Anderson v. United States

• Citation: 179 F.2d 281
• Decision Date: 10 January 1950
• Docket Number: No. 12628.,12628.
• Parties: ANDERSON et al. v. UNITED STATES. UNITED STATES v. ANDERSON.
• Court: United States Courts of Appeals. United States Court of Appeals (5th Circuit)

179 F.2d 281 (1950)

ANDERSON et al. v. UNITED STATES.

UNITED STATES v. ANDERSON.

No. 12628.

United States Court of Appeals Fifth Circuit.

January 10, 1950.

John H. Crooker, Jr., Houston, Texas, for appellant.

S. Billingsley Hill, Attorney, Debt. of Justice, Washington, D. C., Roger P. Marquis, Attorney, Dept. of Justice, Washington, D. C., A. Devitt Vanech, Assistant Attorney General, Arthur L. Moller, Special Asst. to the U. S. Attorney, Houston, Texas, for appellee.

Before McCORD, and WALLER, Circuit Judges, and RICE, District Judge.

WALLER, Circuit Judge.

On January 30, 1946, the United States, pursuant to Section 594, Title 33 U.S.C.A. filed a petition for the condemnation of the fee simple title to lands involved in this litigation and on the same date obtained an order of the Court below putting it in immediate possession of the lands. Subsequently a hearing was had before commissioners as prescribed by the laws of Texas and objections were filed by the landowners to the amount found by the commissioners as just compensation. While still in possession, and before any disposition was made of the objections to the commissioners' findings,¹ the United States, on November 14, 1946, filed a declaration of taking under Section 258a, Title 40 U.S. C.A., and made a deposit on that date of an amount which it deemed to be just compensation.

At the trial, on the issue as to what was just compensation, a dispute arose between counsel as to whether the taking by the United States occurred when the United States filed eminent domain proceedings and went into possession under order of the Court on January 30, 1946, or when it filed its declaration of taking, deposited into Court the amount it deemed to be just compensation, and took title to the property on November 14, 1946.

A jury was waived and the Court took testimony, as to market value on both dates, and fixed the value in the sum of $227,100.00 as of January 30, and the sum of $261,000.00 as of November 14. From this it will be noted that there was a marked increase in market value between the two dates. After having the matter under advisement, the Court below concluded that the taking occurred on January 30, 1946, when the condemnation proceedings were instituted and the United States was, on such date, put in possession, rather than on November 14 when it filed its declaration of taking, made the deposit, and took title, under Section 258a, Title 40 U.S.C.A.

All agree that just compensation is to be measured by the fair market value at the time of the taking, and that the amounts found by the lower Court are each supported by the weight of the evidence. Therefore, the sole question before us is, which date was the time of the taking? The District Court, deciding that the value should be fixed as of the date when the United States filed its petition for condemnation and obtained an order of the Court putting it in possession, gave judgment for $227,100.00. Landowners say that was error. We say it was correct.

It seems settled that the landowner is not entitled to any increase in value of property lying within the boundaries of a Federal improvement project if the improvement has brought about the increase in value. It became known, of course, that the land in controversy was within the confines of the Federal project not later, at least, than the time when the Government filed the condemnation proceedings and took possession on January 30, 1946. To allow the value of the land to be fixed long after the date when it had become known that the United States was in the process of taking same would tend to include any enhancement in market price occasioned by reason of the improvement and would run counter to that general principle announced by the Supreme Court in United States v. Miller, 317 U.S. 369, 63 S.Ct. 276, 281, 87 L.Ed. 336, 147 A.L.R. 55, where the Court said:

"The question then is whether the respondents' lands were probably within the scope of the project from the time the Government was committed to it. If they were not, but were merely adjacent lands, the subsequent enlargement of the project to include them ought not to deprive the respondents of the value added in the meantime by the proximity of the improvement. If, on the other hand, they were, the Government ought not to pay any increase in value arising from the known fact that the lands probably would be condemned. The owners ought not to gain by speculating on probable increase in value due to the Government's activities."

Even though the evidence of value is...