Forest of Dean Iron Ore Co. v. United States

65 F. Supp. 585, 106 Ct. Cl. 250, 1946 U.S. Ct. Cl. LEXIS 43
CourtUnited States Court of Claims
DecidedMay 6, 1946
Docket46056
StatusPublished
Cited by9 cases

This text of 65 F. Supp. 585 (Forest of Dean Iron Ore Co. 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
Forest of Dean Iron Ore Co. v. United States, 65 F. Supp. 585, 106 Ct. Cl. 250, 1946 U.S. Ct. Cl. LEXIS 43 (cc 1946).

Opinion

JONES, Judge.

This is a suit for the value of 61,948 cubic yards of crushed stone taken and used by the Secretary of War for the United States Military Academy.

In June 1939 and for many years prior thereto plaintiff owned a tract of about 300 acres of land in the vicinity of the Academy reservation.

For a number of years iron ore had been mined from a rock formation on the premises. Entrance to the mine was through a slanting shaft with a 20-degree slope which extended underground into the adjacent property of the Fort Montgomery Iron Corporation, intervenor, from which a part of the ore was taken. The latter company had operated the mine under lease for about twenty-five years, the last lease expiring in 1935. The mine has not been operated since 1931. The plaintiff and the Fort Montgomery Iron Corporation have filed a stipulation agreeing that any judgment may be entered for plaintiff alone, they having agreed on a division of the proceeds of any such judgment. Hence plaintiff will be treated as the owner of all the property involved.

Mining operations consisted of removing intermixed stone and iron ore. The combined rock and ore was run through a rock crusher and, prior to 1916, the iron and ore were separated by hand. After 1916 a magnetic separator was installed, the mixed rock and ore crushed to a size that would pass a 2-inch mesh, then placed on a moving belt under a series of magnets which separated the ore from the crushed rock.

The waste rock was placed in four piles.. The piles contained crushed rock of mixed sizes varying from dust to pieces as large as two and three cubic feet.

A laboratory examination of these rock piles by the United States Army Corps showed four main types: coarse grained granite of various colors; fine grained hard traprock; gneiss containing feldspar, quartz and mica; and magnetite iron ore.

Because of its fractured condition and mixed content, the stone was not suited to first grade concrete or surface highway work. It was appropriate for random fill and for the base of highways. It was better for this purpose than the earth and gravel fill usually taken from borrow pits.

The evidence does not disclose whether there were any sales of stone from these piles prior to 1926, but between 1926 and 1935 stone was sold from the waste piles by the Fort Montgomery Iron Corporation totaling $7,361.24. Most of this stone was purchased by the adjacent town of Highlands for use on the road leading from the mine to Fort Montgomery and other sec *586 ondary roads in the vicinity. The price prior to September 1928 was 25 cents a cubic yard; subsequently and through 1935 the price paid was 50 cents a cubic yard.

On June 14, 1939, the defendant filed a petition in the United States District Court for the condemnation and acquisition in fee simple of certain lands adjoining the reservation at West Point, including the 300 acres belonging to the plaintiff on which the mine shaft was located. The Fort Montgomery Iron Corporation was not made a party to the condemnation proceedings.

In the same proceeding the defendant on March 27, 1942, filed a declaration of taking and by judgment of the court entered on the same day title to the lands was vested in the United States and the Government took possession.

The West Point post quartermaster, Colonel Laubach, was informed of the facts by a memorandum from the land acquisition office, and he assumed that the title to the waste piles had passed to the defendant with the land and that they were included in the taking.

As post quartermaster Colonel Laubach was in charge of the construction work at the post and was authorized, among other duties, to construct some 20 rifle ranges. Beginning in the latter part of April 1942 and through the summer he ordered that stone from the waste piles be used as fill in the construction of these rifle ranges. The stone was also used for the widening and building of roads. Prior to October 1942 more than 50,000 cubic yards of this stone had been used by the defendant.

In October and November 1942 hearings' were held in the District Court to determine the value of the land taken. At these hearings the Government urged that the stone piles on the land were personal property and the plaintiff in the present .case urged before the District Court that the stone piles were realty and a part of the land. This is apparently the first time the issue had been directly raised.

The District Court did not render its decision until August 11, 1943. It held among other things that the stone was not realty and therefore was not to be considered as having been taken in that proceeding. The plaintiff appealed but at a later date dismissed the appeal.

After the hearings in the District Court but before a decision was rendered, the West Point post authorities on December 31, 1942, were advised by letter from Harry T. Dolan, the attorney of the Department of Justice representing the United States in the valuation hearings in the District Court, that the Government had taken the position in that case that the stone piles were personalty and had not been acquired by the taking of the land. On January 6, 1943, Colonel Laubach wrote plaintiff advising it that in the opinion of his office the waste material constituted personalty and that if plaintiff had deemed it of any value, it should have removed it from the premises when title passed to the United States. He also advised that if it considered the remaining part of the stone as having any value, it should be removed on or before February 5, 1943, and that if such action were not taken the plaintiff would be considered as having abandoned such personalty.

On January 13, 1943, the plaintiff’s counsel replied by letter advising Colonel Laubach that since the defendant immediately after the declaration of taking had begun using the crushed stone and had used some 75 percent of it, the plaintiff concuded that the United States had taken title to the crushed stone and that the fair value thereof would be awarded in the condemnation proceedings; that evidence of the fair value of the crushed stone had been taken by the United States District Court and that while the issue had been tried and briefs submitted, the court had not yet rendered a decision,' and that in these circumstances it would be highly improper for either the Government or the Forest of Dean Iron Ore Company to take any action while the matter was still pending and undecided by the court.

After this. exchange of letters no more stone was removed from the waste piles until the summer of 1943 when defendant used 1,550 cubic yards to construct a filter bed for a sewage disposal plant, and in the summer of 1944, 450 additional cubic yards *587 were used by the defendant for the same purpose.

In explaining why he took the additional stone, Colonel Laubach said that he had given plaintiff 30 days in which to remove the remaining portion of the stone, and since it had not done so he assumed it had been abandoned. This seems rather strange in view of the fact that the 30 days was given in midwinter and according to Colonel Laubach’s own testimony the winters were very severe and he was out only once or twice during the 30-day period. It was wartime with labor and transportation difficult to obtain.

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Bluebook (online)
65 F. Supp. 585, 106 Ct. Cl. 250, 1946 U.S. Ct. Cl. LEXIS 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forest-of-dean-iron-ore-co-v-united-states-cc-1946.