Opinion
# 2016-016-043 Claim No. 102648
08-04-2016
NEW YORK CENTRAL LINES, LLC v. THE STATE OF NEW YORK
Goldstein, Rikon, Rikon & Houghton, P.C. By: Jonathan Houghton, Esq. Eric T. Schneiderman, Attorney General By: J. Gardner Ryan, AAG and Michele M. Walls, AAG
Synopsis
Case information
| UID: | 2016-016-043 |
| Claimant(s): | NEW YORK CENTRAL LINES, LLC |
| Claimant short name: | NEW YORK CENTRAL LINES |
| Footnote (claimant name) : | |
| Defendant(s): | THE STATE OF NEW YORK |
| Footnote (defendant name) : | |
| Third-party claimant(s): | |
| Third-party defendant(s): | |
| Claim number(s): | 102648 |
| Motion number(s): | |
| Cross-motion number(s): | |
| Judge: | Alan C. Marin |
| Claimant's attorney: | Goldstein, Rikon, Rikon & Houghton, P.C. By: Jonathan Houghton, Esq. |
| Defendant's attorney: | Eric T. Schneiderman, Attorney General By: J. Gardner Ryan, AAG and Michele M. Walls, AAG |
| Third-party defendant's attorney: | |
| Signature date: | August 4, 2016 |
| City: | New York |
| Comments: | |
| Official citation: | |
| Appellate results: | |
| See also (multicaptioned case) |
Decision
This claim, arising from the appropriation of certain real property, was remitted by the Second Department for the "application of a 2.5 corridor factor to the 'across-the-fence' [ATF] value of the subject property taken in fee and by easement, and for the entry of an appropriate second amended judgment . . . "
New York Cent. Lines, LLC v State of New York, 2016 WL 4007138, reversing 41 Misc 3d 1209 (A), in which this trial court determined the appropriate corridor factor to be 1.29 following initial remittal by the Second Department in this matter (101 AD3d 966, affirming in part, reversing in part 29 Misc 3d 1205[A]).
The State, in fee, has taken 236,836 square feet belonging to New York Central Lines, LLC along a 0.9 mile length along a railroad corridor in Queens County, which was part of the Fremont Secondary Line. The property rights of New York Central (or its successor in interest, CSX Transportation, Inc.) were also diminished by a permanent easement of 43,856 square feet, and by temporary easements on five parcels aggregating 11,973 square feet.
CSX's expert, Charles W. Rex, explained at trial that the value of a rail corridor is the value of the land or specific parcels that make up the corridor (the across-the-fence value) multiplied by the applicable corridor factor, reflecting the value of that continuity or connectedness; as indicated, the corridor factor for CSX's property is 2.5.
The value of the property taken in fee is thus $10,898,957 times 2.5, or $27,247,393.
See footnote 30 and the accompanying text in 29 Misc 3d 1205(A).
Permanent and Temporary Easements
Eight parcels were subject to permanent easement. This Court determined (29 Misc 3d at 1205[A]) that the across-the-fence value of four of them was $1,205,049 (P130, P193, P194 and P195). Such figure multiplied by the corridor factor of 2.5 yields $3,012,623 as the value of CSX's loss thereon.
As for the remaining four parcels (P130-A, P193-F, P194-J and P195-H), the Second Department in 2012 (101 AD3d at 969) concluded that the State was correct at trial in valuing the loss at 5%. The ATF for these four parcels was $255,094; 5% of that is $12,755, which multiplied by the corridor factor of 2.5 results in a loss to claimant of $31,888.
See footnote 36 of 29 Misc 3d 1205(A).
The corridor factor also obtains for temporary easements; the three amounts valuing the temporary easements are to be multiplied by 2.5: $179,123 becomes $447,808; $13,068 becomes $32,670; and $49,286 becomes $123,215. * * *
See the section entitled "The Temporary Easements" in 29 Misc 3d 1205(A).
In view of the foregoing, claimant New York Central Lines, LLC is awarded the corrected amount of $30,291,904 for the takings in fee and by permanent easement, plus the statutory rate of interest from the date of the taking, January 6, 2000, together with the following amounts for temporary easements (the same amounts as per 29 Misc 3d 1205[A]):
- the corrected amount of $447,808 for the temporary easement for the period from January 10, 2000 to January 6, 2010, plus the statutory rate of interest thereon;
- the corrected amount of $32,670 for the temporary easements for the period from January 6, 2000 to May 17, 2006, plus the statutory rate of interest thereon; and
- the corrected amount of $123,215 for the temporary easements for the period from January 6, 2000 to May 18, 2006, plus the statutory rate of interest thereon.
Claimant is thus awarded the total corrected amount of $30,895,597 with interest to run as stated above.
Such is subject to the February 27, 2014 Decision and Order, which suspended interest from November 14, 2013 through December 4, 2013. --------
The award to claimant herein is exclusive of the claims, if any, of persons other than the owners of the appropriated properties, their tenants, mortgagees or lienors having any right or interest in any stream, lake, drainage, irrigation ditch or channel, street, road, highway or public or private right-of-way, or bed thereof, within the limits of the appropriated properties, or contiguous thereto, and is exclusive also of claims, if any, for the value of or damage to easements or appurtenant facilities for the construction, operation or maintenance of publicly owned or public service electric, telephone, telegraph, pipe, water, sewer or railroad lines.
Claimant may recover any filing fee pursuant to Court of Claims Act § 11-a.2. LET JUDGMENT BE ENTERED ACCORDINGLY.
August 4, 2016
New York, New York
Alan C. Marin
Judge of the Court of Claims