Stevens v. Mobil Oil Corp.

412 F. Supp. 809
CourtDistrict Court, E.D. Michigan
DecidedMarch 19, 1976
DocketCiv. A. 75-70857
StatusPublished
Cited by7 cases

This text of 412 F. Supp. 809 (Stevens v. Mobil Oil Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stevens v. Mobil Oil Corp., 412 F. Supp. 809 (E.D. Mich. 1976).

Opinion

OPINION AND ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT

CORNELIA G. KENNEDY, District Judge.

This action was instituted by plaintiffs to recover for alleged waste committed by defendant, which is the lessee of property owned by plaintiffs in the City of Detroit. Defendant has filed a motion for summary judgment. A hearing was held on January 12, 1976, and the parties have supplied supplemental memoranda to the Court.

Plaintiffs leased the property involved, .on which was located a service station, to Defendant on November 29, 1956. The tease was extended twice. The last extension, dated March 25, 1971, extended the léase until November 30, 1976.

On September 5,1972, the City of Detroit passed an ordinance, No. 726-G (effective October 12, 1972), which provided that any service station not open for business for 120 consecutive days would be deemed abandoned, and further provided for demolition unless within specified periods the station was reopened or converted to an approved *811 alternate business. The affidavit of defendant’s real estate manager for this area, Thomas Pence, states that defendant first became aware of the ordinance in June 1974.

Defendant decided to discontinue operation of the station on March 18,1974, and so informed plaintiffs by letter on April 2, 1974. Apparently, actual operation had stopped when the sublessee who had operated the station for many years left the premises on December 31, 1973.

The City of Detroit issued orders regarding the property pursuant to the ordinance on August 16,1974. After a period of time, defendant secured permission of the Detroit Board of Zoning Appeals to use the station as an auto reconditioning center. Defendant sought plaintiffs’ approval of a proposed sublease for that purpose, but plaintiffs refused to consent. Defendant then declared that it considered the refusal to consent to the sublease a breach of the lease, and ceased to pay rent on March 31, 1975.

By its terms, the Zoning Board’s approval of the alternative use as an auto reconditioning center expired on March 31, 1975, and, presumably, the original demolition order was thereby reinstated.

Plaintiffs commenced this action on May 9, 1975, claiming that the conduct of the defendant constituted waste under M.S.A. § 27A.2919. That section states:

(2)(a) Any guardian, tenant in dower, life tenant, or tenant for years who commits or suffers any waste during his term or estate, to the lands, tenements, or hereditaments, without having a lawful license to do so, is liable for double the amount of actual damages.

The complaint makes allegations of two sorts regarding the conduct of the defendant that plaintiffs believe constitute waste:

(1) That defendant removed equipment, boarded up the building and painted the building gray; and
(2) That defendant’s conduct has led to the loss of the right to use the property as a service station, thus reducing its value.

The parties have indicated that the building involved does not comply with applicable set-back and lot size requirements under the City of Detroit’s zoning ordinance. The present rules regarding set-back and minimum lot size were adopted prior to the last extension of the lease 1 as part of the general zoning ordinance, No. 390-G, which became effective on December 12, 1968. The set-back and minimum size rules were contained in section 94.0100 of ordinance No. 390-G. 2

The operation of this station after 1968, therefore, constituted a nonconforming use of the property. The zoning ordinance provides that the right to continue the noncom-forming use is lost if the property is vacant for two years. Ordinance No. 390-G, § 52.-0300.

Plaintiff’s first claim is that the actions of the defendant that had impact on the physical structure of the station constitute waste. The leading Michigan case regarding waste in connection with modifications of buildings is Pearson v. Sullivan, 209 Mich. 306, 176 N.W. 597 (1920). The Michigan Supreme Court stated:

The doctrine seems to be well established that a tenant cannot, without the consent of the landlord, make material changes or alterations in a building to suit his taste *812 or convenience, and, if he does so, it is waste. And any material change in the nature and character of the buildings made by the tenant is waste although the value of the property should be enhanced by the alterations.

209 Mich, at 314, 176 N.W. at 600. In Pearson, the tenant proposed to make very extensive changes, including remodeling the storefront, removing and rearranging stairways and partitions, and bricking in a porch area to expand the size of the store.

The actions alleged to constitute improper physical alterations of the property in the instant case are described in paragraph 19 of the complaint:

. the defendant . . . did in fact paint the premises dark gray, boarded up the premises, removed the underground tanks, pumps, signs and all other necessary equipment to operate the premises as a service station, which in itself was for the convenience and use of the defendant, thereby creating waste by the material change in the nature and character of the building made by the defendant.

Painting the premises and boarding up the premises would not constitute a material change since those acts would not reduce the value of the lessors’ interest. Unauthorized removal of equipment, including the items mentioned, might well constitute waste. However, such actions were expressly permitted here by the terms of the lease.

Paragraph III of the lease states, in part: Tenant may erect and install on the said premises such buildings, improvements and equipment as it may require for the conduct of its business thereon; may remove trees and shrubbery, may cut curbs, and construct and maintain and use driveways over, upon and across said premises, for ingress and egress of vehicles and persons. All buildings, improvements and equipment erected, installed or owned by tenant shall not become a part of the real estate but shall be and remain the property of Tenant, and Landlord grants unto Tenant full right to remove same at any time while this lease is in effect or any renewal or extension thereof .

The affidavit in support of the motion for summary judgment states that defendant removed “its property from the station, including underground storage tanks, gasoline pumps, identifying signs, and related equipment.” ¶ 10 (emphasis added). Plaintiff’s affidavit in response indicates that substantial amounts of equipment that were on the premises in 1956 were sold to defendant at the time the parties entered into the lease. Affidavit of plaintiff BERNARD STEVENS, ¶ 10. The deposition of BERNARD STEVENS also contains statements admitting that defendant had installed the equipment that it later removed. See deposition of BERNARD STEVENS, pages 26 — 28.

Thus, the physical changes made in the property do not constitute waste.

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Bluebook (online)
412 F. Supp. 809, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevens-v-mobil-oil-corp-mied-1976.