Beard's Erie Basin, Inc. v. People

142 F.2d 487, 1944 U.S. App. LEXIS 3421
CourtCourt of Appeals for the Second Circuit
DecidedMay 8, 1944
DocketNo. 332
StatusPublished
Cited by7 cases

This text of 142 F.2d 487 (Beard's Erie Basin, Inc. v. People) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beard's Erie Basin, Inc. v. People, 142 F.2d 487, 1944 U.S. App. LEXIS 3421 (2d Cir. 1944).

Opinion

CLARK, Circuit Judge.

This is a dispute as to the right to the condemnation award for certain lands, otherwise known as Beard’s Erie Basin, in and about Gowanus Bay in the Borough of Brooklyn. On October 21, 1941, the United States of America filed a declaration of taking, pursuant to the provisions of 40 U.S.C.A. § 258a, and the court below entered judgment at once on the declaration. At the same time the United States deposited the sum of $700,000 with the court as the estimated just compensation of the property taken. Beard’s Erie Basin, Inc., thereupon entered claim for the sum so depositéd and any future award which might be made, and petitioned the court to pay the $700,000 for the account of Beard’s to the Irving Trust Company, as trustee of a mortgage filed against the property on March 1, 1928. The Irving Trust Company filed a similar petition as mortgage trustee. The People of the State of New York, upon the return of these petitions, filed an adverse claim in writing, disputing Beard’s right to the whole amount and asking for one-half of any award that might be made. After hearings, the court below in a written opinion, United States v. 25.88 Acres of Land, etc., D.C.E.D.N.Y., 49 F.Supp. 250, found in favor of the petitioners and awarded to them any and all compensation for the condemned property. From this judgment the State presses the present appeal.

Beard’s title to the lands in question runs back to William Beard through the trustees of the latter’s will. That the trustees received whatever rights in the lands Beard himself possessed is unquestioned, and has been so decided in the state courts with respect to lands adjoining those taken. First Const. Co. of Brooklyn v. State, 110 Misc. 164, 180 N.Y.S. 241, affirmed 194 App.Div. 608, 186 N.Y.S. 159. Hence our attention can be directed solely to the nature of William Beard’s original interest. The condemned lands may be divided roughly into three types: (1) the original upland; (2) land which was originally under water, but which since its acquisition by William Beard has been filled in; and (3) land which is still under water at the present time. At the outset, it can be noted that there is no dispute concerning William Beard’s ownership of the original upland fronting on the Bay. This ownership, traced back to a grant from the town freeholders in 1695 and Charter from the King in 1698, was recognized over the years by the various legislative grants and grants by letters patent of lands under water, which we shall consider later and which could legally be made only to an upland owner, and was specifically found in the case of First Const. Co. of Brooklyn v. State, supra, 194 App.Div. at pages 617, 618, 186 N.Y.S. at pages 166, 167. The controversy thus centers about lands under water acquired by William Beard in front of his original upland, whether they be now filled in or remain under water. William Beard acquired such lands through letters patent issued pursuant to resolutions of the Commissioners of the Land Office in 1857 and 1885 and through a series of legislative grants from 1847 to 1884. While the grants from the two [489]*489sources overlap in numerous instances, for our present purposes all the condemned land which remains under water was received originally from the letters patent and all the filled land stems from the legislative grants.

It is Beard’s contention on this appeal that it owns in fee simple all the condemned lands as a result of the letters patent and the legislative grants. The State, on the other hand, controverts this claim by asserting that the letters patent and the legislative grants were unlawful and invalid and that, in any event, even conceding the validity of the grants, such a possibility of reverter remains in the State as to entitle it to a share of the condemnation award. We twice recently have had occasion to consider similar issues on condemnation, United States v. 53¼ Acres of Land, etc., 2 Cir., 139 F.2d 244; Brooklyn Eastern Dist. Terminal v. City of New York, 2 Cir., 139 F.2d 1007; and we have committed ourselves to a practical rule of construction as required by applicable state law. As we said in the first case, 139 F.2d at page 247: “The law of New York has put the matter on a very practical basis: a right with respect to property taken in condemnation may be so remote or incapable of valuation that it will be disregarded in awarding compensation * * *. Thus a possibility of reverter may be incapable of valuation where there is no present likelihood of a reverter occurring. * * * we think that the right to compensation is to be determined by whether the condemnation has deprived the claimant of a valuable right rather than by whether his right can technically be called an ‘estate’ or ‘interest’ in the land.” That this is, indeed, the general law is indicated by People of Puerto Rico v. United States, 1 Cir., 132 F.2d 220, 222, citing many cases and Restatement, Property, 1936, § 53, comment b, certiorari denied 319 U.S. 752, 63 S.Ct. 1165, 87 L.Ed. 1706. Following this approach we cannot see how any valuation can be placed upon the State’s right of reverter, conceding that it does in fact exist; and hence we would be justified in going no further into the merits. But we are not content to place our decision on so narrow grounds, for the law of New York, 'by which we are controlled in construing the effect of the letters patent and legislative grants, appears to us to have settled that Beard’s is fee simple owner of all the lands involved.

The Letters Patent. William Beard received two separate grants of land under water by letters patent—the first dated June 25, 1857, to himself and one Hall (whose interest he later acquired), and the second to himself alone on September 1, 1885. Both grants are similar in form, reciting that they are made “for the purpose of promoting the Commerce of our said State, and for no other object or purpose whatsoever, and with the reservations and upon the conditions hereinafter mentioned.” Then, after the property description, is the reservation to the People of the right of entering upon and using the property “until the same shall have been actually appropriated and applied to the purposes of Commerce, by erecting a Dock or Docks thereon,” also “the Express Condition” (capitalized in the original form) that if Beard, his heirs and assigns, did not within five years in the second grant (ten years in the first) “actually appropriate and apply the above described premises to the purposes of Commerce, by erecting a Dock or Docks thereon, and filling in the same, then these Presents and everything herein contained shall cease, determine and become void.”1 49 F.Supp. at pages 253, 254. There is no question, however, but that William Beard did enter upon the property and erect docks thereon within the specified time in each case. If the patents are thus to be attacked, it must be on the grounds that they were in some way unlawfully issued, or that the limitation on the grants applies beyond the terms of “the Express Condition.”

Both grants were made pursuant to resolutions of the Commissioners of the Land Office, officers created by Chapter 60 of the Laws of 1784, as repealed and replaced by Chapter 67 of the Laws of 1786, and empowered without limitation by the second statute “to grant such and so much of the lands under the water of [490]

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Bluebook (online)
142 F.2d 487, 1944 U.S. App. LEXIS 3421, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beards-erie-basin-inc-v-people-ca2-1944.