City of Glen Cove v. Utilities & Industries Corp., 16 N.Y.2d 209 (1965)

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In condemnation proceedings, a court may grant immediate entry to property if the public interest would be prejudiced by delay, provided adequate security is in place to protect the property owner’s interests.

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Summary

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The City of Glen Cove initiated condemnation proceedings against Utilities & Industries Corp., a water supplier. The city sought immediate possession under Section 24 of the Condemnation Law, arguing that delays would harm the public interest due to inadequate water services. The lower courts granted the city’s motion, requiring a $3,000,000 deposit. The Court of Appeals affirmed, holding that the city demonstrated sufficient public need and the deposit adequately protected the utility’s interests, even if the condemnation were later abandoned. The court emphasized that the deposit covered not only the eventual award but also any damages sustained by the utility due to the city’s entry and use of the property.

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Facts

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The City of Glen Cove commenced condemnation proceedings in 1961 to acquire the water supply plant and property of Utilities & Industries Corporation.r
Hearings on the issue of valuation had been ongoing for over a year, with extensive testimony and exhibits presented.r
The City moved for immediate entry onto the property, asserting that delays would prejudice the public interest due to the water company’s reluctance to invest in necessary improvements and the city’s growing population straining existing water resources. The City demonstrated that existing water services may be inadequate for fire protection and consumer demand. Chemical Bank, New York Trust Company was joined as a defendant because it held a mortgage on the property.r

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Procedural History

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The Supreme Court, Special Term, granted the City’s motion for immediate entry and required a $3,000,000 deposit.r
The Appellate Division affirmed the Special Term’s order.r
The Court of Appeals granted leave to appeal and certified a question for review. The question was whether the lower courts had erred in granting the city’s motion for immediate entry.r

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Issue(s)

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Whether the lower courts abused their discretion by granting the City of Glen Cove immediate entry onto the property of Utilities & Industries Corp. under Section 24 of the Condemnation Law.r

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Holding

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Yes, because the record demonstrated that the public interest would be prejudiced by delay, and the required deposit adequately protected the defendant’s interests.r

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Court’s Reasoning

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The Court of Appeals found the lower courts were justified in granting the City’s motion. It cited evidence that the water service and facilities were, or would soon become, inadequate for fire protection and consumer demand due to population growth and the water company’s reluctance to invest in improvements. This concern about the water supply was deemed sufficient to show that “the public interests will be prejudiced by delay” as required by Section 24 of the Condemnation Law.r
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The court dismissed the argument that the City’s right to discontinue the condemnation proceedings under Section 18 offered a basis for reversal. It reasoned that the $3,000,000 deposit adequately protected the defendant’s interests, as it applied not only to the payment of any future award but also to