Antonio Pou Pacheco, D/B/A Torrefaccion Mi Tacita, Pou De Pou, Ilba Maida, and Their Conjugal Partnership v. Carlos Soler Aquino, Etc.

833 F.2d 392, 1987 U.S. App. LEXIS 15118
CourtCourt of Appeals for the First Circuit
DecidedNovember 18, 1987
Docket86-1991
StatusPublished
Cited by16 cases

This text of 833 F.2d 392 (Antonio Pou Pacheco, D/B/A Torrefaccion Mi Tacita, Pou De Pou, Ilba Maida, and Their Conjugal Partnership v. Carlos Soler Aquino, Etc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Antonio Pou Pacheco, D/B/A Torrefaccion Mi Tacita, Pou De Pou, Ilba Maida, and Their Conjugal Partnership v. Carlos Soler Aquino, Etc., 833 F.2d 392, 1987 U.S. App. LEXIS 15118 (1st Cir. 1987).

Opinion

DAVIS, Circuit Judge.

This case comes to us on appeal from the United States District Court for the District of Puerto Rico. Following a jury trial, Judge Acosta ordered appellants to compensate appellees under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA or Relocation Act), 42 U.S.C. § 4601 et seq., as follows:

for dismantling $ 10,000
for moving expenses $ 9,000
for rental expenses (storage) $ 70,000
for search costs $ 55,000
for reinstallation of machinery and equipment $102,600
for value of new equipment and machinery $393,300

plus costs. Pacheco v. Aquino, Civil No. 80-1736 (RLA) (D.P.R. July 31, 1986) (judgment). We affirm.

I. Background

On February 8, 1978, the Commonwealth of Puerto Rico (Commonwealth) filed a petition in Superior Court to acquire, through condemnation, real property belonging to Mr. and Mrs. Antonio Pou Pacheco (appel- *395 lees or Pou). 1 Judgment was entered in favor of the Commonwealth on October 17, 1980. The condemned properties consisted of a tract of land measuring five “cuerdas” and three buildings: a house, a cabinetmaker’s shop, and a facility for grinding, processing, warehousing and selling coffee. 2

The Commonwealth tendered to Pou $106,531.02 as “just compensation” for the expropriated properties. Dissatisfied, ap-pellees brought suit and persuaded the district court that, as “displaced persons” within the meaning of the URA, they were entitled to compensation for a variety of additional expenses incurred after and flowing from the condemnation proceedings. 3 The delicate nature of coffee torre-faction equipment significantly muddies the issues percolating on this appeal. Testimony at trial established that, unless maintained through regular use, torrefaction machinery quickly slips into disrepair and eventually becomes worthless. The upshot of this is that Pou’s first attempt in January 1979 to relocate his business proved to be temporary. For 18 months, Pou stored his equipment in a state of maintenance at the Playa de Ponce, Number 52 Mirasol. However, Torrefacción Mi Tacita was never fully operational at that location. The Commonwealth’s refusal to pay storage costs beyond the 12 month period forced Pou to move his equipment a second time. Accordingly, in June 1980, Pou again relocated his business, this time to Calle del Sol, Road 139, Kilometer l.O. 4

Appellant challenges as contrary to law the district court’s order awarding reimbursement to appellees for six distinct categories of expenses: dismantling expenses; moving expenses; storage rental expenses; search costs; reinstallation of machinery and equipment; and value of new equipment and machinery. Before separately reviewing the awards under each category, we examine the policies underlying the applicable federal law as disclosed through the statute and relevant legislative history.

II. The Relocation Act of 1970

In 1970, Congress passed the Relocation Act, concluding nearly a decade of effort directed towards standardizing federal legislation regarding relocation assistance. Alexander v. United States Dep’t of Housing and Urban Dev., 441 U.S. 39, 49, 99 S.Ct. 1572, 1580, 60 L.Ed.2d 28 (1979). Pri- or to the 1960’s, persons displaced when federal agencies acquired property for designated public projects received whatever assistance Congress, on an ad hoc basis, deemed appropriate. Id. 5

*396 Responding to substantial variations in relocation benefits, the House Public Works Committee created the Select Subcommittee on Real Property Acquisition in 1961. Three years later, the Subcommittee proposed the “Fair Compensation Act” (FCA) to address the severe deficiencies in existing law. Although never enacted, the FCA, as progenitor of the URA, formed the basis for most of the provisions ultimately codified in the Relocation Act. Alexander, 441 U.S. at 49, 99 S.Ct. at 1580. Thus, the FCA’s declared purpose — to afford “persons affected by the acquisition of real property in Federal and federally assisted programs ... fair and equitable treatment on a basis as nearly uniform as is practicable” — is instructive. Select Subcommittee Study 147 (emphasis added). Id. at 50, 99 S.Ct. at 1590. That Congress refused to abandon this broad objective is palpable in the express terms of § 201 of the URA. That section provides:

Declaration of policy
The purpose of this subchapter is to establish a uniform policy for the fair and equitable treatment of persons displaced as a result of Federal and federally assisted programs in order that such persons shall not suffer disproportionate injuries as a result of programs designed for the benefit of the public as a whole.

A House Public Works Committee report which accompanied the URA fleshed out the purpose of the law:

The need for [the URA] arises from the increasing impact of Federal and federally assisted programs as such programs have evolved to meet the needs of a growing and increasingly urban population. * * * Also, a major public project — be it a highway, urban renewal project, or hospital — inevitably involves the acquisition and clearance of sites which now provide residential, commercial, or other services. As the thrust of Federal and federally assisted programs have [sic] shifted from rural to urban situations, it became increasingly apparent that the application of traditional concepts of valuation and eminent domain resulted in inequitable treatment for large numbers of people displaced by public action. When applied to densely populated urban areas, with already limited housing, the result can be catastrophic for those whose homes or businesses must give way to public needs. The result far too often has been that a few citizens have been called upon to bear the burden of meeting public needs.

H.R.Rep. No. 91-1656, 2d Sess., reprinted in 1970 U.S.Code Cong. & Admin.News 5850, 5851 (emphasis added).

Our review of the challenged awards under the URA must take place against this background of strong congressional support for the fair and equitable treatment of displaced persons and businesses, as well as Congress' expressed willingness to depart from traditional notions of valuation and eminent domain.

III. The Challenged Awards 6

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