American Medicinal Spirits Co. v. Mayor and City Council of Baltimore

• Decision Date: 26 May 1933
• Docket Number: 40,41.
• Citation: 166 A. 407,165 Md. 128
• Parties: AMERICAN MEDICINAL SPIRITS CO. v. MAYOR AND CITY COUNCIL OF BALTIMORE. MAYOR AND CITY COUNCIL OF BALTIMORE v. AMERICAN MEDICINAL SPIRITS CO.
• Court: Maryland Court of Appeals

166 A. 407

165 Md. 128

AMERICAN MEDICINAL SPIRITS CO. v. MAYOR AND CITY COUNCIL OF BALTIMORE.

MAYOR AND CITY COUNCIL OF BALTIMORE v. AMERICAN MEDICINAL SPIRITS CO.

Nos. 40, 41.

Court of Appeals of Maryland

May 26, 1933

Appeals from Circuit Court of Baltimore City; H. Arthur Stump, Judge.

Suit by Mayor and City Council of Baltimore against the American Medicinal Spirits Company. From decree rendered, each party appeals.

Decree reversed except with respect to costs, and cause remanded for decree dismissing bill of complaint.

Argued before BOND, C.J., and PATTISON, URNER, ADKINS, OFFUTT DIGGES, PARKE, and SLOAN, JJ.

Raphael Walter, of Baltimore (Sykes, Nyburg, Goldman & Walter, of Baltimore, on the brief), for American Medicinal Spirits Co.

Allen A. Davis and S. Wilmer Pleasants, Asst. City Sols., both of Baltimore (R. E. Lee Marshall, City Sol., of Baltimore, on the brief), for Mayor and City Council of Baltimore.

PARKE Judge.

The American Medicinal Spirits Company and its predecessors in title were the owners of a parcel of land in Baltimore city which fronted on the west side of Russell street the distance between the south side of Stockholm street and the north side of Alluvian street. The land was improved by three separate warehouses whose front walls were in the building line of Russell street. In order to widen this street from 66 feet to 100 feet, the municipality passed an ordinance on May 14 1926, and pursuant to its provisions duly acquired a fee-simple title to that portion of this land which is included between the western boundary line of Russell street and a line beginning in the northern edge of Alluvian street 34 feet west from Russell street and running thence northeastwardly, at a right angle with Alluvian street, a distance of 270.76 feet to intersect Russell street, after it turns to the northeast. The projected widening of Russell street involved the removal of a corresponding portion of the front of every one of the three warehouses, which were specially constructed and used for the storage of whisky in barrels; and the construction of new front walls. The company was awarded the sum of $50,000, and was obliged to remove, at its own expense, those parts of the three warehouses which were on the parcel taken, but whether it was to keep the material salvaged seems in controversy. The award was paid on December 15, 1930, by the municipality to the company which thereupon conveyed the land. Pending the time when the strip would be required for its contemplated physical incorporation in the street, the city permitted the warehouses to occupy the land granted without requiring the removal or change in the improvements, and without having received any rent or reward for this occupancy. Since December 15, 1930, no taxes have been paid on this parcel. See Charter, art. 1, § 6 (26) (A), Code Pub. Loc. Laws 1930 art. 4, § 6(26) (a).

The widening of this particular section of Russell street remained in abeyance until 1931, when, upon the assumption that the authorized improvement would not be made, representatives of the city and the company carried on negotiations which culminated in a document of August 24, 1931, which purported to be an agreement of the mayor and city council of Baltimore and of the company. The paper writing was duly executed by the company, and the name of the municipality was subscribed by the mayor, its seal affixed, and the execution attested. The mayor, comptroller, city register, and a commissioner of finance, also, signed in their official capacities to signify their approval of the terms of the agreement.

The instrument thus executed recited that the mayor and city council of Baltimore, in consideration of the payment of the sum of $50,000, without interest, in an installment of $10,000 on the day of the execution of the agreement, and in four credit installments of $10,000 payable on the 1st day of September in the years 1932, 1933, 1934, and 1935, did thereby sell and agree to convey, to the company, the fee-simple title, free of all incumbrances to the identical parcel of land, with the improvements thereon, which the municipality had previously acquired from the company by its deed of December 15, 1930. The company promised to buy on these terms, and to make the final payment at the time of delivery to the said company of a valid deed for the property, with taxes paid to September 1, 1935.

The terms which were stipulated, and require statement, are:

1. The agreement was made subject to the passage (1) of an ordinance for the purpose of closing that portion of Russell street which was the location of the parcel sold and conveyed; and (2) of an ordinance authorizing the disposal or sale of the property mentioned when the proceedings for the closing of Russell street under the first ordinance should have been completed.

2. The company was to be entitled to the possession of the premises sold upon the payment of $10,000 on the signing of the agreement, and the municipality was to waive all claim for use and occupancy of the premises before the execution of the agreement.

3. The failure of the company to pay any installment as due, and the continuance of such default for a period of thirty days, after the notice provided, should constitute the company a tenant at will, with an obligation to surrender the premises upon ten days' written notice. In the event of the prescribed default, after notice, all moneys paid should be considered and retained as rent.

4. The importance of this next paragraph requires it to be quoted:

"It is further understood and agreed, That in the event that the Mayor and City Council of Baltimore shall fail or refuse to pass the ordinances herein provided

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