United States v. 222.0 Acres of Land

306 F. Supp. 138, 1969 U.S. Dist. LEXIS 10962
CourtDistrict Court, D. Maryland
DecidedNovember 6, 1969
DocketCiv. Nos. 19510, 19884
StatusPublished
Cited by11 cases

This text of 306 F. Supp. 138 (United States v. 222.0 Acres of Land) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. 222.0 Acres of Land, 306 F. Supp. 138, 1969 U.S. Dist. LEXIS 10962 (D. Md. 1969).

Opinion

THOMSEN, Chief Judge.

Assateague Island, a long, thin strip of land off the eastern shore of Maryland and Virginia, has the Atlantic Ocean on the east and the Sinepuxent and Chincoteague Bays on the west. The northern part of the Island is in Worcester County, Maryland, the southern part in Accomack County, Virginia.

In 1965 Congress decided to acquire Assateague Island for a National Seashore. P.L. 89-195, 79 Stat. 824, 16 U.S. C.A. § 459f et seq. The government thereafter filed a series of land condemnation proceedings in this Court, the first of which was filed on April 27, 1967.1 At the time of the taking more than 2,000 persons and corporations owned lots on the Island with the right to use the beaches, roads, and certain other facilities. Many troublesome questions have arisen, and all the cases have been consolidated.

The Issues Considered in This Opinion

Because of disputes (A) between some of the parties with respect to the owner[141]*141ship rights in certain platted lots and other property, part of which had been created by dredging and filling in Sinepuxent Bay, referred to collectively herein as the causeway property, and (B) between the government and those parties with respect to the nature and extent of their property interest in the land-fill portion of the causeway property, a separate trial of those issues has been held before the Court without a jury. Testimony has been taken, and oral and written arguments have been considered. This opinion contains findings of fact and conclusions of law on those issues.

Findings of Fact

The Persons and Corporations Interested in the Issues

1. Ocean Beach, Inc., and South Ocean Beach, Inc. (collectively, Ocean Beach), of which Leon Ackerman was the president and sole stockholder, were the developers of a large part of the Island. Ackerman and his licensed salesmen also acted from time to time as brokers in the sale of lots on the Island owned by other persons and corporations. Ackerman died in 1965.

Taylor B. Bryan, Ackerman’s right hand man, was secretary of all the Ackerman companies, and was a director of the Bridge Corporation, referred to in Finding 3 below.

2. Ocean Beach Club, Inc. (the Club) was incorporated in 1955 at the instigation of Ackerman. The members of the Club were property owners on the Island.

Title to the beach, streets and parks in the central portion of the Island was deeded to the Club by Ocean Beach “as community property [or “as community ocean beach property” or “as community parks”] for the benefit of all present and future owners of record of property situate on Assateague Island, in Worcester County, Maryland, for the mutual use and benefit of all of said property owners and their heirs, personal representatives and assigns”, subject to the right of Ackerman and his assigns to approve the location of and plans for the construction of any pier in the area designated as “pier site” on the plats.

The owners of all or most of the lots had also acquired easements, implied easements or rights to use the beach and other community property. The nature and extent of such easements, and the rights of various claimants in some of the land condemned will be considered in a separate opinion after a further hearing.

The Club undertook certain maintenance and other duties, and collected dues and assessments from the owners of many of the lots. The Club was liquidated on January 22, 1968, and Henry Burke, Bernard S. Denick and A. Fred Freedman were appointed Trustees in Liquidation of the Club.2

3. Assateague Island Bridge Corporation (the Bridge Corporation) was incorporated in Maryland on March 15, 1955, for the purpose of constructing and operating a bridge from the mainland of Worcester County to Assateague Island.

Ackerman was instrumental in the formation of the Bridge Corporation. The Club was the sole holder of its common stock, but hundreds of persons bought shares of its preferred stock. The Bridge Corporation acquired certain lands, obtained certain permits, and engaged in dredging and filling operations to create an adequate causeway as an approach to the proposed bridge on the island end. It was unable to complete the bridge, and in January 1968 Messrs. Burke, Deniek and Freedman (see note 2) became Trustees in Liquidation of the Bridge Corporation.

4. Assateague Island Realty Corporation (the Realty Corporation), of which Robert C. Walker was Vice-president and a 50% stockholder, owned land on the Island. Walker served as an engineer for the Bridge Corporation and others, and engaged in various other activities set out below. He died in 1966.

[142]*1425. North Ocean Beach, Inc., the stock of which was held 50% by Ackerman and 50% by Walker, owned land in the northern portion of the Island.

The Agreements and Deeds in Question

6. Shortly after the Bridge Corporation was organized in March 1955, several possible sites for the bridge were considered. One of the sites had its island abutment at a place where Ocean Beach owned the land. Ocean Beach also owned some of the land across Sinepuxent Bay suitable for the western abutment of such a bridge.

7. To aid the financing of the bridge, an agreement was entered into on June 7, 1955, among Ackerman, Ocean Beach and the Bridge Corporation, in which Ackerman agreed:

(a) that he would cause to be conveyed to the Bridge Corporation certain lots in North Ocean Beach, so that they could be sold by the Bridge Corporation to finance the construction of the bridge, provided specified conditions were met. Those conditions included the requirement that a contract for the construction of the bridge be let and that the bridge be at least 50% completed before December 31, 1956. The deed for the North Ocean Beach lands was to be held in escrow and returned to the grantor if the conditions were not met; and

(b) that “if the site which is finally chosen would cause the bridge to terminate on property to which he or any of his corporations hold title on the Island, or on the mainland, that he will cause to be conveyed to the Bridge Corporation land adequate for approaches therefor without cost to the Bridge Corporation”. The agreement of June 7, 1955, placed no conditions on the transfer to the Bridge Corporation of the land, referred to in this paragraph (b), to be used for the approaches to the bridge.

8. On June 4, 1955, a letter had been prepared for signature by Ackerman as President and Bryan as Secretary of Ocean Beach, in which Ocean Beach agreed, at the request of Walker, to transfer to the Bridge Corporation the mainland and island approaches to the proposed bridge. The last paragraph of that letter read as follows:

“It is mutually understood and agreed by all parties hereto that this agreement to dedicate and convey * * * is predicated upon and contingent upon their use within a specified time as bridgeheads and for necessary fills and approaches thereto and also subject to recapture or repossession by Ocean Beach Inc. in the event of failure on the part of the Assateague Island Bridge Corporation or its successor or assigns to actually commence construction of the bridge between these two parcels of land pri- or to July 31, 1956.”

The proposed letter of June 4, 1955, was never signed.

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Cite This Page — Counsel Stack

Bluebook (online)
306 F. Supp. 138, 1969 U.S. Dist. LEXIS 10962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-2220-acres-of-land-mdd-1969.