United States v. Reynolds

397 U.S. 14, 90 S. Ct. 803, 25 L. Ed. 2d 12, 1970 U.S. LEXIS 72, 13 Fed. R. Serv. 2d 1335
CourtSupreme Court of the United States
DecidedFebruary 24, 1970
Docket88
StatusPublished
Cited by288 cases

This text of 397 U.S. 14 (United States v. Reynolds) 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. Reynolds, 397 U.S. 14, 90 S. Ct. 803, 25 L. Ed. 2d 12, 1970 U.S. LEXIS 72, 13 Fed. R. Serv. 2d 1335 (1970).

Opinions

Mr. Justice Stewart

delivered the opinion of the Court.

The United States brought this suit in the United States District Court for the Western District of Kentucky to condemn more than 250 acres of the respondents’ land for a federal development known as the Nolin Reservoir Project located in that State. An important issue in the case was raised by the respondents’ claim that 78 acres of the land, taken for construction of recreational facilities adjacent to the reservoir, had not been within the original scope of the project.1 A jury [15]*15awarded the respondents $20,000 as just compensation for all the land taken. Upon an appeal by the respondents, the Court of Appeals for the Sixth Circuit reversed the judgment and ordered a new trial, finding that the District Judge in his instructions to the jury had erroneously referred to matters disclosed outside the jury’s presence.2 The trial and appellate courts were in agreement, however, in rejecting the Government’s contention that the “scope-of-the-project” issue was for the trial judge to decide and should not, therefore, have been submitted to the jury at all. There being a conflict between the circuits on this question,3 we granted certiorari to consider a recurring problem of importance in federal condemnation proceedings. 396 U. S. 814.

The Fifth Amendment provides that private property shall not be taken for public use without just compensa[16]*16tion. And “just compensation” means the full monetary-equivalent of the property taken.4 The owner is to be put in the same position monetarily as he would have occupied if his property had not been taken.5 In enforcing the constitutional mandate, the Court at an early date adopted the concept of market value: the owner is entitled to the fair market value of the property6 at the time of the taking.7 But this basic measurement of compensation has been hedged with certain refinements developed over the years in the interest of effectuating the constitutional guarantee. It is one of these refinements that is in controversy here.

The Court early recognized that the “market value” of property condemned can be affected, adversely or favorably, by the imminence of the very public project that makes the condemnation necessary.8 And it was perceived that to permit compensation to be either reduced or increased because of an alteration in market value attributable to the project itself would not lead to the “just compensation” that the Constitution requires.9 On the other hand, the development of a public project may also lead to enhancement in the market value of neighboring land that is not covered by the project itself. And if that land is later condemned, whether for an extension of the existing project or for some other public purpose, the general rule of just compensation requires that such enhancement in value be [17]*17wholly taken into account, since fair market value is generally to be determined with due consideration of all available economic uses of the property at the time of the taking.10

In United States v. Miller, 317 U. S. 369, the Court gave full articulation to these principles:

“If a distinct tract is condemned, in whole or in part, other lands in the neighborhood may increase in market value due to the proximity of the public improvement erected on the land taken. Should the Government, at a later date, determine to take these other lands, it must pay their market value as enhanced by this factor of proximity. If, however, the public project from the beginning included the taking of certain tracts but only one of them is taken in the first instance, the owner of the other tracts should not be allowed an increased value for his lands which are ultimately to be taken any more than the owner of the tract first condemned is entitled to be allowed an increased market value because adjacent lands not immediately taken increased in value due to the projected improvement.
“The question then is whether the respondents' lands were probably within the scope of the project from the time the Government was committed to it. If they were not, but were merely adjacent lands, the subsequent enlargement of the project to include them ought not to deprive the respondents of the value added in the meantime by the proximity of the improvement. If, on the other hand, they were, the Government ought not to pay any increase in value arising from the known fact that the lands probably would be condemned. The owners ought [18]*18not to gain by speculating on probable increase in value due to the Government’s activities.” 317 U. S., at 376-377.

There is no controversy in the present case regarding these basic principles. The parties agree that if the acreage in issue was “probably within the scope of the project from the time the Government was committed to it,” substantially less compensation is due than if it was not. For if the property was probably within the project’s original scope, then its compensable value is to be measured in terms of agricultural use. If, on the other hand, the acreage was outside the original scope of the project, its compensable value is properly measurable in terms of its economic potential as lakeside residential or recreational property.

The issue between the parties is simply whether the “scope-of-the-project” question is to be determined by the trial judge or by the jury. There is no claim that the issue is of constitutional dimensions. For it has long been settled that there is no constitutional right to a jury in eminent domain proceedings. See Bauman v. Ross, 167 U. S. 548, 593. As Professor Moore has put the matter:

“The practice in England and in the colonies prior to the adoption in 1791 of the Seventh Amendment, the position taken by Congress contemporaneously with, and subsequent to, the adoption of the Amendment, and the position taken by the Supreme Court and nearly all of the lower federal courts lead to the conclusion that there is no constitutional right to jury trial in the federal courts in an action for the condemnation of property under the power of eminent domain.” 11

[19]*19It is not, therefore, to the Seventh Amendment that we look in this case, but to the Federal Rules of Civil Procedure. Rule 71A (h) provides that, except in circumstances not applicable here, “any party” to a federal eminent domain proceeding “may have a trial by jury of the issue of just compensation,” unless the court in its discretion orders that that issue “shall be determined by a commission of three persons appointed by it. ... Trial of all issues shall otherwise be by the court.” 12 The Rule thus provides that, except for the single issue of just compensation, the trial judge is to decide all issues, legal and factual, that may be presented.

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Cite This Page — Counsel Stack

Bluebook (online)
397 U.S. 14, 90 S. Ct. 803, 25 L. Ed. 2d 12, 1970 U.S. LEXIS 72, 13 Fed. R. Serv. 2d 1335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-reynolds-scotus-1970.