Redevelopment Authority v. Yee Kai Teung

289 A.2d 498, 5 Pa. Commw. 65, 1972 Pa. Commw. LEXIS 455
CourtCommonwealth Court of Pennsylvania
DecidedMarch 30, 1972
DocketAppeal, 604 C.D. 1971
StatusPublished
Cited by16 cases

This text of 289 A.2d 498 (Redevelopment Authority v. Yee Kai Teung) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Redevelopment Authority v. Yee Kai Teung, 289 A.2d 498, 5 Pa. Commw. 65, 1972 Pa. Commw. LEXIS 455 (Pa. Ct. App. 1972).

Opinion

Opinion by

Judge Blatt,

The appellant Authority (hereinafter “condemnor”) has been engaged in condemning certain properties in the First Ward of the City of Johnstown in order to carry out its Market Street West Urban Renewal Project. The property of the appellee (hereinafter “condemnee”) was located in this area, and consisted of 999 square feet of land occupied by a three-story frame building. Half of the basement and. half of the first floor were used by a tenant as a sandwich shop and for the manufacture of candy. The other half of the first floor and basement were used by the condemnee as a laundry, while the upper two floors were used for the storage of laundry equipment and supplies and as living, quarters by the condemnee and his family. Numerous fixtures used in the laundry business were installed on the premises.

An eminent domain action against the condemnee’s property was properly commenced by the filing of a Declaration of Tailing by the condemnor. When the condemnee refused to accept the amount offered as just compensation, the condemnor requested that a rule for possession issue. The rule was issued and an answer was filed thereto by the condemnee. After a hearing, the court entered an order dismissing the rule on the ground that the condemnor had not offered just compensation, holding that it should have used the Assembled Industrial Plant Doctrine in arriving at the estimated value. Exceptions were filed to the court’s findings but were subsequently withdrawn. Condemnor thereafter offered a higher estimate of value, this time based upon the Assembled Industrial Plant Doctrine, and, upon payment into court of the amount tendered, the rule for possession was made absolute.

*67 The case was heard by the Board of Viewers, which entered an award of $50,712.16 for general damages and of $500.00 for special damages. The condemnee appealed the award, and a jury verdict was subsequently entered awarding the condemnee $68,000.00 in general damages and $5,000.00 in relocation damages. The condemnor then moved for a new trial on the ground that the verdict was excessive. The condemnee had himself estimated the value of the property to be $132,000.00, and his two appraisers had presented figures of $94,700.00 and $98,000.00 respectively, while the condemnor’s appraiser testified to a value of $40,000.00. The motion for a new trial was denied by the Court of Common Pleas of Cambria County sitting m banc, and an appeal was brought by the condemnor to this Court.

The condemnor has raised a number of grounds on which it is argued that a new trial should be granted:

(a) That the lower court should never have applied either the Assembled Industrial Plant Doctrine or the Assembled Economic Unit Doctrine in ascertaining the value of condemnee’s property, because the fixtures involved are not functional in relationship to the entire building;

(b) That, if the Assembled Economic Unit Doctrine is applicable, business dislocation damages should not be allowable;

(c) That the lower court erred in permitting the condemnee’s own estimate of value to be received as evidence;

(d) That the lower court did not properly instruct the jury on valuation under either the Assembled Industrial Plant Doctrine or the Assembled Economic. Unit Doctrine; and

(e) That the verdicts were excessive and against the weight of credible evidence.

*68 We have carefully considered the arguments raised by the condemnor, but, for the reasons set forth below, we do not agree that a new trial should be granted.

The condemnee has urged that, by withdrawing exceptions to the lower court’s denial of possession, the condemnor has accepted the applicability of either the Assembled Industrial Plant Doctrine or the Assembled Economic Unit Doctrine. It is condemnee’s contention that the order denying possession was appealable, and by failing to appeal at the time the order was made, the condemnor forfeited its right to raise the issue in later proceedings involving the condemnation. The condemnor argues that the order denying possession was merely an interlocutory order and not appealable, because the Eminent Domain Code provides for an appeal only “. . . from any final order or judgment of the court of common pleas. . . ,” 1

In support of his position, the condemnee cites Philadelphia, Morton & Swarthmore Street Railway Company’s Petition, 203 Pa. 354, 53 A. 191 (1902), where an order permitting one street railway company to take possession of the tracks of another was held appealable. The issue of who should have possession of the tracks was the central issue of the case, the matter of damages being merely incidental. Philadelphia, Morton was distinguished by the Supreme Court in Seligsohn Appeal, 410 Pa. 270, 189 A. 2d 746 (1963), in which an order for possession was found to be interlocutory and not appealable but where the central issue was not possession, but the sufficiency of the bond. The Court noted that, once the issue of the bond was settled, the matter of possession was merely academic. In the instant case, it appears that the amount of just compensation was the central issue between the parties, and not the right of *69 possession, so that the order denying possession would, therefore, have been interlocutory and not appealable. This would mean that the applicability to this condemnation of either the Assembled Industrial Plant Doctrine or the Assembled Economic Unit Doctrine is properly before this Court. Be that as it may, however, a final determination of this particular issue is immaterial, for the condemnee’s property was properly subject to valuation under either of these doctrines, and the appealability of the order for possession is therefore irrelevant.

The Assembled Industrial Plant Doctrine has long been applied in Pennsylvania in mortgage and taxation cases. See, Central Lith. Co. v. Eatmore Chocolate Co., 316 Pa. 300, 175 A. 697 (1934). And, in United Laundries, Inc. v. Board of Property Assessment, 359 Pa. 195, 58 A. 2d 833 (1948), it was specifically held that a commercial laundry is an “industry” within the doctrine. Basically, the doctrine is that machinery and equipment necessary for the operation of a plant and placed therein become fixtures, whether or not they are attached to the realty. The doctrine was first applied to eminent domain proceedings in Pennsylvania in Gottus v. Allegheny County Revelopment Authority, 425 Pa. 584, 229 A. 2d 869 (1967), where the industry involved happens also to have been a commercial laundry. Subsequently, the doctrine was expanded by the Supreme Court to cover commercial, service and other economic units aside from industrial plants, and was retitled the Assembled Economic Unit Doctrine. Singer v. Oil City Redevelopment Authority, 437 Pa. 55, 261 A. 2d 594 (1970).

In Singer, supra, the Court said that the doctrine may be applied under two sets of circumstances: one, where that portion of a business which is removable would not be sufficient to permit the owner to constitute *70

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Bluebook (online)
289 A.2d 498, 5 Pa. Commw. 65, 1972 Pa. Commw. LEXIS 455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/redevelopment-authority-v-yee-kai-teung-pacommwct-1972.