PHELPS
v.
UNITED STATES
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
The government requisitioned a pier leased by Phelps Brothers during World War I and occupied it until 1919, paying compensation based on the property's rental value but without interest. The Supreme Court reversed the lower court judgment and held that just compensation under the Fifth Amendment requires not only the fair market value of the property taken but also an additional amount representing the time-value equivalent of contemporaneous payment, as the government's constitutional obligation is to place owners in the same pecuniary position as if the taking had never occurred.
© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Mr. Justice Butler delivered the opinion of the Court.
Plaintiffs were partners doing business as Phelps Brothers and Company; the petitioner is-the survivor. They owned a lease on Pier No. 7 of the Bush Terminal in New York Harbor. December 31, 1917, pursuant to an Act of August 29, 1916, c. 418, 39 Stat. 619, 645, and an Act of August 10, 1917, § 10, c. 53, 40 Stat. 276, 279, the Secretary of War by direction of the President requisitioned that pier and other portions of the Bush Terminal for use in carrying on the war. Plaintiffs-vacated, and the United States took possession of the property and continued to occupy it until May 14, 1919. The Secretary’s order stated that steps would be taken to ascertain fair compensation for the temporary use of the property; and a board of appraisers was created for that purpose. The plaintiffs continued to pay rent to the lessor; and, in accordance with the finding of the board, the amount of such payments, $79,890.42, was repaid to plaintiffs by the United States. The/board also found the value per month of the use of the plaintiffs’ property less the monthly rents paid. The amount calculated on that basis was not satisfactory to plaintiffs; they elected to take 75 per cent, of the award and there was paid them $44,733.79 on account. They sued to recover an amount sufficient to make up just compensation? The court found the value per day of the use of their property; the amount calculated on that basis was-$254,175.79 over and above the sums paid; and that amount was included in the judgment entered March 8, 1926. Petitioner was granted a writ of certiorari. 273 U. S. 678.
He contends that there should be added such sums as will produce the equivalent of the value of the use'of the leased property paid contemporaneously; and that interest at a reasonable rate from the date of the use to the time of payment is a good measure of the amount to be added' in order to make just compensation.
This action was brought under § 145 of the Judicial Code. That section gives to the Court of Claims jurisdiction to hear and determine “all claims (except for pensions) founded upon the Constitution of the United States or . . . upon any contract, express or implied, with the Government of the United States . . .” Section 177 provides that no interest shall be allowed on any claim “up to the time of the rendition of judgment unless upon a contract expressly stipulating for its payment. Under the Fifth Amendment plaintiffs were entitled t6 just compensation; and, within the meaning of § 145, the claim is one founded on the Constitution.
Moreover, it has long been established that, where pursuant to an Act of Congress private property is taken for public use by officers or agents of the United States, the Government is under an implied obligation to make just compensation. That implication 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 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 Line Ry. v. United States, 261 U. S.
299. Plaintiffs’ property was taken before its value was ascertained or paid. Judgment in 1926 for the value of the use of the property in 1918 and 1919, without more, is not sufficient to constitute just compensation.
Section 177 does not prohibit the inclusion of the additional amount for which petitioner contends. It is not a claim for interest within the purpose or intention of that section. Acts of Congress are to be construed and applied in harmony with and not to thwart the purpose of the Constitution. The Government’s obligation is to put the owners in as good position pecuniarily as if the use of their property had not been taken. They are entitled to have the full equivalent of the value of such use at the time of the tailing paid contemporaneously with the taking. As such payment has not been made, petitioner is entitled to the additional amount claimed. Seaboard Air Line Ry. v. United States, supra, 304; Brooks-Scanlon Corp. v. United States, 265 U. S. 106, 123; Liggett and Myers Tobacco Co. v. United States, ante, p. 215.
Judgment reversed.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By (45 total)
-
Jacobs v. United States, 290 U.S. 13 (U.S. 1933)…qualified by the omission of a provision for interest where such an allowance was appropriate in order to make the compensation adequate. See, also, United States v. Rogers, 255 U.S. 163, 169. The principle was restated in Phelps v. United States, 274 U.S. 341. There the suit was brought in the Court of Claims, and that court gave judgment for the value of the property as it was found to be at the time of the requisition. Plaintiffs insisted that they were entitled to an additional amount to produce the e…
-
Richmond Screw Anchor Co. v. United States, 275 U.S. 331 (U.S. 1928)…just equivalent. • If section 3477 applied, such equivalence was impossible. [*346] It is our duty in the interpretation of federal statutes •to reach a conclusion which will .avoid serious doubt of their constitutionality. Phelps v. United States, 274 U. S. 341. Moreover, we should seek to carry out in our dealing with the Act of 1918 and Revised Statutes 3477 the very important Congressional purpose of the former, as already explained, in the promotion of the War, as a special legislative intent. It is o…
-
United States v. Thayer-West Point Hotel Co., 329 U.S. 585 (U.S. 1947)…o receive interest from the date of the taking to the date of payment as a part of his just compensation. Seaboard Air Line Ry. v. United States, 261 U. S. 299, 306; Brooks-Scanlon Corp. v. United States, 265 U. S. 106, 123; Phelps v. United States, 274 U. S. 341, 344. Since it is clear in the instant case that the United States did not exercise its power of eminent domain and that there was no taking of the hotel properties in the legal sense, we can put to one side the eminent domain situation. There is n…
Previewing 3 of 45 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Seaboard Air Line Ry. Co. v. United States, 261 U.S. 299 (U.S. 1923)
- United States v. N. Am. Transp. & Trading Co., 253 U.S. 330 (U.S. 1920)
- Brooks-Scanlon Corp. v. United States, 265 U.S. 106 (U.S. 1924)
- Campbell v. United States, 266 U.S. 368 (U.S. 1924)
- A. W. Duckett & Co., Inc. v. United States, 266 U.S. 149 (U.S. 1924)
- Pueblo of Santa Rosa v. Fall, 273 U.S. 678 (U.S. 1926)
- Hellmich v. Mo. Pac. R.R. Co., 273 U.S. 678 (U.S. 1926)