Mayes Co. v. State

44 Misc. 2d 1043, 255 N.Y.S.2d 593, 1965 N.Y. Misc. LEXIS 2383
CourtNew York Court of Claims
DecidedJanuary 8, 1965
DocketClaim No. 40037
StatusPublished
Cited by1 cases

This text of 44 Misc. 2d 1043 (Mayes Co. v. State) is published on Counsel Stack Legal Research, covering New York Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mayes Co. v. State, 44 Misc. 2d 1043, 255 N.Y.S.2d 593, 1965 N.Y. Misc. LEXIS 2383 (N.Y. Super. Ct. 1965).

Opinion

Richard S. Heller, J.

On March 15, 1962, the State of New York appropriated a portion of claimant’s land pursuant to section 30 of the Highway Law. The parcel taken is designated as Parcel No. 23 on Map No. 19 of Griffin Corners State Highway No. 36, Delaware County, and the court adopts as accurate the description contained on the official map filed in the office of the Delaware County Clerk.

Prior to the appropriation, claimant’s property consisted of slightly more than 4.5 acres on the corner of and fronting on both Wagner Avenue and Deposit Street in the Village of Fleischmanns. Situated on the property were a number of buildings used by the claimant in its business of manufacturing hardwood veneer, which had been in continuous operation since 1938. Also situated on the property and within the boundaries of the parcel appropriated by the State was a spring-fed pond with a storage capacity of 113,000 gallons.

Approximately 12 million gallons of water each year were required in claimant’s operation, and prior to .the appropriation, the pond satisfied all of claimant’s water needs from a quantitative -standpoint. The water from the pond was used in boilers producing steam for drying the veneer, for steaming logs, heating the logs, heating the plant, spraying logs and for power to drive the claimant’s machinery. It was also used for sanitation and fire protection, as a solvent and as a cleanser. In other words, without an adequate water supply, the operation of [1045]*1045claimant’s plant would cease. In addition, uncontroverted testimony with respect to claimant’s experience and qualitative analyses established that from the standpoint of alkalinity and hardness, the water was uniquely suited for use in claimant’s operation. Although the parcel appropriated amounted to less than 10% of claimant’s land, the appropriation resulted directly in the destruction of and loss to the claimant of this free source of water.

Experts for both the claimant and the State testified that the property was being put to its highest and best use and agreed that an adequate supply of water was indispensable to claimant’s operation. In view of the conceded absence of comparable sales of similar plants, appraisals submitted by both parties were based primarily upon reconstruction cost less depreciation with respect to improvements. In determining the value by this approach, the proof compels a finding that prior to the appropriation the value of claimant’s property, even if viewed as a simple sum of its component parts, exceeded $380,000. In arriving at this figure, which does not purport to represent full value as a going concern, the court has assigned the following-values to the land and improvements:

Land (4.52 acres @ $5,000 per acre)............... $22,600
Machinery specially adapted and installed for use in
the business (cost less depreciation).............. 139,900
Buildings (cost less depreciation).................. 116,600
Water supply and storage —
Equivalent storage .................. $38,000
Water conditioning plant............. 43,000
Cost of drilling well and hook up to village water system............... 16,500 97,500
$376,600

In assigning these values the court has assumed, for the purpose of arriving at a minimum valuation, that the State’s witnesses were correct in their appraisals of the depreciated value of the machinery and buildings and that a well with a standby connection with the water system of the village would supply an adequate supply of water from a quantitative standpoint. Even for this limited purpose, however, the State’s contentions with respect to the proper classification of claimant’s machinery and the necessity for and cost of water storage and conditioning facilities have been rejected. The machinery and equipment, with minor exceptions (“ Three Diehl Model Splicers Dep. Value $5,100 ”) had been specially installed and attached [1046]*1046to the claimant’s realty and were obviously integral parts of a fully operating concern and could hardly be regarded as “ personalty ” rather than “ fixtures ” as those terms have come to be used in appropriation or condemnation cases. (See, e.g., Glen & Mohawk Milk Assn. v. State of New York, 207 Misc. 1130, affd. 2 A D 2d 95.) The problems with respect to water storage and conditioning are discussed below. .

With respect to the value of the property subsequent to the appropriation, the proof established that without adequate water the claimant would be left with less land, a group of buildings of questionable usefulness and marketability for any other purpose, and specialized machinery worth little even as salvage. Although a certain amount of speculation is invariably involved in determining the value of a specialized factory after the supply of a vital resource has been destroyed, the court can find little or no basis in the proof presented for rejecting the residual or after value of $75,000 assigned by claimant’s expert.

Since the damages as thus determined ($301,600) exceed even the highest figure assigned to cost of cure ($284,000), the latter method has been adopted by the court.

The cost of cure proposed by the claimant involved the following:

Annual expense to Village of Fleischmanns
for water ............................. $7,000
Maintenance of water treatment plant...... 3,000
Total annual expense................. $10,000
Amount required to realize annual expense by capitalization @5%.................................. $200,000
Expense of connecting to village water supply...... 3,000
Construction of water storage tank................ 38,000
Plant for demineralization and dealkalinization of village water.................................. 43,000
$284,000

The annual expense of purchasing water was based upon amounts actually paid for water subsequent to the appropriation ($3,500 per year) and uncontroverted proof that an equivalent amount was ordinarily required and used in spraying logs to prevent a condition described as “checking” or discoloration of the wood. Due to a water shortage in the village, the 'spraying operation was not possible during the period immediately following the appropriation. Claimant’s president testified, however, that the annual loss from checking exceeded [1047]*1047what the water for spraying would have cost if available, and his testimony to this effect was uncontroverted.

The annual expense of maintaining a water treatment plant was not controverted nor was the cost figure for such a plant. Although the State raised questions with respect to the necessity of such a facility, the source destroyed by the appropriation was shown to be uniquely suited to use in claimant’s operation from the standpoint of alkalinity and hardness.

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Related

Mayes Co. v. State
24 A.D.2d 1066 (Appellate Division of the Supreme Court of New York, 1965)

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Bluebook (online)
44 Misc. 2d 1043, 255 N.Y.S.2d 593, 1965 N.Y. Misc. LEXIS 2383, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mayes-co-v-state-nyclaimsct-1965.