CAPITOL IMPROVE. AUTH. v. US Beef Corp., 97,546.

• Court: United States State Court of Appeals of Oklahoma. Court of Civil Appeals of Oklahoma
• Citation: CAPITOL IMPROVE. AUTH. v. US Beef Corp., 52 P.3d 1052, 2002 OK CIV APP 81 (Okla. Civ. App. 2002)
• Decision Date: 16 August 2002
• Docket Number: No. 97,546.,97,546.
• Parties: STATE of Oklahoma, acting by and through the OKLAHOMA CAPITOL IMPROVEMENT AUTHORITY, Plaintiff/Appellee, v. UNITED STATES BEEF CORPORATION, an Oklahoma corporation, Defendant/Appellant, and Francis Investments, an Oklahoma general partnership; Forrest Freeman, County Treasurer of Oklahoma County; and, Board of County Commissioners of Oklahoma County, Defendants.

52 P.3d 1052

2002 OK CIV APP 81

STATE of Oklahoma, acting by and through the OKLAHOMA CAPITOL IMPROVEMENT AUTHORITY, Plaintiff/Appellee, v. UNITED STATES BEEF CORPORATION, an Oklahoma corporation, Defendant/Appellant, and Francis Investments, an Oklahoma general partnership; Forrest Freeman, County Treasurer of Oklahoma County; and, Board of County Commissioners of Oklahoma County, Defendants.

No. 97,546.

Court of Civil Appeals of Oklahoma, Division No. 3.

August 16, 2002.

Rehearing Denied July 19, 2002.

James M. Waldo, Mock, Schwabe, Waldo, Elder, Reeves & Bryant, Oklahoma City, OK, for Plaintiff/Appellee.

William J. Doyle, III, Doyle & Salisbury, Tulsa, OK, for Defendant/Appellant.

Released for Publication by Order of the Court of Civil Appeals of Oklahoma, Division No. 3. Opinion by CAROL M. HANSEN, Presiding Judge.

¶ 1 Defendant/Appellant, United States Beef Corporation (U.S.Beef), seeks review of the trial court's order granting summary judgment in favor of Plaintiff/Appellee, State of Oklahoma, acting by and through the Oklahoma Capitol Improvement Authority (State), in State's action for condemnation of property leased by U.S. Beef. We reverse and remand, holding U.S. Beef has standing to challenge the award of the commissioners.

¶ 2 U.S. Beef, an Arby's franchisee, has operated an Arby's restaurant since 1988 on property it leased in 1987 from Defendant, Francis Investments, at 3801 North Lincoln Boulevard in Oklahoma City. State filed its amended petition to condemn the subject property on April 18, 2000. It sought fee title to the property in order to construct and operate the Lincoln Renaissance Project pursuant to its authority under 73 O.S.Supp.1997 § 161(5). The commissioners filed their report assessing compensation of $400,000.00 for the condemnation. State deposited the assessed amount with the court clerk on July 28, 2000.

¶ 3 U.S. Beef demanded jury trial. State moved for summary judgment, arguing U.S. Beef lacked standing to pursue a jury trial because it had agreed in its lease with Francis Investments it would not be entitled to any part of any condemnation award. U.S. Beef objected. The trial court granted State's motion. U.S. Beef appeals without appellate briefs in conformance with the procedures for the appellate accelerated docket, Okla. Sup.Ct. R. 1.36, 12 O.S.Supp.1996, Ch. 15, App. 1.

¶ 4 The lease agreement between U.S. Beef and Francis Investments provided,

EMINENT DOMAIN: If at any time during the existence of this lease the City, County, State, or Federal authorities under any legal power or threat of eminent domain, shall acquire title to any portion of the premises, or any portion of the property in which the premises is located, and such taking does not materially adversely effect [sic] the LESSEE'S ability to use and enjoy the premises, then the rent herein stipulated shall be decreased in proportion to the amount of portion of the premises as shall be taken under such proceedings. If such taking materially adversely effects [sic] the LESSEE'S ability to use and enjoy the premises, then LESSOR or LESSEE may terminate this lease. In the event of any taking, LESSEE shall not be entitled to any portion of any award except for moving expenses, if allowed by law, and that portion of the award clearly attributable to LESSEE'S trade fixtures, if any.

The primary term of the lease was for five years, with two five year renewal options. U.S. Beef currently holds the lease under the second five year renewal term. According to John R. Davis, U.S. Beef's vice president, U.S. Beef remodeled the restaurant in 1998 and 1999 pursuant to an agreement with Francis Investments to extend the lease term beyond December 31, 2003.

¶ 5 In his affidavit, Davis stated neither U.S. Beef nor Francis Investments terminated the 1987 lease agreement. He said that on November 9, 2000, U.S. Beef entered a lease and remodel agreement for an alternate Arby's site at 3628 North Lincoln Boulevard as a substitute for the condemned premises. The restaurant moved to the new site in March 2001.

¶ 6 Private property may not be taken for public use without just compensation. Okla. Const. Art. 2, § 24. The word "property" as used in this section "include[s] every valuable interest...