Van Wagoner v. Morrison

279 Mich. 285
CourtMichigan Supreme Court
DecidedMarch 2, 1937
DocketDocket No. 131, Calendar No. 39,338
StatusPublished
Cited by2 cases

This text of 279 Mich. 285 (Van Wagoner v. Morrison) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Wagoner v. Morrison, 279 Mich. 285 (Mich. 1937).

Opinion

North, J.

In October and November, 1935, the probate court of Oakland county entered orders confirming appraisals of damages made in highway [288]*288condemnation proceedings. The object of these proceedings was to obtain a right of way for the relocation of the Grand Trunk Railroad so that its former right of way might be used in the Woodward Avenue widening project. (See Johnstone v. Railway Co., 245 Mich. 65 [67 A. L. R. 373].) In the orders of confirmation, interest at the rate of 5 per cent, per annum on the awards was allowed from September 1,1930, by the probate judge. Appellants contest the validity of the allowance of interest.

In these cases there was no actual physical taking of the property in the usual sense. Instead the awards were for the taking or impairment of thp property owners’ rights in negative reciprocal easements in other parcels of a restricted plat, which appellees assert lessened the value of their properties located in the same plat. As to incumbered properties the awards were made jointly to the mortgagors and mortgagees without apportionment in accordance with their respective interests. In some instances the demand for payment of interest is being-made by the mortgagee. That circumstance, however, would not seem to be at all controlling.

The State highway commissioner made and filed determinations of necessity on and prior to October 16, 1929. Because he found as to each of these parcels the benefits fully offset the damag-es, he reported no amount due the property owners as damages. Commissioners were subsequently appointed by the probate court of Oakland county and they filed an appraisal of damages made as of the date of the State highway commissioner’s report, October 16, 1929. It is agreed that the railroad company actually occupied the condemned right of way on September 1, 1930. On and after October 21, 1935, the probate judge entered orders confirming the ap[289]*289praisals of damages to the respective parcels of property involved, and in the court’s orders of confirmation it was provided that interest at the rate of 5 per cent, per annum, computed from September 1, 1930, should be paid as a part of the compensation to the respective property owners for damage sustained. It is from this provision in the orders of confirmation awarding interest that this appeal is taken. In an opinion filed by the probate judge he gives the reason for his determination. We quote:

“The (instant) cases differ from those in which there is a physical taking of the owner’s property. Here there was no taking of the property in the ordinary sense, but, from the date of the construction of the railroad through the several restricted subdivisions, the lots in question were rendered less valuable through the breaking of the restrictions. This damage did not arise upon the determination of necessity by the State highway commissioner but rather upon the date of construction of the railroad through each restricted subdivision. Until that time there was only a threatened breach of the restrictions. Prior to that date the State or the railroad company might have abandoned the improvement, or diverted the course of the railroad, in which event there would have been no damage. When the railroad was actually constructed, however, the threatened damage became an actuality, and the value of defendants’ lots in each of the restricted subdivisions was thereupon decreased. At this point an obligation arose upon the part of the State to recompense the owners for their damage, because there was then an actual taking of their property in the constitutional sense.”

In support of their contention that interest should be allowed only from the date of confirmation, appellants cite and rely upon the following cases: [290]*290People, ex rel. Anderson, v. Township Board of LaGrange, 2 Mich. 187; Campau v. City of Detroit, 225 Mich. 519 (32 A. L. R. 91); Rosen v. City of Detroit, 242 Mich. 690; Morgan v. City of Detroit, 251 Mich. 63. The three cases last above cited lend little, if any, support to appellants’ contention. Instead, so far as pertinent here, each of these three cases only reiterates the rule (as applied to the facts in the particular case) that in condemnation proceedings interest begins to accrue on the award at the time of confirmation. It does not appear in any of these three cases that a claim for interest prior to the date of confirmation was asserted. Instead the actual taking or appropriation of the land, so far as appears in each of these cases, did not antedate the confirmation. This is expressly noted in the Campau Case, supra, from which we quote, 530:

“In this case we are not troubled with any question of damages or interest based on actual or constructive taking prior to the award, as in many cases to be found.”

In People, ex rel. Anderson, v. Township Board of LaGrange, supra, the court held the property owner was not entitled to mandamus requiring the township board to pay interest on an award of $350 made by appraisers April 14,1849. At that time the proceeding was in no sense a judicial proceeding. This is noted in the later case of Campau v. City of Detroit, supra. Further, the statute (Bev. Stat. 1846, chap. 25, § 12) provided that the damages after being determined ‘ shall be levied and collected * * * and shall be paid by the township treasurer. ’ ’ Only the amount of ascertained damages could be levied for the statute contemplated deferring of payment until that amount had been “levied and collected” [291]*291as a part of the taxes for the ensuing year. Hence the court held that the property owner was not entitled to interest in the interim. • Further, notwithstanding'the Constitution of 1835 provided private property should not be taken for public use “without just compensation therefor” (see Const. 1835, art. 1, § 19), still it is worthy of note that in the Anderson Case no claim of a right to compensation by the property owner based upon the constitutional provision for “just compensation” appears to have been made. We think the decision in the Anderson Case is not controlling in the instant case because of the variance in both law and facts, and also because the claim for added interest made by the property owner was not asserted on the constitutional ground of “just compensation.”

The instant case is somewhat unusual in that the actual appropriation of the property rig'hts for which the commissioners made appraisals of damages occurred a number of years prior to the date of confirmation. As noted above the respective dates are September 1, 1930, and October 21, 1935. Relying upon both the Federal and State constitutional provisions, appellees claim that as an element of damages they are entitled to interest on the appraised amount of their damages from and after the time appellants deprived them of their property rights for which the damages were awarded. It is conceded that the appraisals of damages by the commissioners were made as of a date prior to September 1, 1930. This being true, appellees assert that they will not be justly compensated for the loss to which they have been subjected except there is included as an element of their damages interest computed from the date property rights were taken.

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279 Mich. 285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-wagoner-v-morrison-mich-1937.