Haven Homes, Inc. v. Raritan Tp.

• Decision Date: 27 June 1955
• Docket Number: No. A--148,A--148
• Citation: 19 N.J. 239,116 A.2d 25
• Parties: HAVEN HOMES, Inc., a New Jersey corporation, Plaintiff-Respondent, v. RARITAN TOWNSHIP, a municipal corporation of New Jersey, Defendant-Appellant.
• Court: New Jersey Supreme Court

Page 239

19 N.J. 239

116 A.2d 25

HAVEN HOMES, Inc., a New Jersey corporation, Plaintiff-Respondent, v. RARITAN TOWNSHIP, a municipal corporation of New Jersey Defendant-Appellant.

No. A--148.

Supreme Court of New Jersey.

Argued June 16, 1955.

Decided June 27, 1955.

Fred G. Stickel, III, Newark, argued the cause for appellant (Meyer Q. Kessel, Newark, on the brief; Thomas L. Hanson, Perth Amboy, attorney).

Samuel Kaufman, Newark, argued the cause for respondent (Andrew L. Kaufman and John M. Kaufman, Newark, on the brief; Bilder, Bilder & Kaufman, Newark, attorneys).

Philip R. Gebhardt, Clinton, presented a brief on behalf of New Jersey Institute of Municipal Attorneys, as Amicus curiae (Bernard W. Vogel, Perth Amboy, of counsel).

The opinion of the court was delivered by

HEHER, J.

Plaintiffs was given judgment in the Law Division of the Superior Court, Mandamus in nature, directing the defendant municipality 'to institute proceedings to condemn the water mains installed by the plaintiff' in streets laid out on a tract within the municipality developed for one-family houses. This, on the premise that the water mains constituted property of the plaintiff taken by the municipality in the exercise of the power of eminent domain for which compensation is required to be made by Article I, paragraph 20, of the 1947 Constitution, and so the municipality may be enjoined to institute condemnation proceedings for the purpose of making compensation for the property taken. See Haycock v. Jannarone, 99 N.J.L. 183, 122 A. 805 (E. & A.1923); Brown v. Murphy, 136 N.J.L. 183, 54 A.2d 764 (E. & A.1947).

This is the situation of fact: The housing project in question involved the construction of 368 one-family houses. The land was developed by sections, eight in all; each section was subdivided into streets and building lots; the essential utilities, such as storm sewers, sanitary sewers and water, and street improvements, such as curbs and pavements, were installed and constructed prior to the approval and filing of the section map; the subdivision or plat of the particular section was then submitted to the local planning board for its approval for filing and, such approval being had, it was submitted to the local governing body for confirmation and, upon such confirmation, it was filed with the county clerk. This filing of the section map or subdivision plat was followed by resolutions adopted by the local governing body formally accepting the streets thus laid out and the utilities installed therein. Of the nature of the action, more hereafter. The municipal acceptance was had at the instance of the plaintiff developer, presumably to make available the financial aid promised by the Federal Housing Administration and to facilitate marketing of the houses. It is denied that this was a condition laid down by F.H.A. But there can be no doubt that the dedication of the streets and the service facilities was indispensable to an advantageous sale of the houses on the abutting lands; and it would seem that prudent management by F.H.A. would have required, as a condition precedent to financing, a course of action that would give the purchaser of the finished house title in fee to the center of the street, subject only to the public easement for the common good, a measure basic, it would seem, to the fulfillment of the governmental policy in its keeping. All the houses in these several sections were eventually sold and conveyed, and thus the plaintiff developer conveyed away its entire interest in the lands, although it now asserts, as against the municipality, but not the abutting landowners, the taking by the municipality for public use of a right of property in the water mains for which compensation must be made according to constitutional precept.

The complaint is in three counts: the first pleads a right of compensation for the water mains through the medium of a compulsory condemnation proceeding; the second alleges that defendant took possession of the 'mains of the plaintiff' under an agreement 'to pay for the same in accordance with the formula of the Public Utilities Commission of New Jersey,' providing for 'the payment to the plaintiff over a period of years as the defendant receives payment from inhabitants for water sold to them by defendant,' and demands specific performance of the pleaded agreement; and the third count charges that defendant 'requested the plaintiff to construct the mains at its own cost and expense and thereafter to transfer title thereto to the defendant for which the defendant would reimburse the plaintiff for the cost of construction,' and that defendant has 'derived considerable revenue and profit from the sale of water' conveyed through the mains, and its utilization of the mains 'has resulted in the injust enrichment of the defendant at the expense of the plaintiff.'

There were cross motions for summary judgment, on the common assumption that the essential facts are not in dispute. In entering judgment for the plaintiff on the first count, the Superior Court judge said that, in the event of an appeal, 'any other phases of the matter' would be held 'in abeyance' untilt he disposition of the appeal.

The case is here by this court's certification for decision of defendant's appeal to the Appellate Division.

The municipality contends that there was an unqualified dedication to public use of 'the streets, the improvements thereon and the utilities therein,' rendered effective by its acceptance on behalf of the public. Acknowledging dedication of the 'streets,' plaintiff nevertheless insists that this devotion of land to the general use, depending as it does upon intention, did not include the water mains. It is said that intention is manifested by acts and the 'filing of a map with streets, but not water mains, cannot establish a dedication of water mains.' The omission of an express reservation, it is argued, would have significance only if 'the map showed water mains; the water mains not appearing, obviously there was and could be no reservation; no dedication appearing, there was nothing to reserve.'

But the reasoning is contrary to the normal and natural import of the dedication and the acceptance, related to the particular circumstances. Quite apart from plaintiff's own need, the several resolutions of the local governing body, enumerating the improvements, sanitary sewers, water mains, curbs, pavements, some or all as the case might be, provided for acceptance of the street as shown on the map, 'together with the said improvements constructed thereon and therein * * * for future maintenance' by the township 'at no further cost to the abutting property owners'; and where the improvements had not been completed, the plaintiff developer was obliged to provide a completion bond. As just said, the houses could hardly be financed and sold were the streets and underlying utilities not devoted to the common use. And plaintiff concedes that as to the purchasers of the dwelling houses, this is precisely the effect of what was done.

Moreover, before final approval of plats, N.J.S.A. 40:55--1.21, the governing body may require, in accordance with the standards adopted by ordinance, the installation, or the furnishing of a performance guarantee in lieu thereof, of certain specified improvements it may deem to be necessary or appropriate or in the public interest, water mains...