Goldberg v. City of Detroit

328 N.W.2d 602, 121 Mich. App. 153, 1982 Mich. App. LEXIS 3629
CourtMichigan Court of Appeals
DecidedNovember 4, 1982
DocketDocket No. 57215
StatusPublished
Cited by1 cases

This text of 328 N.W.2d 602 (Goldberg v. City of Detroit) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goldberg v. City of Detroit, 328 N.W.2d 602, 121 Mich. App. 153, 1982 Mich. App. LEXIS 3629 (Mich. Ct. App. 1982).

Opinion

Per Curiam.

On March 16, 1981, in an inverse condemnation case, a Wayne County jury rendered a $250,000 verdict in favor of plaintiff, Sol E. Goldberg. From the judgment entered thereon, defendant, City of Detroit, appeals as of right. Plaintiff cross-appeals from the trial court’s denial of actual attorney fees.

On March 21, 1979, defendant initiated eminent domain proceedings against various properties in the Virginia Park area of Detroit. Among these properties was a seven-story apartment building [157]*157owned by plaintiff. On June 27, 1980, plaintiff filed a complaint which alleged that defendant’s wrongful actions resulted in a de facto taking of his property. These two actions were consolidated for trial on August 26, 1980.

Prior to trial, the parties stipulated as to the necessity of the defendant city’s taking of the plaintiff’s property for the benefit of the public; therefore, jury determination was limited to the date of the taking and just compensation for the condemned property.

The record reflects that defendant commenced an urban renewal project in the Virginia Park area in 1969. According to Otis Jenkins, an employee of defendant’s community economic development department, the city planned, in order to eliminate the blight caused by the 1967 riot, to take all the properties within the project area except for Henry Ford Hospital, Herman Keifer Hospital and plaintiff’s building. Jenkins testified that plaintiff’s structure was not scheduled for taking because it was going to be rehabilitated.

In 1967, plaintiff purchased the seven-story building, which contained 10 commercial stores and 49 apartments, for $135,000. Plaintiff testified that members of defendant’s relocation division informed his tenants on two occasions in 1973 that the city was planning on condemning the building. As a consequence of these incidents, plaintiff maintained that his tenants began to vacate. In the fall of 1975, the building was boarded up and, after several instances of vandalism, it was torn down in 1979. Plaintiff stated that the city deliberately acted in a manner to diminish the value of the property.

At trial, defendant denied that its employees encouraged plaintiff’s tenants to vacate the build[158]*158ing. Defendant agreed with plaintiff that the value of the property rapidly declined, but claimed that other causes were responsible for the decline.

On appeal, defendant raises three issues. First, it contends that the trial court erred in denying its motion for a directed verdict in reference to the claim that a de facto taking occurred prior to 1979. Among other things, defendant claims that plaintiff did not establish a causal connection between the city’s actions and the property loss.

Eminent domain is an inherent right of a state to condemn private property for public use.1 When exercising its power of eminent domain over the ownership or possession of privately owned property, the state, or those to whom the power has been lawfully delegated, must pay the owner just compensation.2

Where private property has been damaged rather than taken by governmental actions, the owner may be able to recover therefor by way of an inverse or reverse condemnation action.3 An inverse condemnation suit is one instituted by an owner of land whose property, while not having been formally taken for public use, has been damaged by a public improvement undertaking or other public activity.4 Inverse condemnation has been defined as:

”* * * a cause of action against a governmental [159]*159defendant to recover the value of property which has been taken in fact by the governmental defendant, even though no formal exercise of the power of eminent domain has been attempted by the taking agency.”5

In RJ Widen Co v United States,6 a property-owner filed a suit to obtain compensation for injuries to his property and business as a result of governmental actions involving a flood control project. The Widen court held that the actions of a governmental agency can constitute a "taking” of private property, even though the agency did not directly exercise control over the property:7

"Considered now against this background is plaintiffs contention that the destruction of its personal property and injury to its business as a result of the action of the government’s contractor in March 1957 constituted a direct taking of its personal property for which just compensation is due. It is quite correct, as plaintiff indicates, that to constitute a taking under the Fifth Amendment it is not necessary that property be absolutely 'taken’ in the narrow sense of that word to come within the protection of this constitutional provision; it is sufficient if the action by the government involves a direct interference with or disturbance of property rights. See, e.g., Pumpelly v Green Bay Co, 80 US (13 Wall) 166; 20 L Ed 557 (1871); United States v Lynah, 188 US 445; 23 S Ct 349; 47 L Ed 539 (1903); United States v Cress, 243 US 316; 37 S Ct 380; 61 L Ed 746 (1917). Nor need the government directly appropriate the title, possession or use of the properties in question since it is 'the deprivation of the former owner rather than the accretion of a right or interest to the sovereign [which] constitutes the taking. Governmental action short of acquisition of title or occupancy has been held, [160]*160if its effects are so complete as to deprive the owner of all or most of his interest in the subjet matter to amount to a taking.’ United States v General Motors Corp, 323 US 373, 378; 65 S Ct 357, 359-360; 89 L Ed 311, 318 (1945). For example, it has been held consistently that an overflow of water resulting from government construction projects which materially impairs the use and enjoyment of lands constitutes a constitutional taking of such lands despite the absence of appropriation of title or occupancy. Pumpelly v Green Bay Co, supra; United States v Lynah, supra; United States v Cress, supra. ”

In the within case, plaintiffs inverse condemnation action was based on direct actions taken by the city from 1969 to 1973, which allegedly substantially deprived him of his use of the subject property, thereby lessening its value. He claimed that defendant excluded the subject property from its Virginia Park urban renewal project with the intention of formally taking the property at a subsequent date and at a lesser value.

In general, the compensation awarded to a property owner is determined as of the time when the government takes, which is usually "when a verdict is confirmed, the deed executed, and the award paid”.8 However, governmental actions can constitute a de facto taking or inverse condemnation prior to the time eminent domain proceedings are instituted.9 Since no exact formula exists concerning a de facto taking, the form, intensity, and the deliberateness of the governmental actions toward the injured party’s property must be examined.10 We discussed the plaintiffs burden of proof in Heinrich v Detroit:11

[161]

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Related

Matter of Acquisition of Land-Virginia Park
328 N.W.2d 602 (Michigan Court of Appeals, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
328 N.W.2d 602, 121 Mich. App. 153, 1982 Mich. App. LEXIS 3629, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goldberg-v-city-of-detroit-michctapp-1982.