Almota Farmers Elevator & Warehouse Co. v. United States
Supreme Court of the United States
Almota Farmers Elevator & Warehouse Co. v. United States
Certiorari to the United States Court of Appeals for the Ninth Circuit
No. 71-951. Argued: October 18, 1972 --- Decided: January 16, 1973
Before and during the last of several successive leases, petitioner made substantial and permanent improvements that had a useful life in excess of the remaining lease term. With 7½ years to run on the then-current lease term, the United States contracted to acquire the underlying fee and began condemnation proceedings for the leasehold. The Court of Appeals reversed the District Court's ruling that just compensation required that the improvements be valued in place over their useful life without limitation to the remainder of the lease term.
Held: In a condemnation proceeding, the concept of "just compensation" is measured by what a willing buyer would have paid for the improvements, taking into account the possibility that the lease might be renewed as well as that it might not. Pp. 473-478.
450 F.2d 125, reversed and District Court judgment reinstated.
STEWART, J., delivered the opinion of the Court, in which DOUGLAS, BRENNAN, MARSHALL, and POWELL, JJ., joined. POWELL, J., filed a concurring opinion, in which DOUGLAS, J., joined, post, p. 479. REHNQUIST, J., filed a dissenting opinion, in which BURGER, C.J., and WHITE and BLACKMUN, JJ., joined, post, p. 480.
Lawrence Earl Hickman argued the cause for petitioner. With him on the briefs was Philip H. Faris.
Assistant Attorney General Frizzell argued the cause for the United States. With him on the brief were Solicitor General Griswold, Wm. Terry Bray, Edmund B. Clark, and Jacques B. Gelin.