Custom Contemporary Homes, Inc. v. United States

5 Cl. Ct. 88, 1984 U.S. Claims LEXIS 1426
CourtUnited States Court of Claims
DecidedApril 25, 1984
DocketNo. 53-83L
StatusPublished
Cited by5 cases

This text of 5 Cl. Ct. 88 (Custom Contemporary Homes, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Custom Contemporary Homes, Inc. v. United States, 5 Cl. Ct. 88, 1984 U.S. Claims LEXIS 1426 (cc 1984).

Opinion

OPINION

MARGOLIS, Judge.

Plaintiffs, Custom Contemporary Homes, Inc., Joseph R. Bucci, Susan C. Bucci, Joseph Favata, and Waltraud E. Favata, bring this action alleging a taking by the defendant United States of plaintiffs’ property in Franklin Lakes Township, County of Bergen, New Jersey. Plaintiffs base their taking claim on a series of specific government actions which plaintiffs assert have rendered their property unmarketable and valueless. The governmental actions complained of concern federal involvement with right-of-way acquisitions for Interstate 287 (1-287) under the Federal-Aid Highway Act of 1956, 23 U.S.C. §§ 101, et seq. (1982). Specifically, plaintiffs contend that as a result of the planning and public awareness of the 1-287 project their property is now unmarketable. Plaintiffs further allege that the United States has failed to exercise its discretion in accordance with applicable law in processing plaintiffs’ hardship acquisition request1. [90]*90Plaintiffs seek a judgment by this Court requiring the United States to expedite consideration of plaintiffs’ hardship request. This case is before the Court on the defendant’s motion for summary judgment and plaintiffs’ cross motion for partial summary judgment, submitted with oral argument. This Court holds for the defendant.

In May 1981, plaintiff Custom Contemporary Homes, Inc., purchased two single family residential lots in Franklin Lakes Township, New Jersey. The other named plaintiffs allege a beneficial interest in the real estate. Plaintiffs subsequently constructed a single family residence on one of the lots. Plaintiffs’ land is located on the route encompassed by the final twenty-mile strip of land necessary to complete 1-287. Plaintiffs allege that through a series of government actions, which led to public awareness of the approval of the final phase of the 1-287 project, their property has been rendered unmarketable and valueless, and therefore, has been taken without just compensation.

The constitutional prohibition against taking private property for public use without just compensation embodied in the Fifth Amendment is directed against the federal government. Hooe v. United States, 218 U.S. 322, 335-36, 31 S.Ct. 85, 89, 54 L.Ed. 1055 (1910). To hold the United States liable for a taking, plaintiffs must show that the federal government has done some affirmative act that deprives the plaintiffs of their property or that interfered with or disturbed their property rights. D.R. Smalley & Sons, Inc. v. United States, 178 Ct.Cl. 593, 598-99, 372 F.2d 505, 508, cert. denied, 389 U.S. 835, 88 S.Ct. 45, 19 L.Ed.2d 97 (1967). The United States cannot be held liable if private property is taken by the action of a State or local government entity. Griggs v. Allegheny County, 369 U.S. 84, 82 S.Ct. 531, 7 L.Ed.2d 585 (1962).

The Federal-Aid Highway Act, 23 U.S.C. §§ 101, et seq., authorizes the construction of the Interstate Highway System of which 1-287 is a part. The Act calls for close cooperation between the federal government and the States in construction of these highways. The Act, however, contemplates that implementation of the interstate highway program, including right-of-way acquisitions, shall be accomplished by the States to the extent possible. United States v. 17.0098 Acres of Land, etc., 269 F.Supp. 960, 961 (E.D.Pa.1967); United States v. Certain Parcels of Land, etc., 209 F.Supp. 483, 484 (S.D.Ill.1962), aff'd, sub nom. United States v. Pleasure Driveway & Park Dist. of Peoria, Ill., 314 F.2d 825 (7th Cir.1963).

Moreover, the regulations promulgated under 23 U.S.C. §§ 101, et seq., make it clear that the States rather than the federal government shall be responsible for acquiring land for the highway project. Section 710.203 of the regulations provides:

The SHD [State Highway Department] has overall responsibility for the acquisition of right-of-way on all Federal-aid highway systems. 23 C.F.R. § 710.203 (1983).

Under the Act, the States retain all attributes of their sovereignty, and no agency relationship is created between the United States and the States. In Eden Memorial Park Association v. United States, 300 F.2d 432, 439 (9th Cir.1962), the Court analyzed the Act as follows: [91]*91Indeed, 23 U.S.C. § 107(a), the provision for government condemnation of rights-of-way, clearly indicates the independent functions of the States and the federal government. Condemnation is left exclusively with the State unless the State (1) requests federal government condemnation, (2) is unable to acquire the land or to act with sufficient promptness, and (3) agrees to pay 10 percent of the acquisition costs.2 It is only under these limited circumstances, expressly enumerated in section 107, that Congress has authorized the United States to directly acquire land for rights-of-way.

[90]*90... the Federal-Aid Highways Act indicates that while close cooperation between the United States and the individual states was contemplated, the states or their agencies or officials were in no sense to become agents of the United States in projects authorized by that act. The whole tenor of the act is that the United States stands ready to assist the states when, under stated conditions, the states seek such assistance. Section 107 agreements are intended to confirm this arrangement, but not to create a principal and agent relationship in either direction.

[91]*91New Jersey has never resorted to acquisition assistance from the United States as provided for in 23 U.S.C. § 107 to condemn plaintiffs’ land because New Jersey has had no impediments to the acquisition of plaintiffs’ property for the 1-287 project. Therefore, New Jersey remains the acquiring sovereign, and there is no federal action sufficient to state a claim for a taking against the United States.

Plaintiffs allege the federal involvement here renders the interstate highway project a joint federal-state taking. To support this allegation, plaintiffs point to federal involvement such as (1) approval of the final location of the 1-287 route; (2) determinations concerning compliance with the National Environmental Policy Act (42 U.S.C.

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Bluebook (online)
5 Cl. Ct. 88, 1984 U.S. Claims LEXIS 1426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/custom-contemporary-homes-inc-v-united-states-cc-1984.