Selig v. State Highway Administration

861 A.2d 710, 383 Md. 655, 2004 Md. LEXIS 730
CourtCourt of Appeals of Maryland
DecidedNovember 16, 2004
Docket23, September Term, 2004
StatusPublished
Cited by17 cases

This text of 861 A.2d 710 (Selig v. State Highway Administration) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Selig v. State Highway Administration, 861 A.2d 710, 383 Md. 655, 2004 Md. LEXIS 730 (Md. 2004).

Opinions

CATHELL, Judge.

This case raises issues concerning the alleged creation of a statutory exception to the Rule Against Perpetuities and the possibility of retroactive application of a later enacted statute to a pre-existing land sale contract and deed.

On March 28, 2003, petitioner Helene1 Selig, as executrix of the estate, of her deceased husband, Milton E. Selig, filed in the Circuit Court for Prince George’s County a three-count complaint for declaratory judgment, specific performance and breach of contract damages against the respondent, State Highway Administration (“SHA”). Petitioner sought to enforce a right of first refusal clause contained in a July 6, 1978, contract2 and in an October 20, 1978, deed between Milton E. [659]*659Selig and the SHA wherein Mr. Selig conveyed to the SHA a 4.7135 acre parcel of land. The clause at issue provided that Mr. Selig or his successor in interest had the right to reacquire from the SHA the property conveyed if the SHA abandoned the project for which it had acquired the property and the Maryland Secretary of Transportation determined that the property was no longer needed for any transportation purpose. The SHA refused to honor the right of first refusal and the residual property at issue was offered for sale by the SHA at public auction and was purchased by the intervenors for one million eight hundred thousand dollars ($1,800,000).

On May 2, 2003, respondent filed a motion to dismiss the complaint. On May 7, 2003, respondents H. Daniel Jobe II and Floyd Sheahan, owners of Capitol Buick, Pontiac, GMC, Inc., (“Capitol”), the successful bidder at the SHA auction, filed a motion in the circuit court to intervene as party defendants; and on June 11, 2003, a subsequent motion sought to add Capitol Buick, Pontiac, GMC, Inc. (also “Capitol”) as an additional defendant intervenor. Despite petitioner’s opposition, the circuit court granted Capitol’s motions to intervene on June 27, 2003. The parties did not engage in discovery before disposition of the case in the trial court.

Following a hearing on August 26, 2003, in respect to respondent’s motion to dismiss, which respondent intervenors had joined, the circuit court issued a twelve-page opinion on November 3, 2003, dismissing petitioner’s complaint. Petitioner then filed a Notice of Appeal to the Court of Special Appeals on November 26, 2003. On May 14, 2004, the Court of Appeals, on its own initiative and before the intermediate court could decide the appeal, ordered the issuance of a writ of certiorari in the instant case. Selig v. State Highway Administration, 381 Md. 324, 849 A.2d 473 (2004). We address the following questions:

[660]*660“1. Did the reacquisition provisions of the contract and deed executed by the State Highway Administration violate the Rule against Perpetuities?
“2. Did the State Highway Administration’s use of a portion of the conveyed property for transportation purposes nullify petitioner’s right of reacquisition?”

We hold that Md.Code (1977, 1977 Supp.), § 8-309 of the Transportation Article created a statutory exception to the common-law Rule against Perpetuities. The language contained in the version of § 8-309 in effect at the time of the execution of the option contract, which also contained the right of first refusal, and of the deed between Mr. Selig and the SHA, which relevant language was for all intents and purposes incorporated into the contract and deed, governs the disposition of the property at issue. Petitioner is entitled to reacquire the remainder of the property according to the statutory language and the contract with the SHA. Subsequent changes to § 8-309 do not apply retroactively to the contract and the deed in the case sub judice.

I. Facts

On July 6, 1978, Milton E. Selig, the deceased3 husband of petitioner Helene Selig, executed an option contract with the SHA to convey in fee simple, if the option were exercised, a 4.7135 acre parcel of land located in Prince George’s County in exchange for a purchase price of seven hundred thousand dollars ($700,000.00). The option was exercised and the deed conveying this property to the SHA was executed on October 20, 1978, and recorded among the land records of Prince George’s County in due course.

The deed contained an eleven paragraph description of the property and stated, inter alia, that “[t]he property conveyed in fee simple by this instrument is 4.7135 Acres, more [or] less.” Further contained within both the contract and the deed was a clause inserted by the parties stating the following:

[661]*661“IT IS HEREBY UNDERSTOOD AND AGREED BETWEEN THE PARTIES HERETO THAT if the highway project for which the subject property is being acquired is abandoned and the Maryland Secretary of Transportation determines that the property is no longer needed for any transportation purpose, the Grantor herein or his successor in interest will have the first right to reacquire the property on payment of an amount equal to the consideration that the Administration has paid to the Grantor herein.”

This language tracks the wording of Md.Code (1977, 1977 Supp.), § 8-309(b) of the Transportation Article, the statute in effect at the time of the conveyance, which governed the “Sale of land not needed for public purposes.” That statute read:

“(b) General requirement for disposition of land. — (1) Notwithstanding any other statute to the contrary, if land acquired under this subtitle is not needed for present or future highway or other public purposes, the Administration shall dispose of the land as soon as practicable after the completion or abandonment of the project for which the land was acquired.
(2) If the land is from a project that was abandoned, and the Secretary determines that the property is no longer needed for any transportation purpose, the person from whom the land was acquired or the successor in interest of that person has the first right to reacquire the land, on payment of an amount equal to the consideration that the Administration or Commission originally paid for the land. If this right is not exercised, the land shall be disposed of under this section in the same manner as if the land were from a project that has been completed or otherwise as permitted by this section.”

The SHA’s stated purpose in acquiring the land was “State Highway Administration Project No. P 286-1-370,” i.e., a project to make improvements to the Baltimore-Washington Parkway in Prince George’s County from the Washington, D.C. line to the Anne Arundel County Line. These improvements, specifically a highway ramp, to the Baltimore-Wash[662]*662ington Parkway were never constructed. The SHA instead utilized and/or reserved a total of only 0.6395 acres of the conveyed property for the 1984 extension of the right-of-way of Maryland Route 193 (Greenbelt Road) and for future expansion of U.S. Interstate 495, i.e., .the Capital Beltway. Accordingly, 4.074 acres of the original conveyance remained unused and unreserved by the SHA.

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Selig v. State Highway Administration
861 A.2d 710 (Court of Appeals of Maryland, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
861 A.2d 710, 383 Md. 655, 2004 Md. LEXIS 730, Counsel Stack Legal Research, https://law.counselstack.com/opinion/selig-v-state-highway-administration-md-2004.