United States v. City of New York (And Ten Other Cases)

186 F.2d 418, 1951 U.S. App. LEXIS 2130
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 9, 1951
Docket94, 95, 109-11, 120, 127-131; Dockets 21807, 21808, 21824-21826, 21836, 21865, 21867, 21871, 21872, 21875
StatusPublished
Cited by15 cases

This text of 186 F.2d 418 (United States v. City of New York (And Ten Other Cases)) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. City of New York (And Ten Other Cases), 186 F.2d 418, 1951 U.S. App. LEXIS 2130 (2d Cir. 1951).

Opinion

CLARK, Circuit Judge.

This is another and, it is to be hoped, the final chapter in the lengthy litigation involving the condemnation by the United States of 'New York City’s “Wallabout Market” for expansion of the Brooklyn Navy Yard in 1941. References to the earlier stages of the litigation are set forth in the last case before us, United States v. 53¼ Acres of Land, etc., 2 Cir., 176 F.2d 255, out of which the present case arises. For there we were dealing with the final problem of the interest properly payable upon the awards of fair compensation to the various claimants as ultimately set in the litigation; and we reversed the district court’s decision, D.C.E.D.N.Y., 82 F.Supp. 538, which had required the United States to pay interest at 6 per cent from the date of taking April 1, 1941, to the date of payment of the funds to the claimants, notwithstanding the substantial deposits in court previously made by the United States. In our opinion we set forth certain principles as to payment of interest, based upon the Declaration of Taking Act, 40 U.S.C.A. § 258a, and the precedents construing it. In general terms these excused the government from the payment of interest on money deposited in court and within the power of the court to distribute, even though distribution had not been made and was actually delayed by reason of the disputes inter se of the claimants over questions of title. On remand the district court has again awarded further interest to some ten claimants, including the City of New York and the Brooklyn Eastern District Terminal, on the theory that the government’s opposition to applications for withdrawal had led to the coui't’s action in retaining substantial sums in the court’s registry. The United States has appealed in all these cases, contending that it made no such opposition justifying the award of interest against it on the sums held in court. In two of these cases the City of New York and the Brooklyn Eastern District Terminal also appear as appellants, claiming greater awards than they actually received below. In the .eleventh and final appeal before us the City is the sole appellant from an order of the district court requiring it to pay interest on a refund of prepaid rent from its lessee the New York Central Railroad Company.

We do not need to rehearse the facts in detail which appear from earlier opinions, particularly those cited above, 82 F. Supp. 538; 176 F.2d 255, dealing with the problem of interest. When the United States filed its petition for condemnation and declaration of taking on April 1, 1941, it deposited with the court the sum of $4,000,000, then estimated to be just compensation for the property. On May 11, 1945, it amended its declaration of taking and deposited an additional sum of $261,230. On June 3, 1948, it also deposited with the court an additional $1,660,687.48, which made the total of the deposits equal to the amount of the final award, namely, $5,387,816, plus an additional amount exceeding a half million dollars on account of estimated deficiency interest, computed by the government on the amounts and over the periods when its deposits were less than the final award. The City of New York was the owner of the fee of the 53J4 acres involved, and on this there had been numerous improvements and there were many lessees of the fee owner who had compensable subordinate interests. Actually there were originally more than six hundred defendants to the proceedings. On July 18, 1941, the City applied for withdrawal of $3,000,000 and was allowed by the court to withdraw $2,500,000. Other claimants here involved likewise made application on various dates and were allowed by the court to withdraw amounts less than had been requested or were ultimately awarded. When our decision in United States v. City of New York, 2 Cir., 165 F.2d 526, 1 A.L.R.2d 870, explicitly settled a series of final questions as to the persons interested in the awards and their appropriate shares, the parties in June, 1948, entered into a stipulation approved by the court carrying out the terms *421 of our mandate and settling the final amount to be awarded claimants as $5,387,-816, of which $4,008,687 was the share of the City (subject, however, to the payment out of this of certain specified sums to other claimants). Thereafter arose the problem as to interest with our reversal of the district court’s award as previously noted. After our decision the district court again considered the question and in each case held the United States for interest not only upon the amounts of the deficiencies in the deposits, as conceded by it, but also upon the amounts deposited but retained in the court’s registry until the final payment date of June 3', 1948. The validity of this latter action is the substantial question on this appeal.

On the face of the record alone the United States quite obviously has the better of the argument. For the court orders allowing the withdrawals specifically and carefully refer to government counsel as “appearing but not opposing” the motions. Thus the first and vitally important order of July 18, 1941, allowing the limited withdrawal by the City stated above has the explicit statement to this effect quoted in full in the footnote. 1 Other pertinent orders affecting other claimants are equally precise. 2 In finding governmental opposition, contrary to this record, the district judge relied both upon his own remembrance of conferences in chambers with counsel leading to the adoption of the figures set for the respective withdrawals in the various court orders and upon the affidavits from counsel for the City and for the various claimants stating their present recollections of these conferences and asserting governmental opposition to all withdrawals in excess of the figures ultimately incorporated into the orders. All this the United States vigorously challenges by counter affidavits on the facts and the law.

It would be indeed regrettable if decision had necessarily to turn upon disputes among counsel, participated in by the trial judge, as to what had occurred at conferences outside the courtroom some years ago now relied upon to vary the recitals of official court judgments. Such impact of bygone oral negotiations on the distribution of governmental funds of large amount would suggest an approach of a casualness which must surely 'be termed at least un-lawyerlike ; and there must also arise question whether the integration of all informal negotiations into a formal document approved by all the parties (in the City’s case drafted by it) and accepted by the court as its judgment can be set aside for anything less than fraud. But we think decision here is actually much simpler, for the result below involves a misinterpretation of or an attempt to retreat from our mandate on the previous appeal. For on any of the theories presented to us, it appears to us clear that, whatever the action of counsel for the United States, it did not amount to a withdrawal or withholding of the deposited funds on any issue as to the value of the property condemned.

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186 F.2d 418, 1951 U.S. App. LEXIS 2130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-city-of-new-york-and-ten-other-cases-ca2-1951.