Iron City Automobile Co. v. City of Pittsburgh

98 A. 679, 253 Pa. 478, 1916 Pa. LEXIS 875
CourtSupreme Court of Pennsylvania
DecidedMay 1, 1916
DocketAppeal, No. 218
StatusPublished
Cited by27 cases

This text of 98 A. 679 (Iron City Automobile Co. v. City of Pittsburgh) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Iron City Automobile Co. v. City of Pittsburgh, 98 A. 679, 253 Pa. 478, 1916 Pa. LEXIS 875 (Pa. 1916).

Opinion

Opinion by

Mr. Justice Moschziskee,

This is an appeal by the plaintiff from a judgment entered on a verdict for the defendant, in a case involving the exercise by the latter of the right of eminent domain. The City of Pittsburgh regraded all thoroughfares in a neighborhood known as the “Hump District”; the plaintiff was a subtenant of certain premises located in a street affected by the change of grade; its property had a frontage of 60 feet, and the cut in the grade at this point ran from 24 inches at one end of its building to 2 inches at the other, although, during the course of the improvement, there was a temporary excavation of greater depth. The plaintiff had a verbal lease from year to year, with an obligation to vacate at any time upon three months’ notice; the particular yearly period here involved ran from April 1,1913, and, before renewing its lease for that term, the plaintiff knew the regrading was to take place in front of its property. The work which affected the premised in question commenced early in April, 1913, and continued for about four months; during this time the city “put posts up along the curbstone and nailed two beam planks up on those posts, completely shutting off the access (from plaintiff’s property) to the street”; this obstruction was necessarily incidental to the regrading, but, since the plaintiff conducted an automobile garage, the operations in [482]*482.connection with the public improvement effectively interfered with its trade, and materially reduced its profits, during the progress of the work. At trial, the witnesses for the plaintiff took the average of its business in previous years and deducted from the figure thus arrived at the financial results during the year of the regrading, showing a loss of about $5,000.00; this they claimed to be the damage which the plaintiff was entitled to recover against the city. Some of these witnesses spoke of the plaintiff’s alleged loss as a reduction in business, but others frankly referred to it as a loss of profits; it plainly appears, however, that all of them had in mind the idea that the plaintiff was entitled to recover the profits which it probably would have earned, had its business not been interfered with, during the four months when the regrading was taking place; and they placed ■ their estimate of the alleged depreciation in the leasehold value exclusively upon that basis.

The trial judge ruled, on the admission of evidence, that “loss of profits” must be excluded as an element in fixing the plaintiff’s damages. In this connection, he said: “You are permitted to state what the value of this leasehold was on the day the work began there, at or about April 6, 1913, as unaffected by the improvement ......, and you are permitted to state what the leasehold was worth on the 8th of August, as affected by the improvement; was it worth more or was it worth less?” The expert witnesses for the defendant adhered to the ■rule thus enunciated, and testified that the improvement had not depreciated the value of the plaintiff’s leasehold interest, stating that, because of its short term and uncertain tenure, it would at no time, and under no circumstances, command a premium in the market, that its value was the amount of the rent ($300.00 per month) and no more, both before and after the regrading. Some of these witnesses went further and said the improvement was of a character that tended to, and actually did, -bring many more automobiles into the neighborhood [483]*483than theretofore, and that, in their opinion, this so favorably affected the value of the balance of the term under the lease as to more than offset any temporary inconvenience suffered by the plaintiff during the period of regrading.

In submitting the case to the jnry, the trial judge charged: “The value of the leasehold as it stood April 1, 1913, unaffected by the improvements, mnst be taken,then the value of the leasehold as it stood August 1,1913, as affected by the improvement, must be taken, and the amount which would represent the diminution in value thus ascertained, is the sum which you should allow this plaintiff, if you allow it any compensation.” After this, the jury were told they were not to allow as separate items of damage anything for “inconvenience,'interruption of business or loss of profits” during the period occupied in making the improvement; bnt that any relevant fact, properly proved, might be considered by them “in determining the aggregate diminution in value of this leasehold.” The trial judge .then went on to say: “Now if, npon the completion of this work on August 1, 1913, the residue of that leasehold, the unexpired term, the end of the lease year was of greater value than it had been before the entry by the city and the interruption of the right, then there can be no recovery at all in this case, because you can readily see that there was no damage.” He further said: “The same principle is to be applied as if the owner of the property, upon which this leasehold is situated, the owner in fee, had complained of the injury to his property by reason of the grading, and the; cut made in front of it; and the final test in this case would be — while he may have .been damaged to some extent by the cutting, and the interruption of the access to his property, yet, if, after the cutting was done and the whole scheme completed, his property was more valuable than it had been before, he could not be allowed any compensation in damages. So in this case the same rule applies. If, notwithstanding the interruption in [484]*484'the use and enjoyment of the demised premises for the period from April 1,1913, until August 1,1913, after the work had ceased on August 1, 1913, that, property or leasehold estate was more valuable than it had been before, in spite of these interruptions, it follows there can be no recovery, and your verdict should be for the city. Whether it was or not is one of the questions you are to determine, and as you may determine that question you should render your verdict.”

The above quoted and recited instructions reflect the attitude on the law assumed by the court below throughout the trial of the case; and the various specifications of error consist of complaints in relation thereto, excepting four which deal with rulings.as to the competency of certain witnesses. We have repeatedly stated that the question of the qualification of a witness called to prove value is primarily for the trial court, and that we will never interfere with rulings in reference thereto unless manifestly erroneous; in the present instance we find no such error. The other, and bigger, question called to our attention by the appellant’s assignments, concerning the measure of damages and the proofs relevant thereto, is one as to which there seems to be some confusion of thought, or, at least, of expression, in our cases.

In James McMillin Printing Co. v. Pittsburgh, Carnegie & Western R. R. Co., 216 Pa. 504, 510, Mr. Justice Fell said: “Whether in an action by a tenant whose leasehold interest has been taken......losses directly resulting from interruption of business can be considered, is a question on which the decisions are not harmonious. ......Market value is an unsatisfactory test of the value to a tenant of a leasehold interest......because the lease rarely has any market value......The value of the right he is forced to sell cannot ordinarily be measured by its market price, for there is no market for it, nor can it always be measured by the difference between the rent reserved and the rental value......” While suggesting these thoughts, yet, in the case just mentioned, we made [485]

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Bluebook (online)
98 A. 679, 253 Pa. 478, 1916 Pa. LEXIS 875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/iron-city-automobile-co-v-city-of-pittsburgh-pa-1916.