Westborough Mall, Inc., a Corporation, George Staples, Jr., Individually, and as Sole General Partner of Westborough Mall Associates, a Missouri Limited Partnership v. City of Cape Girardeau, Missouri, a Municipal Corporation, Paul W. Stehr, Oliver A. Hope, Robert K. Herbst, Howard C. Tooke, Samuel L. Gill, Gail L. Woodfin, W.G. Lawley, Drury Industries, Inc., a Corporation and May Centers of Cape, Inc., a Corporation. Westborough Mall, Inc., a Corporation, George Staples, Jr., and Westborough Mall Associates, a Missouri Limited Partnership, by and Through George Staples, Jr., Its Sole General Partner v. City of Cape Girardeau, Missouri, a Municipal Corporation, Charles L. Drury, Drury Industries, Inc., a Corporation, May Department Stores Co., a Corporation, West Park Associates, a Missouri Limited Partnership, May Centers of Cape, Inc., a Corporation and May Centers, Inc., a Corporation

794 F.2d 330, 1986 U.S. App. LEXIS 26227
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 17, 1986
Docket84-1356
StatusPublished
Cited by7 cases

This text of 794 F.2d 330 (Westborough Mall, Inc., a Corporation, George Staples, Jr., Individually, and as Sole General Partner of Westborough Mall Associates, a Missouri Limited Partnership v. City of Cape Girardeau, Missouri, a Municipal Corporation, Paul W. Stehr, Oliver A. Hope, Robert K. Herbst, Howard C. Tooke, Samuel L. Gill, Gail L. Woodfin, W.G. Lawley, Drury Industries, Inc., a Corporation and May Centers of Cape, Inc., a Corporation. Westborough Mall, Inc., a Corporation, George Staples, Jr., and Westborough Mall Associates, a Missouri Limited Partnership, by and Through George Staples, Jr., Its Sole General Partner v. City of Cape Girardeau, Missouri, a Municipal Corporation, Charles L. Drury, Drury Industries, Inc., a Corporation, May Department Stores Co., a Corporation, West Park Associates, a Missouri Limited Partnership, May Centers of Cape, Inc., a Corporation and May Centers, Inc., a Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westborough Mall, Inc., a Corporation, George Staples, Jr., Individually, and as Sole General Partner of Westborough Mall Associates, a Missouri Limited Partnership v. City of Cape Girardeau, Missouri, a Municipal Corporation, Paul W. Stehr, Oliver A. Hope, Robert K. Herbst, Howard C. Tooke, Samuel L. Gill, Gail L. Woodfin, W.G. Lawley, Drury Industries, Inc., a Corporation and May Centers of Cape, Inc., a Corporation. Westborough Mall, Inc., a Corporation, George Staples, Jr., and Westborough Mall Associates, a Missouri Limited Partnership, by and Through George Staples, Jr., Its Sole General Partner v. City of Cape Girardeau, Missouri, a Municipal Corporation, Charles L. Drury, Drury Industries, Inc., a Corporation, May Department Stores Co., a Corporation, West Park Associates, a Missouri Limited Partnership, May Centers of Cape, Inc., a Corporation and May Centers, Inc., a Corporation, 794 F.2d 330, 1986 U.S. App. LEXIS 26227 (8th Cir. 1986).

Opinion

794 F.2d 330

WESTBOROUGH MALL, INC., a corporation, George Staples, Jr.,
individually, and as sole general partner of
Westborough Mall Associates, a Missouri
Limited Partnership, Appellees,
v.
CITY OF CAPE GIRARDEAU, MISSOURI, a municipal corporation,
Appellant.
Paul W. Stehr, Oliver A. Hope, Robert K. Herbst, Howard C.
Tooke, Samuel L. Gill, Gail L. Woodfin, W.G.
Lawley, Drury Industries, Inc., a
corporation and May Centers of
Cape, Inc., a corporation.
WESTBOROUGH MALL, INC., a corporation, George Staples, Jr.,
and Westborough Mall Associates, a Missouri
Limited Partnership, by and through
George Staples, Jr., its sole
general partner, Appellants,
v.
CITY OF CAPE GIRARDEAU, MISSOURI, a municipal corporation,
Charles L. Drury, Drury Industries, Inc., a corporation, May
Department Stores Co., a corporation, West Park Associates,
a Missouri Limited Partnership, May Centers of Cape, Inc., a
corporation and May Centers, Inc., a corporation, Appellees.

Nos. 84-1356, 84-1304.

United States Court of Appeals,
Eighth Circuit.

Submitted April 11, 1985.
Decided June 17, 1986.

Robert Freilich, Kansas City, Mo., for Westborough Mall, Inc.

Stephen E. Strom, Cape Girardeau, Mo., for City of Cape Girardeau.

Tom Walsh, St. Louis, Mo., for May Dept. Stores Co. and Drury Industries.

Before LAY, Chief Judge, McMILLIAN, Circuit Judge, and WOODS,* District Judge.

McMILLIAN, Circuit Judge.

Westborough Mall, Inc., a corporation, George Staples, Jr., and Westborough Mall Associates, a Missouri limited partnership, (appellants) appeal from a final judgment entered in the District Court for the Eastern District of Missouri upon a jury verdict in a 42 U.S.C. Sec. 1983 action in favor of the City of Cape Girardeau, Missouri (the City), members of the city council in their individual capacities, Drury Industries, Inc., May Department Stores Co., West Park Associates, May Centers of Cape, Inc., and May Centers, Inc. (appellees). Appellants alleged a denial of procedural due process, a conspiracy between the City and the private appellees to deprive them of their constitutional rights and antitrust violations. For reversal appellants argue that the district court erred (1) in instructing the jury, (2) in holding that the actions of the city officials did not represent official policy, and (3) in denying appellants' motion for directed verdict and for judgment notwithstanding the verdict on the procedural due process claim against the City. For the reasons discussed below, we reverse and remand for proceedings consistent with this opinion.

This case is before this court on appeal for the second time. In the first appeal a grant of summary judgment in favor of appellees was reversed and the case was remanded for trial. Westborough Mall, Inc. v. City of Cape Girardeau, 693 F.2d 733 (8th Cir.1982) (Westborough I), cert. denied, 461 U.S. 945, 103 S.Ct. 2122, 77 L.Ed.2d 1303 (1983). The following statement of facts is taken in part from the opinion in Westborough I.

In the early 1970s both appellant George Staples, Jr., and appellee Charles Drury, president of Drury Industries, Inc., separately expressed interest in developing a shopping mall in the City of Cape Girardeau, Missouri. In 1973 Staples entered into a long-term lease on approximately 67 acres of land for the purpose of constructing a regional shopping facility referred to as Westborough Mall. On June 5, 1974, the Cape Girardeau City Council enacted Ordinance No. 904 which rezoned the Westborough Mall property to C-4, a zoning classification specifically designated for regional shopping center development. This ordinance also exempted the property from the provisions of another ordinance (Ch. 30, Sec. 31(e)), which provided that if a shopping center was not constructed on property rezoned C-4 within three years, the zoning would automatically revert to the classification in effect prior to the C-4 zoning. This latter ordinance is referred to as the automatic reverter provision.

Staples unsuccessfully attempted to secure "anchor" tenants for the proposed Westborough Mall shopping center. Regional shopping centers depend on "anchor" tenants which are large department stores; smaller stores generally will only agree to lease space in the shopping center after the "anchor" stores have agreed to lease.

In September 1976 Staples formed Westborough Mall Associates, a limited partnership, to develop the Westborough Mall site. The partnership raised $800,000 and received a building permit from the City in June 1977. Also in June 1977 the city by ordinance corrected certain legal descriptions of the Westborough property and confirmed that the property was zoned C-4. Site work began in 1977: a survey was conducted, water drainage systems were installed, and grading and other surface improvements were made. By December 1978 more than one million dollars had been spent on the Westborough Mall site. At this time, Westborough Mall Associates had received letters of interest from many smaller stores although no anchor tenants had made a commitment. Steps were taken to secure additional financing and Westborough Mall Associates was investigating a new anchor store concept--an "elite" store composed of a number of small tenants.

Appellee Drury's plans for a shopping center in Cape Girardeau were also proceeding during this period. Drury was interested in developing a shopping center called the West Park Mall which was to be located on land owned by Drury that was less than one mile from the Westborough site. Drury Industries, Inc., and May Centers of Cape, Inc., formed a partnership to develop this center. May Centers, Inc., is an experienced shopping mall developer and Famous Barr Co., a large department store chain, is a subsidiary of the May Co.

Drury's contribution to the venture included dealing with city officials. In 1974 Drury received a letter from the city attorney which indicated that Drury had the option of performing initial work with C-2 zoning. In 1977 Drury informed the May officials that he had already talked with W.G. Lawley, the city manager, and planned to talk with the mayor privately about obtaining C-2 zoning on all the West Park Mall property. After a September 1978 meeting with Lawley and the city building commissioner and engineer, Drury told May officials that he had "tacit city approval for C-4 zoning for the shopping center site in exchange for the Silver Spring Road extension right of way that he owned." On April 4, 1979, the city council approved Drury's C-2 zoning application.

On April 5, 1979, Staples filed a lawsuit1 in state court challenging the rezoning of the West Park Mall site. On the next day, the city manager, announced to the media that appellants' C-4 zoning had reverted. The local television news and Cape Girardeau newspapers carried the story. On April 11, 1979, after conferring with the city attorney, the city manager2

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Bluebook (online)
794 F.2d 330, 1986 U.S. App. LEXIS 26227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westborough-mall-inc-a-corporation-george-staples-jr-individually-ca8-1986.