United States v. State Bridge Commission

109 F. Supp. 690, 1953 U.S. Dist. LEXIS 3247
CourtDistrict Court, E.D. Michigan
DecidedJanuary 23, 1953
DocketCiv. A. No. 8522
StatusPublished
Cited by2 cases

This text of 109 F. Supp. 690 (United States v. State Bridge Commission) 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
United States v. State Bridge Commission, 109 F. Supp. 690, 1953 U.S. Dist. LEXIS 3247 (E.D. Mich. 1953).

Opinion

LEVIN, District Judge.

The defendant, hereinafter referred to as the Commission, is an instrumentality of the State of Michigan, having the power to sue and be sued and to do all acts necessary for the construction, operation and maintenance of a bridge known as the Blue Water Bridge across the St. Clair River ■between Port Huron, Michigan, and Sarnia, Ontario. An act of Congress assented to the construction of the bridge and it was opened to vehicular highway traffic on October 10, 1938, as a publicly owned toll bridge on a self-liquidating basis. The Federal act and the agreement between the State of Michigan and the Minister of Highways of the Province of Ontario provide that when the bonded indebtedness is liquidated the use of the bridge shall be without charge to the public.

The Commission, as lessor, entered into a lease dated April 24, ¡1945, with the plaintiff, hereinafter referred to as the Government, as lessee, for the use of the premises as a customs house at the Port Huron terminal of the bridge. The lease was for a term of one year beginning July 1, 1945, at an annual rental of $5,500, payable monthly at the rate of $458.33. It was subject to termination by either party upon thirty days’ written notice and was subject to nine annual extensions at the option of the Government.

The Government, pursuant to the provisions of the lease, paid $5,041.63 as rental for the premises during the first eleven months of the occupancy and then, under the direction of the Controller General of the United States Government, refused to pay $458.33, the rent for the twelfth month of the term, for the reasons hereinafter set out. Before the discontinuance of the payment of the rent, and on March 20, 1946, the Commissioner of Customs, in behalf of the Government, notified the Commission that the Government elected to exercise its option to extend the term of the lease for one year beginning with July 1, 1946, and reserved to itself the right of further extensions in accordance with the provisions of the lease.

The Government now says that the lease was not “authorized by law” nor was its execution “under an appropriation adequate to its fulfillment.”1 This suit is brought for the recovery of the amount paid and the Commission has filed a counterclaim for the twelfth month of the term, namely $458.33.

The Government grounds its position on:

1. A prior adjudication of the nonliability of the plaintiff to pay rent as determined, by the Court of Claims in an action, instituted by the Commission against the Government, on an obligation implied in fact.

2. The fact that an appropriation by 'Congress of certain moneys was not identifiable as rent to be paid to the Commission under the lease.

The facts elicited from a written stipulation of facts, oral presentations by counsel and exhibits in evidence leave me with the opinion that payments under the lease were made in accordance with the law.

The State of Michigan and the Government paid the cost of constructing the American approach and buildings, and the Province of Ontario and the Dominion of Canada assumed similar costs on the Canadian side. The Government’s contribution consisted of approximately $345,-000, which was made under the program of Federal aid to highways under the provisions of Sec. 1(e) of the Act of June 8, 1938, 52 Stat. 633, 634, 23 U.S.C.A. § 2.

The Administration Building as planned and built was a two-story structure, the first floor for the use of both the Govern[692]*692ment and the Commission, and the second floor for the exclusive use of the Government’s Customs and Immigration Services. The building was to remain the property of the Commission.

The Customs and Immigration Services •of the Government have occupied space in the buildings on the American approach since the bridge was opened. No agreement for payment of rent for the premises was made at the time of the construction ■or at the time the Government entered into the occupancy of the premises. Since the Commission is the operator of a bus line carrying passengers for hire across the ■bridge, it must, under the provisions of Title 8 U.S.C.A. § 160, as a common carrier furnish without charge suitable premises for the Immigration Service to carry on its in■spectional activities, and no claim for rent for premises occupied by the Immigration Service has been made by the Commission. It appears, however, that there is no statutory provision or settled pattern for the payment of rent by the Customs Service for the use of the terminal facilities at international bridges and other crossings. Prior to the execution of the lease the defendant had •made a number of attempts to obtain a rental agreement from the Commissioner •of Customs.

On the 1st day of September, 1942, the ■Commission instituted suit against the Government in the United States Court of Claims on the theory that, while there was no agreement to pay rent, the Commission ■was entitled to reasonable compensation for the use of the premises.

On May 6, 1946, in a written opinion reported in 65 F.Supp. 394, 396, 106 Ct.Cl. 766, the Court of Claims held that the contribution to the cost of the approach and buildings of the Government gave it the right to use the space without further cost “in the absence of an agreement to the contrary”.

Subsequent to the commencement of the suit in the Court of Claims, but before judgment, the Commission and other international bridge owners continued negotiations with the Government, through the ■Commissioner of Customs, with the objective of obtaining rentals for the respective spaces occupied by the Bureau of Customs. The Commissioner’s attitude with respect to such requests for the payment of rent was a sympathetic one and may be illustrated by citing a letter dated June 27, 1944, which he wrote to an attorney for the owners of the Rainbow Bridge, Niagara Falls, New York, which reads in part as follows:

“The receipt is acknowledged of your letter dated June 22, 1914 (G-m) in which you suggest that a lease be negotiated for the fiscal year 1945 for rental for customs space at the Rainbow Bridge, Niagara Falls, New York.
“In reply you are advised that no funds have been appropriated in the customs appropriations for the fiscal year 1945 to pay for rent for customs space at the Rainbow Bridge, or a number of other bridges, which have heretofore given free rent to the Customs Service. When we submit an estimate this summer for the fiscal year beginning July 1, 1945, it is our intention to include amounts to pay for rent of customs quarters, not only at the Rainbow Bridge, but at the other bridges which have heretofore been furnishing quarters without charging any rent. This matter will then be placed squarely before the Bureau of the Budget and the Appropriations Committee in Congress.”

The Commissioner followed this course of action and in his budget for the fiscal year beginning July 1, 1945, included an item of $33,000 for rentals at all of the international bridges where rent was not already being paid. On January 18, 1945, W. R. Johnson, the Commissioner of Customs, in explanation of the budget of the Bureau of Customs, appeared before the House of Representatives Subcommittee on Treasury and Post Office Department Appropriations of which the Honorable Louis Ludlow was Chairman.

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Cite This Page — Counsel Stack

Bluebook (online)
109 F. Supp. 690, 1953 U.S. Dist. LEXIS 3247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-state-bridge-commission-mied-1953.