Lowball Watch — Arkansas

ArkansasOnline.com/news of October 21, 2016, reports that the State Highway and Transportation Department, having deposited $639,000 into court, but having been confronted with the owners’ appraisal of $1,600,000, thought better of it and settled via a consent judgment for $1,525,000.

The initial bone of contention was that the State’s initial deposit failed to take into account the substantial impairment of access to the remainder caused by the partial taking, and the loss of parking on the remaining land, after the partial taking.

http://arkansasonline.com/news/2016/oct/21/land-suits-costing-state-city-after-i-4/?f=news-arkansas

California Choo-Choo (Cont’d.)

We haven’t had much to say about our aborning “Bullet Train” and the plans therefor because there hasn’t been much news in that department lately. But the Los Angeles Times of October 21, 2016, at p. B1, Bullet Train’s Capacity Could be Downsized, informs us that we are about to get less bang for our buck. Quoting:

The California bullet train authority has told its design engineers that the future [railroad] system would have shorter trains and smaller station platforms reducing the capacity of individual trains by roughly 50% and potentially the capacity of the entire Los Angeles-to-San Francisco route.

This dispatch says nothing about the — to us — obvious consequence that smaller trains means smaller passenger capacity and therefore lower revenues. Yes?

To borrow Kurt Vonnegut’s favorite line, “and so it goes.”

Words Without Comment

A quote from Matthew Hennessey, Hartford’s Big Dig, Oct. 1, 2016:

“In Connecticut as in the rest of the country, massive interstate construction projects followed President Dwight Eisenhower’s signing of the Federal-Aid Highway Act of 1956. Cities like Hartford were then suffering massive traffic congestion problems, as rising postwar incomes spurred a boom in individual car ownership. In 1949, several major insurance companies asked the engineering firm Andrews and Clark to compile an “Arterial Plan for Hartford” under the direction of New Haven native Robert Moses. “Doctors, we are told, bury their mistakes, planners by the same token embalm theirs, and engineers inflict them on their children’s children,” wrote Moses in a cover letter. It was an oddly prophetic warning from a man blamed by many for ruining New York City with his car-dependent infrastructure projects.”

For the entire article go to http://www.city-journal.org/html/hartfords-big-dig-14779.html

We might add, however, for the benefit of readers who are too young to remember these things, that the official justification for constructing the interstate highway network was defense: to facilitate military transportation in case of need. Tue, we have never seen (or heard of) Abrams tanks clanking down an Interstate, but, hey man, who are we to argues with our betters?

More Redevelopment Bad News — Washington, DC

If you keep track of takings for redevelopment, you may have come across news of Skyland, a major redevelopment project in Washington, DC, in the Southeast part thereof. It was supposed to be a big hotsy-totsy project anchored by Walmart, with the usual projections of a rosy future. Something like this:

The Skyland Town Center property is now in the hands of the development team.

But as is so often the case, things didn’t work out as hoped. Long story short, Walmart pulled out of the deal, and the project has so far, produced another one of those urban deserts that looks more like this:

 

And this is the good part. Much (most?) of the project area looks more like an urban desert; like this:

http://www.skylandtowncenter.com/webcamlive.html

To be fair, the project promoters claim that they will build another, smaller project but whether and how they will actually do it remains to be seen, particularly since the economy appears something less than robust at the moment. This project has been pending for over 10 years, and if these pictures are any indication, there is not much to brag about here.

We will try to follow up on this story, but for some reason, it has not been covered to speak of in the major newspapers. And so it goes.

Another Not-So-Hot Redevelopment Project — Brooklyn

Remember the hulabaloo over the Atlantic Yards project? How it would revive Brooklyn, etc.? The latest dispatch from that front from the New York Times, no less, indicates that it hasn’t been beer and skittles. We will quote from the Times, and let its words speak for themselves,

“[A local] pizzeria sits in the shadow of the $4.9 billion megadevelopment once known as Atlantic Yards, which has promised to deliver thousands of new residents and visitors to the area since it was proposed in 2003. But so far, the biggest change . . . Vanderbilt Avenue merchants have seen is rising rent.”

“The project has been troubled by delays, financial setbacks, lawsuits, and political wrangling. And the opening of the Barclays Center, the centerpiece of the development, in 2012, did not deliver substantial new business to Vanderbilt despite expectations that it would.” Rhonda Kaysen, A Long Wait for New Neighbors on a Brooklyn Street, N.Y. Times, Aug. 31, 2016, at p. B5.

And so it goes. Predictably. As California Court of Appeal Justice, Macklin Fleming  once put it: redevelopment project promoters promise they’ll bake a bigger economic pie, with bigger slices for all. But what they often tend to produce is pie in the sky. Of course, the NY Times does the same by duly reporting that in the sweet bye and bye good things will happen. We will await the event and see how it turns out if we are still around then.

For the full NY Times article go to http://www.nytimes.com/2016/08/31/realestate/merchants-wait-for-the-promise-of-vanderbilt-avenue-and-wait.html?ref=business

Lowball Watch — Virginia

The Roanoke Times reports the settlement of an eminent domain case. Couple, City of Radford Settle Eminent Domain Case, Aug. 28, 2016. http://www.roanoke.com/news/local/radford/couple-city-of-radford-settle-eminent-domain-case/article_8172b94f-39a5-5a5d-b5be-07827446fafc.html

The city originally disregarded severance damages, even though the taking moved a driveway off the owners’ property.

The city’s offer was $2128, but the settlement, entered into on the eve of trial, was $21,000 — about 10 times the offer.

Steven Hill, “Law and Order’s” Adam Schiff, R.I.P.

Every lawyer we know, and lots of non-lawyers, just love the TV show “Law and Order” — it captured the lawyers’ decision-making process and the flavor of the courtroom very well. It included the doings of both brilliant and wacky judges, like no other TV show ever did, with a generous soupcon of New York thrown in. Perhaps that was because many of its writers (like Roger Wolfson) had an experienced background of working in law that gave it that grounded sense of realism.

But it was mainly because the casting was brilliant, even the best script can’t work if the actors can’t use it to its potential. Our favorite character of all time was the fictional Adam Schiff (actually named Steven Hill) playing the District Attorney of New York City. He was eventually replaced in that role, but none of his replacements succeeded in capturing the flavor, the spirit, or the geschmack that he brought to it. Fred Thompson, one of his replacements and another favorite of ours, came close but his earthy Southern charm (and drawl) somehow did not ring quite right in the context of his role as a successful New York politician/lawyer/legal strategist.

We just learned that Mr. Hill has passed away at the age of 94 — not bad.

We do not claim being a Feinschmecker of acting, but we know a little something about what goes on in courtrooms, and are of the opinion that Mr. Hill entertained us royally, and enriched our professional lives. We are unlikely to see his likes again.

R.I.P. Steve

Judge or Jury? — Revisited

As promised in our recent post on the California Supreme Court’s Perris v. Stamper case, here is a copy of our recent article on that case’s ruling on the subject of judge vs. jury issues, from the Daily Journal, California’s foremost legal newspaper. It ran on August 19th.

It turns out that on the right to a trial by jury, Americans have had it wrong in understanding the British rule that governs the right to a trial by jury in eminent domain cases, which governs under the Seventh Amendment. But the unsung hero turns out to be the late Lewis Orgel, author of VALUATION UNDER EMINENT DOMAIN (1953) who had it right all along. Here it is:

 

Daily Journal

 

August, 19, 2016

Our eminent right to a jury

By Gideon Kanner

California’s late chief justice, Roger Traynor, once wrote that there are notions embedded in the law that have never been cleaned and pressed and might disintegrate if they were. A case in point is a holding embedded in the brand new California Supreme Court decision in City of Perris v. Stamper, 2016 DJDAR 8382 (Aug. 15, 2016). It was one of those complicated decisions with something for everybody that dealt with the issue of when, if at all, the existence of a future land dedication requirement as a condition to development must be considered now in valuing condemned land subject to such a dedication or exaction requirement in the future. This may sound like technical stuff, but it can have a profound impact on the value of the taken land, and is thus of interest to lawyers as well as appraisers.

Much has already been said about this difficult legal problem, and I leave to others the plumbing of its complexities. I focus instead on the court’s prefatory decision holding that this problem is not a jury issue, but must rather be decided by the trial judge because “no such jury right existed in England and the colonies in 1791.”

Unfortunately, this rule is mythical; eminent domain cases were triable to juries in Merry Old England in the 18th century, and therefore the American courts’ belief that they were not, is mistaken. This is important because the Seventh Amendment does not create a right to a trial by jury; it only preserves this right in cases where trial by jury was available at common law at the time the Bill of Rights was written. The Perris case cites a U.S. Supreme Court case as authority, but no British sources which, as it turns out, are to the contrary.

If you consult American eminent domain treatises, all you get is confusion. “Nichols on Eminent Domain,” Section 4.105 (Lexis/Nexis 2002) had it for years that there were no juries in British eminent domain cases. Its more recent editions contain a lengthy, confusing discussion that gets involved with sovereign immunity and such, but avoids a clear cut statement of the rule and its British basis. But the other authoritative eminent domain treatise, Orgel, “Valuation Under Eminent Domain,” Vol.2, Section 25, pp. 268-271 (Michie Co. 1953), states with no equivocation that that trial by jury was used in British eminent domain cases until 1919 when it was abolished by Parliament. Neither treatise cites any British sources supporting its position. Older editions of Nichols tried but failed. Nichols used to make a passing reference to Blackstone’s Commentaries, but cited the wrong part of Blackstone’s treatise (2 Blackstone 259), that says nothing that remotely bears on the subject. However, at 3 Blackstone 258-259, we learn that the “inquest of office” said by the old Nichols text to be the old British non-jury proceeding to acquire land, had nothing to do with eminent domain. It was a medieval procedure used to ascertain the king’s entitlement to land in cases of escheat, treason, intestacy, forfeiture and the like. More important, Blackstone makes clear that even these proceedings were triable to juries, except in cases of forfeiture for treason. “For it is a part of the liberties of England, and greatly for the safety of the subjects, that the king may not enter upon or seize any man’s possession upon bare surmises without the intervention of a jury.” (Emphasis added).

You need not take my word for any of this. You can skip the confusing ancient stuff that few people understand (as our courts have done) and consult the horse’s mouth in the form of the modern British Court of Appeal opinion in De Keyser’s Royal Hotel Ltd. v. The King (1919). There, their Lordships review pertinent legal history (1708 to 1798), and with the concurrence of all parties, including the British attorney general, conclude that “in default of agreement with the owners the true value [of the taken property] is to be ascertained by a jury.” So much for denying jury trials in English eminent domain cases.

British history also fails to support the belief that inverse condemnation cases were only the flip side of eminent domain, as American conventional wisdom has it. Indeed, if they were like British eminent domain cases, then on that logic alone they had to be triable to juries. But what about the notion that inverse condemnation is some newfangled American constitutional proceeding unknown to the common law, and that the government was shielded from it by sovereign immunity? Not really.

Until the mid-19th century most British eminent domain cases were filed by private “promoters” who, in each case, were authorized by Parliament to take private property for roads, railroads, canals, etc., upon payment of compensation to the taken land’s owners. But when promoters failed to pay or the parties could not agree on a price, British property owners could sue in tort using a writ of trespass, to recover damages. See the discussion in the De Keyser’s case. Like all other common law actions, these were triable to juries.

That is also the view of Professor Keith Davies, the leading authority on British eminent domain law (or “compulsory purchase” as the Brits put it), and the author of the foremost British treatise on the subject. Davies clarified things for us Colonials when he appeared as a guest lecturer and presented a paper titled “The Jury in Eminent Domain,” at the ALI-ABA Course on Eminent Domain and Land Valuation Litigation in 2001, relying inter alia on Baron de Bode’s Case (1845). This case dispenses with the sovereign immunity myth, by concluding with a court order that that a jury be convened and try Baron de Bode’s claim against the Queen of England wherever she then may be in the realm. In short, the notion that cases of determining compensation for takings of private property were not tried to juries in England is mistaken, and this is as true of direct as of inverse condemnation cases.

It is a bedrock constitutional principle and a part of the civic ethos of our country, that trial by jury is enshrined in the Bill of Rights for good reason: It is treasured as a fundamental guarantee of Americans’ freedoms that interposes the judgment of the community as a shield between the citizen and government excesses. Why then, when it comes to eminent domain, trial by jury is suddenly disfavored by judges as if some sort of pesky impediment to good governance, is obscure. The purpose of the Bill of Rights was to protect the people from the government, not the other way around, and juries provide that protection in eminent domain cases as well as in others, as correctly noted by Justice William Douglas in U.S. v. Reynolds, 397 U.S.14, 23-24 (1970).

Obviously, it is a tall order to ask the courts to reconsider a rule, even an erroneous one, that they have been repeating for over two centuries. But it seems to me that the intellectual integrity of the law, and a candid acknowledgment of historical truth are too important to let this legal dog lie. _____________________________________________________________

Gideon Kanner is Professor of Law Emeritus at the Loyola Law School in Los Angeles. He is former editor of Just Compensation, a monthly periodical on the law of eminent domain, and was a regular columnist on takings law for the National Law Journal. He was a visiting Professor at the University of Aberdeen, and a guest lecturer in several British universities, as well as a speaker and a recipient of a British Academy scholarship at the International Colloquium on Expropriation Law held in 1990 at Oxford University.

 

    

 

 

.

 

 

 

 

Raise a Toast to Good King Jan!

Once again, we depart from our usual topics to take note of a noteworthy anniversary that few people know about.

Portrait of John III Sobieski (anonymous, 4th quarter of the 17th century)

August 17th almost slipped by us unnoticed, but we caught it [almost] in time. What about that date? It’s the birthday of Polish King Jan Sobieski who was born on that date in 1629, and to whom we owe a big time debt of gratitude.

For it was King Sobieski and his army who rode to the rescue of Vienna then being besieged by the Turkish army that was making good progress, and was well along in capturing central Europe, advancing from the south. It’s a great story that you should know about. In the end, in 1683, Polish cavalry, notably the famous heavy hussars charged down the slopes of Mount Kahlenberg outside of Vienna and to borrow General Patton’s line, went through the Turkish army like crap through a goose, saving Vienna and the rest of Europe from Turkish conquest.

It’s good to remember that event for two reasons. First, if it hadn’t been for it, Europe (and probably your ancestors) would be speaking Turkish and attending Mosques instead of your favorite place of worship. Second, among the booty captured from the Turks by the victorious Poles, was a quantity of funny looking green grain that the Poles thought was camel fodder and were about to burn. But one of them, formerly a Turkish slave, knew what it was – it was unroasted coffee. The rest is history. He got ahold of it, roasted it and started the first coffee house in Vienna.

Here is one of those hussars, in full battle drag, including those famous metal-and-feather wings bolted to their armor back plates, that made a fearsome noise at full gallop and struck fear into the enemy’s hearts.

So let’s raise a toast to Good King Jan and let’s hear it loud and clear — Sto lat, sto lat, niech zyje, zyje nam.

And, of course, if you follow this advice, by all means toast King Jan with genuine Polish, rye vodka named after him. Na zdrowie!

Judge or Jury? Here We Go Again

Big news of sorts from the California Supreme Court, in the form of the new (8/15/16) 31-page opinion of the California Supreme Court, in City of Perris v. Stamper, Docket No. S213468, opinion by Liu, J., dealing at length with the problem of how to value property now, when it is subject to a dedication requirement in the future, when the property is sought to be developed. The problem is that the dedication requirement is subject to constitutional limitations laid down by the U.S. Supreme Court in the Nollan and Dollan cases. So how can you tell now how the dedication requirement will be applied in the future? Not exactly everyday fare, even for condemnation lawyers and appraisers. Still, when the problem arises it has to be dealt with.

Condemnors have argued that the part of the subject property that is subject to dedication should not be valued for its highest and best use, because when attempted to be so used it would have to be dedicated. Property owners, on the other hand, argue that all that would be, if at all, in the sweet bye and bye, and should not be considered now, and there may be no clear way of deciding now whether the dedication requirement will meet the strictures of Nollan and Dolan in the future. If you want to get into all that, you should read Nollan and Dolan, as well as this judicial gem. In short, it’s a mess that in the hands of different judged is certain to lead to diverse  (and even contradictory opinions). But it is bound to keep condemnation lawyers and appraisers gainfully employed.

Ah, but not so fast. Who says that this is  a decision to be made by judges rather than juries? The California Supreme Court, says so, relying on U.S. v. Reynolds, 397 U.S. 14, 18 (1970) — Stamper Slip opinion at p. 12. So what’s the problem? The problem is that this judicial statement is wrong. It is based on the idea that the 7th Amendment does not create a right to trial by jury — it only preserves the right to such trials as they existed when the constitution was adopted. So no jury trial in the late 18th century common law, no right to a jury trial now. Makes a fellow want to ask why we fought the revolution if we are to continue being stuck with old British stuff.

But actually, it appears that our courts are wrong; eminent domain (or “compulsory purchase” cases over there) were tried to juries in Merry Old England. But our courts don’t cite British sources.

We will be posting presently a short piece that explains all that old stuff, and if you believe the British Court of Appeals rather that American Courts you will be enlightened. In the meantime, check out Lewis Orgel, VALUATION UNDER EMINENT DOMAIN, Vol. 2, Sec. 25, pp. 268-271 (1953) for the straight poop.

More to come. Stand by.