In re the City of New York

159 Misc. 617, 288 N.Y.S. 697, 1936 N.Y. Misc. LEXIS 1311
CourtNew York Supreme Court
DecidedMay 29, 1936
StatusPublished
Cited by19 cases

This text of 159 Misc. 617 (In re the City of New York) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the City of New York, 159 Misc. 617, 288 N.Y.S. 697, 1936 N.Y. Misc. LEXIS 1311 (N.Y. Super. Ct. 1936).

Opinion

McLaughlin (Charles B.), J.

This proceeding has already-been divided into two parts. The first part has been decided. The easterly portion is now before the court and consists of damage parcels 9, 9a, 10, 11, 12, 12a, 13, 35, 35a, 35b and 35c. Originally the separation was made because these parcels involve water front, the lands now or formerly under water, together with riparian rights and easements. The legality of this proceeding is attacked. The court has examined carefully all of the claims made in this respect and finds that they are wholly without merit. The proceeding is directly authorized by statute and the taking is pursuant to that statute and the provisions of the Greater New York Charter. Both claimants who challenge the legality of this proceeding are lessees. Their rights are fixed by their leases. On entering into these contracts with the city of New York they saw fit to yield to the municipality an untrammelled power of cancellation. This it was competent for them to do. In the absence of bad faith or other overreaching conduct on its part the city may validly avail itself of the right to exercise this power. (Miller v. United States, 233 U. S. 1.) Whether the city terminated these leases rightfully or wrongfully, however, is a matter with which this court has no proper concern. It is beyond its jurisdiction, the limits of which are defined in the statutes governing this proceeding. We may state that the words of Bosenman, J., in Kenlon Coal Co. v. Triborough Bridge Authority (N. Y. L. J. Feb. 13, 1935, p. 775, affd., 244 App. Div. 720; appeal dismissed, 268 N. Y. 610) apply with peculiar force to the matter here dismissed. We quote:

The right of cancellation has been used for the purpose of carrying out a public project of inestimable value to the people of the city, approved by the Legislature of the State and by the public authorities of the Federal government.
The exercise of the unlimited discretion as to termination, vested in the. city officials, is, of itself, determinative of this controversy. The rights of the respective parties to the lease were fixed by the contract entered into between them. Apparently the lessee was willing to entrust this power and discretion to the commissioner of docks, subject only to such restraint as the commissioners of the sinking fund might see fit to impose.
Because of this contractual relationship and the termination of the leasehold, the lessee here is not qualified to raise the contention that the East Side Drive is illegal in that the improvement entails a diversion from uses of commerce and navigation.”

The forum of these proceedings is not the place in which their legality may be attacked.

[621]*621It is best to consider damage parcels 9, 9a, 10 together. In doing so it must be borne in mind that damage parcel 10 is owned by the city of New York. The claims upon the trial seemed complicated by the diverse leasehold and damage claims made concerning these parcels. Damage parcels 9 and 9a are owned by the Fordham Triangle Realty Corporation. Originally these parcels had riparian rights over damage parcel 10. On July 19, 1926, an agreement was entered into between this claimant and the city of New York by which the former ceded to the latter all the riparian rights which were appurtenant to the property and in part consideration received a lease to damage parcel 10 for five years with the privilege of renewals, amounting in all to twenty-five years. This is a lease for twenty-five years. (Orr v. Doubleday, Page & Co., 223 N. Y. 334; Masset v. Ruh, 235 id. 462.) It is true that the claimant gave up its perpetual riparian rights by the terms of this agreement, but it must be remembered that for the period of the ensuing twenty-five years the claimant or its designee had the equivalent of these riparian rights during that term. It could use all the three parcels conjunctively as a water front property or at least so much thereof as it chose. Parts of both damage parcels 9 and 9a were so used by reason of a lease of those portions to the Kerner Coal Co., Inc., together with an agreement between the Kerner Coal Co., Inc. and the city of New York by which, with the consent of the Fordham Triangle Realty Corporation, the Kerner Coal Co., Inc., leased all of damage parcel 10 from the city of New York. In other words, the Fordham Triangle Realty Corporation was able, by reason of its ownership of damage parcels 9 and 9a and its lease with the city of New York, to have a conjunctive use of all of damage parcel 10 and portions of damage parcels 9 and 9a. This right had value irrespective of the cancellation clause contained in the lease. Prior to this condemnation proceeding the chance of cancellation was slight. Many buyers could be found who would take such a chance. The question of cancellation involves the imminence of cancellation. The lack of it resulted in increased value which must be reflected in any. award made. Just compensation must be given. Damage parcel 9a is enhanced in value, but not to the extent claimed by the property owner. We must remember that damage parcel 9 was improved throughout its greater portion with an adequate and substantial improvement by the erection of a large garage. That portion is not increased by any conjunctive use because it was not included in such use and the erection of this garage prevented such a use.

Both the Fordham Triangle Realty Corporation and the Kerner Coal Co., Inc., claim an award for the respective improvements [622]*622made by each pursuant to the terms of leases made with each of them by the city of New York. This is not the proper forum for such a claim. At common law, when buildings and improvements were erected upon the property of another, they became, in the absence of agreement to the contrary, a part of the land, and title to them vested in the landowner. (People ex rel. H. R. Day Line v. Franck, 257 N. Y. 69; People ex rel. International Nav. Co. v. Barker, 153 id. 98; Kissam v. Barclay, 17 Abb. Pr. 360.) Here, however, we are faced with the proposition that the questions raised with regard to these improvements come within the terms of the leases above mentioned. It would appear, therefore, that there is nothing to condemn. The question is one involving damages for breach of contract and has nothing to do with this condemnation proceeding. The claimants upon this question must have resort to the law courts where their rights may be adjudicated. The courts have uniformly held that while they may condemn anything of value, the statute must contain the matters to be condemned. That the condemnation statute is the measure of the court’s jurisdiction has been long established.” (Matter of Culver Contracting Co. v. Humphrey, 268 N. Y. 26, 34; Matter of Poughkeepsie Bridge Co., 108 id. 483; Matter of Squire, 125 id. 131; Matter of Willcox [Fourth Ave. Subway], 213 id. 218.) There is no doubt that these claimants did spend substantial sums in creating these improvements, but there is no question that the city canceled these leases before any condemnation proceedings were had. That cancellation immediately gave any right of action that the claimants may have had for breach of contract against the city. Of course, the court is not attempting to decide whether either of these claimants has a valid cause of action. That is for another tribunal.

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Bluebook (online)
159 Misc. 617, 288 N.Y.S. 697, 1936 N.Y. Misc. LEXIS 1311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-city-of-new-york-nysupct-1936.