City of Oakland v. American Dredging Co.

THE COURT.

This is an action to quiet title to a right of way.

Prior to 1911, a number of persons, including defendant American Dredging Company, were in possession of certain tidelands in the City of Oakland, fronting on the San Antonio estuary, claiming title thereto under a patent granted in 1889 to one James T. Stratton. This title was disputed by the city, mainly on the theory that the grant of the tidelands to Stratton was illegal and void. The dispute led to the following compromise. ' The legislature passed the ‘ Tideland Act” (Stats. 1911, p. 1254) transferring to the City of Oakland all its interest in these lands, subject to specified trusts. These were, briefly, that the land should be used for harbor purposes, and for the promotion and accommodation of commerce and navigation; that the city could not convey the property but might give franchises or leases for limited periods; that it might lease them for 25 years and might provide for a right to renew for 25 years, subject to certain reservations. The statute also provided that the persons in possession of the above-mentioned lands should have a right to obtain such a lease for 25 years with privilege of renewal for a like period, subject to the right of the city to terminate the lease at the end of the first period or refuse to renew the same, and that upon obtaining the lease, they should quitclaim to the city any rights they claimed in the lands. After the passage of this act, the Oakland city council passed an ordinance authorizing the board of public works to enter into such leases, and on June 30, 1911, a lease was made and delivered to appellant, which contemporaneously delivered a quitclaim of its asserted interests. Thereafter appellant continued in possession under the lease, using its premises for dredging operations, storing dredge pipe, mooring dredges, etc. The validity of the act and the leases entered into thereunder was established by the decision of this court in

Oakland

v.

Larue Wharf etc. Co.,

179 Cal. 207 [176 Pac. 361].

[222]

In 1927, a port commission was created for the City of Oakland, and in 1928, the city acquired a tract of land adjacent to and west of appellant’s leasehold. On this land the city constructed a wharf known as “Ninth Avenue Pier”, a substantial, modern structure with a steel and concrete transit shed and warehouse. Railroad tracks were constructed both on the side of the pier fronting on the estuary, and in the rear. Pending construction of the pier, however, the city, realizing the need of connecting the tracks with the outside railroad lines, entered into negotiations with four leaseholders, including appellant, with the object of securing a right of way for such connecting tracks. The negotiations failed to end in agreement, and on November 2'9, 1929, the city commenced this action to quiet title. On July 12, 1930, it also brought an action to condemn a right of way over the land of appellant alone. By order of court it was placed in immediate possession and has since completed the connecting tracks. On November 12, 1930, the present action was dismissed as to all lessees save appellant.