Gurwitz v. State

27 Misc. 2d 731, 211 N.Y.S.2d 641, 1961 N.Y. Misc. LEXIS 3452
CourtNew York Court of Claims
DecidedFebruary 2, 1961
DocketClaim No. 35816; Claim No. 35817; Claim No. 35834; Claim No. 35894; Claim No. 35895
StatusPublished
Cited by9 cases

This text of 27 Misc. 2d 731 (Gurwitz 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
Gurwitz v. State, 27 Misc. 2d 731, 211 N.Y.S.2d 641, 1961 N.Y. Misc. LEXIS 3452 (N.Y. Super. Ct. 1961).

Opinion

Alexander Del Giorno, J.

The above claims were consolidated for the purpose of trial with the stipulation that separate judgments be entered by the court. Except for the fee claim of Jack Brause v. State of New York, the others were all fixture claims by tenants located in the building owned by Brause.

Reuben Gurwitz conducted a stationery and luncheonette store: Martin Jablon conducted a pharmacy; Aber-Dulberg, Inc., conducted a supermarket grocery and Morganthal was its sub-lessee as owner of the butcher department; East Hill Cleaners and Dyers conducted a dry-cleaning store, doing its own dry cleaning. A schedule of the alleged fixtures is attached to their separate claims.

From the testimony, it appears that the State appropriated these premises on August 30, 1956, and that all the tenants remained in the premises for some months thereafter.

The testimony also indicates that some of the alleged fixtures were voluntarily removed in toto and some in part by the tenants after the date of appropriation but before vacating their stores. Some of the fixtures were reinstalled at some cost to the tenants in other stores they had rented at other locations. Some of the alleged fixtures remained in the premises.

[733]*733At the trial the tenants demanded compensation for the alleged fixtures taken in toto or in part as well as those they left in their respective stores.

In some cases the proof of value of the alleged fixtures was offered by the experts on the basis of the fair and reasonable market value of the fixtures on the date of appropriation. In other cases the proof of value was arrived at by determining the cost of reproduction, less depreciation, as representing the sound value of the fixtures.

Findings of fact and conclusions of law have been submitted in each case. Several questions have arisen in these cases which the court believes may be covered better by this decision, in addition to the findings submitted.

It appears that the issues presented by the testimony were:

First: Whether any or all of the items were fixtures.

Second: Whether proof of reproduction cost of the several items, less depreciation, constituted a proper compensable evaluation of the items found to be fixtures.

Third: Whether the fair market value should have been the proper measure of damage.

The solution is not an easy one. Courts have differed as to what constitutes a fixture as well as to what theory of appraisal should be employed to prove value.

Except for cross-examination of the claimants’ experts, the State offered no testimony of its own; and since by law the State is deemed to deny every allegation of the claim, it can very well be perceived that it is left entirely to the court to determine the issues before it.

At the trial, the fee owner stated that he made no claim for any item of fixture irrespective of any terms in the leases and that these should be awarded to the tenants. The court holds that whatever may have been the terms of any lease provisions concerning the owner’s right to fixtures annexed to the premises, that since the owner released such right, no benefit therefrom may be claimed by the State. The State did not supplant the owner. That right and obligation was a contract, binding only the owner and the' tenant. The State was a stranger which bought all that was in the premises. How the parties wished to divide the total award was their business and theirs alone. Should we assume that there were no leases, the court would still hold that the State would be answerable in damages to the tenant for the fixtures. (Tinnerholm v. State of New York, 15 Misc 2d 311; Matter of Willcox, 165 App. Div. 197; Matter of City of New York [Allen St.], 256 N. Y. 236; Jackson v. State of New York, 213 N. Y. 34.)

[734]*734We have stated before that all the tenants remained in their respective stores for some months after the appropriation date. The fixtures "they removed were removed after that date.

In Jackson v. State of New York (supra, p. 36), the court said: <‘ If the State has the right, under a general notice of appropriation, to insist that title to the fixtures has passed to it with the land, the owner has the correlative right to insist upon payment. The law does not leave the title in a state of suspense. ’ ’

In the Jackson case, the court also made an observation that it could not pass upon the question of some fixtures which had been removed by the owner after the appropriation, for the reason that since no elements of that controversy were before it, it could not pass upon this issue, but stated (p. 37): “Upon another hearing this element of the controversy may be more fully developed.”

This element is now before us fully developed. To determine the application of the law to it, we may start with the elementary concept that the obligation of the State occurs at the instant of appropriation. (Highway Law, § 347, subd. 5.) It can be said that it is at that moment of filing the appropriation notice in the office of the County Clerk that the respective rights of the claimant and the State are established. From that obligation the State may not escape. In other words, the State must pay for every item the court finds to be a fixture.

But we have said that the tenants removed, after the appropriation, either completely or in part, some of these items alleged at the trial to be fixtures which were in the premises at the time of appropriation. What are we to determine regarding these items? Were these definitely fixtures on the date of appropriation when it is said that the obligation of the State to pay became established, or were they to be defined as compensable fixtures only after the court so finds after trial, upon competent proof submitted to it?

• As a matter of conscience and fair play towards all parties, including the State, the answer, I believe, must be that those items claimed to be fixtures can be found to be such only if they were left behind in the premises by the tenant or voluntarily released to him by the State after the appropriation. When the tenant removed the alleged fixtures, he constituted himself the judge and jury concerning the fixtures removed. He determined for himself the character thereof; he decided that it was removable; that it was a piece of personalty. As such, the items removed were not compensable. By his action, the tenant has usurped the prerogative of the court to his own peril. What is [735]*735a fixture is a conclusion of law that only the Judge may lawfully determine. That conclusion may he reached by the court only when it has heard the testimony of both sides which would point to the items left behind by the tenant for the benefit of receiving compensation for the value thereof.

I hold likewise where the tenant removed portions of the alleged fixture. He has no right to do so if he claims the article to be a fixture, for in that event it passed to the State with the realty. Having thus destroyed the usability and character of the article, he may not now make claim against the State which he has deprived of the possible use of said article. Justice Hecht, in Matter of City of New York (Lincoln Sq. Slum Clearance Project)

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238 N.E.2d 705 (New York Court of Appeals, 1968)
Richards-Dowdle, Inc. v. State
52 Misc. 2d 416 (New York State Court of Claims, 1966)
Teelon v. State
49 Misc. 2d 754 (New York State Court of Claims, 1966)
Aber-Dulberg, Inc. v. State
15 A.D.2d 507 (Appellate Division of the Supreme Court of New York, 1962)
Jablon v. State
15 A.D.2d 712 (Appellate Division of the Supreme Court of New York, 1962)
Morganthal v. State
15 A.D.2d 712 (Appellate Division of the Supreme Court of New York, 1962)

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Bluebook (online)
27 Misc. 2d 731, 211 N.Y.S.2d 641, 1961 N.Y. Misc. LEXIS 3452, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gurwitz-v-state-nyclaimsct-1961.