Legal Document

339 U.S. 261 70 Supreme Court Reporter 644 94 L.Ed. 816 UNITED STATESv.WESTINGHOUSE ELECTRIC & MANUFACTURING CO. Number 26. Argued Oct. 13—14, 1949. Decided April 17, 1950. Mr. Roger Pacific KF135 P2 Marquis, Washington, D.C., for petitioner. Milton Judge Donovan, Springfield, Mass., respondent. Justice FRANKFURTER delivered the opinion of Court. 1 On February 18, 1943, United States filed a petition in District Massachusetts to condemn certain land and buildings Massachusetts, use by Army term initially ending June 30, with right renew additional yearly periods during existing national emergency, at election Secretary War.1 same day authorized take immediate possession. The respondent, Westinghouse Electric Manufacturing Company, was lessee portion condemned property, using it as warehouse, under lease dated January 19, 1942, expiring on October 31, 1944. Respondent, order comply Court's possession, incurred expenses removal its personal property. Subsequently, War exercised his renewal extended Government's occupancy two 1945. Thus, although taken period less than remainder respondent's renewals eventually exhausted leasehold. 2 At time initial taking well upon each extension, sums were deposited into estimated just compensation. It stipulated that these represented fair market value bare, unheated warehouse space taken, leaving open question whether, matter law, costs respondent be account computing compensation what condemned. further both reasonable necessary, that, such account, rental premises $25,600 greater sublease given temporary occupier bare space. 3 ruled should included measure compensation, awarded amount. 71 F.Supp. 1001. Appeals affirmed, Cir., Chief Magruder dissenting. 170 Federal Reporter, 2nd Series 752. disagreement due not differences independent views but conflicting meanings drawn from decisions this versus General Motors Corp., 323 373, 65 357, 89 311, 156 American Law Reports 390, Petty Motor Co., 327 372, 66 596, 90 729. need clarification led us bring case here. 336 950, 69 879. 4 cases concerned themselves situation which Government does whole man's interest desires merely lease. held when is an outstanding term, may considered award 'just compensation' temporarily ejected tenant—not item damage, bearing would have voluntary long-term tenant occupier.2 5 In holding just, within requirements Fifth Amendment, scrupulously careful depart settled rule against allowance 'consequential losses' federal condemnation proceedings. page 379, 360 et seq. When there entire condemnee's whether property represents leasehold or fee, relocation are valuing taken. That found inapplicable new presented case—inapplicable, is, where valued 'a building equipped business, filled commodities, presumably reoccupied used, before, end termination use.' 380, 360. 6 made clear tenant's fall doctrine. reason distinction between situations explicit Motor: 'There fundamental difference part must return least responsibility lease, rests lessee. This brought out decision. Because continuing obligation all takings leaseholds, rights lessees, affected evidence cost removal.' 379—380, 600, 7 While true had retained option vary duration occupancy—in former could extend, latter shorten—the legal significance respect squarely issue. now. Where takes then exercises so exhaust shall treated thus doctrine, hence Motor?3 8 Here, Motors, took over only But here fact continued Army's beyond expiration Westinghouse's Judged event, therefore, unlike like Motor. formal began shorter contingent reservation while shorten nominally 9 To make notice rest leasehold, formally occupy throw up rest, constitutional requirement turn wholly barren formality. because cast either form those charge proceedings without slightest interest. extensions absorb balance (i.e., case), unexpired terminated before has expired Motor), precisely same. recognition contingencies determine emergency seeks leased premises. And flexible casting burden contingency ousted tenant. 10 Under type move leaseholder's expired, imposing him duty some other burdensome adjustment. he placed boat Corporation, therefore admissible 'as taken.' 383, 361, 390. Contrariwise, continue throughout term. governed account. final severance lessee's interruption even though definitively fixed outset, degree wide enough justify result. 11 test outcome—is absorbed lease?—has actuality behind it. Until events clear, we cannot know will back adjustment, doctrine operates. 12 Condemnation indefinite practical response uncertainties needs wartime. sufficient flexibility accommodate itself making relatively minor await event. do keep litigation longer kept open, total determined until known. usual ascertaining disrespected if one function future can known forms been 'taken.' alternative require forecast possibility factors based too contingent, unique guidance experience, permit rational assessment. law express judgment experience speculation'. Tanner Little, 240 369, 386, 36 384, 60 691. Or, put Cardozo relevant situation: 'Experience available correct uncertain prophecy. Here book wisdom courts neglect. We find no sets clasp pages, forbids look within.' Sinclair Refining company Jenkins Petroleum Process 289 689, 698, 53 736, 739, 77 1449, 88 496. 13 An course delayed presents real administrative difficulties. essential facts became judicial determination hardly makes atypical. Even event still moving out, insofar reflected segregated item. amount ascertained early stage proceedings, conditional outcome occupancy. payments postponed. So long undetermined, necessarily retain periodic payment absence any problem arising costs. No unfairness embarassment displaced involved liability 14 us, trial Accordingly, reversed awards 15 Reversed. 16 DOUGLAS consideration decision case. 17 JACKSON, 18 Difficulties resolving controversy caused policy Government, also condemns use. decided questions concerning options raised, 322 390; 729, N Dec. Immigration Nationality Decisions think fully faced implications optioning policy. 19 Valuation problems past simple contrasted imposes courts. main title physical properties, asecrtaining equivalent money date appropriation—a already arrived. dealing single point conditions 20 recent years, embarked condemnation.1 pockets owners current equivalent. Instead, keeps owners' capital tied their investments pays them requires predict values time. 21 Valuing essence much business most speculation. All options, futures, insurance contracts, leases, investments, deferred deliveries commitments involve appraisal realm pure conjecture, possible, however unsatisfactorily, fix 22 however, adopted expropriating 'flexible term' condemning extend please denies defined evaluate, small wonder concludes leaves 'to assessment.' raises Congress ever expropriation rationally compensated. 23 statute rests—one broadest kind enacted Congress—authorizes various officers '* * acquire condemnation, thereof, interests therein, together located thereon used therewith, deemed military, naval, war purposes *.' 56 Statutes-at-Large 177. Its legislative history provides explanation language authorizes 'any thereof therein,'2 nor offer inclusion.3 apparent expectation authorize condemnations unstated time.4 announced purpose legislation increase number officials institute possession prior completion eliminate regarding proceeding personalty along being condemned.5 authority fee existed theretofore, uses doubt.6 24 plain contemplated necessary. give broad construction; go far say necessity political usually subject review. implies foundation nothing necessary 25 option, inherent power, very nature, perpetual take, time, needs. effect element uncertainty speculation liquidation award. Furthermore, one-sided. If, let say, price level fall, wants bound terms. option. abandon declaration, thereby getting valuation light lower level. prices up, owner enjoying rising do. lengthen more hedge inflation. 26 one-sidedness inheres shorten. Specific exists dispose surplus properties purposes;7 indeed contained consideration.8 Various power 'lease, sell, otherwise of' become unnecessary. so, shorten, price. certainly risen. fallen, avoid loss trading exercising cut down salvaging deflation. 27 seems unlikely intended speculative transactions result decrease period. If change terms indefinite, hazard becomes quickly apparent; declaration want, compensate basis maximum Such invite excessive awards, involuntary claimant controlled by, hedged of, Government. Cf. Certain Parcels Land, etc., 55 257, 265. 28 gives effort determines postpone expedient recognizes, fairly solve, engendered condemnation. present taking, entitled pocket owner, dispossessed learn, wait indefinitely paid anything except rental, regardless expense to. How sell removable store it, perhaps liquidate seek location, knowing length premises? happening judgments. pay decides exercise 'Heads win; Tails you lose' position gamble willingly joined.9 29 hold nullity want congressional authorization claims specified declaration. file prevail. abandons expires, hands choose. These not, course, satisfactory results, they come nearer obeying mandate § 201 Title II Second Powers Act 176, 177, 50 U.S.C.App. 632, U.S.C.A.Appendix, 632. section therein,' related war. Plainly conferred realty normally purchased private persons, including, renew. determination, action, constituted Amendment. Problems relating record. said provision necessiate renewed Whether disclosed facts. See Just, Procedure During World II, Geo.Wash.L.Rev. 286; Dolan, Present Day Practice Suits, 31 Va.L.Rev. 9. E.g., cf. S.Rep.No.989, 77th Cong., 2d Sess. (1942). (The bill covers including easements appurtenant thereto.) Hearings Committee Judiciary S. 2208, (It enable acquisition leaseholds property.) Act, involved, amendatory July 2, 1917, 40 241, Authorize Proceedings Lands Military Purposes. As originally introduced, 1917 land, pertaining thereto.' Cong.Rec. 3632 (1917). unexplained recommendation War, words 'temporary therein' inserted after word 'land.' H.R.Rep.No.83, 65th 1st (1917); 3991, 4130—4131, 4263 carried comment. generally, Senate Print, Statements Executive Session 6—7, 13—16; (1942); House 10, 15—23 H.R.Rep.No.1765, 1639—1641, 1644—1645, 1647—1650, 1653—1656. See, e.g., testimony Attorney Biddle n. supra, 19: 'Mr. Hancock New York. Is possible use? Biddle. Yes, sir. revert original Yes. lease? You time.' (Emphasis added.) materials cited nn. 3, 5, 6, infra. 6; 4; Hearings, 15—23; 6. 1644—45, 1647—48, 1653. 4, supra. 54 712, 1171(b). 713; see 1648. unnecessary, condemnations, rely doubts them. note local scheme policies successfully challenged grounds jurisdiction. City York city planning boards master plans providing development city, 'for preserving integrity official map' permits, general matter, issue bed street highway laid map; this, despite map times modified proposed construction never out. N.Y. Law, McK.Consol.Laws, chapter 21, §§ 26—39. empowers municipality restrict decide take. Matter York, 196 255, 259, Northeastern N59 814, 815—816, L.R.A.,N.S., 273, Ann.Cas. 1032. grants, effect, restrictive drafted eye avoiding pitfalls invalidation earlier similar scheme, Forster Scott, 136 577, 32 976, L.R.A. 543, subjected preliminary skirmish. Platt Misc. 360, 92 N.Y.S.2d 138, grounds, 276 App.Div. 873, 93 738. indicated vague expropriate fails, Albright Sussex County Lake Park Comm., N.J.L. 303, 307—308, 57 Atlantic 398, 400—401, 768, 108 Am.St.Rep. 749, 48, Hamilton, Glendale Cincinnati Traction Parrish, 67 Ohio St. 181, 192—193, 1011, 1014, 531. govern indicate fringes unconstitutionality might indulge interpretation clearly

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