Southern Airways Co. v. DeKalb County
Southern Airways Co. v. DeKalb County
Opinion of the Court
The principal issue raised by this appeal is whether the alleged lease entered into between the parties is valid or void. It may be noted that in one of the two previous appearances of this case before the Supreme Court, the contract was held to be in proper form and prima facie valid. Southern Airways Co. v. Williams, 213 Ga. 38 (96 S. E. 2d 889). The second appearance of the case before the Supreme Court was occasioned by the granting of a writ of certiorari on the application of Southern Airways Co. to review the majority opinion and judgment of this court in Southern Airways Co. v. DeKalb County, 101 Ga. App. 689 (115 S. E. 2d 207), which held in effect that the lease agreement, to become effective upon the happening of an event in the future which might or might not occur within 21 years, no life in being there being involved, violated the rule against perpetuities and was void. In its consideration of the case the Supreme Court held that the lease agreement gave only a usufruct in the premises, not an interest in realty, and consequently, the rule against perpetuities would not apply. Southern Airways Co. v. DeKalb County, 216 Ga. 358 (116 S. E. 2d 602). Thus, the view of this court on the point became quite immaterial, and the judgment of this court is vacated. With the settling of this point by the Supreme Court, the case, following customary procedure, was returned to us for consideration and determination of the several issues remaining in contention.
The first contention of the county to the effect that this lease constituted an invalid effort by the county commissioner then in office to bind himself and his successors in such a way as to prevent free legislation in matters of county government, we think, is not tenable. There is express statutory authority for municipalities, counties, and other political subdivisions to acquire, own, lease, control, occupy, equip, maintain, regulate, etc., airports and landing fields under the provisions of the Uniform Airports Law (Ga. L. 1933, p. 102, et seq.), which is now codified as Chapter 11-2 of the Code. Admittedly, Code § 11-202 provides that any lands thus acquired for these purposes
The second contention of the county is that the lease represented an effort to grant exclusive rights to the use of landing areas and air navigational facilities on which Federal funds had been expended in direct violation of the act of Congress forbidding the grant of any exclusive rights. While certain portions of the lease as presented by the record do use terms granting the lessee “the exclusive commercial operation of the entire airport . . . the exclusive right to the use of the first two hangars . . . ”, other parts of the lease expressly provide that the lessor shall at all times have the right to require the lessee to operate the airport and all its facilities and services for the general use and benefit of the public, and to require the lessee to make available all airport facilities without unjust discrimination. Furthermore, other sections of the agreement require the lessee to make all facilities at the airport available to all members of the public, including airline transportation facilities, and expressly negate any grant to the lessee or to any other persons of the exclusive right to the use of any landing area or air navigation facility at the Camp Gordon Airport, while specifically requiring that the landing areas and air navigation facility shall
Accordingly, we conclude that this objection to the validity of the contract is not meritorious.
The third contention of DeKalb County is that the contract is void because, prior to the time it was made, the county, by a resolution which constituted a contract with the holders of revenue anticipation certificates, covenanted and agreed that the gross revenues from the operation of the airport would be applied to the payment of these bonds, and that no lien or other contract superior to the bondholders’ rights would be made with respect to these gross revenues. The record discloses that the validation order issued by the Superior Court of DeKalb County expressly gave the county the right to prescribe, and from time to time to revise, fees and collect charges of the users of the airport, and to that end, might lease all or a portion of the airport and its facilities and collect rent sufficient to pay the cost of operating and maintaining the airport, and to pay the principal and interest of the certificates at their respective maturity dates. The validation proceeding under the second issue of revenue anticipation certificates allegedly was substantially the same. In view of the fact that the validation proceedings expressly provided for the county’s leasing the airport in its discretion, and in view of the provisions of Code § 11-205, which is the statutory authorization for the county’s leasing the airport, and, since there is no showing that the present lease in any way departed from the validation proceedings, we conclude that this objection of the defendant to the validity of the lease is not well taken. See Dawson v. Hospital Authority of City of Augusta, 212 Ga. 146 (91 S. E. 2d 12), and Code § 87-819.
It would appear, if this lease in any manner violated the rights of the certificate holders that they, and not the county, would be the proper parties to raise the issue in an appropriate proceeding.
“At a regular called meeting of the Commissioner of Roads and Revenues of DeKalb County, Georgia, held on the 28th day of December 1954, the following action was taken:
“Whereas, on the 25th day of October 1940 a lease was executed between DeKalb County and Southern Airways Company which provided for a lease of the Camp Gordon Airport, and
“Whereas, the lessee thereunder never obtained possession of the premises because of the fact that the United States required the facilities of said airport for a naval reserve aviation base and has continuously held and occupied said premises as a naval reserve aviation base up to the present time, and
“Whereas, the lessee has deposited with the county the sum of eleven thousand seven hundred ($11,700) dollars as advance rentals, for which no benefit whatever has accrued to the lessee, and
“Whereas, the lessee desires to retain all rights granted by said lease and any modification thereof in the event the property is surrendered by the United States, and is willing to leave on deposit the sum of one thousand ($1,000) dollars as evidence of its good faith and as an initial deposit on any rentals which may accrue,
“Be it resolved that DeKalb County refund and return to said lessee all monies paid by it in rentals except the sum of $1,000.
“Be it further resolved that a copy of this resolution be forwarded to Southern Airways Company and that the terms of any leases heretofore entered be modified in accordance with the terms thereof.
“There being no further business, the meeting adjourned.”
It thus appears from this official action of the then commis
The next contention of the county is that the lease is void because of vagueness both as to the property to be covered and as to the duties to be performed by Southern Airways. As we read the lease, there are admittedly some provisions which are not crystal-clear. It also contains language as to the meaning of which the parties might conceivably disagree. To illustrate, article 4 of the agreement provides that the lessee shall offer services and provide such facilities at the airport as will be adequate and appropriate to serve the needs of the public, giving due regard to the size and location of the premises, and that the premises shall be operated and developed by the lessee as a municipal airport to the end that it would be of greatest service, use, and convenience to the public, and that factors of safety shall be of prime importance with respect to the use, operation, and maintenance of the premises. While other clauses in the contract might similarly be considered, nevertheless, reading the agreement as a whole, it is not so indefinite as to be incapable of enforcement, and viewing the time in which it was drawn, it is likely that the contract was drafted as clearly as conditions then existing permitted it to be drawn.
The rules for construction of contracts as expressed in the Code permit this contract to be so interpreted as to give effect to its main purpose. Thus, “The cardinal rule of construction is to ascertain the intention of the parties. If that intention be clear, and it contravenes no rule of law, and sufficient words be
Another contention asserting invalidity is that the agreement is void as a disposition of county property because there
In the brief the defendant strenuously attacks item 23 of the lease, which provides in substance that during the period of the lease or any renewal thereof the lessor shall furnish to the lessee such water as may be necessary for use by the airport and such sewerage facilities as may be upon the premises, the water and sewerage facilities to be furnished to the lessee without charge. The comity contends that this portion of the consideration is invalid, citing Horkan v. City of Moultire, 136 Ga. 561 (71 S. E. 785), which held that the council of a municipality cannot make a binding contract by which it undertakes to obligate the municipality to furnish sufficient water free of charge for an indefinite time in the future. In reaching this conclusion, the Supreme Court cited what is now Code § 69-202, which provides that one council may not, by ordinance, bind itself or its successors so as to prevent free legislation in matters of municipal government. The Supreme Court went on to say, “If this could not be done by an ordinance, of course it could not be done by a contract. Power in a municipality of making and changing, by ordinance, water rates from time to time, whenever necessary to protect the city in its revenues and to enable it to furnish to all on equal terms and at reasonable rates, is a legislative or governmental power, and therefore can not be legally bargained or bartered away by one council so as to forever deprive succeeding councils of the right to exercise it.” We agree with the defendant in this contention, and hold that article 23 of the lease violates Code § 69-202. See also City of Warm Springs v. Bulloch, 212 Ga.
We now turn our attention to the county’s general demurrer attacking Southern Airways’ petition on the ground that neither as a whole, nor in any of its several parts, does it set out a cause of action or any facts on the basis of which it is in law entitled to the grant of equitable or declaratory relief. This demurrer was overruled by the trial court, and the defendant’s cross-bill of exceptions was taken to this ruling. The contention of the county in its cross-bill is that Southern Airways’ action is substantially equivalent to a suit for specific performance and the pleadings do not show that the plaintiff is
Judgment on the cross-bill of exceptions is affirmed. Judgment on the main bill of exceptions is reversed.
Dissenting Opinion
dissenting. I dissent from the decision of the majority in the first and seventh divisions of the opinion, as well as from the judgment of reversal on the main bill of exceptions.
The decision of this court in Caroway v. City of Atlanta, 85 Ga. App. 792, 796 (70 S. E. 2d 126), held that where “a city
In division 7 the majority opinion properly recognizes that the agreement in the contract whereby the county agreed to furnish Southern Airways Company with water and sewage facilities without charge is void, but the holding that this consideration is severable from the remainder of the contract so that only this part of the contract would be void is untenable.
070rehearing
On Motion for Rehearing.
In its motion for rehearing, the county urges that this court overlooked the decision in Purser v. Dodge County, 188 Ga. 250 (3 S. E. 2d 574), which held that a county is not liable for a suit for any cause of action unless made so by statute. As we construe the Uniform Airports Act, Code Chapter 11-2, which expressly extends its coverage to counties, as shown in the original opinion, the county is authorized to contract as it did here. The logical inverse inference of the act is that, to the extent the county is authorized to contract, it also may be sued upon the contract for breach or for interference with performance.
The county urges in its motion that since the contract under review provides that Southern Airways shall have the exclusive right to use this airport and its facilities to operate a flying school, this violates 49 U.S.C.A. § 453, which forbids the granting of an exclusive use of landing areas and air navigation facilities of an airport built with Federal funds. While the conduct of a flying school necessarily uses landing areas
It is further contended by the movant county that the lease in question is void as being in restraint of trade, granting exclusive rights to property over which the county has the power of eminent domain, and is against public policy. As we read the contract, there is nothing in it to violate the public policy of the State, particularly in view of the Uniform Airports Law duly enacted by the General Assembly and approved by the Executive, which expressly authorizes the type of contract here in dispute. The provision in the lease providing in substance that in the event additional hangars or buildings are constructed on the premises by the lessor, the lessee shall have the option to rent them at the highest bona fide offer obtained by the county from third parties, while it may be subject to criticism as an unwise business venture, does not vitiate the contract. The insertion of this provision by the administrative authority of the county in negotiating the contract was a
A strenuous attack is made by the county upon the holding in the main opinion that the consideration is severable, the contention being that in view of our holding that the provision of the contract to furnish water and sewage without charge for 15 years is invalid, the whole contract should be nullified. It is urged that under the rulings in Broxton v. Nelson, 103 Ga. 327 (30 S. E. 38), 68 Am. St. Rep. 97 and later cases, the criterion for determining whether a contract be entire or severable is to be found in the answer to the question whether the whole quantity, service, or thing—all as a whole—is of the essence of the contract, and that if it appears that the contract was to take the whole or none, then the contract would be entire. Southern Airways, the opposing party, in its initial argument, while apparently admitting for the purpose of argument, but not conceding, that these considerations might be held by the court to be illegal, nevertheless insisted upon its remaining rights under the contract. Since the contract is severable, even if there is a partial failure of consideration because of illegality, the county here cannot object if the opposite party is willing to accept the performance of the remaining portions of the contract.
The other questions raised in the motion for rehearing, we feel, were adequately answered in the original opinion, to which we adhere.
Motion for rehearing denied.
Reference
- Full Case Name
- SOUTHERN AIRWAYS COMPANY v. DeKALB COUNTY; And Vice Versa
- Cited By
- 25 cases
- Status
- Published