People ex rel. Pennsylvania Railroad v. Leo

112 Misc. 578
CourtNew York Supreme Court
DecidedJuly 15, 1920
StatusPublished

This text of 112 Misc. 578 (People ex rel. Pennsylvania Railroad v. Leo) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
People ex rel. Pennsylvania Railroad v. Leo, 112 Misc. 578 (N.Y. Super. Ct. 1920).

Opinion

Erlanger, J.

On July 1,1891, pursuant to a resolution adopted by the department of docks and ferries of the city of New York, the mayor, aldermen and commonalty of said city leased to the Pennsylvania Railroad Company all the wharf property known as pier 77, at the foot of West Thirty-seventh street, North river, for the period of ten years, with the privilege of two further renewals for a like term each. The rent reserved for the first term was $10,000 per year, for the second $11,000 and for the third $12,000 per year. [580]*580The company availed itself of the two privileges of renewal, and has been continuously in possession of said property. The thirtieth year of its occupancy will expire on July 1,1921. Between January 3, 1893, and May 15 of the same year the company, as it was required to do by virtue of its covenant, erected upon said pier, at its expense, a shed, and has ever since maintained and occupied it. The shed is constructed of steel frame, wooden floors and sides of corrugated iron, the roof being covered with slag and tin. It is two stories in height at the shore end and one story at the river end, with openings on both sides and ends at the first story. It is used for freight in transit. There are employed about fifty-five persons in and about the pier and shed, and truck and automobile drivers enter thereon for receiving and delivering the freight. The agreed statement of facts more fully describes the property and the fire-fighting apparatus thereon. It was stipulated that the description of the pier, the structure, fire apparatus and nature and quality of merchandise set forth in certain statements were correct, and were always on the pier, with the exception of certain moving picture films found on pier 77 at the time of one of the inspections hereafter referred to. Between March 13, 1919, and September 26, 1919, inspections of the pier were made from time to time by inspectors connected with the bureau of fire prevention, and reports were made to the chief of that bureau of existing conditions. On April 23, 1919, the fire commissioner, through his deputy, issued three separate orders by which the company was required to provide a separate and distinct dry system of automatic sprinklers throughout the pier. The company, feeling itself aggrieved, appealed to the board of appeals, a duly constituted body created by law to hear appeals from determinations of the fire commissioner. [581]*581In that appeal the director-general of railroads joined. The reasons of the appeal were recited in the notice. Thereafter the appeal came on to be heard and was disposed of as follows: Order 89556-F was affirmed as to four items and reversed as to one; order 89557-F was reversed; order 89558-F was affirmed — all by a vote of five to one. Before the taking of evidence by said board the appeal taken by the director-general of railroads was withdrawn, and it was then stated that the United States governmenf officials had requested that such withdrawal be made on the ground that they felt they were no longer interested. Subsequent to the board’s determination the company, hereafter called the relator, applied to this court for a writ of certiorari, and in its petition set forth the various orders and the action of the said board thereon, claiming that the order 89558-F was erroneous and illegal in the particulars therein specified. The writ thereupon issued, and in the return the defendants fully report all the evidence and proceedings before the appellate body. The facts alleged in the petition are all admitted and the question of law involved is whether the order can be enforced. The defendants move for a final order dismissing the writ and to confirm the determination of the board of appeals. It was made to appear to the court that many like orders have been issued by the fire commissioner against other railroads and the New England Steamship Company, lessees of piers, requiring a similar installation on the properties occupied by them, and that certiorari proceedings were brought by all to test the validity of such orders. It was conceded that this proceeding is to be regarded as the test case before the others are proceeded with. The issue raised by the pleadings is of considerable moment to all concerned. The lease of the relator has but one year to run. In addition to the rent, which is at the [582]*582rate of $12,000 per annum, the expenditure which a compliance with the order will entail is $19,000, and that amount may be exceeded. Upon the expiration of the term the shed is to revert to and become the property of the city, free from all incumbrances, and that would be the effect if the lease had been silent in that regard. People ex rel. International Nav. Co. v. Barker, 153 N. Y. 98. The lease also provides that the city may, upon notice, terminate the tenancy in the event improvement of the waterfront is determined upon, without any claim for damages or compensation on account of the improvements made or erected by the relator. The sprinkler system, if installed, will become a fixture and an inseparable part of the shed, and that will also become the property of the city. There is nothing to prevent the city, as soon as the installation is completed, to give notice terminating the lease if it shall decide to make the improvement. It can hardly be denied that an apparent hardship on the relator is thus imposed, and, under the circumstances, it insists that the order is unreasonable, unnecessary and oppressive. The defendants contend that, irrespective of other provisions of law, the relator bound itself to make the improvement, and hence cannot escape the liability self imposed. This is based upon the theory that the relator covenanted to keep the premises in good repair, and to rebuild the wharf if wholly or partly destroyed by fire, floating ice, collision, or action of the elements; and, further, because it agreed to conform to all laws and orders respecting the use of the pier, although it was stipulated that the lease contains no express provision obligating the relator to comply with the order of the fire commissioner in respect of a sprinkler system installation. It is argued that these provisions indicate that the order to provide a sprinkler system at some future [583]*583time was fairly within the contemplation of the parties when the original lease and the two renewals were made. This, I think, is a mistaken view of the law. In 1891, when the first lease was executed, the fire commissioner was not vested with any of the powers relating to fire prevention and the installing of devices in and upon property in the city of New York which in recent years was conferred upon him. The exclusive control of waterfronts has been since 1871 (Laws of 1871, chap. 574), exclusively vested in the department of docks, and it so continued until the year 1918, when, for the first time, jurisdiction over such property was acquired by the fire commissioner. This effected a substantial change in the law, and it would seem that the parties could not have contracted with reference to the subject. Herald Square Realty Co. v. Saks & Co., 215 N. Y. 427. In my opinion the relator cannot be called upon to obey the order because of any contractual obligation on its part. Authority for the enforcement of the order must be found elsewhere, and section 20 of article 2 of chapter 12 of the Code of Ordinances is next relied upon. Counsel for defendants has furnished a history of that section. It was first a part of the Greater New York charter, and later was incorporated in the Code of Ordinances, and though readopted from time to time, it remained unchanged for upwards of twenty years.

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Related

People Ex Rel. International Navigation Co. v. Barker
47 N.E. 46 (New York Court of Appeals, 1897)
Herald Square Realty Co. v. . Saks Co.
109 N.E. 545 (New York Court of Appeals, 1915)
In re for the Removal of Deuel
116 A.D. 512 (Appellate Division of the Supreme Court of New York, 1906)

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Bluebook (online)
112 Misc. 578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-pennsylvania-railroad-v-leo-nysupct-1920.