United States v. Fuller

409 U.S. 488, 93 S. Ct. 801, 35 L. Ed. 2d 16, 1973 U.S. LEXIS 141
CourtSupreme Court of the United States
DecidedJanuary 16, 1973
Docket71-559
StatusPublished
Cited by194 cases

This text of 409 U.S. 488 (United States v. Fuller) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Fuller, 409 U.S. 488, 93 S. Ct. 801, 35 L. Ed. 2d 16, 1973 U.S. LEXIS 141 (1973).

Opinions

Mr. Justice Rehnquist

delivered the opinion of the Court.

Respondents operated a large-scale “cow-calf” ranch near the confluence of the Big Sandy and Bill Williams Rivers in western Arizona. Their activities were conducted on lands consisting of 1,280 acres that they [489]*489owned in fee simple (fee lands), 12,027 acres leased from the State of Arizona, and 31,461 acres of federal domain held under Taylor Grazing Act permits issued in accordance with § 3 of the Act, 48 Stat. 1270, as amended, 43 U. S. C. § 315b. The Taylor Grazing Act authorizes the Secretary of the Interior to issue permits to livestock owners for grazing their stock on Federal Government lands. These permits are revocable by the Government. The Act provides, moreover, that its provisions “shall not create any right, title, interest, or estate in or to the lands.” Ibid.

The United States, petitioner here, condemned 920 acres of respondents’ fee lands. At the trial in the District Court for the purpose of fixing just compensation for the lands taken, the parties disagreed as to whether the jury might consider value accruing to the fee lands as a result of their actual or potential use in combination with the Taylor Grazing Act “permit” lands. The Government contended that such element of incremental value to the fee lands could neither be taken into consideration by the appraisers who testified for the parties nor considered by the jury. Respondents conceded that their permit lands could not themselves be assigned any value in view of the quoted provisions of the Taylor Grazing Act. They contended, however, that if on the open market the value of their fee lands was enhanced because of their actual or potential use in conjunction with permit lands, that element of value of the fee lands could be testified to by appraisers and considered by the jury. The District Court substantially adopted respondents’ position, first in a pretrial order and then in its charge to the jury over appropriate objection by the Government.

On the Government’s appeal, the Court of Appeals for the Ninth Circuit affirmed the judgment and approved the charge of the District Court. 442 F. 2d 504. [490]*490That court followed the earlier case of United States v. Jaramillo, 190 F. 2d 300 (CA10 1951), and distinguished our holding in United States v. Rands, 389 U. S. 121 (1967). The dissenting judge in the Ninth Circuit thought the issue controlled by Rands, supra. We granted certiorari. 404 U. S. 1037 (1972).

Our prior decisions have variously defined the “just compensation” that the Fifth Amendment requires to be made when the Government exercises its power of eminent domain. The owner is entitled to fair market value, United States v. Miller, 317 U. S. 369, 374 (1943), but that term is “not an absolute standard nor an exclusive method of valuation.” United States v. Virginia Electric & Power Co., 365 U. S. 624, 633 (1961). The constitutional requirement of just compensation derives as much content from the basic equitable principles of fairness, United States v. Commodities Trading Corp., 339 U. S. 121, 124 (1950), as its does from technical concepts of property law.

The record shows that several appraiser witnesses for respondents testified that they included as an element of the value that they ascribed to respondents’ fee lands the availability of respondents’ Taylor Grazing Act permit lands to be used in conjunction with the fee lands. Under the District Court’s charge to the jury, the jury was entitled to consider this element of value testified to by the appraisers. This Court has held that generally the highest and best use of a parcel may be found to be a use in conjunction with other parcels, and that any increment of value resulting from such combination may be taken into consideration in valuing the parcel taken. Olson v. United States, 292 U. S. 246, 256 (1934). The question presented by this case is whether there is an exception to that general rule where the parcels to be aggregated with the land taken are themselves owned [491]*491by the condemnor and used by the condemnee only under revocable permit from the condemnor.

To say that this element of value would be considered by a potential buyer on the open market, and is therefore a component of “fair market value,” is not the end of the inquiry. In United States v. Miller, supra, this Court held that the increment of fair market value represented by knowledge of the Government’s plan to construct the project for which the land was taken was not included within the constitutional definition of “just compensation.” The Court there said:

“But [respondents] insist that no element which goes to make up value ... is to be discarded or eliminated. We think the proposition is too broadly stated. . . .” 317 U. S., at 374.

United States v. Cors, 337 U. S. 325 (1949), held that the just compensation required to be paid to the owner of a tug requisitioned by the Government in October 1942, during the Second World War, could not include the appreciation in market value for tugs created by the Government’s own increased wartime need for such vessels. The Court said: “That is a value which the government itself created and hence in fairness should not be required to. pay.” Id., at 334. A long line of cases decided by this Court dealing with the Government’s navigational servitude with respect to navigable waters evidences a continuing refusal to include, as an element of value in compensating for fast lands that are taken, any benefits conferred by access to such benefits as a potential portsite or a potential hydro-electric site. United States v. Rands, supra; United States v. Twin City Power Co., 350 U. S. 222 (1956); United States v. Commodore Park, 324 U. S. 386 (1945).

[492]*492These cases go far toward establishing the general principle that the Government as condemnor may not be required to compensate a condemnee for elements of value that the Government has created, or that it might have destroyed under the exercise of governmental authority other than the power of eminent domain. If, as in Rands, the Government need not pay for value that it could have acquired by exercise of a servitude arising under the commerce power, it would seem a fortiori that it need not compensate for value that it could remove by revocation of a permit for the use of lands that it owned outright.

We do not suggest that such a general principle can be pushed to its ultimate logical conclusion. In United States v. Miller, supra,

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Bluebook (online)
409 U.S. 488, 93 S. Ct. 801, 35 L. Ed. 2d 16, 1973 U.S. LEXIS 141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-fuller-scotus-1973.