Moroney v. State

67 Misc. 58
CourtNew York Court of Claims
DecidedMarch 15, 1910
DocketNo. 9784
StatusPublished
Cited by5 cases

This text of 67 Misc. 58 (Moroney 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
Moroney v. State, 67 Misc. 58 (N.Y. Super. Ct. 1910).

Opinion

Rodenbeck, J.

The claimant’s remedy in this claim is against the fund representing the property appropriated and not against the State.

He claims to have been a tenant of the property at the time of the appropriation, having produced in court a written lease, dated March 31, 1906, for five years, expiring March 31, 1911, leaving an unexpired term of two years, nine months and twenty-six days. The lease was recorded April 30, 1909, after the appropriation of the property, June 5, 1908, and after its purchase by the then owner. The lease was made between Daniel E. Rairdon, owner, and Frank J. Lester and the claimant, as copartners, for carrying on a blacksmith business on the appropriated property. Before the appropriation, Rairdon had sold the property to one Sheridan and he, in turn, had conveyed it to E. G. Heaton, who was the owner at the time of the appropriation. After the appropriation, but before the filing of 'the claim, Lester had executed a bill of sale to Moroney. From the date of the lease to the date of the appropriation, Moroney, alone, or Lester and Moroney, as copartners1, were in possession and paid a monthly rent of six dollars and twenty-five cents, this amount being paid for a period of time to E. G. Heaton, who disputes the lease and claim of Moroney. The entire property was appropriated by the State, and the owner made a settlement with the State appraiser, the amount of which has not been paid. The owner was not made a party to the present claim and has, therefore, not consented to have any issues between himself and the claimant determined by the Court of Claims.

Under this state of facts, the claimant’s remedy is against the fund in the hands of the State and not against the State.

The State’s settlement includes1 an adjustment of all of [60]*60the damages for the appropriation of the property; and out of the amount agreed upon, in the absence of any agreement to the contrary, must come all of the liens and incumbrances •against the property. The lease is an incumbrance (Forster v. Scott, 136 N. Y. 577) ; and, unless there was some fraud or misrepresentation or misunderstanding when the agreement was made with the State appraiser, the value of the leasehold interest must come out of the amount agreed to be paid to the owner. A situation like this is provided for in the Canal Law which says that “ When damages are awarded for the appropriation of any lands or water to the use of a canal and it appears that there is any lien or incumbrance on the property so appropriated, the comptroller may deposit the amount awarded in any bank, in which moneys belonging to such account may be deposited, to the account of such award, to be paid .and distributed to the persons entitled to the same as ordered by the supreme court on application of any person.” § 88.

If this conclusion is erroneous and the claimant has the right to ask this court to fix the value of his leasehold, he must bring the owner of the premises into court and make him a party to this proceeding. Upon the question of the value of the leasehold, the value of which must come out of the compensation allowed for the fee, the owner is entitled to be heard. In this case there is not only a dispute as to the value of the lease but also one as to its validity, and upon both of these questions the owner is entitled to be heard. There is ample power in the court to order the owner to be made a party to the proceeding; and, when thus brought in, the value of the lease may be fixed by the court, provided the owner consents thereto. Code Civ. Pro., § 281.

But, if the owner when made a party to the .proceeding does not consent to have his dispute with the claimant passed upon by this court, another serious question arises as to the power of this court to pass upon such questions.

The Court of Claims is not referred to by name in the Constitution, but it has a constitutional existence by virtue of the provision in the Constitution which prohibits the, Legislature from auditing or allowing any private claim or: [61]*61account against the State and authorizes it to make appropriations to pay claims when they shall have been audited and allowed according to law (State Const., art. 3, § 19) and the provision which says that, when private property is taken for a public use, the compensation to be made therefor shall be determined by a jury, or by not less than three commissioners appointed by a court of record as shall be prescribed by law, except when such compensation is made by the State. Id. art. 1, § 7.

The former provision was inserted in the Constitution by a vote of the people November 3, 1874, and went into effect January 1, 1875. There had existed prior to that time for many years Canal Appraisers who passed upon allowances for appropriations and certain claims connected with the canals, and the Legislature previously had audited and allowed claims of other character; but, after the adoption of this provision of the Constitution, the State Board of Audit was created, consisting of the Comptroller, the Secretary of State and the State Treasurer, whose duty it was to hear all private claims and accounts against the State, except such as were heard by the Canal Appraisers. Laws of 1876, chap. 444. In 1888, the Canal Appraisers and State Board of Audit, were abolished and the Board of Claims was created, with jurisdiction to hear, audit and determine all private claims against the State which shall have accrued within two years. Laws of 1883, chap. 205. In 1897 the Board of Claims was abolished and the Court of Claims was created, with all the powers and jurisdiction of the Board of Claims and jurisdiction generally to hear and determine private claims against the State which shall have accrued within two- years before the filing of the claim. Laws of 1897, chap. 36. The latter statute is an amendment- of the Code of Civil Procedure and contains the further provision that the court may bring in parties-necessary to the complete determination of a controversy in matters over which the court has jurisdiction and may render judgment for or against any of the parties as may be equitable. Code Civ. Pro., § 281. The Constitution of 18'95, therefore, left open the whole matter of the creation of an appraiser, board or court to determine claims against the State, [62]*62including claims that might arise out of the exercise of its power of eminent domain. In the exercise of this power, the Legislature has vested the Court of Claims, hy provisions of the Code of Civil Procedure, the Barge Canal Act and other statutes, with power to pass upon certain private claims against the State, including appropriations in connection with the Barge canal.

It might he contended from the foregoing that, notwithstanding the provisions of the judiciary article creating courts for the determination of controversies between citizens (State Const, art. 6), this court has not only the power conferred upon it by statute to pass upon the amount of damages to be allowed in appropriation cases but the implied jurisdiction to pass upon all. incidental questions that may arise in connection with the exercise of this power, including disputes between two parties over a parcel of land which, has been appropriated, each of whom makes a claim against the State. If this contention is correct and there is that inherent power in the court derived from the general jurisdiction conferred upon it, the court would have power, in this instance, without the consent of the owner, to pass upon the amount of the tenant’s interest after the owner has been made a party to the proceeding and given an opportunity to he heard.

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Bluebook (online)
67 Misc. 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moroney-v-state-nyclaimsct-1910.