State ex rel. Coles v. Granville

116 Ohio St. 3d 231
Ohio Supreme Court·Decided November 20, 2007·No. No. 2006-1259·Published·Cited by 54 cases

Opinion

Per Curiam.

{¶ 1} This is an original action for a writ of mandamus to compel a park district’s board of commissioners to commence appropriation proceedings for property allegedly seized and occupied by the district. Because relators have established that by constructing and using a recreational trail the board has taken the property, we grant a writ of mandamus to compel the board to begin an appropriation proceeding to compensate relators for the taking.

The Canal Company and the Railroad Lease

{¶ 2} In 1827, the General Assembly chartered the Milan Canal Company (“the canal company”) to construct and operate a canal from Milan, Ohio, to the Huron River. Noncontiguous tracts of land from Ebeneser Merry and Kneeland Townsend were acquired by the canal company as part of the canal corridor. In 1881, the canal company entered into a 99-year lease with the Wheeling & Lake Erie Railway Company for a 150-foot-wide right of way to construct and operate a railroad. The lease was renewed in 1980 for another 99 years.

[232]*232{¶ 3} The canal company was dissolved in 1904, and its property interests devolved to a testamentary trust and its trustee, Key Trust Company of Ohio. Rail traffic on the leased property ceased in the 1980s, and portions of the rail line were paved. In 1995, the lessee’s successor quitclaimed its interests to respondent Board of Commissioners of Erie MetroParks, a park district created pursuant to R.C. 1545.01 et seq. The board acquired the property to build a recreational trail.

Coles v. Wheeling & Lake Erie Ry. Co., Erie C.P. No. 97-CV-296

{¶ 4} In 1986, relators Edwin and Lisa Coles obtained a portion of the property upon which Erie MetroParks intended to build the recreational trail. In the deed, however, the sellers excepted “a 66 foot wide parcel [of approximately .80 acres] now or formerly owned by” one of the successors in interest to the lessee of the railroad lease.

{¶ 5} In 1997, the Coleses filed an action in the Erie County Court of Common Pleas for a judgment declaring that they have title to the property generally specified in the 1986 deed, including the 66-foot-wide parcel. Erie MetroParks filed a motion to dismiss the Coleses’ action on grounds that because the parcel was specifically excepted from the deed, the Coleses were not real parties in interest. The common pleas court granted the motion and dismissed the case. No appeal was taken from the 1998 judgment.

The Key Trust Litigation

{¶ 6} In 1999, the Erie MetroParks Board of Commissioners initiated a declaratory-judgment action in the Erie County Court of Common Pleas against Key Trust. While the case was pending, Key Trust conveyed the property formerly owned by the canal company to relators the Coleses and Buffalo Prairie, Ltd., a limited liability company of which Edwin Coles is the president. The deed designated the parcels conveyed as “Farm Property/Milan Canal Parcel” and “House Lot/Milan Canal Parcel.” The Coleses and Buffalo Prairie then conveyed sections of this property to the other relators — Isolated Ventures, Ltd., another limited liability company of which Edwin Coles serves as president, Vincent Otrusina,1 Robert C. Bickley, and Warren R. Jones.

{¶ 7} In 2000, the board of park commissioners filed an amended complaint for declaratory relief, which added those relators and other property owners who may have received Key Trust’s interests in the former canal company property. The board sought a judgment declaring that the railroad lease is in full force and effect, that the board is the lessee of the property, that the defendants’ rights are subject to the board’s rights under the lease, that the board is entitled to the sole [233]*233and exclusive occupancy of the property, and that the lease permits the board to improve and use the property as a recreational trail. The board alleged that it was improving the property for use as a recreational trail and that Key Trust had attempted to terminate the lease.

{¶ 8} The defendant property owners submitted an answer and a counterclaim. In reply, the board claimed that it has the right to possess the land formerly actively used by the railroad not only through the railroad lease but through property it acquired by the quitclaim deed from the original lessee.

{¶ 9} In November 2000, the common pleas court entered a judgment finding that the canal company — predecessor in title to Key Trust and relators — had acquired its real property interests solely from the Merry and Townsend deeds, that the canal property “consisted of a roughly three mile long corridor of property the northern terminus being known as Lock No. 1, which was located where the Milan Canal joined the Huron River on property now owned by Wikel Farms, Ltd., just north of Mason Road, in Section 2, Milan Township, Erie County, Ohio,” and that the only property owned by the canal company at the time the railroad lease was executed “lay within the boundaries of the Kneeland Townsend property and the Ebeneser Merry property, neither of which lay north of Lock No. 1.” The court nevertheless concluded that the lease had been breached by a predecessor in interest to the board of park commissioners for nonpayment of rent and abandonment of the railroad use, which rendered the lease void.

{¶ 10} On appeal, the court of appeals affirmed the judgment of the trial court insofar as it found that the railroad lease was limited to the land obtained by the canal company from Merry and Townsend. Erie Metroparks Bd. of Commrs. v. Key Trust Co. of Ohio, N.A. (2001), 145 Ohio App.3d 782, 787-788, 764 N.E.2d 509. The court of appeals further held that the trial court had erred by concluding that the board’s predecessor in interest had breached the railroad lease. Id. at 790, 764 N.E.2d 509. The court of appeals reversed that portion of the trial court’s judgment invalidating the lease and remanded the cause for further proceedings. Id. at 791, 764 N.E.2d 509. We did not accept a discretionary appeal from the court of appeals judgment. Erie Metroparks Bd. of Commrs. v. Key Trust Co. of Ohio, N.A. (2002), 94 Ohio St.3d 1431, 761 N.E.2d 47.

{¶ 11} On remand, the common pleas court held that the lessee had not abandoned the leased property, that the lease is in full force and effect, that the board of park commissioners is the current lessee and the holder of the lessee’s rights under the lease, that the board is entitled to the sole occupancy and use of the leased property, that the rights of the defendants — including relators — are subject to the board’s rights under the lease, and that the lease permitted the [234]*234board to improve and use the leased property as a parkway or recreational trail. The trial court further concluded that the extent of the leased property was limited to the Merry and Townsend tracts conveyed to the canal company:

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State ex rel. Coles v. Granville, 116 Ohio St. 3d 231 (Ohio 2007).

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