Westborough Mall, Inc. v. City of Cape Girardeau

794 F.2d 330
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 17, 1986
DocketNos. 84-1356, 84-1304
StatusPublished
Cited by56 cases

This text of 794 F.2d 330 (Westborough Mall, Inc. v. City of Cape Girardeau) 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. v. City of Cape Girardeau, 794 F.2d 330 (8th Cir. 1986).

Opinion

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. § 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 dis[333]*333trict 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 Girar-deau, 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 West-borough 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, § 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 West-borough 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 West-borough 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 [334]*3341978 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 Girar-deau newspapers carried the story. On April 11, 1979, after conferring with the city attorney, the city manager2 gave written instructions to the city engineer to change the City’s master zoning map3 to show a reversion of the Westborough site from C-4 to the original zoning. The city engineer followed these directions. The engineer was also directed not to issue or renew building permits for mall construction to appellants.

At a meeting of the city council on April 17, 1979, the city manager submitted a study session report to the council which advised the council that appellants’ C-4 zoning had reverted by operation of the automatic reverter provision. The report stated in part: “[Ujntil instructed otherwise by the City Council or Court of proper jurisdiction, the City Manager intends to apply provisions of this section [automatic reverter section] to the Westborough Mall property.” The city manager further stated that the automatic reverter provision applied because appellants had not constructed a shopping mall on the Westbor-ough Mall site within three years of the granting of C-4 zoning in 1974. Although the city council discussed the issue, no action was taken at this meeting.

On May 23, 1979, appellants’ financier wrote to the city manager concerning the status of the Westborough Mall zoning. The city manager replied that in his opinion the C-4 zoning had reverted and he enclosed copies of the ordinance and the official zoning map which reflected the reversion.

On August 1, 1979, the West Park Mall developers obtained a rezoning of their property from C-2 to C-4. Work continued and the West Park Mall opened in 1981.

In September 1980 the city council adopted Ordinance No. 1599, “reaffirming” that the Westborough Mall site was zoned C-4.

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Bluebook (online)
794 F.2d 330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westborough-mall-inc-v-city-of-cape-girardeau-ca8-1986.