United States Ex Rel. Tennessee Valley Authority v. Welch
United States Ex Rel. Tennessee Valley Authority v. Welch
Opinion of the Court
delivered the opinion of the Court.
The United States, on behalf of the Tennessee Valley Authority, filed petitions in the District Court to condemn six tracts of land located in North Carolina and owned by the several respondents. It asserted that the power to condemn the land in question was conferred upon the Authority by the provisions of the Tennessee Valley Authority Act as amended. 48 Stat. 58 as amended, 16 U. S. C. 831-831dd. The District Court held that the Act did not authorize condemnations under the facts shown by the evidence and dismissed the petitions. The Circuit Court of Appeals affirmed. 150 F. 2d 613. Since the grant of power to condemn needed properties is an essential part of the Act, we granted certiorari.
The following basic facts form the background of this proceeding: Congress in 1942, in order to meet pressing power needs for war production, empowered the Authority to construct Fontana Dam, on the Little Tennessee River in North Carolina. H. Rep. 1470,77th-Cong., 1st Sess., 25. The dam is one of the world’s largest and creates a reservoir twenty-nine miles long. Between this reservoir and the Great Smoky Mountains National Park lie forty-four thousand acres of mountainous land, including the tracts which the Goyernment wants to condemn here. When Congress authorized construction of the dam, two hundred and sixteen families occupied this area. Their only convenient .means of ingress and egress, except for foot trails, was North Carolina 'Highway No. 288, a road approxi- - mately fifty miles in length. When the dam was built the reservoir flooded most of the highway, rendering it useless for travel. As a result , the area remained practically isolated.
As events have shown, the problem this situation created could not be easily solved. Any solution had to take into consideration the interests of the United States, of North Carolina, and of Swain County, N. C., as well as the in
Conferences between the interested groups brought to light facts which led to the solution ultimately adopted. It was agreed on all sides that the old road was narrow, dangerous, and far below modern standards for useful highways. Investigation showed that replacement of the old road with the same undesirable type of highway would cost about $1,400,000.00, while the cost of building an improved highway would greatly exceed that amount. All parties felt that the United States had neither a legal nor moral duty to build a new road of the superior type
After a year and a half of negotiations a solution was worked out. • After the proposed solution was approved by the Governor, the Council of the State, and the Legislature of North Carolina, it was embodied in a settlement agreement between the State, the County, the National Park Service, and the T. V. A. Under that agreement the T. Y. A. with the aid of a $100,000 contribution by the State was to acquire all the land in the isolated area, either by purchase or condemnation, so as to relieve the State from further responsibility for maintaining a highway to that section; Swain County was to be paid $400,000 by the Authority to help retire its outstanding road bonds; and the Authority was to transfer all the area lands to the National Park Service for inclusion within the Great Smoky Mountains National Park but reserving to the T. V. A. all rights required to carry out the T. V. A. program. The agreement, thus, satisfied the interests of the
The courts below have held that T. Y. A. had no power under the Act to condemn the tracts of these respondents as contemplated by the agreement. The District Court reached this conclusion by limiting the Authority’s power so that it can condemn only those lands which are needed for the dam and reservoir proper. It reasoned that the common law rule of construction requires that statutory powers to condemn be given a restrictive interpretation. But § 31 of the Act expressly provides that the Act shall be “liberally construed to carry out the purposes of Congress to provide . . . for the national defense, improve navigation, control destructive floods and promote interstate commerce and the general welfare.” In the face of this declaration, the District Court erred in following the asserted common law rule.
The Circuit Court of Appeals, without expressly relying on a compelling rulé of construction that would give the restrictive scope to the T. V. A. Act given it by the District Court, also interpreted the statute narrowly. It first analyzed the facts by segregating the total problem into distinct parts and, thtis, came to the conclusion that T. V. A.’s purpose in condemning the land in question was only one to reduce its liability arising from the destruction of the highway. The court held that use of the lands for that purpose is a “private” and not a “public use” or, at best, a “public use” not authorized by the statute. We are unable to agree with the . reasoning and conclusion of the Circuit Court of Appeals.
We think that it is the function of Congress to decide what type of taking is for a public use and that the agency
In passing upon the authority of the T. V. A. we would do violence to fact were we to break one inseparable trans
All of these provisions show a clear congressional purpose to grant the Authority all the power needed to acquire lands by purchase or by condemnation which it deems necessary for carrying out the Act’s purposes. These proceedings were preceded by a T. V. A. resolution that it did deem these acquisitions necessary for such purposes. Despite Congress’ clear expression of its purpose to grant broad condemnation power to T. Y. A. we are asked to hold that the Authority’s power is less than the powers to condemn granted other governmental agencies, which under 40 U. S. C. 257 have been held to have a power to condemn coextensive with their power to purchase. Hanson Co. v. United States, 261 U. S. 581, 587. Neither the fact that the Authority wanted to prevent a waste of gov-: ernment funds, nor that it intended to cooperate with the National Parle Service detracted from its power to condemn granted by the Act. The cost of public projects is a relevant element in all of them, and the Government, just as anyone else, is not required to proceed oblivious to elements of cost. Cf. Old Dominion Co. v. United States, supra. And when serious problems are created by its public projects, the Government is not barred from making a common sense adjustment in the interest of all the public. Brown v. United States, 263 U. S. 78. Where public need requires acquisition of property, that need is not to be denied because of an individual’s unwillingness to sell. Kohl v. United States, 91 U. S. 367, 371. When the need
Reversed.
Concurring Opinion
concurring.
I agree that the TVA has authority to condemn the tracts of land which the Authority seeks to acquire by these proceedings.
This authority flows from the power of eminent domain granted by §§ 4 and 25 of the Tennessee Valley Authority Act, 48 Stat. 58, as amended. The grant which allows condemnation of all property that the Authority “deems necessary for carrying out the purposes of this Act,” is in sufficiently broad terms, it seems to me, to justify these condemnations. When the Authority was faced with the problem of justly compensating the occupants of the forty-four thousand acre area between the Fontana Dam lake and the Great Smoky Mountains National Park, North Carolina and Swain County for the destruction of Highway No. 288, it could within its delegated powers purchase or condemn the lands affected or build a substitute highway whichever appeared cheaper. The United States is not barred from the exercise of good business judgment in its construction work. Brown v. United States, 263 U. S. 78. See United States v. Meyer, 113 F. 2d 387; Old Dominion Land Co. v. United States, 296 F. 20, 269 U. S. 55, 66. Such action is not “outside land speculation.” 263 U. S. at 84. It follows that having this6 power, the Authority could contract, as it did, to reduce its expenditures
I do not join in the opinion of the Court because of certain. language, ante, pp. 551-554, which implies to me that there is no judicial review of the Authority’s determination that acquisition of these isolated pieces of private property is within the purposes of the TVA Act. The Court seems to accept the Authority’s argument that a good faith determination by it that property is necessary for the purposes of the Act bars judicial review as to whether the proposed use will be within the statutory limits. This argument of lack of judicial power properly was rejected by the Circuit Court of Appeals although, as explained above, I think that court erroneously held that the TVA Act did not authorize these condemnations. 150 F. 2d 613, 616. It is my opinion that the TVA is a creature of its statute and bound by the terms of that statute, and that its every act may be tested judicially, by -any party with standing tó do so, to determine whether it moves within the authority granted to it by Congress. School of Magnetic Healing v. McAnnulty, 187 U. S. 94; Social Security Board v. Nierotko, 327 U. S. 358, 369.
This taking is for a public purpose but whether it is or is not is a judicial question. Of course, the legislative or administrative determination has great weight but the constitutional doctrine of the Separation of Powers would be unduly restricted if an administrative agency could invoke a so-called political power so as to immunize its action against judicial examination in contests between
Once it is admitted or judicially determined that a proposed condemnation is for a public purpose and within the statutory authority, a political or judicially non-reviewable question may emerge, to wit, the necessity or expediency of the condemnation of the particular property. These are the cases that led the TV A, erroneously in my view, to assert the action of its Board could “not be set aside by a court.” Adirondack R. Co. v. New York, 176 U. S. 335, 349; Bragg v. Weaver, 251 U. S. 57, 58; Joslin Co. v. Providence, 262 U. S. 668, 678; Rindge Co. v. Los Angeles, 262 U. S. 700, 708.
Concurring Opinion
concurring.
I join in the opinion of the Court for I do not read it as does my brother Reed. The Bill of Rights provides that private property shall not “be taken for public use, without just compensation.” U. S. Const., Amend. V. This Court has never deviated from the view that under the Constitution a claim that a taking is not “for public use” is open for judicial consideration, ultimately by this Court. It is equally true that in the numerous cases in which the issue was adjudicated, this Court never found that the legislative determination that the use was “public” exceeded Constitutional bounds. But the fact that the nature of the subject matter gives the legislative determination nearly immunity from judicial review does not mean that the power to review is wanting. All the cases cited in the Court’s opinion sustaining a taking recognize and accept the power of judicial review. I assume that in citing these cases the Court again recognizes
Reference
- Full Case Name
- UNITED STATES Ex Rel. TENNESSEE VALLEY AUTHORITY v. WELCH
- Cited By
- 191 cases
- Status
- Published