Masheter v. Boehm

295 N.E.2d 917, 34 Ohio App. 2d 43, 63 Ohio Op. 2d 96, 1973 Ohio App. LEXIS 868
CourtOhio Court of Appeals
DecidedApril 26, 1973
Docket32007
StatusPublished
Cited by5 cases

This text of 295 N.E.2d 917 (Masheter v. Boehm) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Masheter v. Boehm, 295 N.E.2d 917, 34 Ohio App. 2d 43, 63 Ohio Op. 2d 96, 1973 Ohio App. LEXIS 868 (Ohio Ct. App. 1973).

Opinion

Silbert, J.

This is an appeal in a land appropriation case. Appellant as Director of Highways (hereafter also referred to as “the state”)? brought this proceeding to appropriate premises owned and used by the appellees in the manufacture of pressed steel parts, a manufacturing operation requiring the use of a variety of heavy machinery located on the subject property. The land is needed for the construction of Interstate 90.

The state presents two assignments of error, complaining that the probate court erroneously: (1) found and instructed the jury that certain items were to be classified as fixtures, and were to be included in its valuation, and (2) refused to give a special instruction excluding moving and rehousing costs, and loss of profit, business or goodwill as noncompensable. The court permitted no evidence of such costs, or losses, per se, so that the second assignment of error is but filigree to the first — in counsel’s view both are interrelated, that the first, if permitted, is to effect what is sought to be avoided by the second.

There was no dispute as to the evidence, insofar as it *45 reflects on the relationship between the chattel and real property. It is conceded that the buildings are taken. But they were designed and constructed around the larger equipment, or modified to accommodate it. Special floors were installed. Holes were cut in the roofs. Extensive engineering was undertaken in laying out and adapting the premises to appellees’ particular business needs. The well over one hundred items in dispute can be roughly classified as follows: (1) heavy machinery implanted in concrete, underground storage tanks, a compressed air distribution system, and a spray booth built into the structures, and material handling equipment with tracks built into and made part of the building construction, including the moving parts thereof, (2) heavy machinery, furnaces, scales, air compressors, custom made storage racks, and other material handling equipment with tracks bolted to the buildings or to their foundations, and, where appropriate, permanently connected to service lines of one sort or another, (3) heavy machinery affixed by its own weight resting on specially prepared foundations, generally connected to service lines in a permanent fashion, (4) lighter movable equipment used in conjunction with the equipment already mentioned, as a part of the integrated operation of the plant, and comprised of (a) machinery designed or modified by the appellees to meet particular operating requirements, as well as (b) machinery generally available on the market, (5) spare parts for many of the more important pieces of equipment, stocked to avoid prolonged shutdown in the event of failure, and (6) special tooling and dies and support equipment attached to various pieces of this machinery when needed for particular manufacturing purposes. The appellees have not sought to include office equipment, products in process on the date of the take, or equipment not in their view functionally interdependent as part of plant operation.

The dispute is important not only to the parties, but because it involves substantial issues of first impression in Ohio. Both parties invoke the language of the law of fixtures, but both have staked out positions which challenge *46 of transcend the traditional boundaries of that branch of the law, while the extent to which the doctrine is itself applicable to an appropriation case has never been fully determined.

The state is willing to use the law of fixtures so long as it suits its purposes, but the gravamen of its complaint is that the classic definition of a fixture is inadequate, and overly loose. In its view such property is not taken if it “can be removed without substantial [physical] injury either to the real estate or to the article,” a rule which finds little justification in the modern law of fixtures, but is borrowed from the decisions of courts outside Ohio— a rule principally supported by the specific construction given certain statutes, inapplicable in the case at bar, possibly interpreted without regard to resulting constitutional complications. Futrovsky v. United States (C. A., D. C., 1933), 66 F. 2d 215; Act of May 25, 1926, c. 380, Sec. 1, 44 Stat. 630, as amended, 40 U. S. C. Sec. 341, repealed by Act of Sept. 9, 1959, Pub. L. 86-249, 73 Stat. 479, 486, and replaced by significantly broader authorization now found at 40 U. S. C., Sec. 602; followed in Potomac Electric Power Co. v. U. S. (C. A., D. C., 1936), 85 F. 2d 243, cert. den. 299 U. S. 565, 81 L. Ed. 416; but, cf., Certain Land v. U. S. (C. A., D. C., 1965), 355 F. 2d 825. Contrast General Motors Corp. v. U. S., infra.

The state concedes that at least some of the disputed property would satisfy its test, but suggests that the appel-lees have failed to meet their burden of proof by failing to show which items could not have been removed without substantial damage. The state further contends the issue should at least have been submitted to the jury.

The appellees maintain that all of the items in question are fixtures, taken as a matter of law. Their position, too, finds support outside Ohio. Pennsylvania has long embraced the view that an assembled industrial plant can be treated as a fixture, in the composite sense, and has recently held that it should be, for all purposes, including appropriation cases. Gottus v. Allegheny County Redevelopment Authority (1967), 425 Pa. 584, discussed in 13 Vill. *47 L. Rev. 218 (1968). Michigan has held that even liquids contained in vats can he treated as constructively attached, at least where the containers were comparatively worthless without their contents. Such liquids acquire the status of fixtures for the purpose of assessing damages as permitted under the Michigan law of eminent domain. In re Slum Clearance (1952), 332 Mich. 485, but, cf., In Re Civic Center (1953), 335 Mich. 528, 537-538. New York is said to take a broad view of the problem, at least as to property which can be classified as “trade fixtures,” and it has been held that “* * * an award * * * may * * * be made for property, albeit readily removable without damage to the freehold, if such property were used for business purposes and would lose substantially all its value after severance.” Matter of New York City (Seward Park Slum Clearance Project) (1st Div., 1960), 10 App. Div. 2d 498, 500. See Sackman, Fixtures in Condemnation—Concepts New and Old, Institute on Eminent Domain (1964), Southwestern Legal Foundation, Matthew Bender & Co., Dallas; cf., United States v. Certain Property (C. C. A., 2, 1962), 306 F. 2d 439, and discussion in Marraro v. New York (1963), 12 N. Y. 2d 285.

Of the three criteria defining a fixture set forth in Teaff v. Hewitt (1853), 1 Ohio St.

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Bluebook (online)
295 N.E.2d 917, 34 Ohio App. 2d 43, 63 Ohio Op. 2d 96, 1973 Ohio App. LEXIS 868, Counsel Stack Legal Research, https://law.counselstack.com/opinion/masheter-v-boehm-ohioctapp-1973.