The North Carolina Court of Appeals Tuesday affirmed a Richmond County Superior Court order granting summary judgment in favor of the city of Hamlet in a case brought against the city by the National Railroad Museum and Hall of Fame incorporated.

The museum had said the city breached a contract with it related to the exhibit of artifacts on city property.

Hamlet Mayor Jeff Smart said he was glad the lawsuit was over and happy with the court’s decision. “It is time to get on with the future,” he said.

The city is moving ahead with its plans to work on museum presentations in the historic Hamlet Railroad Depot and surrounding buildings. The National Railroad Museum is now housed in a permanent location of its own on U.S. 74 Business at Veterans Drive, Hamlet.

“The ruling is what I expected,” said Bill Williams, chairman of the museum board. “We really didn’t have an attorney for our appeal. As you know, we have moved on and now are concentrating on establishing the museum in its permanent home.”

Superior Court Judge Mark E. Klass on Nov. 16, 2007, issued an order granting summary judgment in favor of the city. The judgment was appealed by the museum.

The N.C. Court of Appeals reviewed the case Sept. 24, 2008.

In its decision announced Tuesday, the court said there could not have been a breach of contract because according to law defining a contract, there was no legal contract.

There was a limited agreement between the city and museum regarding the restoration of the Tornado, a replica of an antique train, but not the rest of the museum’s artifacts, the court said.

And, “The Tornado Agreement did not address any terms related to plaintiff’s occupying the depot after it was relocated and restored.”

In contrast to that agreement, the court said, “Williams’ deposition testimony repeatedly establishes that the parties never entered into a new lease to display the historic artifacts in defendant’s depot pursuant to the conditions attached to the receipt of state and federal funds.”

In its final comment, the court said, “We note that it is regrettable that the parties were unable to come to terms to display artifacts of such historic significance to both the state of North Carolina and the United States. However, for the foregoing reasons, we are constrained to affirm the trial court’s order of summary judgment in favor of the defendant.”

Terms for an agreement between the city and museum were never defined the court said.

The museum said a resolution of financial support for the depot restoration and a funding application with N.C. Department of Transportation by the city constituted a contract, but the court disagreed they were “sufficient to constitute either an express contract or a duly ratified agreement between plaintiff and defendant for plaintiff’s use of the restored depot.”

In a letter Feb. 20, 2004, Hamlet City Manager Marchell David wrote to Bill Williams, chairman of the museum board that:

“It has always been the intent of the project team (City of Hamlet, NCDOT and David E. Gall, Architect) to include the National Railroad Museum and Hall of Fame, Inc., in the restored facility.

“However, this task can only be achieved if both federal and state funding guidelines are met. Therefore, it is necessary that the city of Hamlet and the NRM & Hall of Fame enter into an agreement for the leased/loaned ownership of the museum’s holdings for a minimum of 25 years.”

No agreement was ever reached.

To solicit local, state and federal funds to restore the Hamlet Railroad Depot, the city was required to comply with Professional Museum Standards which included the museum leasing its assets to the city for a minimum of 25 years.

The Tornado has been restored by the NCDOT and will be housed in a restored building at the Depot Park on Main Street. It was after the Tornado was removed from a prior building that on June 29, 2006, the museum brought the action against the city alleging breach of contract and fraud.

A train engine and caboose, still owned by the museum, are located on the city’s property at the Depot Park.

n Contact reporter Tom MacCallum at 997-3111, ext. 15; e-mail tmaccallum@yourdailyjournal.com.