A. W. DUCKETT & COMPANY, INC.
v.
UNITED STATES

U.S. | 1924-11-17
No. 108
266 U.S. 149 Supreme Court of the United States (1924) Caution
Also reported at: 69 L. Ed. 216 · 45 S. Ct. 38 · SCDB 1924-034 · 1924 U.S. LEXIS 2903
Cited by 109 cases

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Synopsis

The United States took possession of Bush Terminal docks in Brooklyn during World War I under statutory authority, which included Pier No. 8 leased by A. W. Duckett & Company, and the company sought compensation for its leasehold interest. The Supreme Court held that the government's taking of the physical property constituted an exercise of eminent domain that necessarily encompassed all interests in the property, including the claimant's leasehold, and thereby implied a contract to pay just compensation, reversing the Court of Claims' dismissal for lack of jurisdiction.


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Opinion of the Court
Mr. Justice Holmes

Mr. Justice Holmes delivered the opinion of the Court.

This is a claim against the United States for the value of the claimant’s interest in Pier No. 8 of the Bush Terminal Company under a lease that ran through Septemb ér 30, 1919. The claim is based upon an implied contract alleged to have arisen from a taking for war purposes, for such time as might be necessary, of described portions of the Bush Terminal docks and warehouses, including the claimant’s pier. The Court of Claims dismissed the petition for want of jurisdiction upon the ground that the facts found excluded as matter of law the possibility that a contract should be implied and that therefore there could be no claim. Hill v. United States, 149 U. S. 593.

Under the Act of August 29, 1916, c. 418, 39 Stat. 619, 645, giving the President authority to take possession of any system of transportation, he took possession through the Secretary of War of the Bush Terminal, in Brooklyn, New York, including Pier No. 8, the Secretary issuing a general order dated December 31, 1917, “ To whom it may concern,” which stated that “ possession and control is hereby taken ... of the following described parts of a system of transportation . . . ; that is to say, of those portions of the Bush Terminal docks and warehouse property described ” &c. “ Steps will be promptly taken to ascertain the fair compensation to be paid for the temporary use by the Government of the premises.” Notice of this order was served on the Bush Terminal Company on or about January 3, 1918, and at about the same time the receiver of A. W. Duckett & Company was notified that “ the Bush Terminal has this day been requisitioned for the use of the embarkation service of the United States Army, and possession thereof has passed to the United States,” and he was directed to make arrangements for vacating the premises. As the result of conferences the United States took possession of the pier at midnight, January 31, 1918.

It is unnecessary to go into the details of what was done later, as the acts that we have stated determined the relations of the parties. On the face of those acts it seems to us manifest that the United States, although not taking the fee, proceeded in rem as in eminent domain, and assumed to itself by paramount authority and power the possession and control of the piers named, against all the world. Ordinarily an unqualified taking in fee by eminent domain takes all interests and as it takes the res is not called upon to specify the interests that happen to exist. Whether or not for some purposes the new takers may be given the benefit of privity with the former holders, the accurate view would seem to be that such an exercise of eminent domain founds a new title and extinguishes all previous rights. Emery v. Boston Terminal Co., 178 Mass. 172, 184. Farnsworth v. Boston, 126 Mass. 1, 8. In such a case we no more should expect to hear it argued that leaseholds were not to be paid for than that the former fee simple should not be, on the ground that it was gone and a new fee begun. A right may be taken by simple destruction for public use. United States v. Welch, 217 U. S. 333, 339, See Peabody v. United States, 231 U. S. 530, 538. Here the taking purported to be a taking of the Bush Terminal docks, &c. — not of the title of the Bush Terminal Company, but of the things, to whomsoever they belonged. The notice was “ to whom it may concern.” The claimant was turned out like the others. We. can see no ground for attributing to the United States the extraordinary intent to recognize and pay for other interests but to exclude the claimant. The order made no such distinction but promised fair compensation, seemingly to all, and the subsequent appointment of a board of appraisers contemplated payment to tenants. Any arrangement that the Government may have made later with the owner to pay to it what might be due to the tenants or some of them did not affect the claimant’s rights. Omnia Commercial Co. v. United States, 261 U. S. 502, which was thought to give some color to the decision below, has no bearing upon the present question. There the Government made a requisition of the entire product of a Steel Company for a year. On the assumption that the Government thereby made it impossible for the Steel Company to perform a contract to sell a large quantity of steel plate to the claimant, the decision was that nevertheless the contract was not taken. The contract was no part of the res taken and whatever might be the collateral consequences of the appropriation liability for them was not an incident of the Government’s act. 261 U. S. 510. Here the claimant’s possession under its lease was a part of the res, and therefore was within the implied promise to pay. Whatever the effect of the taking there was a contract implied in fact by the President's order and there-is no doubt concerning the jurisdiction of the Court of Claims. United States v. North American Transportation & Trading Co., 253 U. S. 330.

Judgment reversed with directions to award proper compensation to the appellant.


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Citator

Cited By (30 total)

  • United States v. Petty Motor Co., 327 U.S. 372 (U.S. 1946)
    …the totality of property, which was taken, thus lost all meaning, the Government accepts a separate responsibility to compensate the tenants for any legally recognized interest which they may have in the property. See Duckett & Co. v. United States, 266 U. S. 149. Although an earlier surrender might occur by the election of the United States, the estate sought did not necessarily expire until June 30, 1945. Prompt possession was required from the tenants and all of them were required by the order of possess…
    1 / 2
  • Phelps v. United States, 274 U.S. 341 (U.S. 1927)
    …being consistent with the constitutional duty pf the Government as well as with common justice, the owner’s claim is one arising out of implied contract. United States v. Great Falls Manufacturing Co., 112. U. S. 645, 656; Duckett v. United States, 266 U. S. 149, 151; Campbell v. United States, 266 U. S. 368, 370. The distinction between the cause [*344] of action considered in United States v. North American Co., 253 U. S. 330, and a taking under the power of eminent domain was pointed out in Seaboard Air…
  • Hi Holdridge v. United States, 282 F.2d 302 (8th Cir. 1960)
    …purposes the new takers may be given the benefit of privity with the former holders, the accurate view would seem to be that such an exercise of eminent domain founds a new title and extinguishes all previous rights.” Duckett & Co. v. United States, 266 U.S. 149, 151, 45 S.Ct. 38, 69 L.Ed. 216. To the same effect are United States v. Sunset Cemetery Co., 7 Cir., 132 F. 2d 163,164-165; Meadows v. United States, 4 Cir., 144 F. 2d 751, 753; Burkhart v. United States, 9 Cir., 227 F. 2d 659, 661-662; Silberman…
    1 / 2

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