Chili Plaza, Inc. v. State

42 Misc. 2d 861, 248 N.Y.S.2d 919, 1964 N.Y. Misc. LEXIS 1852
CourtNew York Court of Claims
DecidedApril 22, 1964
DocketClaim No. 37700
StatusPublished
Cited by2 cases

This text of 42 Misc. 2d 861 (Chili Plaza, Inc. v. State) is published on Counsel Stack Legal Research, covering New York Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chili Plaza, Inc. v. State, 42 Misc. 2d 861, 248 N.Y.S.2d 919, 1964 N.Y. Misc. LEXIS 1852 (N.Y. Super. Ct. 1964).

Opinion

John P. Gualtieri, P. J.

At the time of the appropriation on June 19, 1959, the claimant was the owner of a new modern shopping center in the Town of Gates, Monroe County, consisting of approximately 25 acres of land and improvements accommodating 28 retail stores, shops and offices. The taking consisted of 3.133 acres frontage used as a parking area. The taking reduced the parking facilities, although the court finds that there was remaining adequate parking to serve the needs of the center. By the appropriation documents it was prescribed by the State that the claimant would have 4 avenues of egress and ingress to and from the shopping center, with the proviso, however, that all of these accesses would be automatically forfeited by the claimant if it used its property for anything but “ retail store uses only”. Why this language was used by the condemnor is difficult to comprehend. There were in the shopping center at the time of the appropriation a bank, a laundry, a hairdressing establishment and a professional office, all of which cannot be considered in the category of a retail store accepting these words in their ordinary accepted meaning in the use of the English language. Nevertheless, the existence of this highly restrictive language as part of the taking had a drastic effect on the market value of the claimant’s property. True, no action was taken by the State to enforce this restriction on the enjoyment of the accesses provided the claimant. Nonetheless, the existence of this language and the ever-present possibility that the State or its agents at any time could or might invoke it was a threat which no prospective buyer could afford to ignore.

It is common knowledge that a modern shopping center complex must, to be attractive to the housewife and other patrons, provide all of the facilities including not only retail stores which sell merchandise but be able to provide the other services such as banking facilities, beauty parlors, shoe repairing and many others which good modern developers of these centers know are essential and necessary for a full and complete operation.

Because of the threat that these necessary services might or could be eliminated at any time, no prospective buyer could [863]*863be reasonably expected to consider buying this property. Its marketability was seriously impaired and its market value with these restrictions was markedly reduced.

The court finds that the fair market value of the claimant’s property prior to the appropriation was $2,500,000. The court finds that the fair market value of the claimant’s property after the appropriation was $1,000,000 and that the claimant would have been damaged except for the facts hereinafter recited in the sum of $1,500,000 of which $78,325 represented the value of the land appropriated in fee and the balance of $1,421,675 was consequential damages to the remainder by reason of the limitations on the shopping center contained in the appropriation documents.

The court was disturbed at the conclusion of the trial. It invited a conference of the parties and their attorneys and suggested to them that an effort be made to eliminate the seemingly unreasonable and unnecessary limitations on the accesses to the claimant’s property. The court was reluctant to be obliged to render what it felt would have to be a substantial judgment in the claimant’s favor and indicated to both parties that either by judicial construction or otherwise it would seek some method of relieving the State of an obligation to pay a large amount of money for what apparently was careless and negligent draftsmanship. There were numerous conferences in some of which the court participated. Finally on June 6, 1963, legal documents were filed eliminating the restriction on the claimant’s accesses and thereafter enabling the claimant to use and develop its property unencumbered by the restrictions mentioned above. Thereafter the parties were afforded an opportunity to submit additional evidence for the purpose of establishing whatever damages the claimant suffered during the four years that marketability of its property was impaired.

We now come to the question of damages. It was contended on behalf of the claimant that its damages by the taking were approximately $2,500,000 and that as a result of the settlement agreements its damages were reduced to approximately $1,000,-000. Included in this $1,000,000 of alleged damage are items for the market value of 3.133 acres appropriated in fee, consequential damages to the remainder, damages by reason of a temporary easement, $42,015 for damages claimed to have been done to the claimant’s parking area during construction, approximately $1,000 flood damage during the course of construction and $19,601.80 the cost to the claimant of a temporary road which it built to accommodate its customers to and from the shopping area during construction.

[864]*864The claim for the $42,015 representing damages to the parking area and the $1,000 flood damage are disallowed. The evidence discloses that whatever damage was done to the parking area was done by the contractor and there is nothing before the court upon which liability for this damage can attach to the State for acts of its independent contractor. (Morris v. State of New York, 10 A D 2d 754; Uppington v. City of New York, 165 N. Y. 222; Konner v. State of New York, 227 N. Y. 478; Strickland v. State of New York, 13 Misc 2d 425, opp. dismd. 10 A D 2d 797.)

The claim for $19,601.80, the cost of the temporary access road constructed by the claimant for use by its customers must be similarly disallowed. Access to the shopping center during the course of construction was always available. For the fact that the accessibility to the center was inconvenient and difficult and that the claimant found it suitable to improve the facilities by construction of a temporary road, the claimant cannot recover any damages. (Holmes v. State of New York, 279 App. Div. 489, 282 App. Div. 278; Queensboro Farm Prods, v. State of New York, 5 AD 2d 967, affd. 5 N Y 2d 977.)

Included in the claim for consequential damages the claimant’s experts based their opinions of damage in part upon the fact that accesses to the claimant’s property were limited whereas before the taking the claimant had available unlimited access to its property from three streets surrounding the property. It is well established that limitation of access, provided the property is reasonably accessible is not a basis for compensable damage and no consideration to this portion of the claimant’s damage can be given. (Holmes v. State of New York, supra; Nettleton Co. v. State of New York, 11 A D 2d 899; Selig v. State of New York, 10 N Y 2d 34; National Biscuit Co. v. State of New York, 12 A D 2d 998, vacated 14 A D 2d 729, affd. 11 N Y 2d 743.)

As stated above the claimant is entitled to an award in the sum of $78,325 for the 3.133 acres taken in fee.

The damages sustained by reason of the temporary easement are hereby fixed in the sum of $750. This item was not much disputed upon the trial.

We now come to the difficult question of finding a reasonable basis for compensating the claimant for the damages it sustained during the four-year period that its title and the marketability of its property were impaired by reason of the limitations placed upon accesses to the shopping center.

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Related

Welbilt Corp. v. State
80 Misc. 2d 439 (New York State Court of Claims, 1975)
Chili Plaza, Inc. v. State
25 A.D.2d 491 (Appellate Division of the Supreme Court of New York, 1966)

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Bluebook (online)
42 Misc. 2d 861, 248 N.Y.S.2d 919, 1964 N.Y. Misc. LEXIS 1852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chili-plaza-inc-v-state-nyclaimsct-1964.