Yale University v. City of New Haven

• Decision Date: 02 September 1975
• Court: Connecticut Supreme Court
• Parties: YALE UNIVERSITY v. CITY OF NEW HAVEN.

Page 1108

363 A.2d 1108

169 Conn. 454

YALE UNIVERSITY v. CITY OF NEW HAVEN.

Supreme Court of Connecticut.

Sept. 2, 1975.

Roger J. Frechette, New Haven, for appellant (defendant).

Robert F. Cavanagh, New Haven, with whom was S. Robert Jelley, New Haven, for appellee (plaintiff).

Before HOUSE, C.J., and COTTER, LOISELLE, BOGDANSKI and Barber, JJ.

HOUSE, Chief Justice.

This case arose as an appeal by the plaintiff from a decision of the board of tax review of the defendant city which denied the plaintiff's application for relief from the action of the defendant's assessor in adding to the defendant's 1969 tax list premises known as 149 York Street, New Haven, together with the personal property located therein. By amendment, the appeal, before it was heard, included the same addition to the tax lists of 1970, 1971, and 1972. The real property was used by the plaintiff exclusively to house the Yale University Press and for the storage and display of part of one of the collections of the Yale University Art Gallery. The appeal was referred by the Court of Common Pleas to a state trial referee, Hon. John R. Thim, for hearing and judgment. From the judgment for the plaintiff, the defendant appealed to this court. The following facts are summarized from the court's finding: Yale University is a corporation organized under a charter granted by the colony and state of Connecticut and is located in the town of New Haven. The charter of Yale contains the following provisions: '(T)he funds which have been or may hereafter be, granted, provided by the State of Connecticut, or given by any person or persons, to the corporation of 'The President and Fellows of Yale College in New Haven,' and by them invested and held for the use of that Institution, shall, with the income thereof, be and remain exempt from taxation. Provided, however, that the said corporation shall never hold in this State, real estate free from taxation affording an annual income of more than six thousand dollars.'

Yale is organized into a number of schools and departments. One of these departments is Yale University Press which has been a department since 1961. The predecessor of the department of Yale known as the Yale University Press was first organized in 1908 as a New York stock corporation bearing the name Yale University Press. On March 15, 1954, the directors of the New York stock corporation named Yale University Press voted to dissolve the corporation and to turn its assets over to Connecticut nonstock corporation to be named Yale University Press, Incorporated. On April 26, 1954, Yale University, its sole stockholder, also voted to dissolve the New York stock corporation named Yale University Press and to turn its assets over to a Connecticut nonstock corporation to be named Yale University Press, Incorporated. The articles of association of the Connecticut nonstock corporation Yale University Press, Inc., were approved by the secretary of the state of Connecticut on August 13, 1954. In 1961, the Connecticut nonstock corporation Yale University Press, Inc., was dissolved and its assets, including its real estate at 143 Elm Street, New Haven, were turned over to Yale University. On April 8, 1961, the Yale corporation adopted articles of government for the department of Yale known as Yale University Press. Under the articles of government, the Yale University Press has been managed since 1961 by a board of governors selected annually by the Yale corporation.

The department of Yale known as the Yale University Press has a full-time manager, known as the director, who is appointed by the Yale corporation. The position of director of the Yale University Press is considered similar to the positions of director of the Yale University Art Gallery, director of the Peabody Museum of Natural History, and librarian of the University. The board of governors of the Yale University Press appoints a committee on finance which has concern with the financial affairs of the Yale University Press. The board of governors also appoints a committee on publications, which has the sole authority to recommend what publications shall be issued under the imprint of the Yale University Press. The articles of government provide that at least two-thirds of the members of the committee on publications shall be members of the faculty of Yale. At the time of the trial, eight of the nine members of the committee on publications were members of the faculty at Yale. The ninth member was the director of the Yale University Press.

On and prior to October 1, 1969, and continuously thereafter until July 1, 1972, the operations and functions of the Yale University Press consisted of the publishing of scholarly books and the operation of a printing office which did most of the printing work required by Yale and printed some of the books published by the Yale University Press. On July 1, 1972, a new department known as the University Printing Service was organized by Yale, and it took over all of the printing work formerly done by the Yale University Press. From and after July 1, 1972, the operations and functions of the Yale University Press have consisted entirely of the publication of scholarly books.

In 1959, Yale purchased for $200,000 the real property known as 149 York Street, which is the subject to this appeal. It was paid for from gifts received by Yale. The real property at 149 York Street was used, from the time of its purchase until February, 1973, exclusively for the purpose of housing the Yale University Press and for storage and display of part of the Yale University Art Gallery's Garvan Collection of American Furniture, and related objects except that after July 1, 1972, the printing office located there was under the jurisdiction of the University Printing service. The real property at 149 York Street consists of a two story and basement building of approximately 54,000 square feet, and the land on which it stands. Approximately 10,000 square feet of space in the building have been used at all relevant times for storage and display of part of one of the collections of the Yale University Art Gallery known as the Garvan Collection of American Furniture, and related objects. The balance of the building has been occupied at all such times by the Yale University Press, except that, after July 1, 1972, the printing office was under the jurisdiction of the University Printing Service. The facilities at 149 York Street which house part of the Garvan collection have been used for the teaching of graduate and undergraduate courses in American arts and for display of the Garvan collection. The personal property located at 149 York Street consists of printing office machinery, furniture and fixtures, and books and supplies of the Yale University Press.

From the time that Yale acquired the real property at 149 York Street in 1959 until the list of October 1, 1969, neither the real property nor the personal property located there was assessed or taxed. Yale's use of the property at 149 York Street remained the same from 1959 through December 31, 1972, except for the transfer of the printing functions from the Yale University Press to the University Printing Service on July 1, 1972. The assessor's action adding the property to the taxable list as of October 1, 1969, was not prompted by any change in the use of property. On and prior to October 1, 1969, and continuously thereafter until July 1, 1972, the defendant of Yale known as the Yale University Press maintained a printing officer at 149 York Street. The printing officer printed materials required by many of the schools and other departments of Yale, including bulletins, catalogues, reports, departmental letterheads and forms. The printing office also printed some of the books published by the Yale University Press. It did not do any commercial printing. The facilities of the printing office were used by Yale in connection with the graphic arts courses offered to students at Yale. In addition to the operation of the printing office, the function of the department at Yale known as the Yale University Press at all relevant times has been to publish and distribute scholarly books. Its articles of government provide that: 'It is the purpose of the Press, as a department of Yale University, to manufacture, print, produce and reproduce, and to publish and distribute books and other publications suitable to be published under the auspices of 'Yale University, a corporation organized and existing under a special charter granted by the General Assembly of the Colony and State of Connecticut and located in the Town of New Haven;' and in carrying on these activities, to act as an integral part of the educational and scholarly functions of Yale University consistently with the general charitable, educational, literary, and scientific purposes of Yale University as set forth in this charter, thus supplementing the labors of scholars in the discovery and dissemination of truth, which is the central purpose of Yale University. The publications of the Press are primarily works by authors of originality and outstanding competence in their respective fields, and suitable works of erudition or academic scholarship and serious import which contribute to an understanding of human affairs, with first consideration to quality and with particular attention to works by members of the faculty of Yale University and of other colleges and universities which should command the respect of scholars. The Press is designed to provide an outlet for books which might not otherwise be published, to encourage the preparation of such works, and thus to exert a dynamic influence, by increasing the range and vigor of scholarly activities within Yale University and elsewhere, and so operate as an essential factor in the high functions of Yale University and other institutions of learning.' At all relevant times, the Yale University Press has...