Western Robidoux Printing & Lithographing Co. v. Missouri State Highway Commission

498 S.W.2d 745, 1973 Mo. LEXIS 751
CourtSupreme Court of Missouri
DecidedSeptember 10, 1973
Docket57093
StatusPublished
Cited by25 cases

This text of 498 S.W.2d 745 (Western Robidoux Printing & Lithographing Co. v. Missouri State Highway Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Western Robidoux Printing & Lithographing Co. v. Missouri State Highway Commission, 498 S.W.2d 745, 1973 Mo. LEXIS 751 (Mo. 1973).

Opinion

STOCKARD, Commissioner.

Plaintiff has appealed from the judgment of the circuit court dismissing its petition for failure to state a claim upon which relief can be granted. At the time the notice of appeal was filed this court had appellate jurisdiction by reason of the amount in dispute, and jurisdiction is retained pursuant to Mo.Const. Art. V, § 31 (1945), as amended, V.A.M.S. We affirm.

We shall set forth in narrative form the allegations of the petition.

Plaintiff was the lessee of premises known as 208-214 Edmond Street, St. Joseph, Missouri, owned by Douglas Candy Company (hereinafter referred to as “Douglas”), and also the lessee of adjoining premises known as 216 Edmond Street, owned by Fred Hunt. We shall refer to these premises as the Douglas and Hunt properties.

The Hunt property was purchased by the defendant (hereinafter referred to as the Commission) in 1967, and thereafter plaintiff entered into a leasing arrangement with the Commission. On May 2, 1968 plaintiff received notice to vacate the Hunt premises on or before September 15, 1968. There is no allegation that this was prior to the expiration date of the lease with the Commission or that plaintiff had any right to renew the lease.

Plaintiff had been lessee for many years of the Douglas premises under an oral lease, but a written lease was executed September 15, 1965. The .lease was re *747 newed in 1966 and again in 1967. By its terms the lease expired on September 16, 1968.

Prior to July 21, 1967, plaintiff and Douglas had a “cordial and honest business relationship,” Douglas had stated on many occasions that plaintiff could remain on the premises as lessee indefinitely, and plaintiff expected to renew the lease on September 15, 1968. In reliance on the occupancy of the Douglas property for many years, the written lease, and the cordial and honest business relationship with Douglas, plaintiff installed printing machinery at the cost of $150,000 and made other improvements of a type and nature to be permanent for the anticipated useful life of the equipment.

In July 1965, agents of the Commission contacted plaintiff concerning the acquisition of its interest in the Douglas property for the construction of a highway. After extended negotiations during which offers and counteroffers were made, the parties did not reach an agreement.

In July 1967 the Commission advised plaintiff by letter that it would be sometime before the design for the proposed highway would be completed, and that it would be “unnecessary for the defendant to acquire any property rights which the plaintiff had” in the Douglas property. Plaintiff was further advised that it could remain as an occupant “until the termination of [its] lease, September 16, 1968,” and that it was the Commission’s position that “there were no rights that it was necessary for the [Commission] to acquire from the plaintiff.”

In June 1968 plaintiff was advised by Douglas that it had “a contract with [the Commission] agreeing to sell” the Douglas property to the Commission, and that plaintiff was to vacate the premises on or before September 15, 1968. On September 6, 1968 plaintiff was advised by the Commission that it had purchased the Douglas property. There is no allegation as to the time the Commission actually acquired its interest in the property pursuant to the contract to sell.

Plaintiff then alleged that the Commission entered into a contract of sale with Douglas whereby it permitted Douglas to retain possession until September 15, 1968, and allowed the lease of plaintiff to expire, and then required plaintiff to vacate the premises; that to induce Douglas to enter into the contract of sale, the Commission offered the owner all or a portion of those funds which it had allocated to purchase the interest of plaintiff in the property; that the Commission later paid those funds to Douglas; that the contract of sale was negotiated and concluded while the agents of the Commission were negotiating with plaintiff, and the acts of the Commission “were in bad faith” and “willfully and deliberately” led plaintiff to believe that an agreement to purchase plaintiff’s interest was certain; and that the contract of sale was negotiated with knowledge on the part of the Commission that it “was misleading the plaintiff, and that [the Commission] had no intention of purchasing plaintiff’s interest,” but the purpose was to delay negotiations with plaintiff until the agreement with the owner could be concluded, or until the owner could be induced not to renew the lease, which renewal plaintiff had relied upon in making the improvements, and that by reason of these acts of the Commission plaintiff was damaged.

Other allegations in the petition need not be set forth because the points presented on this appeal do not present an issue as to them.

Plaintiff’s first point is that the trial court erred in dismissing its petition because it “had a legally protected property interest which [the Commission] failed to acquire.” As we understand plaintiff’s point, the contention is that when the Commission purchased the Hunt property, and purchased or contracted to purchase the Douglas property, plaintiff was a lessee in *748 possession, and the Commission had a legal obligation to acquire at that time plaintiff’s leasehold interest.

We cannot agree that there was such a duty on the Commission. It is true that in a condemnation proceeding pertaining to property which is subject to a lease, the interests of the lessor and of the lessee are ordinarily obtained at the same time and the compensation to be paid is ascertained as though the property belonged to one person, and that sum is then apportioned between the lessee and lessor. City of St. Louis v. Wabash Railroad Company, 421 S.W.2d 302 (Mo. banc 1967). An exception to this rule is recognized in State ex rel. McCaskill v. Hall, 325 Mo. 165, 28 S.W.2d 80 (1930), which is not material to the issues before us. In a condemnation proceeding the compensation is determined as of the time of the taking. If the property is subject to a lease at that time, the owner of the leasehold interest is entitled a share of the compensation for his loss. However, we do not here have the situation where the Commission sought to condemn and bring about a taking of property for highway purposes during the term of an existing lease. Instead, the Commission sought to purchase the interest in the land needed, a procedure it not only is authorized to follow but must attempt to do in good faith before it can condemn. State ex rel. State Highway Commission v. Pinkley, 474 S.W.2d 46 (Mo.App.1971). When obtaining the right of way for a highway the Commission necessarily must obtain the interest in some of the parcels of land before the date of its actual use. We see nothing improper for the Commission to negotiate only with the owner of the fee of land, which is subject to a lease, for the immediate or future purchase of the interest needed for highway purposes when it knows that the lease then existing will expire before the land will actually be used for the construction of the highway.

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Bluebook (online)
498 S.W.2d 745, 1973 Mo. LEXIS 751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-robidoux-printing-lithographing-co-v-missouri-state-highway-mo-1973.