WBR Corp. v. State ex rel. Department of Transportation & Development

711 So. 2d 337, 97 La.App. 1 Cir. 0621, 1998 La. App. LEXIS 779, 1998 WL 166894
CourtLouisiana Court of Appeal
DecidedApril 8, 1998
DocketNo. 97 CA 0621
StatusPublished
Cited by3 cases

This text of 711 So. 2d 337 (WBR Corp. v. State ex rel. Department of Transportation & Development) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WBR Corp. v. State ex rel. Department of Transportation & Development, 711 So. 2d 337, 97 La.App. 1 Cir. 0621, 1998 La. App. LEXIS 779, 1998 WL 166894 (La. Ct. App. 1998).

Opinion

JaLOTTINGER, Chief Judge.

In this action, plaintiff seeks damages as a result of DOTD’s abandonment of its plans to construct a road over plaintiffs property. From a judgment awarding plaintiff damages in the amount of $1,607,445.00, DOTD appeals.

FACTS

In the early 1980’s, James G. Gaspard (hereinafter, “Gaspard”), then a District Right of Way Supervisor with the Louisiana Department of Transportation and Development (hereinafter, “DOTD”), was directed to locate an acceptable site for the construction of a new, permanent DOTD fleet landing facility as the lease on the existing facility was about to expire. A fleet landing facility is used to service and repair ferry boats and other marine vessels operated by DOTD. After examining a number of potential sites, Gaspard contacted Mr. Johnny Sumrall (hereinafter, “Sumrall”) to inquire whether he had any property situated along the Intra-coastal Canal in West Baton Rouge Parish.

Sumrall, who was at the time president and sole stockholder of Greater Baton Rouge Industrial Park (hereinafter, “GBRIP”), advised that while his property did not extend to the Intracoastal, the property situated to the rear of his tract fronted on the waterway. Thereafter, Sumrall arranged a meeting in New Orleans between himself, representatives of DOTD, and representatives of the Chotin Trust which owned the property fronting the Intraeoastal.1

In October and November of 1983, DOTD entered into right of way agreements with both GBRIP and the Chotin Trust. DOTD immediately began clearing the right of way at the rear of the GBRIP property and making improvements to the existing roadway. The work came to a halt after DOTD applied for a permit from the United States Army Corps of Engineers for construction of the fleet landing facility. Through a letter dated January 14, 1985, the Corps of Engineers informed DOTD that certain conditions would have to be met before a permit would be issued to complete the project. The conditions imposed by the Corps of Engineers affected both the GBRIP and Chotin tracts. Because it did not believe it could comply with the conditions imposed, DOTD decided to abandon its plans to construct a fleet landing facility at the site. With the project halted by the Corps of Engineers, DOTD offered twice to rescind the bright of way agreement with GBRIP. These offers were summarily dismissed by GBRIP which insisted instead that DOTD complete the roadway.

[339]*339GBRIP subsequently changed its corporate name to Metro West Development Corporation (hereinafter, “Metro West”). Later, on May 31,1991, Metro West transferred the property in question to plaintiff, WBR Corporation (hereinafter, “WBR”), another entity formed and wholly owned by Johnny Sum-rail. At trial, Mr. Sumrall testified that he repeatedly made, on behalf of GBRIP, and later, WBR, amicable demands upon DOTD to complete the project.

On July 22, 1993, WBR filed the instant suit against DOTD seeking damages for its failure to complete the promised roadway.

ACTION OF THE TRIAL COURT

Trial of this matter was conducted on July 24, 1996. At the conclusion of the trial, the trial court took the matter under advisement and, thereafter, rendered judgment in WBR’s favor in the amount of $1, 607,445.00.2 From this judgment, DOTD has appealed.

ASSIGNMENTS OF ERROR

On appeal, DOTD sets forth the following assignments of error:

1) The donation of the servitude of right of way did not create an obligation on the part of DOTD to construct the project;
2) WBR Corporation has no right of action for damages arising out of the right of way deed; and
8) WBR did not sustain any damages.

In conjunction with the filing of its appellate brief, appellant, DOTD, has also filed a peremptory exception raising the objection of no right of action. The basis for the exception filed by DOTD is that plaintiff, WBR, failed to establish it is entitled to sue for property damages sustained prior to its acquisition of the property.

DISCUSSION

A review of the trial court’s written reasons for judgment reveals that the trial court found that GBRIP’s motivation for granting a permanent servitude over its property was DOTD’s promise to in turn construct a paved road thereon. The trial court further found the only ^condition imposed by the Corps of Engineers which impacted DOTD’s construction of a roadway on GBRIP’s property was the requirement that culverts be installed under the roadway so as to avoid alteration of existing drainage patterns. Uncontradict-ed evidence adduced at trial indicated that compliance with said condition would have increased the cost of the fleet landing project by approximately $20,000.00. The court concluded that GBRIP’s successor-in-interest, WBR, had proven that it had sustained damages as a result of DOTD’s breach of its contract to build the road.

Based upon our review of the evidence before us, we note that the language in the “Right Of Way Deed” between GBRIP and DOTD provides that the primary consideration for GBRIP’s grant of the said right of way was “the benefits, uses and advantages accruing to Grantor by reason of the location of the FLEET LANDING SITE, STATE PROJECT NO. 600-20-06, WEST BATON ROUGE PARISH”. It is undisputed that after entering into the right of way agreement, DOTD received notification from the Corps of Engineers that certain conditions had to be met in order for the required permits to issue. The conditions imposed upon DOTD through the January 14, 1985 letter from the Corps of Engineers were as follows:

1) DOTD “shall not return effluent from the cleaning, scraping and/or painting of vessels to the [Gulf Intracoastal Waterway] so as to avoid potential long-term impacts on aquatic organisms.”
2) DOTD “shall avoid any unnecessary alteration or removal of existing vegetation during construction, operation, or maintenance of the fleeting facility and access road.”
3) DOTD “shall modify the design of the access road eliminating continuous bor[340]*340row/drainage ditches on either side of the access road and incorporating culverts at 400-foot intervals to avoid major alteration of existing water circulation patterns.”
4) DOTD “shall notify the U.S. Army-Corps of Engineers, NOD, of any applications for DOTD right-of-way permits by property owners on either side of the access road, and that no DOTD right-of-way permits off the access road would be issued until NOD has reviewed the proposed activity and either stated that no Department of the Army (DA) permit would be required or has issued a DA permit for the specific activity.”

While Mr. Sumrall claimed at trial that the only condition imposed by the Corps of Engineers which affected his property was the culvert requirement3, it is clear that the primary ^reason for DOTD’s failure to complete the project was its belief that it could not insure that spillage from the servicing and repairing vessels would not enter the waterway if the proposed facility was constructed on the adjacent Chotin property.

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711 So. 2d 337, 97 La.App. 1 Cir. 0621, 1998 La. App. LEXIS 779, 1998 WL 166894, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wbr-corp-v-state-ex-rel-department-of-transportation-development-lactapp-1998.