St. Louis Terminals Corp. v. City of St. Louis

535 S.W.2d 593
CourtMissouri Court of Appeals
DecidedMarch 30, 1976
DocketNo. 36199
StatusPublished
Cited by4 cases

This text of 535 S.W.2d 593 (St. Louis Terminals Corp. v. City of St. Louis) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Louis Terminals Corp. v. City of St. Louis, 535 S.W.2d 593 (Mo. Ct. App. 1976).

Opinions

STEWART, Judge.

Respondent, St. Louis Terminals Corporation, brought a declaratory judgment action against the appellants, City of St. Louis and the Board of Public Service of the City of St. Louis. The respondent will hereafter be referred to as Terminals and the appellants will be referred to jointly as City.

[595]*595Count I of Terminals’ petition sought a declaration that an agreement effective May 13, 1966, entered into between City and Terminals, pursuant to Ordinance 54034 of the City of St. Louis, for the operation of the Municipal Dock known as the North Market Street Dock by Terminals, is a valid and binding obligation. Count II sought judgment enjoining City from breaching the contract and an order that the agreement be specifically enforced. The City appeals from a judgment granting the relief requested. We affirm.

In 1957 the City entered into an agreement with Terminals for the operation of the North Market Street Dock, hereafter referred to as the dock, for a term of 15 years. This contract was awarded to Terminals upon a bid pursuant to Chapter 292, Revised Code of the City of St. Louis (Ordinance 48175), hereafter referred to as Chapter 292, a general ordinance titled “Municipal Quays and Warehouses.” Supplemental agreements were entered into in 1962 whereby Terminals made $200,000 in capital improvements.

In 1966 the parties discussed the need for additional capital improvements to attract shippers to St. Louis. Negotiations were commenced toward “extension of [the] agreement” which would cover the remaining term of the original agreement and grant to Terminals the option to renew for 3 additional 5 year periods.

The result of the negotiations was a proposal for a new agreement. In March of 1966 the City enacted Ordinance 54034 which authorized the City to enter into the agreement with Terminals as set forth in the Ordinance. This agreement was executed by the parties and became effective May 1,1967, for a period of 5 years with an option to Terminals to renew for three additional 5 year periods.

The agreement granted to Terminals “the exclusive right and privilege of occupying and using [the dock]” for the purposes of operating the dock. In brief, Terminals agreed to pay “tollage/rental” upon specified cargo handled by it. The “tol-lage/rental” rates increased 10% in the second 5 year period, 20% in the third period, and 30% in the fourth 5 year period. A minimum annual “tollage/rental” fee was also provided, with increases in each of the 5 year periods. The agreement recites that Terminals had previously invested $203,-442.00 in capital improvements and that it agreed to invest a minimum of $500,000.00 for additional capital improvements within the original 5 year period of the agreement. The improvements are to become the property of the City. Terminals has complied with the terms of the agreement.

In 1973 the City enacted Ordinance 56450. The Ordinance recites that it repeals Ordinance 54034 which it refers to as granting a franchise to Terminals. This Ordinance provides that the Board of Public Service should call for bids from persons interested in operating the dock, and further provides in minute detail the terms to be required of the successful bidder.

Succinctly stated the issues to be determined are whether Ordinance 54034 which authorized the contract of 1966 was validly enacted, and secondly whether Ordinance 56450 in fact repealed Ordinance 54034 and thus terminated the agreement of May 1966.

Preliminary to our discussion we must determine the nature of the agreement of May 1966. City, in its brief, alternately labels the agreement a “lease” and a “franchise”. A lease has been said to be “a contract for the possession and profits of property in consideration of a rent, and a franchise being a special privilege, granted by the government.” 37 C.J.S. Franchises § 7, p. 150. In the case before us the contract grants to Terminals the “exclusive right and privilege of occupying and using [the dock].” The consideration for the grant was denominated “tollage/rental” with the additional consideration of constructing additional capital improvements which were to become the property of the City at the termination of the agreement, which may be classified as rent. This agreement can be more properly termed a lease as distinguished from a franchise and is not governed by Article XIX of the Char[596]*596ter of St. Louis, which covers the subject of franchises, as contended by the City. See Greene Line Terminal Co. v. Martin, 122 W.Va. 483, 10 S.E.2d 901, 903 (1940). Our determination is further fortified by the provisions of Article I, Sec. 1(16) of the Charter of the City of St. Louis which grants to the city the specific power to lease portions of the wharf. Clearly the intent of this agreement was to exercise the authority granted by the Charter..

The City contends that the contract of May 1966, is “void and invalid” because it did not comply with Chapter 292, the general Ordinance regulating the operation of municipal docks, which had been expressly repealed or amended by Ordinance 54034, which authorized the contract.

Without detailing the requirements of Chapter 292 suffice it to say that the agreement of May 1966 does not comply with the terms of Chapter 292. -In fact Ordinance 54034 acknowledges that it is a departure from the terms of Chapter 292.1

A similar contention was made in Ruschenberg v. Southern Electric R. Co., 161 Mo. 70, 61 S.W. 626, 629 (1900). There was, in that case, an ordinance regulating the speed of street railway cars at a maximum of 8 miles per hour. A subsequent ordinance granted the defendant a franchise and provided for a speed limit of 15 m. p. h. In that damage suit the plaintiff claimed that the 8 mile an hour speed limit was applicable. The rule, as stated in that case, is applicable here, l.c. 629:

“. .we are not required to hold it is a repeal, and is therefore void, because not an express repeal, because when there are two . . . ordinances, one of which is special and particular, and certainly includes the matter in question . . . and the other general, which, if standing alone, would include the same matter, and thus conflict with the special act or provision . . . the special act must be taken as intended to constitute an exception to the general act or provision, and not a repeal.”

Ordinance 54034 constitutes an exception to Chapter 292 and is not invalid for the reasons espoused by City.

City contends that the Ordinance is void because it does not comply with Article IV, Sec. 10 of the Charter which reads:

“The style of every ordinance shall be: Be it ordained by the City of St. Louis as follows.”

Without setting out the Ordinance in detail suffice it to say that the Ordinance contains such a clause and thereafter incorporates, by reference, the contract, which is set out in full in the title. In any event an omission of the ordaining clause would not invalidate the Ordinance. Our courts have long held that such requirements as to the form of ordinances are directory and not mandatory; and that the omission will not invalidate the ordinance. City of St. Louis v. Foster, 52 Mo. 513, 514 (1873).

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Bluebook (online)
535 S.W.2d 593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-louis-terminals-corp-v-city-of-st-louis-moctapp-1976.