McCoy v. Grandy

3 Ohio St. (N.S.) 463
Ohio Supreme Court·Decided December 15, 1854·Published

Opinion

Bartley, J.

The main question presented in this case is whether the act of the 22d of March, 1849, amendatory to the act for the relief of occupying claimants, which gives to the occupying claimant, instead of the owner of the land, after a recovery in ejectment, the option either to take the land and pay the amount of the valuation without the improvements, or to take pay for his improvements, is constitutional ?

The first and second sections of this law are as follows:

“ Seo. 1. That the occupying claimant of land, holding by any such title, in such manner as is pointed out in the act for the relief of occupying claimants of land, passed March 10, 1831, of which this is amendatory, shall, after judgment rendered against him, and in favor of the successful claimant, have an option to demand payment from said successful claimant, of the full value of his lasting and valuable improvements made on the land in controversy, before the commencement of the suit, or to pay to the successful claimant the value of the land, without the improvements thereon, at his discretion.
“ Seo. 2. That if said occupying claimant shall elect to retain the land, he may tender to the successful claimant a sum of money equal to the value of the land in a state of nature; or, if he shall elect to receive payment for his improvements, the successful claimant may tender to him a sum of money equal to the value of his improvements; but if such tender shall, in either case, be refused, unless the jury impaneled under the provisions of the third section' of the said before-mentioned act, shall assess a larger sum in favor of the party so refusing than the amount tendered, exclusive of interest from the time of the tender, the pai’ty refusing shall pay the full costs of the proceeding. But if the jury shall' assess a greater sum than the amount so tendered, exclusive of interest, the party making the insufficient tender shall pay the costs, for which, if necessary, judgment may be rendered and execution issued as in other cases.”

466] *The original act, to which this is amendatory, gives to the real owner of the land the election to pay the occupying claimant [467]*467for his improvements and take the land, or to receive the amount of the valuation of his land in money, and give up his title.

The constitutionality of a law of this kind was contested for some years. The Supreme Court of the United States, in the case of Green v. Biddle, 8 Wheat. 1, determined that the oceupyingclaimant law of Kentucky, of 1812, was unconstitutional. This decision, however, was placed on the ground that the law impaired the obligation of the compact between Kentucky and "Virginia, relative to lands in the former state. The same court, in the case of the Bank of Hamilton v. Dudley’s Lessee, 1 Pet. 492, in which the statute of Ohio for the relief of occupying claimants came under review, conceded the legislative power of the state to secure to a bona fide occupant of land a compensation for the value of his-lasting improvements, and to authorize him to retain possession of the land he had improved until he shall have been paid that amount.

By the common law, improvements made on land are. considered as annexed to the freehold, and pass with it; so that when the owner recovers in ejectment he is not subjected to the condition of paying for any improvements which may have been made upon the land by the occupant. Although the occupant may be in possession in good faith, under color of title, and a mistaken supposition that helms the title to the land, yet, as against the true owner, he is an intruder and wrong-doer. And it would seem that there is no moral obligation which would require a person to pay for improvements-made upon his own land, which he never authorized, and which was-originated in a tort. But the occupant of land, under color of a bona fide purchase, has a strong equity in favor of a compensation for his lasting improvements, which have augmented the value of the-land. This equity arises from the mistake of the occupant, and the-neglect of the owner, whereby the labor of the former has inured to the benefit of *the latter. There are difficulties, however, [467 in sustaining this equitable claim consistently with the inviolability of private property. The improvements may be expensive, and beyond the ability of the owner to pay without a disposition of the land; besides, he may have a strong attachment for the property, and it might have answered all his purposes without the improvements.

To overcome these embarrassments, the learned French civilian, Pothier (see his Traite du droit de Propriete, No. 347), proposed [468]*468that the owner should be allowed to take possession, upon the condition that the payment of the value of the improvements should remain a charge upon the land, to be made by installments, under the regulation of the court. It appears to be a rule of the civil law, that in a suit for the rents and profits, against the bona fide occupant, the value of his lasting improvements may be deducted from the amount of the plaintiffs claim for damages; and Lord Hardwicke is reported to have intimated, in the case of Dormer v. Fortescue, 3 Atk. 134, that the rule of the civil law would be adopted in England, and the occupant sued in an action for the mesne profits, be allowed the value of his improvements, by way of set-off. • The original statute for the relief of occupying claimants, however, discarding all refinements arising out of the difficulties and embarrassments of the subject, requires the value of the permanent improvements of the bona fide occupant to be assessed and paid, as a condition precedent to the entry and possession of the owner. This encroachment upon the rights of private property, as settled by the common law, arose out of peculiar and pressing circumstances, produced by the liability to mistake, incident to the settlement of a wide extent of uncultivated land in a new country, where obscurity and uncertainty in land titles, by reason of conflicting locations, were unavoidable. This law was adjudged to be constitutional by the Supreme Court of this state, in the case of Hunt v. McMahon, 5 Ohio, 132, and its validity is not now an open question. The extent of this encroachment upon the common-law 468] rights of property is not to *divest the owner of-his fee in the land without his consent. The right of the owner to his land is secured, and he has the right to its restitution on paying the amount which its value has been increased by means of the improvements made by the occupant under color of title, and a mistaken belief that he was the owner of the land himself. The election which is here given to the owner, either to take his land on paying for the improvements, or to take the amount of its value in money, without the improvements, secures to the owner his right to the land, and at the same time protects the occupant in his equitable claim to a compensation for his improvements. And this is the greatest extent to which legislation had ventured on this subject, until the amendatory act of the 22d of March, 1849, the validity of which is now •called in question.

This amendatory act gives to the occupying claimant the option [469]*469■which the original act gave to the owner of the land; thus giving the land itself to the occupant, who is without title, and requiring the owner to surrender his title without his consent.

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McCoy v. Grandy, 3 Ohio St. (N.S.) 463 (Ohio 1854).

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Related

Green v. Biddle
21 U.S. 1 (Supreme Court, 1823)