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Smart Summary

Factual and Procedural Background

This case involves the East River Gas Company of Long Island City (petitioner/appellant) seeking to acquire easements and property rights by eminent domain in the City and County of New York for the construction and maintenance of a tunnel under the East River. The tunnel extends from Manhattan to Astoria, Long Island, passing beneath Ward's Island. The petitioner sought to acquire various property rights including lands under water owned by the State and City of New York, upland property on Ward's Island, permanent easements for rights of way, and temporary easements for construction purposes.

The City of New York and the State of New York are the respondents, as owners or lessees of the relevant property. The Special Term denied the petitioner’s motion to confirm the commissioners’ report assessing compensation for the property taken, citing irregularity, errors of law, and inadequacy of awards. The petitioner appealed this denial.

Legal Issues Presented

  1. Whether the commissioners’ report on the valuation and awards for the property and easements taken by eminent domain was legally adequate and free from irregularity or error.
  2. Whether the awards made by the commissioners were grossly inadequate, indicating the use of an erroneous principle of valuation.
  3. Whether the appointment of new commissioners or referral of the matter for reassessment was justified.

Arguments of the Parties

Respondents' Arguments

  • The respondents contended that the commissioners’ awards were so grossly inadequate as to indicate an erroneous principle of valuation was applied.
  • They alleged irregularities and errors of law in the proceedings before the commissioners.

Petitioner’s Arguments

  • The petitioner argued that no irregularities or illegal acts occurred during the commissioners’ proceedings.
  • The petitioner maintained that the awards were adequate and based on proper valuation principles.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court carefully examined the record and found no evidence of irregularity, illegal acts, or improper admission or exclusion of evidence during the commissioners’ proceedings. The sole claim of error was that the awards were inadequate and thus reflected an erroneous valuation principle. The court noted the difficulty in valuing the property due to lack of comparable standards and emphasized that the valuation must reflect the value to the property owners, not the benefits to the petitioner.

The court observed that the commissioners’ awards were based on the highest credible valuations presented by witnesses, despite some testimony being irrelevant or unsatisfactory. The awards for permanent and temporary easements, as well as for the right to maintain the tunnel beneath the East River and Ward’s Island, were deemed ample and not plainly inadequate. The court found no convincing theory of valuation that would justify a higher award.

Accordingly, the court concluded there was no legal basis to overturn the commissioners’ report or to appoint new commissioners. The apportionment of awards between the State and City could be addressed under existing procedural provisions without remanding the case.

Holding and Implications

The court REVERSED the order of the Special Term that denied confirmation of the commissioners’ report. The motion to confirm the report was granted, with costs and disbursements awarded to the petitioner in the amount of ten dollars.

The direct effect of this decision is to uphold the commissioners’ valuation and awards, allowing the petitioner to proceed based on those assessments. The court did not establish any new precedent or broader legal principle beyond affirming the proper application of valuation standards and the absence of procedural error in eminent domain proceedings.

In the Matter of the Application of the EAST RIVER GAS COMPANY OF LONG ISLAND CITY to Acquire by Eminent Domain Easements and Rights of Way in Certain Real Property in the City and County of New York. EAST RIVER GAS COMPANY OF LONG ISLAND CITY, Appellant, v. THE CITY OF NEW YORK and THE STATE OF NEW YORK, Respondents.

SCOTT, J.:

The petitioner appeals from an order of the Special Term denying its motion to confirm the report of commissioners of estimate and assessment appointed in this proceeding, and setting aside such report and referring the matter to new commissioners. The grounds for such order, as recited therein, are "for irregularity and error of law in the proceedings before the commissioners, and upon the further ground that the awards therein made are wholly insufficient and inadequate."

Counsel who argue in support of the order appealed from do not call attention to any irregularity in the proceedings before the commissioners, nor to any illegal act by said commissioners, nor to any improper exclusion or admission of evidence, and our own examination of the record fails to disclose any. The only claim of irregularity or error of law in the proceedings is based upon the contention by the respondents that the awards were so grossly and palpably inadequate as to indicate that the commissioners must have proceeded upon an erroneous principle.

The petitioner is authorized by chapter 338 of the Laws of 1892 to supply gas and electricity in the city of New York, and for that purpose, among other things, it is empowered "to lay and maintain * * * conductors, mains and pipes under and across the East river, and across any intervening land belonging to the city of New York, or to private persons, at such places as it may determine." It is also empowered "to acquire by condemnation or purchase such real property, public or private, or right, interest or easement therein, for the laying and maintaining of its mains, pipes and conductors as may be necessary in the exercise of the powers hereby conferred." In pursuance of this authority the petitioner is engaged in constructing a tunnel from the foot of One Hundred and Tenth street, borough of Manhattan, to Astoria on Long Island. This tunnel will be 6,274 feet in length, 40 feet square, and at the mean average depth below tide water of 208 feet, and of a depth in the solid rock of 172 feet below the upper surface of the rock. The tunnel thus passes, in the solid rock, under the East river and under Ward's island. For convenience of construction and maintenance it is proposed to construct and maintain perpetually a shaft on Ward's island which will occupy a circular plot of land 40 feet in diameter. There is, and has been for many years, a road on Ward's island running east and west and terminating at docks or bulkheads on the east and west sides of the island. The property sought to be acquired may be summarized as follows:

Property rights and permanent easements. — First. Lands under water belonging to the State of New York between Astoria and the end of the tunnel on Manhattan island.

Second. Land under water belonging to the city of New York between Astoria and the end of the tunnel on Manhattan island.

Third. Land under the upland of Ward's island belonging to the city of New York and under lease to the State.

Fourth. Title in fee to a circular plot of land in the uplands of Ward's island forty feet in diameter for use as a shaft connecting with the tunnel.

Fifth. A permanent and perpetual easement in a right of way 40 feet wide leading from the north road on Ward's island to the said shaft, a distance of 170 feet.

Sixth. A permanent and perpetual, but not exclusive, easement to the use of the north road from the above-described right of way to the west channel of the East river, and over the bulkhead at the foot of said road.

Temporary easements. — First. For the use during the construction of the shaft of a plot of land 150 feet in diameter surrounding and concentric with the shaft site.

Second. For the right of way during the construction over the north road to the east channel of the East river.

Third. For the right to use during construction the dock or bulkhead at the easterly end of the north road for the landing of boats and the handling of material.

The claimants are the State of New York and the city of New York. The State of New York owns the land under the waters of the East river, except the lands under water immediately adjacent to Ward's island, which belong to the city of New York. The State also holds a lease of Ward's island for certain purposes.

Ward's island was conveyed to the city of New York by the commissioners of emigration by a deed dated July, 1893, which contained a condition that it should be forever used for general charitable purposes. It was so used until the passage by the Legislature of chapter 2 of the Laws of 1896, entitled "An act for the conversion of the New York city asylums for the insane into a State hospital and to establish the Manhattan State Hospital," when the city, in pursuance of the terms of that act, leased the island and the improvements thereon to be used by the State solely as a State hospital for the insane. The act provided that the lease might be terminated by the city upon giving fifteen years' written notice, and such notice was given on November 19, 1897. The condition of the title of Ward's island thus is that the city of New York owns the fee subject to a condition that it shall be used forever for general charitable purposes, and the State of New York holds a lease, expiring in November, 1912, conditioned for its use solely as a State hospital for the insane. It is manifest from a description of the property, and of the rights sought to be acquired, that the precise ascertainment of their value was a matter of extreme difficulty owing to the lack of any standard of comparison. What was to be ascertained was the value to the owner of the property or property rights to be taken from him, and not, as certain of the witnesses seem to have assumed, the benefits direct or consequential to be derived by the petitioner from the use of such property or rights. In arriving at any estimate of the value to the owner the commissioners were also required to take into account the availability and adaptability in the hands of such owner of the property taken for particular uses and purposes. The only testimony as to value was that presented by the claimants, the present respondents, and much of it, owing no doubt to the peculiar circumstances of the case, was very unsatisfactory and to a considerable extent irrelevant. The witness who put the highest value upon the property and easements to be acquired was an engineer, who did not profess to any expert knowledge of the value of real estate. His evidence was directed to showing the pecuniary advantage that would accrue to the petitioner in the construction of the tunnel by reason of having a shaft on Ward's island. This evidence, of course, was totally irrelevant to the question as to the value to the city of New York of the land to be taken in fee for the purposes of a shaft site. Two witnesses gave evidence as to the value of the shaft site, basing their estimates upon what they deemed the property would be worth for ordinary commercial purposes if presently available therefor. The commissioners have awarded the largest value placed upon the land on this basis of estimate. For the right to maintain a tunnel under the East river an award has been made to the State of $500, and a like award to the city for the right to maintain the tunnel under Ward's island. It is not apparent that the tunnel will take anything of any value whatever from either the city or the State, as the value of the petitioner's franchise is not an element to be considered in this proceeding. The awards for the right to maintain the tunnel far below the surface are certainly ample. For the permanent easements of the right to use the already established north road and the docks and bulkheads at the westerly end thereof, and the right of way from the road to the shaft site, the commissioners awarded $1,020. We are unable to say that this award is in any sense inadequate. The evidence upon which a much larger award was demanded by the claimants was of a most unsatisfactory nature and based upon obviously mistaken theories of valuation, and the same may be said of the award for the temporary easements to last only during the period of construction, for which the commissioners awarded $2,500. Although the order below recites as a reason for refusing to confirm the report that there had been irregularity and errors of law in the proceedings before the commissioners, and the counsel for the claimants insist that the commissioners proceeded upon a wrong theory of valuation, no errors of law have been pointed out to us, and no suggestion is made, which commends itself to our judgment, as to any theory of valuation which would have produced a result more favorable to the claimants, and after carefully examining the testimony we find ourselves unable to say that the awards were so plainly inadequate as to compel the presumption that the commissioners adopted an improper theory of appraisement, or disregarded any competent or relevant evidence as to values. It was not necessary to appoint new commissioners, or even to send the report back to the same commissioners to apportion between the State and the city the awards for the property and interests to be acquired on Ward's island. That apportionment, if any be necessary, can be made under the provisions of section 3378 of the Code of Civil Procedure.

It follows that the order appealed from should be reversed, with ten dollars costs and disbursements, and the motion to confirm the report of the commissioners granted.

PATTERSON, P.J., INGRAHAM, LAUGHLIN and CLARKE, JJ., concurred.

Order reversed, with ten dollars costs and disbursements, and motion to confirm report granted.

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MATTER OF EAST RIVER GAS CO
(May 10, 1907)