1973

Norfolk S. Ry. Co. v. American Oil Co.

Supreme Court of Virginia

214 Va. 194, 198 S.E.2d 607

City of Virginia Beach acquired 9,556 square feet of property owned by Railway, which in turn leased the property to Amoco. Award for condemnation totaled $73,085. Trial court gave $40,000 to Amoco and $33,085 to Railway. Supreme Court affirmed. Lease contained clause that if Railway could not lawfully permit use of property by Amoco, Railway could terminate lease and not be liable to Amoco for any damages. However, lease had no mention of rights of parties in the event of condemnation by eminent domain. When City recorded certificate of take, all right, title and interest of Railway and Amoco vested in the City. Their interests were transferred to the funds represented by the certificate. After the certificate filing, Railway had nothing to terminate, and Amoco had nothing it could remove from the improvements it put on leasehold. Because as against Railway, Amoco had a right to remove its property, it had a right to share in the award.

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