Welbilt Corp. v. State

80 Misc. 2d 439, 363 N.Y.S.2d 766, 1975 N.Y. Misc. LEXIS 2193
New York Court of Claims·Decided January 22, 1975·No. Claim No. 52203·Published

Opinion

Robert J. Mangum, J.

This claim seeks recovery for property damages allegedly occurring as a result of the construction of the Flushing-Maspeth Grade Crossing Elimination Project (P. S. O. No. 11626). A notice of intention was filed on March 8, 1968 and the claim, on March 6, 1970. Trial was commenced April 22, 1974.

In a [decision dated June 6, 1973, in which interest was suspended on any award from April 30, 1973 to the first day of [440] trial, the Hon. Henry W. Lengyer¡denied the State’s application for dismissal and held the claim timely filed.

The damages consist basically of three separate items, each distinguishable by its own factual and legal considerations. According to counsel’s brief, claimant’s damages may be summarized as f ollows:

(a) $226,000 plus interest from November 15, 1969 for out-of-pocket losses incurred when, during the extended period of construction, total access- ¡was cut off to the Welbilt plant from all doors, entraneeways, and driveways that fronted on Flushing Avenue.

(b) $36,478 plus interest from February 13, 1968, for damages sustained when the 48-inch Queens Conduit of the -Catskill Aqueduct which ran alongside the Welbilt premises, was ruptured. The icontractor, driving piles in accordance ivith the plans of the State, drove a steel H-Pile right through the center of the water conduit.

(c) $52,626.43 plus interest from July 7,1970, for structural damage to the Flushing Avenue and 59th Drive elevations of the Welbilt buildings, caused by the enormous and extended pile driving and sheet piling .activities adjacent to and in the immediate vicinity of the Webilt plant.”

The .claim is predicated in part -upon the authority of section 6 of chapter 678 of the Laws of 1928 (Grade Crossing Elimination Act; now Transportation Law, §§ 220-229) whose relevant provisions contain the following: ” If the work of such elimination causes damage to property not acquired as above provided, the state shall be liable therefor in the first instance, but this provision shall not be deemed to create any liability not already existing in law. ’ ’

FACTS

.Claimant manufactures home and commercial appliances. The site of its operations comprises an enormous area consisting of several attached and semiattached buildings that contain about 670,000 -square feet of industrial space.

The plant is located on Flushing Avenue, which runs north and .south along the property’s westerly boundary, in the Maspeth section of Queens ¡County. The northern portion of the property has frontage along '59th Drive, 59th Street, .and 59th Place. Abutting the property’s southern exposure is a driveway that -extends from Flushing Avenue through most of that section of ihe property and is perpendicular to Nurge Avenue.

Bifurcating the plant at points along the Flushing Avenue side and meeting at the easterly extreme of the property are [441] two .branches of the Long Island Railroad. The Bushwick Branch tracks traverse the southerly area, parallel to the driveway and run under portions of the plant. Entering at the confluence of Flushing Avenue and 59th Drive is the Montauk Division.

I. DAMAGES FROM LOSS OF ACCESS

The purpose of the construction project was to eliminate the Flushing Avenue railroad crossings. Prior to the commencement of the work, Flushing Avenue provided the chief means of access to the plant.

The factory was designed to receive, conduct, process and otherwise handle in an orderly and efficient assembly line manner an entire manufacturing operation, from receipt of raw materials to packaging and shipping of finished products.*

On or near Flushing Avenue, the claimant maintained several overhang doors as well as the entrance to its driveway. The doors (“ E ”, C ”, “ A ”, and “ K ”, as depicted on claimant’s Exhibit No. 11) were assigned specific functions relating to the over-all operations of the plant. 'Suffice it to say, through these areas, 600,000 pounds of steel sheeting and coils were received each week, tons of scrap metal removed and numerous other raw materials, supplies and finished products processed. The entrance to the driveway provided an easy and straight means for reaching various other areas including door “ H ”.

During the course of most of the construction, Flushing Avenue became so torn up, constricted in size, congested with machinery and otherwise obstructed, that claimant was obliged to use alternative areas for receiving and shipping. Doors “E”, “C”,“A”, and “ K ” and the driveway entrance were virtually, though not entirely, rendered inoperable during most of the period from 'September, 1967 through November, 1969.

Access to claimant’s property was had over a temporary road constructed by the State that .crossed the Bushwick Branch tracks and connected with Nurge Avenue. The substituted access created maneuverability problems for big trucks and congestion because fewer doors were available from which to process material entering and leaving the plant. Disruption of the internal operations also occurred .which required the hiring of additional employees.

[442] Though the manner in which deliveries were made and the additional expenses incurred transporting material within the plant lessened the economic efficiency of claimant’s operations, there was not substituted therefor a wholly inadequate or unprofitable system.

Prior to construction and on December 14, 1966, the State appropriated a small piece of claimant’s property aggregating 11,860 square feet. Thereafter on or about July 21, 1967, the matter was settled between the parties for $44,700. In this case claimant is not contending that as a result of that appropriation he suffered a diminution in property value due to consequential damages. i

As part of the settlement of the appropriation matter, claimant signed an agreement of adjustment and release. The court finds that these documents are limited to damages arising out of or as a result of the appropriation, and do not purport to be a release of the type of damages claimed herein. The State’s proposed Exhibits “ W ”, “X”, and “Y” being irrelevant, the court sustains claimant’s objection to their introduction into evidence.

Claimant’s claim is based on a temporary'loss of or interference with access arising from the nature of the construction along Flushing Avenue. The gravamen of the claim is whether the additional costs and inconveniences borne by claimant in its manufacturing operations. are compensable.

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Welbilt Corp. v. State, 80 Misc. 2d 439, 363 N.Y.S.2d 766, 1975 N.Y. Misc. LEXIS 2193 (N.Y. Super. Ct. 1975).

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