Lowe v. City of New York

240 A.D. 484, 270 N.Y.S. 216, 1934 N.Y. App. Div. LEXIS 10680
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 23, 1934
StatusPublished
Cited by13 cases

This text of 240 A.D. 484 (Lowe v. City of New York) 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
Lowe v. City of New York, 240 A.D. 484, 270 N.Y.S. 216, 1934 N.Y. App. Div. LEXIS 10680 (N.Y. Ct. App. 1934).

Opinion

Carswell, J.

The action is for specific performance. The complaint was dismissed after a trial. The instruments upon which plaintiff relied were held unenforcible as contracts for the purchase and sale of real property. Plaintiff appeals.

The facts are not contested. The dispute concerns the effect of documentary evidence, the interpretation of the terms thereof, and whether certain statutes are or are not applicable.

On December 14, 1931, two instruments were signed relating to the purchase and sale of two parcels of real estate in Brooklyn. They recite that the “ Vendor ” is Lowe (plaintiff) and that the “ Vendee ” is “ The City of New York, by Charles W. Berry, the Comptroller thereof, acting in its behalf, pursuant to the authority contained in a Resolution of the Board of Estimate and Apportionment adopted the 20th day of November, 1931.” Each instrument was signed by the plaintiff, Lowe, and by C. W. Berry, as Comptroller of The City of New York.” Each states that the purchase price is $13,500. Neither has a certificate of the comptroller certifying to an appropriation available for the purposes thereof. It is asserted that there is no evidence that such appropriations were made.

A resolution of the board of estimate and apportionment of November 20, 1931, recites the history of the proposal to acquire these parcels as a site for a hospital, the decision to do so having been made on June 12,1931. It sets out a description of the parcels; [486]*486that the comptroller obtained an option for the two parcels for $27,000, expiring on December 29, 1931; facts from him justifying his recommendation of purchase at that price in the public interest; and an approval of the purchase as recommended by the comptroller, reading: "Resolved, that the Board of Estimate and Apportionment, pursuant to the provisions of sections 1433 and 1434 of the Greater New York Charter as amended, and to its resolution,' adopted June 12, 1931, * * * approves of the purchase of the following described premises.” It fixes the price for each parcel at $13,500 (total, $27,000), immediately preceding which appears: Resolved, that the Comptroller is hereby authorized to purchase the above described premises, subject to existing party walls, at private sale for amounts not to exceed the sums hereinafter set down as the purchase price." This resolution was adopted without a dissenting vote.

On June 2, 1931, the board of aldermen adopted an ordinance selecting this site. The board of estimate and apportionment, on June 12, 1931, adopted a resolution concurring in the ordinance and authorizing and directing the corporation counsel to institute condemnation proceedings to acquire the site pursuant to section 1435 of the charter. This resolution also provided that title was to vest upon the confirmation of the awards, or at such earlier date as the board “ by resolution hereafter determine.” The resolution also provided that it was not to be construed so as to prevent the comptroller from entering into contracts for the purchase of the property at private sale, subject to the approval of the board, and the comptroller was authorized to so proceed. Pursuant to this authority the comptroller negotiated, made his recommendation, and the resolution of November 20, 1931, eventuated, approving the purchase of the two parcels by the board itself; the contract to be signed by the comptroller.

If this real property had been acquired in condemnation proceedings pursuant to section 1435, the financing thereof would have been pursuant to section 169, subdivision 8, of the charter. There is ordinarily no reference to an appropriation in a resolution to acquire real property by proceedings in condemnation, nor does any seem to be required. Subdivision 8 provides for the payment of awards and the expense of the acquisition of lands for publie purposes, and authorizes the comptroller to issue corporate stock and serial bonds therefor. If that method had been pursued, there would have been no need for an appropriation. Our attention has not been called to any pertinent statute which militates against this view.

The board, however, in the public interest, adopted an alter[487]*487native method expressly authorized by sections 1433 and 1434, and, like section 1435, contained in the charter chapter respecting proceedings instituted for the acquisition of real property for a public use.

Section 1434 reads: Said board * * * shall have power and is hereby authorized to agree as to the purchase price of any real property * * * and to purchase the same for and on behalf of said city of New York.”

Sections 1433 and 1434 are specifically invoked in the resolution of November 20, 1931, and recourse to that method of acquisition is also authorized in the resolution of June 12, 1931, which also authorized acquisition by condemnation under section 1435. Resort to this alternative method of acquisition in lieu of condemnation proceedings did not change the method of financing. The project was subject to the same provisions as would have applied if condemnation proceedings had been instituted and carried through. Therefore, no further appropriation was needful to validate the purchase by the board, acting on behalf of the city, than would have been needful in the event the resolutions had been effectuated by proceedings in condemnation.

The scheme of the charter is reasonably plain. The acquisition of real property for a public use is controlled by sections 1433, 1434, 1435, and these sections are unaffected by other provisions in the charter in reference to the need for appropriations for the purposes of contracts entered into pursuant to other provisions of the charter and unrelated to the acquisition of real property for a public use.

Section 149 has no application except the provision therein which specifically requires the assent of the comptroller to all agreements for the acquisition by purchase of any real estate or easement therein, and, where -acquisition is by condemnation, requiring that the comptroller shall have thirty days’ notice before an award involving an obligation to pay for such real estate shall be confirmed. We have compliance with this provision. Here the comptroller recommended the purchase in his communication to the board, recited in the November 20, 1931, resolution. He voted for the resolution, and on December 14, 1931, he signed, on behalf of the city, the instruments which purported to purchase the real property. These various acts very completely evidence the comptroller’s “ assent.”

Provision is made in section 149 that no contract (except one, of a kind not here pertinent) shall be binding on the city unless there is a balance of an appropriation applicable' thereto, and it requires an indorsement on the contract by the comptroller [488]*488that, an appropriation therefor is available. That section, in so far as these provisions are concerned, has no application to the real property transaction here involved. It is to be read in connection with section 1541, which prohibits departments, boards or officers thereof from incurring any expenses unless there be an appropriation therefor; and section 1542, which provides that it shall be the duty of heads of departments and officers of the city charged with expending or incurring obligations “ payable out of the moneys raised by tax in the said city ” to limit their expenditures so that they shall not in any one year exceed the amount appropriated

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Cite This Page — Counsel Stack

Bluebook (online)
240 A.D. 484, 270 N.Y.S. 216, 1934 N.Y. App. Div. LEXIS 10680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lowe-v-city-of-new-york-nyappdiv-1934.