New York Dock Co. v. Flinn-O'Rourke Co.

198 A.D. 376, 190 N.Y.S. 588, 1921 N.Y. App. Div. LEXIS 8103
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 4, 1921
StatusPublished
Cited by6 cases

This text of 198 A.D. 376 (New York Dock Co. v. Flinn-O'Rourke Co.) 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
New York Dock Co. v. Flinn-O'Rourke Co., 198 A.D. 376, 190 N.Y.S. 588, 1921 N.Y. App. Div. LEXIS 8103 (N.Y. Ct. App. 1921).

Opinions

Jaycox, J.:

On the 9th day of December, 1914, the plaintiff was the owner of piers Nos. 14 and 15, situate near the foot of Montague street, in the borough of Brooklyn. The defendant [378]*378the city of New York had prior to that date entered into a contract with the other defendant, Flinn-O’Rourke Company, Inc., for the construction of the Whitehall Street-East River-Montague Street subway. By this contract the defendant city of New York agreed to put the other defendant, the contractor, in possession of the Montague street slip, as the space between piers Nos. 14 and 15 was then called. For the purpose of procuring possession of the slip for its contractor, the city of New York, on the date above mentioned, acting through the Public Service Commission, entered into a stipulation with the plaintiff whereby the said city was authorized and empowered to enter into and upon the waters and lands under water in said slip for the purpose of constructing the tunnel known as the Montague street tunnel for said subway. The stipulation provided that the plaintiff should be entitled to receive such sum or sums as might be agreed upon as compensation or might be awarded to it by any court upon establishing the right to compensation, and that the interest on said sum should run from the 7th day of December, 1914, the day on which the city had actually entered into exclusive possession. In brief, the city, without recognizing that the plaintiff had any rights in said slip, stipulated to institute appropriate condemnation proceedings to have plaintiff’s rights ascertained and to pay the compensation awarded for such rights. Thereafter the city instituted condemnation proceedings in which it was ultimately decided that the plaintiff had rights in the slip in question but that the proceedings were not appropriate to extinguish those rights or to fix the compensation that should be made therefor. (Matter of Public Service Comm. [Montague St.], 224 N. Y. 211.) The result is that the city, pursuant to the stipulation, has entered into the exclusive possession of the slip, excluded the plaintiff from the exercise of its rights and has constructed a tunnel under the bed of the river in said slip so that it is now conceded that it would be unsafe and improper for the plaintiff to exercise any of its rights in said slip;.and for the exclusion from its property and the destruction of its rights the plaintiff has received no compensation. This action is brought to restrain the defendants from the continuance of a situation which destroys plaintiff’s rights or to obtain compensation for said rights. Thus [379]*379far the plaintiff has been unsuccessful except in a very limited extent. It has been allowed the rental value of these rights from the date the city took possession to the date of the lease hereinafter mentioned.

When the condemnation proceedings above referred to were instituted the plaintiff endeavored to broaden the scope thereof and make it clear that the rights of the plaintiff were involved in that proceeding. This was opposed by the city of New York and it succeeded in limiting that proceeding to the land under water between the two piers, and it was subsequently held by the commissioners that the plaintiff’s rights were not embraced within the description contained in that proceeding and this holding was affirmed by the Court of Appeals. (224 N. Y. 211.) After making the stipulation above mentioned, and while the condemnation proceeding was pending, the plaintiff entered into an agreement dated June 2, 1916, whereby the plaintiff leased from the city the lands under water in the slip and agreed to construct a pier over the same. The trial court has held that by entering into this lease the plaintiff has waived all claim to fee damages and all claim to rental damages from and after the date of such agreement. (See 107 Misc. Rep. 190.) The plaintiff, at the time of making the stipulation above mentioned, was under the Greater New York charter (Laws of 1901, chap. 466, § 859) entitled to moor vessels at its piers and to collect wharfage and dockage therefor. Depending upon this stipulation, the plaintiff permitted the city to enter into possession of this property. By the stipulation the city agreed to ascertain and pay for plaintiff’s rights. Entering under this agreement, the city has so changed the situation that the plaintiff’s rights have been destroyed. Vessels cannot with safety be moved over the tunnel constructed under the slip. The city, wishing to further protect said tunnel, has leased the land under water in said slip to the plaintiff for the purpose of erecting a pier thereon. Can it be said that this lease destroyed or waived plaintiff’s rights? I do not so construe it. The plaintiff’s rights (except as a cause of action) had been extinguished. The plaintiff surrendered them to the city upon its promise to pay therefor. The execution of this lease was not a waiver. It was the recognition of an existing condition. Plaintiff did not waive [380]*380its cause of action, and that was all that existed at the time the lease was executed. If the city had entered without any agreement, the situation would have been different. Then the lease might have been considered a waiver. When, however, the plaintiff’s rights have been rendered worthless under an agreement to pay therefor, I cannot see that the situation is changed by plaintiff’s treating as defendant’s property the rights for which it promised to pay. If any other species of property were sold to the city upon a promise to pay therefor when the value was ascertained, I think that the subsequent recognition of the city’s title would not be construed as a waiver of the seller’s right to the purchase money. It cannot make any difference because the subject of the sale is an intangible right. The city agreed to pay for these rights; it destroyed them; therefore, it should pay.

It is urged that the plaintiff had no property rights of any value in the waters in question and that any rights that the plaintiff had have been limited or extinguished by the sovereign power under its paramount authority and the plaintiff, therefore, is entitled to no compensation. The plaintiff owned two piers extending into the waters of New York harbor and under the laws of the State of New York no pier could be erected between them. (Laws of 1857, chap. 763; Matter of Public Service Comm. [Montague St.], 224 N. Y. 211.) This gave the plaintiff a slip in which at the sides of the piers vessels could be safely moored and conveniently unloaded. The plaintiff was entitled to collect wharfage from the vessels thus moored and -unloaded. The land under water between these two piers was owned by the Pierrepont estate, but that ownership was subject (as is all private property in navigable waters) to the right of navigation and to the right of the public as represented by the State and National governments to improve navigation. (Lewis Blue Point Oyster C. Co. v. Briggs, 198 N. Y. 287; 229 U. S. 82; Greenleaf Lumber Co. v. Garrison, 237 id. 251; Willink v. United States, 240 id. 572; Langdon v. Mayor, etc., 93 N. Y. 151; The Number 6, 241 Fed. Rep. 69.)

It is undisputed that the action of the State in limiting the right to build piers was a legitimate exercise of its power as the representative of the people of the State. (Shively v. Bowlby, 152 U. S. 1; Town of Brookhaven v. Smith, 188 N. Y.

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Related

In re the City of New York
219 A.D. 382 (Appellate Division of the Supreme Court of New York, 1927)
Fairchild v. Union Ferry Co.
121 Misc. 513 (New York Supreme Court, 1923)
New York Dock Co. v. Flinn-O'Rourke Co.
121 Misc. 155 (New York Supreme Court, 1923)
New York Dock Co. v. . Flinn-O'rourke Co., Inc.
136 N.E. 315 (New York Court of Appeals, 1922)
Appleby v. City of New York
199 A.D. 539 (Appellate Division of the Supreme Court of New York, 1922)
New York Dock Co. v. Flinn-O'Rourke Co.
200 A.D. 871 (Appellate Division of the Supreme Court of New York, 1922)

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Bluebook (online)
198 A.D. 376, 190 N.Y.S. 588, 1921 N.Y. App. Div. LEXIS 8103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-dock-co-v-flinn-orourke-co-nyappdiv-1921.