Raymond Corp. v. State, 14 N.Y.2d 303 (1964)
An abutting landowner can recover damages for a change in street grade under a statute authorizing such payment, even if the property retains suitable access via another street.
Summary
Raymond Corp. sought damages from the State for a change in the grade of Chicago Street in Buffalo. The State lowered the street to its original grade after demolishing a viaduct that had provided access to the second story of Raymond’s warehouse. The State argued that because the property retained access via Scott Street, no damages were owed. The Court of Appeals held that the existence of alternate access does not preclude recovery for damages caused by a change in grade when a statute authorizes such payment. The Court distinguished cases involving street closures, where alternate access may bar recovery, and emphasized that statutes providing for change-of-grade damages reflect a policy decision to compensate landowners for actual losses sustained.
Facts
Raymond Corp. owned a warehouse at the intersection of Chicago and Scott Streets in Buffalo. Chicago Street’s level had been raised by a viaduct, level with the warehouse’s second story, providing access via an aerial ramp. The State demolished the viaduct as part of Thruway construction, lowering Chicago Street to its original grade, which afforded access only to the warehouse’s first floor. Before the viaduct removal, the only truck access to the second floor was via doors on Chicago Street. Post-removal, the only means to transport goods to the second floor was a single elevator, substantially impairing the second floor’s utility for warehousing.
Procedural History
Raymond Corp. filed a claim against the State in the Court of Claims, which dismissed the claim. The Appellate Division reversed, finding that the claimant had suffered damages. The State appealed to the Court of Appeals from the Appellate Division order.
Issue(s)
Whether a property owner, whose property abuts intersecting streets, can recover damages for a change of grade to one street when access to the property remains via the other street, under a statute directing payment of damages for such grade changes.
Holding
Yes, because the common-law rule precluding recovery when suitable access remains via another street does not apply to changes of grade where a statute authorizes payment of damages. The statute prevents the preclusion of damages from change of grade by the common-law rule.
Court’s Reasoning
The Court distinguished this case from those involving street closures, where alternate access might preclude recovery. The Court emphasized that, at common law, there was no liability for damages due to a change of grade (“Sauer v. City of New York, 180 N.Y. 27”). However, many statutes have been enacted providing for damages for change of grade due to perceived injustice of the common-law rule. The Court analyzed several cases where awards were upheld despite alternate access, including Matter of Grade Crossing Comrs. of City of Buffalo (Michigan St.), 154 N.Y. 550, where the grade of Michigan Street was changed but access remained at the same grade via Exchange Street, and the award was affirmed. The court stated that it disagreed with the dissent in Baldwin-Hall Co. v. State of New York, 16 Y 2d 1005, stating that Baldwin-Hall was about entirely preventing access to one street, and that the majority decided that “Such damage as claimant suffered was due to circuity of access and as held in Selig there is no provision in law for recovery thereof.” The Court found that “the legally authorized street elevation based upon the actual grading work performed by city authorities is the established grade” (Lawrence Constr. Corp. v. State of New York, 293 N. Y. 634) and that this technical oversight of the City Engineer could hardly be held to exonerate the city or the State for payment of damages to the abutting property owner.