New York Law Review

Tag: consequential damages

  • Dennison v. State, 22 N.Y.2d 409 (1968): Consequential Damages and Noise Pollution After Partial Taking

    Dennison v. State, 22 N.Y.2d 409 (1968)

    When a portion of a property is taken for public use, the decrease in value to the remaining property due to factors like noise, loss of view, and loss of privacy, all resulting from the public use, can be considered in determining consequential damages.

    Summary

    The State of New York condemned a portion of the Dennisons’ secluded, quiet property to construct a highway. The Dennisons sought compensation for the partial taking, arguing that the new highway caused a loss of privacy, seclusion, and view, as well as increased noise. The Court of Claims awarded damages, considering these factors, and the Appellate Division affirmed. The Court of Appeals affirmed, holding that while noise alone might not be compensable, it can be considered as one factor in determining the overall decrease in the value of the remaining property after a partial taking. The court emphasized the difficulty of separating the noise element from other valid elements of consequential damage.

    Facts

    The Dennisons owned a secluded, quiet property in Lake George, New York, characterized by wooded and landscaped land. The property featured tall trees, underground utility services, and a stream, providing privacy and a scenic view. The State condemned a portion of the property to construct a highway, which ran approximately 200 feet from the Dennisons’ residence. The highway embankment stood about 20 feet above the Dennisons’ lawn, obstructing their view, eliminating their privacy, and introducing traffic noise and odors.

    Procedural History

    The Dennisons filed a claim in the Court of Claims seeking damages for the partial taking of their property. The Court of Claims awarded damages, considering the loss of privacy, seclusion, view, and the increase in noise. The Appellate Division affirmed the Court of Claims decision. The New York Court of Appeals granted leave to appeal.

    Issue(s)

    Whether, in determining consequential damages for a partial taking of property, the court can consider the impact of noise, loss of privacy, and loss of view resulting from the use of the condemned portion, even if noise alone might not be compensable.

    Holding

    Yes, because the courts below did not make a separate award for damages due to noise but rather considered it as one factor in determining the decrease in value to the remaining property along with loss of privacy, seclusion and view. The court reasoned that segregating the noise element from other elements would be practically impossible, and any reduction on remand would be arbitrary and speculative.

    Court’s Reasoning

    The Court of Appeals reasoned that consequential damages, which result from the use of the parcel taken, are entitled to consideration in a partial taking case. While the State argued that damages common to the public, such as highway noise affecting properties adjoining a public highway, should be excluded, the court found that the lower courts did not make a separate award for noise. Instead, the court considered noise as one factor in determining the overall decrease in the property’s value. The court emphasized the practical difficulties of separating the noise element from other conceded elements of damage, such as loss of privacy and view.

    The court cited precedent (South Buffalo Ry. Co. v. Kirkover) which has recognized that, where there has been a partial taking of property of the kind present here, the noise element may be considered as one of several factors in determining consequential damages. The court also acknowledged the argument that property owners must endure certain inconveniences for the benefits of modern transportation but concluded that the practical difficulties in separating noise damages outweighed any benefit from applying the State’s theory. Chief Judge Fuld, in his concurrence, noted the specific tranquility of the property as a factor distinguishing the case. The dissent argued that the burden is on the claimant to show consequential damages flowing from the taking and that traffic noise is a universal condition of modern life, not unique to the claimant, and should thus be excluded as an element of damage. The dissent further argued that damages from future traffic noise should be segregated or be excluded if the party cannot prove the specific injury to them not shared by the general public.

  • Bopp v. State, 19 N.Y.2d 368 (1967): Compensation for Diminished Access to State Highway

    Bopp v. State, 19 N.Y.2d 368 (1967)

    A property owner is not entitled to damages for diminished property value resulting from rerouting of a state highway, provided reasonably adequate access to the new highway is maintained.

    Summary

    Bopp owned a motel and restaurant on a state highway. The state reconstructed the highway, appropriating a small portion of Bopp’s land and rerouting the highway so it no longer directly accessed Bopp’s property, requiring use of a spur road. Bopp claimed damages for the reduced property value. The Court of Appeals held that while Bopp was entitled to compensation for the land taken, consequential damages due to rerouting and diminished traffic are not compensable, so long as reasonably adequate access to the highway is maintained. The court affirmed the Appellate Division’s reduced award, emphasizing that property owners have no inherent right to direct highway access or traffic flow.

    Facts

    John and Mary Bopp owned a motel, lodge, and restaurant on State Route 28, strategically located opposite the road to the Belleayre recreational area. In 1959, the State reconstructed Route 28, appropriating 0.044 acres of Bopp’s land and severing the old route near their property. The State constructed a “G-spur connection” to the new Route 28, west of the property. The new Route 28 was not on the same grade as the property and was barely visible from it, requiring a sharp turn off the new route to reach the property, now 700-800 feet away. After the reconstruction, the motel-lodge and restaurant were no longer profitable and were used as a summer residence except during the ski season. The old Route 28 was the same width as the G-spur, but the highway traffic shifted away from Bopp’s property.

    Procedural History

    Bopp sued in the Court of Claims, which awarded $15,000 for damages resulting from the inadequate access road, reducing the property’s highest and best use. The Appellate Division modified the judgment, reducing the award to $4,175 (for the land actually taken) based on cases establishing that damages from circuity of access and loss of traffic are not compensable. Bopp appealed to the New York Court of Appeals.

    Issue(s)

    Whether a property owner is entitled to compensation for the decrease in property value resulting from the State’s reconstruction of a highway that diverts traffic away from the property, when the owner retains reasonably adequate access to the new highway via an access road.

    Holding

    No, because the State’s obligation to the property owner is fulfilled if they have a reasonably adequate means of access to and from the new highway, regardless of any decrease in traffic or visibility.

    Court’s Reasoning

    The Court of Appeals affirmed the Appellate Division’s decision, stating that a property owner is not entitled to damages because access is no longer as direct as it once was, or because the access is less than ideal. The court emphasized that damages are not recoverable simply because traffic no longer passes in front of the claimant’s property or because the property is no longer visible from the main highway, citing Selig v. State of New York. The court reasoned that property owners have no inherent right to be located directly on a state highway or to have traffic pass in front of their property; any increase in value due to those factors is purely fortuitous. The State’s obligation is met if reasonably adequate access to the new highway is provided. The court found that the access road provided was adequate because the Court of Claims found the property could still be operated as a residence and a motel for specifically directed guests. The court analogized the situation to the state closing a recreation center, which would affect the claimant’s property just as drastically as the construction of the new highway, for which the State would not be liable. The court stated, “The State’s obligation to them is fulfilled if they have a reasonably adequate means of access to and from the new highway.”

  • Northern Lights Shopping Center v. State of New York, 15 N.Y.2d 688 (1965): Eminent Domain and Consequential Damages from Highway Construction

    15 N.Y.2d 688 (1965)

    Consequential damages to property resulting from changes in traffic patterns and highway construction are generally not compensable in eminent domain proceedings unless there is an unreasonable restriction of access.

    Summary

    Northern Lights Shopping Center sought compensation from the State of New York for consequential damages allegedly caused by the construction of Interstate Highway Route 81 and associated changes to surrounding roadways. The shopping center argued that the new highway, one-way traffic routing, and other modifications negatively impacted its business by altering traffic flow and access. The Court of Appeals affirmed the lower court’s decision, holding that most of the alleged damages were not compensable because they stemmed from alterations in traffic patterns, which are within the state’s police power. However, a dissenting judge argued that the right of access to Route 11 and County Highway 208 had been unreasonably restricted and should be subject to compensation.

    Facts

    Northern Lights Shopping Center owned property abutting Route 11 and County Highway 208. The State of New York constructed Interstate Highway Route 81, which impacted the roadways surrounding the shopping center. The construction resulted in a new traffic circle, a weaving lane, and one-way traffic routing on Route 11 and County Highway 208. The shopping center claimed these changes caused consequential damages to its property, arguing that the altered traffic patterns negatively affected customer access and, consequently, its business.

    Procedural History

    The shopping center filed a claim against the State of New York seeking compensation for consequential damages. The trial court ruled against the shopping center, finding that the alleged damages were not compensable. The shopping center appealed. The Court of Appeals affirmed the trial court’s decision, holding that the alleged consequential damages resulting from traffic pattern changes were not compensable unless access was unreasonably restricted. Judge Van Voorhis dissented, arguing for a remand to determine if access to Route 11 and County Highway 208 was unreasonably restricted.

    Issue(s)

    Whether consequential damages to property, resulting from highway construction and changes to traffic patterns, are compensable in an eminent domain proceeding.

    Holding

    No, because changes in traffic patterns and flow, resulting from highway construction, are within the state’s police power and do not create a right to compensation unless the access to the property has been unreasonably restricted.

    Court’s Reasoning

    The court reasoned that the state has the right to regulate traffic patterns for public safety and convenience. Changes to traffic flow, even if they negatively impact a business, are generally not compensable as consequential damages. The court distinguished between damages resulting from changes in traffic flow and damages resulting from a physical taking or an unreasonable restriction of access. Only the latter warrants compensation. The dissent argued that the right of access to the highways abutting the property had been unreasonably restricted, which constitutes a taking that requires just compensation. The dissenting judge cited Red Apple Rest. v. McMorran (12 Y 2d 203) to support the principle that reasonable access to a highway is a property right. The dissent concluded that the changes in this case transcended the bounds of reasonableness, meriting a separate determination of this element of consequential damage. The court made no specific mention of legal rules or precedent other than referring to the Red Apple Rest. v. McMorran case. The court’s decision hinges on the inherent power of the state to regulate traffic and the distinction between regulating traffic versus taking property rights.

  • Sauer v. City of New York, 180 N.Y. 27 (1904): Governmental Immunity for Street Improvements

    Sauer v. City of New York, 180 N.Y. 27 (1904)

    A municipality is not liable for consequential damages to abutting landowners resulting from changes to street grades or construction of viaducts when acting under legislative authority for a public purpose, provided the work is performed without negligence.

    Summary

    The plaintiff, an owner of property abutting 155th Street in New York City, sought to enjoin the city from maintaining a viaduct and recover damages, alleging it impaired access, light, and air to his property. The viaduct was constructed to connect 155th Street over a bluff. The New York Court of Appeals held that the city was not liable because the viaduct was a public improvement authorized by the legislature and constructed on a public street, for which abutting landowners are presumed to have been compensated when the street was initially established. The court emphasized that governmental entities are generally immune from liability for consequential damages resulting from public works projects undertaken with legislative authorization and without negligence.

    Facts

    The plaintiff owned property at the corner of Eighth Avenue and 155th Street, where he operated a business. The City of New York owned 155th Street and Eighth Avenue. 155th Street ran west towards a 70-foot bluff. The city constructed a viaduct along 155th Street to connect the street over the bluff. The viaduct in front of the plaintiff’s property was 50 feet above the original street level. The street below the viaduct remained open to the public but was partially obstructed by the viaduct’s supports. Plaintiff claimed the viaduct impaired his property’s value and access. Prior to the plaintiff acquiring the land the city had already acquired the fee simple to the lands included within the lines of Eighth Avenue and One Hundred and Fifty-fifth Street.

    Procedural History

    The plaintiff sued in equity seeking an injunction to remove the viaduct and damages. The lower court ruled in favor of the City of New York, denying the injunction and damages. The plaintiff appealed to the New York Court of Appeals, which affirmed the lower court’s decision.

    Issue(s)

    Whether the City of New York is liable to an abutting landowner for consequential damages resulting from the construction of a viaduct on a public street, authorized by the state legislature, when the construction impairs the landowner’s access, light, and air.

    Holding

    No, because when a municipality constructs a public improvement like a viaduct on a public street under legislative authority and for a public purpose, it is not liable for consequential damages to abutting landowners, absent negligence or direct encroachment on private property.

    Court’s Reasoning

    The court reasoned that when the city acquired the street, it presumably compensated landowners for all future uses to which the street might be put, including changes in grade and improvements necessary for public travel. The court relied heavily on Radcliff’s Executors v. Mayor, etc., of Brooklyn, stating that landowners must bear the burden of depreciation in property value due to street improvements as they also benefit when the value increases. The court stated, “As such owners they are subject to the right of the public to grade and improve the streets, and they are presumed to have been compensated for any future improvement or change in the surface or grade rendered necessary for the convenience of public travel, especially in cities where the growth of population increases the use of the highways.”

    The court also cited Transportation Co. v. Chicago, emphasizing that the city acts as an agent of the state when improving highways and is thus protected by the state’s sovereign immunity from suits for consequential damages. The court emphasized that the viaduct was for ordinary traffic and not for railroad purposes. Because it was constructed under legislative authority for a public purpose it was not a nuisance and the Plaintiff was not entitled to damages.

    The court distinguished between ordinary street improvements and “peculiar and extraordinary changes made for some ulterior purposes other than the improvement of the street.” It held that viaducts were part of the former category because they help adapt the street for “free and easy passage of the public.”