White v. Sparkill Realty Corporation

• Decision Date: 24 February 1930
• Docket Number: No. 336,336
• Citation: 74 L.Ed. 578,280 U.S. 500,50 S.Ct. 186
• Parties: WHITE et al. v. SPARKILL REALTY CORPORATION et al
• Court: U.S. Supreme Court

280 U.S. 500

50 S.Ct. 186

74 L.Ed. 578

WHITE et al.

v SPARKILL REALTY CORPORATION et al.

No. 336.

Argued Jan. 7, 1930.

Decided Feb. 24, 1930.

Mr. Walter H. Pollak, of New York City, for appellants.

[Argument of Counsel from pages 501-503 intentionally omitted] Mr. Jackson A. Dykman, of Brooklyn, N. Y., for appellees.

[Argument of Counsel from pages 504-506 intentionally omitted] Mr. Justice SUTHERLAND delivered the opinion of the Court.

This is form is a suit in equity against the members of the board of commissioners of the Palisades Interstate Park, appointed pursuant to a statute of the state of New York, the Attorney General, and the commissioner of the conservation department of the state. The bill was filed March 19, 1929, and alleges that the Sparkill Realty Corporation is the owner in fee of lands lying within the southern district of New York, of which the Standard Trap Rock Corporation is lessee. The lands contain valuable deposits of 'trap rock'; and the Standard Trap Rock Corporation, in preparing to develop the deposits, contracted for the erection and equipment of a plant, not adapted for use elsewhere, thereby subjecting itself to liabilities exceeding $1,000,000.

While this work was in progress, estimates and maps, as required by state law, for the acquisition of these and other lands for a state park, were approved by the board and certain state officers. Notice was served on appellees that a description of the lands, certified as correct, has been filed with the secretary of state; and that the lands had been appropriated by the people of the state for public and state park purposes, pursuant to the state statutes. Thereupon, the bill alleges, the board of commissioners, on October 11, 1928, 'wrongfully entered upon the said real property of plaintiffs (appellees) and converted the personal property thereon to their own use, and have since remained in possession of said real and personal property and prevented its use, enjoyment, occupation, and operation by plaintiffs for any purpose to plaintiffs' great and continuing damage.'

It is further averred that the sum of $500,000 was allocated to the acquisition of the property, but that the value of the property exceeds $3,000,000; that appellees are suffering daily loss from the 'continued unlawful occupation of their property,' the aggregate sum of which will be such that the damage will be irreparable and destructive of appellees' property; and that, therefore, they are without adequate remedy at law.

The prayer is that the acts of the board and state officers, and the statutes of the state purporting to authorize them, be declared invalid as violating the Fourteenth Amendment and other provisions of the federal Constitution, as well as a provision of the state Constitution; and that appellants be enjoined from attempting to enforce the provisions of the statute, notice, description, or certificate, or proceeding against appellees at law or in equity to compel compliance with, or inflicting or recovering any penalty, forfeiture, or damage for noncompliance by appellees with the statute, notice, description, or certificate, or 'from continuing in possession of plaintiffs' said property.'

The statutory provisions assailed as unconstitutional are found in sections 59 and 761 of the New York Conservation Law (Laws 1928, c. 242). Section 761 confers upon the commissioners of the Palisades Interstate Park power to acquire lands by entry and appropriation in the manner provided for in section 59. Section 59 authorizes the conservation department to enter upon and take possession of lands, etc., which, in the judgment of the department, shall be necessary for public park purposes, or for the protection and conservation of the lands, forests, and waters within the state. A description of the property to be entered upon must be made and certified, which, together with a notice indorsed thereon that the property described is appropriated by the people of the state, shall be filed in the office of the secretary of state. A duplicate must be served on the owner or owners of the lands, etc., and 'thereupon such property shall become, and be, the property of the people of the state.' Provision is made for an adjustment of compensation for the property and legal damages, and the issue of a certificate stating the amount due; which amount shall be paid out of the state treasury upon the audit and warrant of the Comptroller. It is further provided that any owner may present to the state Court of Claims a claim for the value of the land and damages; and the court is authorized to hear and determine such claim and render judgment thereon. The Comptroller is directed to issue his warrant for the payment of the amount, with interest from the date of the judgment until the 30th day after the entry of final judgment; and such amount shall be paid out of the state treasury.

Upon filing the bill it was ordered that appellants show cause before a court of three judges, constituted under section 266 of the Judicial Code (U. S. C. tit. 28, § 380 (28 USCA § 380)), why an interlocutory injunction should not issue. A hearing was had upon affidavits submitted by both parties. The affidavit of James G. Shaw, on behalf of appellees, con- tains the statement that, acting under the statutory provisions above set forth, the property in question was 'appropriated by the people of the state of New York for public and state park purposes with the approval of the Governor'; and that the commissioners 'thereafter entered upon the took possession of said property, of which they have since retained possession to the exclusion of the plaintiffs.' The affidavit of J. Du Pratt White, president of the board of commissioners of the Palisades Interstate Park, sets forth that, after the appropriation papers were served, appellees ceased doing any work on the property; that the contractors and other persons engaged in doing work left, taking their machinery and tools with them, and certain movable property and equipment used or for use in connection therewith was likewise removed from the premises; and that the state, through the commission, had, since October 11, 1928, been in exclusive possession of the property as a state park. These excerpts from the affidavits are not controverted.

Appellants submitted a motion to dismiss the bill on the ground, among others, that it did not state facts sufficient to constitute a valid cause of action in equity against the defendants. The court below denied the motion to dismiss, and granted an interlocutory injunction in accordance with the prayer of the bill. The state statute was held invalid, for the reason that it authorized the taking of private property for public use without just compensation, or making adequate provision for payment thereof. In respect of its denial of the motion to dismiss, the court simply said that the action was not one for ejectment, and cited Hopkins v. Clemson Agricultural College, 221 U. S....