Long Island Rail Road v. Long Island Lighting Co.

103 A.D.2d 156, 479 N.Y.S.2d 355, 1984 N.Y. App. Div. LEXIS 19258
CourtAppellate Division of the Supreme Court of the State of New York
DecidedAugust 20, 1984
StatusPublished
Cited by22 cases

This text of 103 A.D.2d 156 (Long Island Rail Road v. Long Island Lighting Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Long Island Rail Road v. Long Island Lighting Co., 103 A.D.2d 156, 479 N.Y.S.2d 355, 1984 N.Y. App. Div. LEXIS 19258 (N.Y. Ct. App. 1984).

Opinion

OPINION OF THE COURT

Niehoff, J.

The Long Island Rail Road Company (the LIRR), as petitioner, brings this proceeding pursuant to EDPL 207 to review the determination and findings of the respondent Long Island Lighting Company (LILCO), dated May 3, 1983, to acquire certain easements in real property and [157]*157rights of way owned by the LIRE. In substance the LIRE contends that (1) LILCO has no statutory authority to condemn property of the LIRE because it is a political subdivision of the State of New York, (2) even if statutory authority exists to empower LILCO to condemn property owned by the LIRE, that authority does not extend to the property interests at bar which are acknowledged to be devoted to a prior public use, and (3) in any event, LILCO cannot exercise the power of eminent domain in this case because the presence of LILCO’s facilities on the railroad rights of way will cause substantial interference with the LIRR’s operations. On the strength of those arguments the LIRE asks that LILCO’s determination and findings be set aside. For the reasons hereinafter set forth, we reject the LIRR’s contentions and confirm the subject determination and findings.

THE FACTS

Briefly stated, the facts, which are mainly undisputed, are as follows:

The petitioner LIRE is a public benefit corporation of the State of New York and a wholly owned subsidiary of the Metropolitan Transportation Authority. It derives its powers from various provisions of the Public Authorities Law. The respondent LILCO is a gas and electric corporation and the principal supplier of gas and electricity to the public in Nassau and Suffolk Counties. Both LILCO, as a gas and electric corporation, and the LIRE, as a public benefit corporation, have certain powers of eminent domain.
The LIRE has extensive rights of way throughout Long Island, upon which it has placed its railroad tracks. LILCO has used some of these same rights of way for placement of poles carrying overhead lines and conduits carrying underground lines.
LILCO’s use of the LIRR’s rights of way has been governed by two “occupation agreements” (one for Nassau County and one for Suffolk County). These agreements, executed in 1952 and 1957, respectively, and made retroactive to 1950, originally provided that the LIRE was to be compensated at an annual rate of $500 per mile for single-circuit occupancy, and $750 per mile for multiple-circuit [158]*158occupancy. In addition to setting forth the rate of compensation, the occupation agreements also imposed numerous obligations on LILCO in constructing and maintaining its lines. For example, LILCO was obligated to inform the LIRR of any activity concerning the licenses granted by the occupation agreements and receive approval from the LIRR, to pay for any safety measures provided by the LIRR, to indemnify the LIRR, etc. These agreements were amended frequently during the years and the rates of compensation were raised to $600 and $900 per mile, respectively.
From time to time after the execution of the occupation agreements, LILCO requested permission to use additional rights of way for which the parties have negotiated different, higher rates than those provided for in the occupation agreements as amended. Two of these additional and more expensive licenses, namely, the West Hempstead license and the Oyster Bay license, are the subject matter of this proceeding.
The West Hempstead license is described as: “A corridor for a 13 KV underground distribution line which runs for approximately 520 feet from LILCO’s West Hempstead substation, crosses perpendicularly underneath the LIRR tracks (Valley Stream Branch), and continues underneath an unused, untracked LIRR freight yard before exiting LIRR property at Hempstead Avenue.” This license was granted by letter agreement dated November 11,1968. The agreement was to be effective “[pjending the preparation and execution of a formal license agreement”, but no such formal agreement was ever executed. Nevertheless, the letter agreement provided that the annual rate of compensation for this license was to be, at minimum, $2,800, and further stated that “[i]t is contemplated that [LILCO] will be granted a twenty-year license, with a twenty year [sic] renewal option and [that the rate of compensation will be] subject to renegotiation at the end of every five year [sic] period”.
The Oyster Bay license is described as: “A corridor for a 69 KV overhead transmission line which runs for approximately 2.5 miles along LIRR’s Oyster Bay branch tracks from LILCO’s Oyster Bay substation to LILCO’s Locust [159]*159Valley substation.” With respect to this license, a supplement to the occupation agreement covering Nassau County was executed on or about August 8, 1969. It provided, among other things, that the annual rate of compensation was to be figured at $1,500 per mile and that: “inasmuch as the changes covered by this Supplemental Agreement involve a large additional financial investment on the part of the Power Company, the Railroad Company is willing and does hereby agree * * * that * * * the term of such agreement * * * shall be for a period of twenty (20) years from the date hereof”. However, the terms of compensation were made “subject to renegotiation at the end of every five-year period”. The transmission lines on the West Hempstead license serve about 7,920 customers and would cost LILCO about $240,000 to remove and relocate. The Oyster Bay license serves approximately 12,305 customers and removal and relocation costs would run about $3,900,000.
Starting in 1973, petitioner, the LIRR, sought to negotiate increased rates, demanding that the rates under the two occupation agreements be raised substantially. That proposal was not acceptable to LILCO, and the negotiations which would continue for nearly the next decade were underway.
By letter dated January 30, 1974, the LIRR informed LILCO that the West Hempstead license expired as of January 25, 1974, noting that the November 11, 1968 letter agreement had been, at most, “only a five-year license agreement terminating no later than January 25, 1974, since it provided no formula or means of ascertaining the fee to be paid after the first five years”. Nevertheless, the LIRR stated that it would be willing to continue LILCO’s present occupancy of that license pending compensation negotiations, provided that any final agreement on rates would be retroactive to January 1, 1974 and provided further that the LIRR retained the right to terminate the revocable license on 24 hours’ notice.
In July, 1974, the LIRR notified LILCO that it was canceling the Nassau and Suffolk occupation agreements on the ground that they, too, were only agreements to agree, and were no longer enforceable. Then, in early August, 1974, the LIRR sent LILCO a similar letter with respect to the Oyster Bay license.
[160]*160Thereafter, numerous attempts to resolve the dispute took place. While both sides recite different histories of the negotiations, one thing is abundantly clear, and that is that the parties could not arrive at a mutually satisfactory rate of compensation for the licenses. As a result, by letter dated June 25, 1982, the LIRR terminated the negotiations, and in July and August of 1982, the LIRR canceled the West Hempstead and Oyster Bay licenses, and directed that LILCO remove its facilities.

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Bluebook (online)
103 A.D.2d 156, 479 N.Y.S.2d 355, 1984 N.Y. App. Div. LEXIS 19258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/long-island-rail-road-v-long-island-lighting-co-nyappdiv-1984.