Sutcliffe Storage & Warehouse Co. v. United States

112 F. Supp. 590, 125 Ct. Cl. 297, 1953 U.S. Ct. Cl. LEXIS 160
CourtUnited States Court of Claims
DecidedJune 2, 1953
DocketNo. 48624
StatusPublished
Cited by14 cases

This text of 112 F. Supp. 590 (Sutcliffe Storage & Warehouse Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sutcliffe Storage & Warehouse Co. v. United States, 112 F. Supp. 590, 125 Ct. Cl. 297, 1953 U.S. Ct. Cl. LEXIS 160 (cc 1953).

Opinion

LittletoN, Judge,

delivered the opinion of the court:

This is an action to recover $60,448.57, plus interest, as compensation for the use and occupancy of certain land by defendant during the period from April 13,1942, to December 31,1945. Plaintiff, a Massachusetts corporation, had at some time prior to April 13,1942, leased from the New York Central Railroad Co., hereinafter referred to as the railroad, two noncontiguous parcels of land in Allston, Massachusetts.1 These parcels contained approximately 190,242 square feet of land, on which were located a number of buildings having a total area of 121,588 square feet, and platforms covering 11,340 square feet. The remainder of the area amounting to approximately 57,314 square feet consisted of open land.

Defendant, after some negotiations with plaintiff, through the Navy Department, began occupancy of the premises on April 13,1942. On July 9,1942, a lease dated April 13,1942, which had been prepared by defendant and executed by both parties, was forwarded to plaintiff. In it the premises were described as “Buildings at #99 and #241 Lincoln Street, Allston, Massachusetts, containing approximately 121,588 square feet of space”. Defendant used and occupied, during the period here involved, the buildings, platforms, and open areas, or the approximately 190,242 square feet above referred to.

Plaintiff contends in suit (1) that as the lease did not cover the open land and platforms used and occupied by defendant, [300]*300but referred only to Buildings .#99 and #241 containing approximately 121,588 square feet of space, there is an implied contract under which defendant is obligated to pay a reasonable rental for the additional space; or (2) that the use and occupancy of such space by defendant constituted a taking of private property for public use, for which plaintiff is entitled to just compensation under the Fifth Amendment. Defendant takes the position (1) that the lease is ambiguous, and parol evidence is admissible to clarify the ambiguity in the description of the property; (2) that the lease as thus clarified included all of the land used and occupied by defendant; and (3), in the alternative, that because of mutual mistake, the lease is subject to reformation to show the true intent of the parties.

The proof shows that in the early part of 1942, plaintiff had under lease from the New York Central Railroad Company two parcels of land in Allston, Mass., known as #99 and #241 Lincoln Street, respectively. The area known as #99 Lincoln Street consisted of a large building covering 47,267 square feet, a platform and ramp covering 6,340 square feet, and an open land area of approximately 45,000 square feet, which were used by plaintiff for automobile unloading and storage purposes.

Plaintiff’s lease to the second area, #241 Lincoln Street, covered only buildings and a loading platf orm, together with the right to use the railroad sidetracks adjoining the platform, and the right of ingress and egress for men and automobiles from the buildings and platforms to Lincoln Street.2 Plaintiff at no time had any open land area under lease at this location.

On or about February 1,1942, defendant became interested in obtaining from plaintiff a sublease of the above properties. On March 13, 1942, plaintiff submitted a bid to the Supply Department, Navy Yard, Boston, covering the rental of the premises for the three-month period from April 1, 1942, until June 30,1942, the end of defendant’s fiscal year. Plain[301]*301tiff included in its bid a breakdown by area and rental price on all of the open land, platforms, and buildings which it then had under lease from the railroad, with the exception of the small First Aid Building. Also included in this breakdown was the Coca-Cola Building, which was not at that time leased to plaintiff.3

Defendant was limited, by the provisions of Section 322 of the Economy Act of June 30, 1932, 47 Stat. 382, 412, 40 U. S. C. § 278 (a), to the payment of rentals not to exceed 15 percent of the appraised fee value of the leased premises. An appraisal for the purpose of compliance with the statutory limitation fixed the fee value of the premises, including the land in question covered by plaintiff’s bid, at $158,000. The price quoted in the bid amounted to $9,550 for three months, or $38,200 per annum. The maximum rental' authorized by law for the premises appraised at $158,000 fee value was $5,925 for three months, or $23,700 per annum.

On March 30,1942, the Supply Officer of the Boston Navy Yard advised plaintiff by letter that its bid exceeded the 15 percent statutory restriction, and in view of that fact, it was necessary that condemnation proceedings be instituted. On April 1,1942, plaintiff’s president wrote the following letter to the Supply Officer:

On March 14th, 1942 we submitted a bid on Buildings at 99 Lincoln Street and 241 Lincoln Street, Allston, Massachusetts, for occupancy by the United States Navy to June 30, 1942 in the amount of $9,550.00.
We herewith submit a revised bid of $5,925.00 for the period ending June 30th, 1942 with the Understanding that the United States Navy will take care of all repairs to the buildings, Track and Platforms.
We can arrange immediate occupancy of the major part of the space.

On April 10,1942, plaintiff confirmed by letter a telephone conversation of the same date giving defendant authority to “occupy the premises at 99 and 241 Lincoln Street, Allston, Massachusetts, Monday, April 13,1942.” In this letter plaintiff indicated its understanding that a lease would be submitted at a later date, to be adjusted as of date of occupancy on the basis of plaintiff’s revised bid of April 1, 1942.

[302]*302On April 13, 1942, defendant went into possession of the premises at #99 Lincoln Street, and a few weeks later it went into possession of the buildings and platform at #241 Lincoln Street, with the exception of the First Aid Building, which was used by plaintiff as an office.

A draft of a lease dated April 13, 1942, was prepared by the Office of the Judge Advocate General of the Navy, sent to plaintiff for its execution, signed by plaintiff and returned to defendant for its execution, and on July 9,1942, the lease executed by both parties was forwarded to plaintiff. It covered a period from April 13,1942, to June 30,1943, with the right of renewal by defendant on thirty days’ notice, and provided for a rental price of $23,700 per annum. The premises were described in the lease as “Buildings at #99 and #241 Lincoln Street * * * containing approximately 121,588 square feet of space.”

The area mentioned in the lease, i. e., 121,588 square feet, included only the buildings on the two premises. It did not include any platforms or open land areas. As described in finding 10, defendant, beginning on April 13,1942, used and occupied the buildings, platforms, and open land areas, or a total area of approximately 190,242 square feet of space.

Plaintiff made no protest that the defendant was occupying more space than it was entitled to under the lease until October 14,1943, a year and a half after defendant first occupied the premises, when it wrote defendant as follows:

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Cite This Page — Counsel Stack

Bluebook (online)
112 F. Supp. 590, 125 Ct. Cl. 297, 1953 U.S. Ct. Cl. LEXIS 160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sutcliffe-storage-warehouse-co-v-united-states-cc-1953.