Tennine Corp. v. Boardwalk Commercial, LLC

315 Mich. App. 1
CourtMichigan Court of Appeals
DecidedMarch 31, 2016
DocketDocket 323257 and 324480
StatusPublished
Cited by20 cases

This text of 315 Mich. App. 1 (Tennine Corp. v. Boardwalk Commercial, LLC) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tennine Corp. v. Boardwalk Commercial, LLC, 315 Mich. App. 1 (Mich. Ct. App. 2016).

Opinion

O’BRIEN, J.

In Docket No. 323257, plaintiff, Tennine Corporation, appeals as of right the trial court’s opinion and order granting summary disposition in favor of defendant Central Michigan Railway Company (CMR). 1 We reverse the trial court’s decision regarding CMR and remand for further proceedings consistent with this opinion. In Docket No. 324480, plaintiff appeals as of right the trial court’s opinion and order granting the motion for costs and attorney fees in favor *4 of defendants Boardwalk Commercial, LLC, Boardwalk Condos, LLC, and Parkplace Properties of West MI, LLC (the Boardwalk defendants). We affirm the trial court’s award of actual costs and attorney fees to the Boardwalk defendants.

I. BASIC FACTS AND PROCEDURAL HISTORY

This case concerns real property located in Grand Rapids, Michigan, conveyed from the Berkey & Gay Furniture Company to the Grand Trunk Western Railroad Company (Grand Trunk) in 1914, and from Grand Trunk to defendant CMR in 1987. There is no dispute that this property was conveyed to CMR as a railroad right-of-way (ROW) and was to remain in CMR’s possession “as long as” the property was used for railway purposes. The Railroad Code, MCL 462.101 et seq., defines a ROW as “the track or roadbed owned by a railroad and that property owned by a railroad which is located on either side of its tracks and which is readily recognizable to a reasonable person as being railroad property ....” MCL 462.273(2).

The relevant portion of the ROW began at Monroe Street and continued south to Mason Street. William Tingley, plaintiffs general manager, averred that the northern portion of the ROW between Monroe Street and Walbridge Street was adjacent to plaintiffs property located at 1009 Ottawa Street NW. CMR purchased all rights, title, and interest in the ROW with the intention of using it as a railroad to transport paper to and from the building that housed the Grand Rapids Press. Its use as a railroad ceased after the Grand Rapids Press moved to another city in 2004. CMR then attempted to abandon the ROW and have it converted into a recreational trail.

*5 Under federal law, CMR was required to file an application regarding its abandonment of the ROW with the federal Surface Transportation Board (STB). See 49 USC 10903(a)(1) (stating that a rail carrier intending to “abandon any part of its railroad lines” must file “an application relating thereto with the [STB]. An abandonment or discontinuance may be carried out only as authorized under this chapter”). That is, CMR could not abandon the ROW without authorization from the STB. In instances of railroad abandonment, federal law directed the STB to encourage the establishment of recreational trails “in furtherance of the national policy to preserve established railroad rights-of-way for future reactivation of rail service, to protect rail transportation corridors, and to encourage energy efficient transportation use . . . .” 16 USC 1247(d).

On March 12, 2009, CMR applied to the STB for authorization to abandon the ROW and have it converted to recreational use under 16 USC 1247(d). Defendant Dark Properties, Inc., was created for the purpose of assisting CMR with transforming the ROW to recreational use after the STB authorized abandonment. However, the STB did not authorize CMR to abandon the ROW because negotiations were not completed.

Defendants Boardwalk Commercial, LLC, and Boardwalk Condos, LLC, acquired title to real property that was formerly part of the Berkey & Gay Furniture Company and constructed condominiums on the property. The southern segment of the ROW, which began at Walbridge Street and ended at Mason Street, was subject to a reversionary interest. On April 28, 2012, these defendants, Boardwalk Commercial and Board *6 walk Condos, transferred their reversionary interest in the southern segment of the ROW to Parkplace Properties of West MI, LLC.

Plaintiffs representative averred that on November 17, 2011, a work crew from Jaeger Salvage arrived at the site and demolished the tracks and rails on the northern and southern parts of the ROW. The crew stacked railroad ties on plaintiffs property. On November 18, 2011, the crew returned with two backhoes to continue the demolition. Soil from the ROW clung to the backhoes and was allegedly tracked onto plaintiffs property. Plaintiffs representative told the crew that the soil on the ROW was contaminated with hazardous chemicals and that the crew did not have permission to enter plaintiffs property. A crew member purportedly indicated that Beth Visser, an agent of the Boardwalk defendants, gave the crew permission to enter the property. The crew complied with plaintiffs request that it stop work, and the crew removed the railroad ties from plaintiffs property. This activity served as the impetus for this litigation.

Plaintiff gave notice of its intent to file a claim under Michigan’s Natural Resources and Environmental Protection Act (NREPA), MCL 324.101 et seq. On July 30, 2012, plaintiff filed suit against defendants alleging violations of the NREPA, trespass, and nuisance. All defendants filed motions for summary disposition. Pertinent to the appeal, the trial court held that plaintiff did not have standing to raise the NREPA claim against CMR. Following the grant of summary disposition to the Boardwalk defendants, the trial court granted their request for actual costs, including attorney fees, under MCR 2.405, because plaintiff did not accept the Boardwalk defendants’ offers of judgment. From these rulings, plaintiff appeals. On November 25, 2014, the *7 appeals were consolidated “to advance the efficient administration of the appellate process.” Tennine Corp v Boardwalk Commercial, LLC, unpublished order of the Court of Appeals, entered November 25, 2014 (Docket Nos. 323257 and 324480).

II. DOCKET NO. 323257

Plaintiff alleges that the trial court erred by concluding that it lacked standing to pursue the NREPA claim against CMR. We agree.

The question whether a party has standing presents a question of law reviewed de novo on appeal. Manuel v Gill, 481 Mich 637, 642-643; 753 NW2d 48 (2008). The standing doctrine’s purpose is to determine whether a litigant has a sufficient interest in the matter to “ensure sincere and vigorous advocacy.” Lansing Sch Ed Ass’n v Lansing Bd of Ed, 487 Mich 349, 355; 792 NW2d 686 (2010) (quotation marks and citation omitted). The standing requirement ensures that only those with a substantial interest may litigate a claim in court. Trademark Props of Mich, LLC v Fed Nat’l Mtg Ass’n, 308 Mich App 132, 136; 863 NW2d 344 (2014). When a party’s standing is contested, the issue becomes whether the proper party is seeking adjudication, not whether the issue is justiciable. Id. at 136. Standing is not contingent on the merits of the case. Id. Standing may be conferred by legislative expression or implied by duties that arise from the law. Lansing Sch Ed Ass’n, 487 Mich at 357-358.

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Cite This Page — Counsel Stack

Bluebook (online)
315 Mich. App. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tennine-corp-v-boardwalk-commercial-llc-michctapp-2016.