In re the City of New York

71 Misc. 2d 1019, 337 N.Y.S.2d 753, 1972 N.Y. Misc. LEXIS 1401
CourtNew York Supreme Court
DecidedNovember 3, 1972
StatusPublished
Cited by1 cases

This text of 71 Misc. 2d 1019 (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, 71 Misc. 2d 1019, 337 N.Y.S.2d 753, 1972 N.Y. Misc. LEXIS 1401 (N.Y. Super. Ct. 1972).

Opinion

Wilfred A. Waltemade, J.

The issue before the court is whether the provisions of chapter 1161 of the Laws of 1971, effective July 6, 1971, are remedial or substantive, and whether this legislation should be applied retroactively to condemnation proceedings instituted prior to the effective date of the law, as contended by the claimants, or whether the provisions should be given only a prospective construction as urged by the City of New York.

A determination of whether the changes in the quantum of the advance payments to be made to claimants in condemnation is a remedial or substantive modification of the law appears to be one of first impression. The retroactive application of the [1020]*1020cited section has been passed upon at least twice before by a trial court (Matter of Incorporated Vil. of Great Neck Plaza, 69 Misc 2d 262: Matter of Town of North Hempstead, 70 Misc 2d 350; Matter of City of New York [William St., Maiden Lane and Liberty St., Block 68], N. Y. L. J. May 22, 1972, p. 2, col. 5).

The movants, who are the owners in fee and claimants of Damage Parcel No. 1 in this condemnation proceeding, seek an order, pursuant to the cited chapter, directing the condemnor, the City of New York, to pay them, on account of movants’ claim of just compensation, the total amount of the condemnor’s appraisal of the fair market value of Damage Parcel 1. This application is made now, without prejudice to the subsequent trial of the issue of full and just compensation for the taken premises.

Title to the damage parcel vested in the City of New York pursuant to an order of condemnation signed and filed on April 14, 1969. The movants duly filed their claim for an award on July 29, 1969 and their affidavit of title on November 24, 1969. A note of issue placing this proceeding on the trial calendar was served on September 8, 1969. Subsequent thereto, an advance payment of $200,000. which did not represent the full amount of the city’s appraised value of Damage Parcel No. 1 was made available and was paid on May 19, 1970 to the first mortgagee, whose lien on the parcel was prior to the claim of the owner. No further payment has been made available.

Chapter 1161 of the Laws of 1971 was enacted as a result of the recommendations made by the State Commission on Eminent Domain expressed in its interim report to the Governor, dated February 1,1971. That report (VI. Recommended Legislation for 1971 Legislature, p. 14), so far as pertinent to this application, reads as follows: “(a) Advance Payment: Based on recommendations made by participants at the New York City hearing and by the Commission’s study in this area, a requirement for an advance payment of 100% of the condemnor’s offer for the value of the property to be acquired, should be authorized by statute. It is felt that this requirement will alleviate those situations where an advance payment of only 75%, as is now the requirement in a majority of acquisitions, is only capable of paying off a secured interest on the property, leaving the owner with little or no funds for investing in replacement property prior to receiving an award for his property. Since the delay in receiving this award can be rather lengthy, the property owner suffers great hardships. It is recommended that this statute provide that in all eminent domain proceedings in which the condemnor acquires title or pos[1021]*1021session prior to the adjudication of the compensation due the property owner, the condemnor shall pay to the property owner the full compensation it .estimates to be due the property owner. In no event shall such amount be less than the condemnor’s approved appraisal of the fair market value of such property.” (Italics supplied).

It is interesting to note that the language of chapter 1161 remarkably parallels that found in the report, and as far as pertinent, reads as follows: “Section 1. In order to assure consistent treatment for property owners whose property is acquired by exercise of the power of eminent domain by the state or the political subdivisions thereof, or by any other corporation authorized by statute to acquire property by eminent domain proceedings, and to alleviate the hardships of an owner in financing the purchase or rental of replacement property or by alteration of remaining property, it is enacted as follows:

“ 1. Notwithstanding the provisions of any general or special statute of the state of New York or of any local law or ordinance of any municipality within the state, in all eminent domain proceedings brought by the state, or any political subdivision thereof, or by any corporation authorized by statute to acquire private property by exercise of the power of eminent domain, in which title vests in the condemnor prior to the adjudication and payment of the compensation due the owner thereof, or wherein possession is sought by the condemnor prior to the vesting of title, and the amount of the claim for legal damages caused by such acquisition cannot be agreed upon, the condemnor shall offer to pay to the property owner the full amount determined by the ■condemnor to be the value of such claim for legal .damages. In no event shall the amount of such offer be less than the condemnor’s approved appraisal of the fair market value of such property.” (Italics supplied).

The City of New York contends that chapter 1161 created a substantive right rather than a procedural remedy and therefore must be construed as having only a prospective operation. Remedial statutes are those designed to correct imperfections in the prior law and to cure a wrong where an aggrieved party had an ineffective remedy under existing statutes (Matter of Mlodozeniec v. Worthington Corp., 9 A D 2d 21, affd. 8 N Y 2d 918, cert. den. 364 U. S. 628). As a general rule, remedial statutes constitute an exception to the rule that statutes are not to be given a retroactive operation since they are to be liberally construed to spread their beneficial results as widely as possible and the retroactive application of such statutes is constitutional [1022]*1022(McKinney’s Cons. Laws of N. Y., Book 1, Statutes, § 231; Matter of Mlodozeniec v. Worthington Corp., supra; Shielcrawt v. Moffett, 294 N. Y. 180).

The history of the proceedings in condemnation has established that the advance payments made were generally only sufficient to pay off the mortgage liens on the property taken, leaving the owner with little or no funds for investment in replacement property or the alteration of his remaining property, prior to the receipt of the final award. Delays in the payment of the final award were usually lengthy, compelling the condemnee to assume an unnecessary financial burden. Chapter 1161 was enacted for the purpose, as expressed in section 1, to alleviate this burden from the innocent owners whose property is acquired for a public purpose by the exercise of the power of eminent domain. Nothing in the language of the report, or in chapter 1161, can be so construed to suggest that the beneficial purposes of the law were to be limited to claimants in condemnation proceedings commenced after the effective date of the new statute.

It is clear to this court from the wording of chapter 1161 that it is applicable to all eminent domain proceedings in which title vests in the condemnor prior to adjudication and payment of the final award to the owner of such property; that it was intended to insure consistent and equal treatment to all

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Bluebook (online)
71 Misc. 2d 1019, 337 N.Y.S.2d 753, 1972 N.Y. Misc. LEXIS 1401, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-city-of-new-york-nysupct-1972.