State Terminal Corp. v. General Scrap Iron, Inc.

264 A.2d 334, 107 R.I. 24, 1970 R.I. LEXIS 733
CourtSupreme Court of Rhode Island
DecidedApril 20, 1970
Docket710-Appeal, 712-Appeal
StatusPublished
Cited by4 cases

This text of 264 A.2d 334 (State Terminal Corp. v. General Scrap Iron, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Terminal Corp. v. General Scrap Iron, Inc., 264 A.2d 334, 107 R.I. 24, 1970 R.I. LEXIS 733 (R.I. 1970).

Opinion

*25 Kelleher, J.

These two civil actions concern the litigants’ rights to the use and possession of certain waterfront property located in the City of Providence. State Terminal Corp. is a Florida corporation authorized to do business in this state. General Scrap Iron, Inc. and Metals Processing Company are Rhode Island corporations. Hereafter we shall refer to the Florida corporation as “State Terminal” or the “appellant,” and the Rhode Island corporations as “General Scrap.” The cases are before us on the appeals of State Terminal from adverse judgments entered against it in the Superior Court after a jury-waived trial. The cases were consolidated in that court, and we have consolidated the appeals.

Appeal 710 concerns a civil action wherein State Terminal sought to enjoin its eviction from certain docking facilities referred to as State Pier No. 1. This property is located along the westerly bank of the Providence River. Appeal 712 embraces a money judgment for $400 entered in favor of General Scrap. This sum was awarded as damages against State Terminal for its use and occupation of the aforedescribed premises.

State Terminal specialized in the business of shipping bulk cement into Rhode Island by boat, storing it at dockside and then distributing this product throughout New England. On July 17, 1962, the State of Rhode Island leased a portion of State Pier No. 1 to appellant for a period of 10 years beginning August 1, 1962. The lease called for the payment of an annual rental of $11,000— payable quarterly in advance.: If the rent was not paid *26 within 15 days after it was due, the lease could be terminated.

The record shows that appellant’s unloading process created a cement-dust nuisance. Cement dust settled on the dock and the structures located nearby. The moisture in the air combined with the dust to leave a solid cement-crust on the pier and various buildings. This condition caused the Navy which berthed its vessels on the southerly side of the pier to complain to the state authorities. Several conferences between State Terminal, the Navy, and various state officials followed. State Terminal agreed to adopt new unloading techniques. The dust continued to fall and harden. The Navy vacated its part of the pier. State Terminal then agreed to install new machinery which supposedly guaranteed a dust-free unloading of a ship’s cargo.

Before the new equipment arrived in Providence, State Terminal ceased its operations at the dock. It also stopped paying the rent as of February 1, 1966. The appellant complained to the Director of the Division of Harbors and Rivers that the cost of purchasing the new equipment made it impossible for it to make the quarterly rent payments. • On October 17, 1966, the Division demanded the immediate payment of the back rent, which at that time amounted to $8,250. The appellant’s reply to this demand told of its financial stress and asked the “indulgence” of the state.

Finally, on June 22, 1967, the Director of the Department of Natural Resources notified State Terminal that its lease was terminated because of its failure to pay the rent'.The total amount of the rent then due and owing the state was $16,500. Shortly thereafter, State Terminal tendered its check for a portion of this amount, but the check was refused.

In the meantime, General Scrap was conducting a scrap *27 metal business along the northeasterly bank of the Providence River on a parcel of land known as India Point. There is evidence to show that there had been several- attempts in the past to purchase the scrap iron yard and convert it into a public park. Certain state officials, aware of their problems at the state pier and cognizant of the desire to establish a recreational area on the easterly side of the river, consulted with the owners of General Scrap. The properties were appraised as being of equal value. Since no money was available for the purchase of India Point, the state and General Scrap agreed to a land swap. Accordingly, on April 16, 1968, India Point was exchanged for State Pier No. 1. A quit-claim deed duly signed by the Governor and the Director of the Department of Natural Resources conveyed the state pier property to General Scrap and General Scrap conveyed India Point to the state. Thereafter, General Scrap, as it sought to establish its possession of the pier facilities, found itself immersed in this litigation.

In its appeal, State Terminal poses two issues: It argues that the Superior Court should have enjoined its eviction on the grounds that the State of Rhode Island should have been estopped from terminating its lease because of the conduct of state officials, and it also contends that General Scrap never acquired proper title to State Pier No. 1 that would enable it to maintain an action against appellant for the use and occupation of the premises.

I

Estoppel

In the action where it sought equitable relief, State Terminal claims that the Director of the Division of Harbors and Rivers was- cognizant of the corporation's fiscal problems and that an understanding was reached whereby the rent would be deferred pending the resumption of its load *28 ing operations. Recently in Ferrelli v. Department of Employment Security, 106 R. I. 588, 261 A.2d 906, we observed that there is a growing recognition that the doctrine of estoppel may be invoked against a public agency. However, there is no need to consider whether the doctrine should be employed against the state here because the trial justice declared that there was absolutely no proof of any understanding relative to any rent moratorium or modification of the lease. We see no reason to disturb this finding.

II

The 1968 Conveyance

To place appellant’s attack on the state conveyance in its proper light, it is necessary that we review the state’s ownership of the waterfront property. The state pier premises were acquired by the state pursuant to the provisions of P. L. 1910, chap. 568. This act authorized the State Harbor Improvement Commission to acquire land lying on the waterfront for the benefit of the citizenry. The commission was authorized to lease some of the acquired property to private enterprise and retain the balance for the transportation needs of the public. The acquisition of this land was financed by the issuance of bonds authorized by P. L. 1910, chap. 589.

The appellant points to the fact that the state-owned land was devoted to a public use. It concedes that the General Assembly may authorize the sale or other disposition of land which has been devoted to a public use. The appellant takes the position that, when the legislature at its 1969 session enacted legislation ratifying and confirming the 1968 conveyance to General Scrap, its action was a nullity because of a failure to comply with the provisions of art. IV, sec. 14 of the Rhode Island constitution. This section states that any bill appropriating public money or property for a local or private purpose must be passed by *29

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Bluebook (online)
264 A.2d 334, 107 R.I. 24, 1970 R.I. LEXIS 733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-terminal-corp-v-general-scrap-iron-inc-ri-1970.