State Ex Rel. Steubenville Ice Co. v. Merrell

189 N.E. 116, 127 Ohio St. 453, 127 Ohio St. (N.S.) 453, 1934 Ohio LEXIS 399
CourtOhio Supreme Court
DecidedJanuary 24, 1934
Docket24354
StatusPublished
Cited by14 cases

This text of 189 N.E. 116 (State Ex Rel. Steubenville Ice Co. v. Merrell) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Steubenville Ice Co. v. Merrell, 189 N.E. 116, 127 Ohio St. 453, 127 Ohio St. (N.S.) 453, 1934 Ohio LEXIS 399 (Ohio 1934).

Opinion

Weygandt, C. J.

The respondents contend that claims against the state of Ohio bear no interest in the absence of specific provision therefor, and that Section *454 8305, General Code, contains no clause relating to awards resulting from an exercise of the power of eminent domain.

The relator concedes the general correctness of these views, but asserts that the question in the instant case is controlled by Article I, Section 19, of the Constitution of Ohio, rather than by statute.

The pertinent language of the Constitution is as follows: “Where private property shall be taken for public use, a compensation therefor shall first be made in money, or first secured by a deposit of money; and such compensation shall be assessed by a jury, without deduction for benefits to any property of the owner.”

Although the Fifth Amendment to the Constitution of the United States is a limitation upon the federal government, rather than upon the states, it is worth noting that the language used is similar to that of the Constitution of Ohio. The former uses the phrase “just compensation” instead of the single word “compensation.” However, in this respect, the intendment of the two is manifestly identical.

The matter clearly resolves itself into a question of constitutional, rather than statutory, interpretation. If the word “compensation,” as used in the Constitution of Ohio, includes interest, then of course the Legislature is without authority to provide for a taking in such instances without payment of the principal sum together with interest thereon.

In 10 Ruling Case Law, 163, appears the following statement of the rule generally recognized by both the federal and the state courts: “When an owner is actually dispossessed of his property before his compensation is paid he is entitled to interest from the time of such dispossession to the time of payment; and when damage is inflicted upon property for which the owner is entitled to compensation, if the injury is complete, interest begins to run from the time of the presentation of the claim.”

*455 In 20 Corpus Juris, 807, the rule is stated as follows: “According to the great weight of authority, where payment of compensation does not accompany the taking of land for public use but is postponed to a later period, the landowner is entitled to interest, to be computed from the time of the taking, or, what amounts to the same thing, to damages in the nature of interest for delay in payment-of the compensation # * * ) ?

In Lewis on Eminent Domain, volume 2, Third Edition, Section 742, this language is used: “In the absence of any statutory provisions controlling the subject, the rules in respect to interest must be derived from the constitutional provision requiring just compensation to be made for property taken. Where damages are assessed for property which has already been lawfully appropriated to public use, interest should be allowed from the time of the appropriation, or entry on the property. * * * As his just compensation is withheld from him, though necessarily, he should have an equivalent for such withholding, and that, in law, is legal interest. This is just to the owner.”

In 15 Ann. Cas., 109, appears the following statement of the rule: “It has been repeatedly held that where the law permits the possession of land to be taken under eminent domain proceedings before its value has been appraised and paid or tendered to the owner, or where possession has been taken without the institution of such proceedings, and the owner acquiesces in a subsequent claim of the right of eminent domain, the just compensation to which the owner is entitled includes interest on the value of the land from the time possession was taken by the condemnor.”

To the same effect is the following language in 15 Ohio Jurisprudence, 865: “Compensation, to be full, must include interest from the time of the injury.”

The view of the federal courts is illustrated by the case of Seaboard Air Line Ry. Co. v. United States, 261 *456 U. S., 299, 43 S. Ct., 354, 67 L. Ed., 664. In his opinion Mr. Justice Butler says: “The rule above referred to, that in the absence of- agreement to pay or statute allowing it the United States will not be held liable for interest on unpaid accounts and claims, does not apply here. The requirement that ‘just compensation’ shall be paid is comprehensive and includes all elements and no specific command to include interest is necessary when interest or its equivalent is a part of such compensation. Where the United States condemns and takes possession of land before ascertaining or paying compensation, the owner is not limited to the value of the property at the time of the taking; he is entitled to such addition as will produce the full equivalent of that value paid contemporaneously with the taking. Interest at a proper rate is a good measure by which to ascertain the amount so to be added. The legal rate of interest, as established by the South Carolina statute was applied in this case. This was a ‘palpably fair and reasonable method of performing the indispensable condition to the exercise of the right of eminent domain, namely, of making ‘just compensation’ for the land as it stands, at the time of taking.”

Then in the very recent case of Jacobs v. United States, 290 U. S., 13, 54 S. Ct., 26, in the second paragraph of the syllabus as reported in 78 L. Ed., —, the following language is used: “Interest on the amount of damage caused by the construction of a dam to lands which were intermittently flooded in consequence, from the date of its completion, is a part of the just compensation recoverable by the landowner.”

In his opinion Mr. Chief Justice Hughes used this language:

“The suits were based on the right to recover just compensation for property taken by the United States for public use in the exercise of its power of eminent domain. That right was guaranteed by the Constitution. The fact that condemnation proceedings were *457 not instituted and that the right was asserted in suits by the owners did not change the essential nature of the claim. The form of the remedy did not qualify the right. It rested upon the Fifth Amendment. Statutory recognition was not necessary. A promise to pay was not necessary. Such a promise was implied because of the duty to pay imposed by the Amendment. The suits were thus founded upon the Constitution of the United States. * * *
“The amount recoverable was just compensation, not inadequate compensation. The concept of just compensation is comprehensive and includes all elements, ‘and no specific command to include interest is necessary when interest or its equivalent is a part of such compensation.’ The owner is not limited to the value of the property at the time of the taking; ‘he is entitled to such addition as will produce the full equivalent of that value paid contemporaneously with the taking.’ Interest at a proper rate ‘is a good measure by which to ascertain the amount so to be added. ’ Seaboard Air Line R. Co. v. United States, 261 U. S., 299, 306, 67 L. Ed., 664, 669, 43 S. Ct., 354.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State v. Penrod
611 N.E.2d 996 (Ohio Court of Appeals, 1992)
City of Norwood v. Cannava
543 N.E.2d 802 (Ohio Supreme Court, 1989)
City of Athens v. Warthman
266 N.E.2d 583 (Ohio Court of Appeals, 1970)
City of Cincinnati v. Dale
252 N.E.2d 287 (Ohio Supreme Court, 1969)
Bekos v. Masheter
238 N.E.2d 548 (Ohio Supreme Court, 1968)
In Re Appropriation for Hwy. Purposes of Lands of Gund Realty Co.
237 N.E.2d 408 (Ohio Court of Appeals, 1968)
Hammond v. State Roads Commission
217 A.2d 258 (Court of Appeals of Maryland, 1966)
Director of Highways v. Virginia Supply Co.
176 N.E.2d 155 (Ohio Court of Appeals, 1960)
Arkansas-Missouri Power Company v. Hamlin
288 S.W.2d 14 (Missouri Court of Appeals, 1956)
Yancey v. North Carolina State Highway & Public Works Commission
22 S.E.2d 256 (Supreme Court of North Carolina, 1942)
Van Wagoner v. Morrison
279 Mich. 285 (Michigan Supreme Court, 1937)
In Re Petition of State Highway Com'r.
271 N.W. 760 (Michigan Supreme Court, 1937)

Cite This Page — Counsel Stack

Bluebook (online)
189 N.E. 116, 127 Ohio St. 453, 127 Ohio St. (N.S.) 453, 1934 Ohio LEXIS 399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-steubenville-ice-co-v-merrell-ohio-1934.