RK Midway, LLC v. Metropolitan Council

CourtCourt of Appeals of Minnesota
DecidedJanuary 23, 2017
DocketA16-530
StatusUnpublished

This text of RK Midway, LLC v. Metropolitan Council (RK Midway, LLC v. Metropolitan Council) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RK Midway, LLC v. Metropolitan Council, (Mich. Ct. App. 2017).

Opinion

This opinion will be unpublished and may not be cited except as provided by Minn. Stat. § 480A.08, subd. 3 (2016).

STATE OF MINNESOTA IN COURT OF APPEALS A16-0530

RK Midway, LLC, et al., petitioners, Appellants,

vs.

Metropolitan Council, Respondent.

Filed January 23, 2017 Affirmed Bratvold, Judge

Ramsey County District Court File No. 62-CV-14-8455

Joseph M. Finley, Scott Harris, Calvin P. Hoffman, Stinson Leonard Street LLP, Minneapolis, Minnesota (for appellants)

Barbara M. Ross, Ashleigh M. Leitch, Best & Flanagan LLP, Minneapolis, Minnesota (for respondent)

Peter G. Mikhail, Kennedy & Graven, Chartered, Minneapolis, Minnesota (for amicus curiae Minnesota Eminent Domain Counsel Association)

Jon W. Morphew, Morphew Law Office, P.L.L.C., Minneapolis, Minnesota; Kirk Schnitker, Schnitker Law Office, P.A., Spring Lake Park, Minnesota; and Bradley J. Gunn, Stuart Alger, Malkerson Gunn Martin, LLP, Minneapolis, Minnesota (for amicus curiae Minnesota Eminent Domain Institute)

Considered and decided by Worke, Presiding Judge; Stauber, Judge; and Bratvold,

Judge. UNPUBLISHED OPINION

BRATVOLD, Judge

This mandamus appeal stems from the construction of the Central Corridor Light

Rail Transit Project (CCLRT) in the Civil East segment of the project in Saint Paul,

Minnesota. Appellants are property owners and seek review of the district court’s decision

granting summary judgment in favor of respondent Metropolitan Council (Met Council).

Appellants argue that the district court erred in determining that no constitutional taking

occurred when respondent’s contractor damaged appellants’ property. Because the

contractor retained the right to control its work and employees, we conclude that the

contractor was not respondent’s agent and, therefore, not a government actor when it

damaged appellants’ property. Thus, we affirm summary judgment because no

constitutional taking occurred.

FACTS

Appellants RK Midway, LLC and REIN Midway Limited Partnership (collectively,

Midway) own a parcel of land (the property) on which they operate the Midway Shopping

Center with multiple tenants. The property is located on University Avenue in Saint Paul,

Minnesota and contains “paved internal private drives,” parking lots, and sits on

approximately 23.45 acres of land. The western boundary of the property abuts Snelling

Avenue and the eastern boundary abuts Pascal Avenue.

Met Council was designated as the “responsible public authority” for planning and

constructing the CCLRT. See Minn. Stat. § 473.3994, subd. 1a (2016). The CCLRT, which

spans an 11-mile strip and connects Saint Paul and Minneapolis, was divided into four

2 primary construction contracts. One contract involved the Civil East segment, which spans

six miles and is located in the Midway area of Saint Paul.

In June 2010, Walsh Construction Company (Walsh), which is not a party to this

action, was awarded the construction contract for the Civil East segment. The contract

between Walsh and Met Council included provisions allocating the parties’ rights,

responsibilities, and liability for any damages.

Walsh agreed to be “solely responsible for the means, methods, and techniques of

construction, except for means, methods, or techniques expressly detailed on the

[d]rawings or explicitly required by the [s]pecifications.” (Emphasis added.) Walsh was

additionally responsible for “supervis[ing], inspect[ing], and direct[ing]” the work under

the contract and was “solely responsible for the means, methods, techniques, sequence, and

procedures of construction.”

On the other hand, the contract provided that Met Council retained the right to set

the construction schedule, interpret the contract, reasonably object to Walsh’s employees

or subcontractors, approve Walsh’s shop drawings and parking plan, order changes to the

work, reject defective work and require Walsh to fix defective work at its own expense,

inspect the construction sites, and refuse payment to Walsh upon specified conditions. The

contract also provided that Met Council “will not supervise, direct, or have control or

authority over, nor be responsible for, [Walsh’s] means, methods, techniques, sequences,

or procedures of construction.”

Relevant to the issues in this appeal, Walsh also promised to conduct construction

activities only within the properties “identified in and permitted by” the contract.

3 Additionally, Walsh agreed to enforce this provision among its employees and agents. Met

Council was responsible for providing “the lands upon which the [w]ork is to be

performed” and for furnishing a 10-acre lot (Snelling Yard) that Walsh could use for

staging, storage, and office areas. If Walsh needed additional space to conduct construction

activities, Walsh agreed to be responsible for procuring additional land and access points.

If Walsh damaged adjacent property, the contract provided that Walsh assumed “full

responsibility for damage to such area, or to the owner or occupant thereof or of adjacent

areas, resulting from the performance of the [w]ork.” Walsh also promised to “restore to

original condition all property not designated for alteration” by the contract. Walsh further

agreed to repair “[d]amage or disturbance to adjacent properties” at Walsh’s expense.

Finally, Walsh agreed to “indemnify, defend, and hold harmless [Met Council] . . . against

claims, costs, losses, and damages caused by, arising out of, or resulting from the

performance of the [w]ork.”

Before Walsh began to perform under the contract, Met Council and the Minnesota

Department of Transportation (MnDOT) worked together and initiated condemnation

proceedings to acquire the property necessary to construct the CCLRT. MnDOT’s petition

was granted on February 7, 2011, and, specific to Midway’s property, MnDOT and Met

Council acquired 2,190 square feet for temporary construction easements. MnDOT also

condemned an 80-foot wide, 6-mile long corridor down University Avenue for purposes

of construction work.

Consistent with the parties’ contract, Walsh submitted a parking plan designating

the Snelling Yard for employee parking, and Met Council provided Walsh with the

4 Snelling Yard for staging and with existing public roads for access to the site. Nonetheless,

the parties agree that Walsh, without Midway’s authorization, repeatedly conducted

construction-related activities outside of the areas provided for in the contract. For purposes

of summary judgment, Midway established that Walsh’s conduct damaged Midway’s

property because, for example, it offered evidence that Walsh caused a water line on

Midway’s property to break and damage a sewer grate.

Midway conducted traffic surveys on June 30, 2011 and July 7, 2011 and observed

Walsh vehicles make “85 trips through the [property]” and 148 trips through the property,

respectively. In July 2011, Midway’s property manager notified Met Council of “multiple

trespasses” by dump trucks, loaders, semi-trucks, and cement trucks driving through the

property and parking in the lots. The property manager also reported that muddy water was

“being pumped into the private alley behind the [property].” Walsh additionally used a

private alley behind the property to access the construction site.

After receiving complaints about Walsh’s conduct, Met Council sent emails to

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