United States v. 50 Acres of Land
Encyclopedia
United States v. 50 Acres, 469 U.S. 24
(1984) was a case appealed to the Supreme Court of the United States
as to whether a public condemnee is entitled to consequential damages
measured by the cost of acquiring a substitute facility if it has a duty to replace the condemned facility. The Court declined to award the costs of the substitute facility, holding that the Fifth Amendment does not require consequential damages when the market value of the condemned property is ascertainable and when there is no showing of manifest injustice.
. The site had been used since 1969 as a sanitary landfill. In order to replace the condemned landfill, the city acquired a 113.7 acre (0.460127982 km²) site and developed it into a larger and better facility. In the condemnation proceedings, the city claimed that it was entitled to recover all of the costs incurred in acquiring the substitute site and developing it as a landfill, an amount in excess of $1,276,000. The United States, however, contended that proper compensation should be determined by the fair market value of the condemned facility and deposited $199,950 in the registry of the court as its estimation of the amount due.
Before trial the Government filed a motion in limine
to exclude any evidence of the cost of the substitute facility, arguing that it was not relevant to the calculation of fair market value. The District Court denied the motion, noting that this Court had left open the question of the proper measure of compensation for the condemnation of public property. The court concluded that "a complete factual record should be developed from which an independent determination of the appropriate measure of compensation can be made."
The court found no basis for departing from the market value standard in this case, and reasoned that the application of the substitute facilities measure of compensation would necessarily provide the city with a "windfall."
The Court of Appeals reversed and remanded for further proceedings. It reasoned that the city's loss attributable to the condemnation was "the amount of money reasonably spent . . . to create a functionally equivalent facility." If the city was required, either as a matter of law or as a matter of practical necessity, to replace the old landfill facility, the Court of Appeals believed that it would receive no windfall.
does not require that the United States pay a public condemnee compensation measured by the cost of acquiring a substitute facility that the condemnee has a duty to acquire, when the market value of the condemned property is ascertainable and when there is no showing of manifest injustice. Rather, "Just compensation" under the Fifth Amendment normally is to be measured by the market value of the property at the time of the taking, and this case is not one in which an exception is required because fair market value is not ascertainable. The testimony at trial established that there was a fairly robust market for sanitary landfill properties. The Court did also not believe that an award of compensation measured by market value here to be fundamentally inconsistent with the basic principles of indemnity embodied in the Just Compensation Clause.
In addition, the Court held that the text of the Fifth Amendment does not mandate a more favorable rule of compensation for public condemnees than for private parties. The reference to "private property" in the Takings Clause of the Fifth Amendment encompasses the property of state and local governments when it is condemned by the United States, and under this construction the same principles of just compensation presumptively apply to both private and public condemnees.
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...
(1984) was a case appealed to the Supreme Court of the United States
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
as to whether a public condemnee is entitled to consequential damages
Consequential damages
Consequential damages, otherwise known as special damages, is one of the damages, the other being direct damages, that may be awarded to plaintiff in a civil action who claims that terms of an agreement were not honored....
measured by the cost of acquiring a substitute facility if it has a duty to replace the condemned facility. The Court declined to award the costs of the substitute facility, holding that the Fifth Amendment does not require consequential damages when the market value of the condemned property is ascertainable and when there is no showing of manifest injustice.
Background
In 1978, as part of a flood control project, the United States condemned approximately 50 acres (202,343 m²) of land owned by the city of Duncanville, TexasDuncanville, Texas
Duncanville is a city in Dallas County, Texas . Duncanville's population was 36,081 at the 2000 census, and estimated at 42,500 in 2008. Duncanville is a suburb of Dallas and is part of the Best Southwest area, which includes Duncanville, Cedar Hill, DeSoto, and Lancaster.-Geography:Duncanville is...
. The site had been used since 1969 as a sanitary landfill. In order to replace the condemned landfill, the city acquired a 113.7 acre (0.460127982 km²) site and developed it into a larger and better facility. In the condemnation proceedings, the city claimed that it was entitled to recover all of the costs incurred in acquiring the substitute site and developing it as a landfill, an amount in excess of $1,276,000. The United States, however, contended that proper compensation should be determined by the fair market value of the condemned facility and deposited $199,950 in the registry of the court as its estimation of the amount due.
Before trial the Government filed a motion in limine
In limine
Motion in limine is a legal written "request" or motion to a judge which can be used for civil or criminal proceedings and at the State or Federal level. A frequent use is at a pre-trial hearing or during an actual trial requesting that the judge rule that certain testimony regarding evidence or...
to exclude any evidence of the cost of the substitute facility, arguing that it was not relevant to the calculation of fair market value. The District Court denied the motion, noting that this Court had left open the question of the proper measure of compensation for the condemnation of public property. The court concluded that "a complete factual record should be developed from which an independent determination of the appropriate measure of compensation can be made."
Procedural Posture
At trial, both parties submitted evidence on the fair market value of the condemned property and on the cost of the substitute landfill facility. Responding to special interrogatories, the jury found that the fair market value of the condemned property was $225,000, and that the reasonable cost of a substitute facility was $723,624.01. The District Court entered judgment for the lower amount plus interest on the difference between that amount and the sum already paid. The District Court explained that the city had not met its "burden of establishing what would be a reasonable cost of a substitute facility." In addition, the court was of the view that "substitute facilities compensation should not be awarded in every case where a public condemnee can establish a duty to replace the condemned property, at least where a fair market value can be established."The court found no basis for departing from the market value standard in this case, and reasoned that the application of the substitute facilities measure of compensation would necessarily provide the city with a "windfall."
The Court of Appeals reversed and remanded for further proceedings. It reasoned that the city's loss attributable to the condemnation was "the amount of money reasonably spent . . . to create a functionally equivalent facility." If the city was required, either as a matter of law or as a matter of practical necessity, to replace the old landfill facility, the Court of Appeals believed that it would receive no windfall.
Opinion of the Court
The Court held that the Fifth AmendmentFifth Amendment to the United States Constitution
The Fifth Amendment to the United States Constitution, which is part of the Bill of Rights, protects against abuse of government authority in a legal procedure. Its guarantees stem from English common law which traces back to the Magna Carta in 1215...
does not require that the United States pay a public condemnee compensation measured by the cost of acquiring a substitute facility that the condemnee has a duty to acquire, when the market value of the condemned property is ascertainable and when there is no showing of manifest injustice. Rather, "Just compensation" under the Fifth Amendment normally is to be measured by the market value of the property at the time of the taking, and this case is not one in which an exception is required because fair market value is not ascertainable. The testimony at trial established that there was a fairly robust market for sanitary landfill properties. The Court did also not believe that an award of compensation measured by market value here to be fundamentally inconsistent with the basic principles of indemnity embodied in the Just Compensation Clause.
In addition, the Court held that the text of the Fifth Amendment does not mandate a more favorable rule of compensation for public condemnees than for private parties. The reference to "private property" in the Takings Clause of the Fifth Amendment encompasses the property of state and local governments when it is condemned by the United States, and under this construction the same principles of just compensation presumptively apply to both private and public condemnees.
See also
- Compensatory Damages
- Olson v. United States, 292 U.S. 246, 255 (1934), holding that just compensation normally is to be measured by "the market value of the property at the time of the taking contemporaneously paid in money."
- List of United States Supreme Court cases, volume 469