its leasehold estate which remained on each side of the road right of way after the taking. The fee owners, as defendants in the eminent domain proceeding, asserted a claim to compensation for the damages suffered by appellant as a result of the taking of the land in question, which claim was disallowed and no compensation for such damages was awarded by the jury in that case. On appeal to this court the judgment rendered in the eminent domain proceeding was affirmed.

Because of the expensive improvements installed on the property leased by appellant it was not practicable for it to remove its business to another site, so it has continued to conduct its corporate enterprise on the lands adjoining the public road right of way since the date of the taking in eminent domain. As a consequence of the condemnation proceeding the value of appellant's leasehold estate has been diminished by loss of the use of the strip of land acquired for the road right of way; it was forced to expend large sums of money in the removal from the proposed road right of way of substantial quantities of scrap metal theretofore stored on the land; a portion of its underground oxygen system has been destroyed, and it has been deprived of the full use of its railroad spur track enjoyed by it prior to the taking. In addition, the established business of more than five years standing owned by appellant and located upon adjoining lands held by it under its lease with the owners was substantially damaged or destroyed as a result of the taking by appellees of the public road right of way in the condemnation suit. By its prayer appellant prays in the alternative for an injunction to restrain appellees from using and occupying *41 the public road right of way until such time as appellant has been compensated for the loss and damage sustained by it as a result of the appropriation of a part of its leasehold estate, or for an order of inverse condemnation requiring appellees to institute an appropriate action in eminent domain in which appellant will be afforded an opportunity to claim such compensation to which it may deem itself entitled as a result of the taking of a part of its leasehold estate.

The primary question presented for our decision is whether a tenant at will of real property is entitled to compensation for the taking of a part of its leasehold estate in an action of eminent domain brought by a county and the State Road Department for the acquisition of a public road right of way. The answer to this question depends upon a determination as to whether a tenant at will is an "owner" of property within the meaning of the constitution and statutes relating to the payment of compensation for property appropriated under the power of eminent domain.[1]

The leasehold estate owned and held by appellant was created by a verbal agreement which provides for the payment of rent in monthly installments. Under these facts there can be little doubt but that the status occupied by appellant in its relationship to the fee owners of the land in question is that of tenant at will.[2]

It appears to be the established law of Florida that a lessee of land under a written lease for a term of years is an owner of property in a constitutional sense and, as such, is entitled to full compensation under F.A. Section 73.10, F.S.A., for the taking of property owned by him in eminent domain.[3] Appellees insist that the foregoing principle of law is applicable only to a holder of a leasehold estate created by an instrument in writing and extending for a term of years, and is not applicable to a tenant at will. They point to the White decision cited above as authority for their position. We fail to find any ruling or expression in the White case which either directly or by implication holds in accordance with the position taken by appellees herein. On the contrary, the claimant for compensation in the case of Wingert v. Prince[4] was a tenant at sufferance holding over after the expiration of a written lease.

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Bluebook (online)
188 So. 2d 38, 1966 Fla. App. LEXIS 5061, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pensacola-scrap-processors-inc-v-state-road-dept-fladistctapp-1966.