Lloyd v. United States

61 Ct. Cl. 138, 1925 U.S. Ct. Cl. LEXIS 344, 1925 WL 2775
CourtUnited States Court of Claims
DecidedNovember 9, 1925
DocketNo. D-390
StatusPublished

This text of 61 Ct. Cl. 138 (Lloyd v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lloyd v. United States, 61 Ct. Cl. 138, 1925 U.S. Ct. Cl. LEXIS 344, 1925 WL 2775 (cc 1925).

Opinion

Hay, Judge,

delivered the opinion of the court:

This is a suit brought by the North German Lloyd against the United States.

[139]*139The defendant has demurred to the petition of the plaintiff.

The plaintiff in its petition sets out two causes of action. To maintain its first cause of action the petition alleges that it is a corporation which was organized under the laws of New Jersey, November 20, 1900; that it is a German corporation, and obtained the New Jersey charter for greater convenience in carrying on its business in the United States; that on March 28, 1918, the North German Lloyd Dock Co. was owner in fee simple of a tract of land in the State of New Jersey fully described in its petition, and of improvements erected on said land; that a full description of said improvements is fully set out in the petition, as well as a description of certain rights, privileges, and easements in other lands adjoining or adjacent to the land above mentioned; that by a written lease, dated March 20, 1903, the said North German Lloyd Dock Co. leased the said property rights and easements in other lands to the plaintiff for a term of 999 years from the date of said lease; that the land, improvements, rights, and easements in other lands herein mentioned constitute the property described in an act of Congress approved March 28, 1918, as “ the docks, piers, warehouses, wharves, and terminal equipment and facilities on the Hudson Eiver now owned by the North German Lloyd Dock Co.”

The petition further alleges that the plaintiff was in exclusive possession of all this property on April 6, 1917, when the United States entered upon the said property without excluding the plaintiff from possession, and on April 20, 1917, the United States took exclusive possession of said property and of the leasehold estate of the plaintiff therein, and has ever since excluded the plaintiff therefrom.

The petition further alleges that the President of the United States, by a proclamation dated June 28,1918, determined and declared that the acquisition of said property mentioned in the act of Congress of March 28, 1918, owned by the North German Lloyd Dock Co. was necessary for the national security and defense and that he took for the United States the immediate possession and title thereof, including all leasehold estates and interests therein, and that [140]*140the plaintiff was thereby divested of its leasehold and term of years and the same became the property of the United States. The act of Congress of March 28, 1918 (being a section of the urgent deficiency act of said date, 40 Stat. 459,) reads as follows:

“ The President is authorized to acquire the title to the docks, piers, warehouses, wharves, and terminal equipment and facilities on the Hudson River now owned by the North German Lloyd Dock Company and the Hamburg-American Line Terminal and Navigation Company, two corporations of the State of New Jersey, if he shall deem it necessary for the national security and defense: Provided, That if such property can not be procured by purchase, then the President is authorized and empowered to take over for the United States the immediate possession and title thereof. If any such property shall be taken over as aforesaid, the United States shall make just compensation therefor to be determined by the President. Upon the taking over of said property by the President as aforesaid, the title to all such property so taken over shall immediately vest in the United States: Provided further, That section three hundred and fifty-five of the Revised Statutes of the United States shall not apply to any expenditures herein or hereafter authorized in connection with the property acquired.”

The proclamation of the President contained the following provision: “ Just compensation for the property hereby taken over will be hereafter determined and paid.”

The petition alleges that plaintiff has never been paid any compensation for said property, and further alleges that the value thereof at the time it was taken was the sum of $7,560,606.20, for which amount it sues with interest from June 28, 1918, less certain offsets set out in its petition.

It is contended by the plaintiff that the allegations of its petition bring its case within the scope of section 145, Judicial Code. That section confers upon this court the power to hear and determine claims founded upon the Constitution or any law of Congress, or upon any contract, express or implied, with the Government of the United States.

The fifth amendment to the Constitution provides: “ Nor ■ shall private property be taken for public use, without just compensation.” An examination of this amendment must cause one to conclude that its provisions apply to citizens [141]*141of the United States, and not to alien enemies in time of war. If it were otherwise the war powers conferred upon Congress by the Constitution would be rendered nugatory and the Government would be placed in the attitude of being obliged to pay to its alien enemies money which could be used for its own destruction. It therefore follows that the plaintiff can not claim a right under the Constitution in this court to be reimbursed for property seized as enemy property by the Government in time of war.

The plaintiff, however, claims that it is entitled t<5; recover in this court by virtue of the act of Congress of March 28, 1918, and the proclamation of the President of June 28, 1918. It was the action taken by virtue of this act which deprived the plaintiff of its property, and the question is whether the circumstances gave rise to the implication of a contract of which this court has jurisdiction. Acts passed by Congress which authorize the taking of the property of alien enemies in time of war are constitutional and are not in conflict with the fifth amendment to the Constitution. So that in" exercising the war powers conferred upon it by the Constitution Congress in passing the act of March 28, 1918, legitimately exercised these powers, and if any injury was done to the plaintiff the injury is only incidental to the exercise of these powers and there has been no taking of its property for the public use, and this court has no jurisdiction. It is true that the act itself provides as follows:

“ If any such property shall be taken as aforesaid, the United States shall make just compensation therefor to be determined by the President.”

Upon this provision of the act the plaintiff relies to establish a contract, either express or implied, which it claims confers jurisdiction upon this court to determine the value of the property taken and to render judgment for the value thereof so determined. Congress in the exercise of the war powers conferred upon it by the Constitution has authority to deal with the property of alien enemies in such manner as may to it seem proper.

Its powers are ample; and if in dealing with such property it sees fit to provide for just compensation it can do so, and in doing so it can provide how the compensation shall be [142]*142determined, and is not restricted from so doing, as the act was passed under the war power and is not in conflict with the fifth amendment. Miller v. United, States, 11 Wall. 268, 304; Morrisdale Coal Co. case, 55 C. Cls. 310, 315; Deutseh-Australische, etc., v. United States, 59 C. Cls. 450, 455.

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Related

Miller v. United States
78 U.S. 268 (Supreme Court, 1871)

Cite This Page — Counsel Stack

Bluebook (online)
61 Ct. Cl. 138, 1925 U.S. Ct. Cl. LEXIS 344, 1925 WL 2775, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lloyd-v-united-states-cc-1925.