AGCS Marine Ins. Co. v. Arlington Cnty.
AGCS Marine Ins. Co. v. Arlington Cnty.
Opinion
Two insurers paid claims for property damage to a Harris Teeter grocery store arising from the malfunctioning of a county sewer line. Exercising their subrogation rights, the insurers filed an inverse condemnation suit against Arlington County on the theory that the sewer backup constituted a taking and/or damaging of private property for a public use without just compensation in violation of the Constitution of Virginia. The circuit court dismissed the insurers' complaint with prejudice and denied their motion for leave to file an amended complaint.
We agree with the circuit court that the original complaint failed to state a claim for inverse condemnation. We disagree, however, with the court's denial of the insurers' motion for leave to amend their complaint. The allegations in the proffered amended complaint, coupled with the reasonable inferences arising from these allegations, assert a legally viable claim for inverse condemnation. We thus affirm in part, reverse in part, and remand for further proceedings.
I.
Because this appeal arises from the grant of a demurrer, we state the factual allegations in the complaint in the light most favorable to the insurers, giving them the benefit of all reasonable inferences that arise from those allegations.
See
Coutlakis v. CSX Transp., Inc.
,
In this case, the property insurers-AGCS Marine Insurance Company and Indemnity Insurance Company of North America- issued policies to Harris Teeter, the lessee of a building used for its grocery store in Arlington County. The insurers together paid approximately $1.8 million under their policies to Harris Teeter for property damage resulting from the backup of a county sewer line that caused raw sewage to flow into the grocery store in May 2012. The subrogated insurers filed suit against the County alleging only one count-an inverse condemnation claim under Article I, Section 11 of the Constitution of Virginia.
The original complaint stated that the sewer line and the sewage treatment plant for the sewer line "were maintained for the public purpose of supplying Arlington County with water and sewage disposal services." J.A. at 3. The sewage backup, the complaint alleged, "was caused by the failure of Arlington County to properly maintain and operate the sewage treatment plant."
Nothing in the complaint expressly or impliedly alleged that the County purposefully caused the backflow of raw sewage into the Harris Teeter grocery store. Nor did the complaint allege that anyone working for the County either purposefully caused the backflow or deliberately allowed it to happen in order to keep the entire system operating for all other users of the county sewer system.
The County demurred on several grounds, the principal one being that the allegations asserted, at best, a negligence claim barred by sovereign immunity and not cognizable as a constitutional violation. The County also argued that the sewer backup did not itself constitute a public use of Harris Teeter's property. The insurers disagreed and contended that it did not matter that "the sewage backup " itself did not constitute a public use because the only question was "whether the sewage treatment plant serves a public purpose, which it obviously does." R. at 29 (emphases in original); see also id. at 90 (same).
The circuit court granted the County's demurrer and dismissed the case with prejudice. The insurers moved to reconsider and requested leave to file a proffered amended complaint that amplified their claim. The court denied both motions and entered final judgment.
II.
On appeal, the insurers argue that their original complaint stated a viable claim for inverse condemnation and that, even if it did not, the proffered amended complaint provides whatever amplification of the claim may be necessary. Like the circuit court, we conclude that the original complaint sounded wholly in tort and did not state a prima facie cause of action for inverse condemnation. We disagree, however, with the circuit court's decision to deny the insurers leave to amend their complaint. The amplified allegations in the amended complaint, coupled with the reasonable inferences that one could draw from them, state a viable claim for inverse condemnation.
A. THE FOR-PUBLIC-USE REQUIREMENT OF INVERSE CONDEMNATION
1.
The Constitution of Virginia states
[T]he General Assembly shall pass no law whereby private property, the right to which is fundamental, shall be damaged or taken except for public use. No private property shall be damaged or taken for public use without just compensation to the owner thereof. No more private property may be taken than necessary to achieve the stated public use.
Va. Const. art. I, § 11. The power of eminent domain is thus limited. Private property cannot be "damaged or taken except for public use," and, even then, the power can be exercised only to the extent
"necessary to achieve the stated public use." Id . When a lawful taking or damaging of property is justified by a public use, it must be remedied by payment of "just compensation to the owner." Id. 1
Read literally, the operative clause of Article I, Section 11 of the Constitution of Virginia states only that the General Assembly "shall pass no law" that takes or damages private property except for public use, id. , thus implying that the constitutional prohibition acts solely as a limitation upon the legislature. For good reason, we have never accepted such a hyper-literal reading of this provision. From ancient times, ad hoc seizures of property without direct legislative approval were understood to violate the requirement of just compensation no less than outright legislative confiscations. See Magna Carta, ch. 28 (prohibiting the King's officers from taking "the corn or other goods of any one without instantly paying money for them, unless he can obtain respite from the free-will of the seller"), reprinted in Boyd C. Barrington, The Magna Carta and Other Great Charters of England 228, 237 (1899). That ancient maxim found its voice in the Takings Clause of the Fifth Amendment to the United States Constitution, a provision that St. George Tucker believed was meant "to restrain the arbitrary & oppressive measure of obtaining supplies by impress[ment] as was practiced during the last war, not infrequently without any Compensation whatsoever." 4 St. George Tucker, Ten Notebooks of Law Lectures 147 (in the Tucker-Coleman Papers on file with the Earl Gregg Swem Library, College of William and Mary); see also 1 St. George Tucker, Blackstone's Commentaries, Editor's App. Note D, at 305-06 (same).
Following in this tradition, the Constitution of Virginia declares the right to private property to be "fundamental." Va. Const. art. I, § 11 ;
see also
Code § 1-219.1(A). This view presupposes that an essential "interdependence exists between the personal right to liberty and the personal right in property. Neither could have meaning without the other."
Lynch v. Household Fin. Corp.
,
2.
Informed by these background principles, Virginia law recognizes inverse condemnation as a viable theory of recovery for de facto violations of Article I, Section 11 of the Constitution of Virginia.
See generally
Kent Sinclair, Sinclair on Virginia Remedies § 64-1, at 64-1 to -5 (5th ed. 2016). Inverse condemnation arises out of the self-executing nature of Article I, Section 11 and thus must be distinguished from common-law tort claims.
See
Burns v. Board of Supervisors
,
Inverse condemnation permits recovery only when "property is taken or damaged for public use "-thereby bestowing on the owner a right to "sue upon an implied contract that he will be paid therefor such amount as would have been awarded if the property had been condemned under the eminent domain statute."
Id
. (emphases added).
3
This implied-contract characterization captures well the idea that just-compensation
provisions represent a "historical compact" between citizens and their government that "has become part of our constitutional culture."
Lucas v. South Carolina Coastal Council
,
The implied-contract explanation also reinforces the first premise of inverse condemnation law, which recognizes a remedy for a de facto taking or damaging of private property in the same way that eminent domain proceedings provide a remedy for a de jure taking or damaging. In inverse condemnation cases, the law implies the constitutional duty of compensation in circumstances where the taking or damaging of private property would be compensable under traditional eminent domain principles. For this reason, we say that an inverse condemnation claim "is not a tort action, but a contract action" based upon an implied constitutional promise of compensation.
Jenkins v. County of Shenandoah
,
The limits of this implied constitutional promise are found in the express language of Article I, Section 11 of the Constitution of Virginia, from which an inverse condemnation claim arises.
See
Burns
,
At one level, it is quite easy to apply this for-public-use limiting principle. Because the power of eminent domain extends only to "lawful acts" by government officials, it does not include "negligent" or other "wrongful" acts committed outside of or in violation of their delegated authority.
Eriksen v. Anderson
,
At nearly all other levels, however, the for-public-use limiting principle can be quite difficult to apply. No "magic formula" addresses the multitude of fact patterns that can arise, and, truth be told, there are "few invariable rules in this area."
Arkansas Game & Fish Comm'n v. United States
,
In
Jenkins
, we considered a county water-drainage easement that crossed two lots in a residential subdivision. On the easement, the lot owners alleged, the county had dug an improperly designed drainage ditch and failed to maintain it. On a regular basis, the ditch flooded the lots because it was "incapable of conveying concentrated storm water."
Jenkins
,
We did not hold that the flooding damage triggered inverse condemnation liability simply because the ditch was a component of the county's water-discharge system. Instead, we pointed out that the alleged purpose and function of the ditch-which was located on the plaintiffs' property-was "to divert water from approximately 36 acres of developed land onto their property," and it was flooding from that very diversion that damaged the plaintiffs' lots.
We considered a similar scenario in
Hampton Roads Sanitation District v. McDonnell
,
In a more recent case,
Kitchen v. City of Newport News
, we held that an inverse condemnation claim could proceed to trial based on allegations that a municipality had caused residential subdivisions to serve as "contingent retention or detention pond areas" for
water overflowing a nearby creek and pond.
Our most recent case addressing the for-public-use requirement is
Livingston v. Virginia Department of Transportation
,
During a heavy storm, the redesigned system blocked northern water flow and sent stormwater south, overwhelming the tributary and causing the sewage water to back up through sewers and flood basements.
See
id. at 145-46,
We rejected VDOT's application of the for-public-use requirement to the facts of that case. Article I, Section 11 applies to purposeful acts as well as purposeful failures to act. "In essence," we read the allegations of the
Livingston
complaint to imply that "VDOT
elected to use
the [newly constructed highway] and nearby residential developments as
makeshift storage sites
for excess stormwater" instead of maintaining the relocated tributary that earlier diverted excess water into the Potomac River.
Id. at 159,
The common thread in each of these cases is that the purposeful act or omission causing the taking of, or damage to, private property was for a public use. In
Jenkins
and
Kitchen
, governmental authorities used private property as flooding sites to handle expected overflows from the public stormwater system. In
McDonnell
, the damage to private property was for a public use because a bypass valve, operating as designed, poured excess sewage onto an adjacent landowner's property. In
Livingston
, VDOT "elected to use" nearby residential developments as "makeshift storage sites for excess stormwater."
In none of these scenarios was private property taken or damaged through the mere negligence of a governmental actor incident to, or while participating in, a public function. Rather, in these cases, the government "asked private property owners ... to bear the cost of a public improvement."
Id. at 160,
3.
Judged against these principles, the insurers' original complaint did not allege a legally viable inverse condemnation claim against the County. The complaint asserted that the County's sewage treatment plant and underground sewer lines existed "for the public purpose of supplying Arlington County with water and sewage disposal services." J.A. at 3. From that premise, the insurers alleged several ways in which the County failed "to properly maintain and operate the sewage treatment plant."
These allegations simply proved too much, and thus, proved nothing. They presupposed that inverse condemnation principles can provide a remedy for property damage of any nature, whether intentional, negligent, or wholly innocent, caused by a governmental entity. If that were true, of course, sovereign immunity would no longer exist in the Commonwealth of Virginia for property damage claims. 8 Nearly every function that a government and its agents perform (e.g., building roads, driving police vehicles, maintaining traffic signals, operating school buses, deploying snow plows, and constructing bridges) can, and sometimes does, damage private property.
One may fairly ask why government should not be liable in tort to the same extent a private person would be. But that question-predicated on a recurrent policy objection to sovereign immunity generally-is not the issue before us. As we have emphasized, "the doctrine of sovereign immunity is 'alive and well' in Virginia," and "the complexity that exists in the law of sovereign immunity cannot be eliminated by the simple expedient of doing away with the doctrine by judicial fiat."
Messina v. Burden
,
The original complaint did not satisfy this prerequisite. Nothing in it expressly alleged or reasonably implied that the County purposefully damaged the Harris Teeter grocery store for a public use. No allegation suggested that the County planned or designed its system to allow the backflow in an effort to keep the entire county sewer system operating for all other users. 10 Simply alleging that damage occurred incident to the operation of the public sewage system is insufficient to state a claim for inverse condemnation under Article I, Section 11 of the Constitution of Virginia.
As many courts have recognized, absent evidence satisfying the for-public-use requirement, "[i]t has been definitely held that a property owner may not recover in an inverse condemnation proceeding for damages caused by acts of carelessness or neglect on the part of a public agency."
Tilton v. Reclamation Dist. No. 800
,
4.
After the circuit court granted the County's demurrer, the insurers sought to remedy their sparse initial pleading by asking for leave to file a proffered amended complaint. Most of the amplified allegations in the proffered amended complaint merely add detail to the charge that the County negligently failed to maintain and operate its sewer system in a competent manner. Like the circuit court, we find no legal significance in the added specificity of these negligence allegations.
That said, several allegations in the amended complaint assert or at least imply that the County purposefully took or failed to take certain actions that, when combined, intentionally caused the sewer line at Harris Teeter to back up so that the entire system could continue to operate. Prior to the backup at Harris Teeter, the insurers allege, "the County purposefully diverted sewage and/or storm water from another County treatment facility or pump station that it had closed" yet never increased the capacity of the plant or followed the recommendations of engineers for other changes "even though in doing so it knew that a sewage back-flow onto the property of others would occur ." J.A. at 153-54 (emphases added).
The insurers also allege that the County adopted "policies, procedures and practices" that "made it most probable that a sewage backup would occur." Id. (emphasis added). A reasonable inference from these allegations appears to be that the County was willing to incur the "most probable" risk of damaging the Harris Teeter property to keep the sewer system operational for all other users. See id. at 153-55. The County allegedly did so to compensate for its underfunded and poorly managed maintenance program. See id.
If the insurers could prove that the policies, procedures, and practices of the County consisted of a plan or design to use the Harris Teeter property in this manner, they may have an inverse condemnation claim. Despite these new allegations, the circuit court denied the motion for leave to amend and dismissed the case with prejudice. While we acknowledge the circuit court's apparent skepticism of these allegations, the court should nonetheless have permitted the amendment.
"On appeal, review of the trial court's decision to grant or deny a motion to amend is limited to the question whether the trial judge abused his discretion."
Lucas v. Woody
,
In this case, the County makes no argument that the insurers' amended complaint was either untimely or prejudicial. It contends only that the circuit court properly denied leave to amend because the amended complaint fails to cure the shortcomings of the original complaint, and amendment was thus legally futile.
See
Appellee's Br. at 16-17;
see, e.g.
,
Hechler Chevrolet, Inc. v. General Motors Corp.
,
B. DAMAGE TO PERSONAL PROPERTY
Harris Teeter leased the real property on which it maintained its grocery store. The sewage backup allegedly caused $1.8 million in damages, consisting of the loss of grocery stock and the costs of removing the damaged goods and cleaning the store. 13 The subrogated insurers make no claim for damages on behalf of the owner of the real property. As an alternative basis for affirming the circuit court's dismissal, the County argues that the insurers cannot recover for damage to personal property not qualifying as fixtures. We reject that argument as inconsistent with the history and text of Article I, Section 11 of the Constitution of Virginia and its implicit constitutional claim for inverse condemnation.
1.
Because an inverse condemnation claim arises from the "self-executing" character of Article I, Section 11, that provision necessarily informs the scope of such claims.
See
Burns
,
Nothing in the denotation of "private property" excludes personal property-which, by definition, is simply a subset of private property. The original text of what would later become Article I, Section 11 of the Constitution of Virginia, which was introduced in 1830, forbade any law "whereby private property shall be taken for public uses, without just compensation." Va. Const. art. III, § 11 (1830); see John Dinan, The Virginia State Constitution 67 (2d ed. 2014). This language tracked nearly verbatim the Takings Clause of the Fifth Amendment to the United States Constitution, which declares, "nor shall private property be taken for public use, without just compensation." U.S. Const. amend. V.
There has never been any serious debate as to whether the Takings Clause of the Fifth Amendment applies to personal property. As the United States Supreme Court recently reiterated, "[n]othing in the text or history of the Takings Clause, or our precedents, suggests that the [just-compensation requirement] is any different when it comes to appropriation of personal property."
Horne v. Department of Agric.
, --- U.S. ----,
We find it equally clear that "private property" under Article I, Section 11 of the Constitution of Virginia applies to personal property. For as long as the power of eminent domain has existed, so too have the limitations on this power applied to the confiscation of personal property. The barons at Runnymede demanded just compensation for personal property.
See
Magna Carta,
supra
, at ch. 28 (requiring compensation for the taking of "corn or other goods"). Blackstone similarly viewed eminent domain principles as fully applicable to personal property.
See
1 Blackstone,
supra
note 2, at *138-39 (declaring that "no man's land
or goods
" could be seized in violation of "the great charter, and the law of the land" (emphasis added));
see also
Consistent with this view, the General Assembly defines property for eminent domain purposes to include "land and personal property, and any right, title, interest, estate or claim in or to such property." Code § 25.1-100. While this definition does not directly address inverse condemnation claims, it has the indirect effect of doing so because such claims presuppose a constitutionally "implied contract" arising out of a de facto use of the eminent domain power,
Nelson Cty. v. Coleman
,
In short, Article I, Section 11 makes no categorical distinction between personal and real property. The implied constitutional right of action for inverse condemnation likewise contains no such distinction. If such a claim meets all of the necessary requirements to recover for a taking or damaging of private property, it is no defense that the property taken or damaged was personal and not real property. See 1 A.E. Dick Howard, Commentaries on the Constitution of Virginia 226 (1974) (observing that "personal property taken or damaged" is an interest "subject to just compensation" principles).
2.
The County does not directly challenge the historical basis of our reasoning, but instead asserts that our precedent has departed from it. As the County reads our prior cases, we have adopted a per se rule that damage to personal property is only recoverable if the personal property has been transmuted into real property under the law of fixtures. We read our case law differently.
Our line of precedent on this issue began with
City of Richmond v. Williams
,
Neither the lumber piles nor the foundation timbers were fixtures, yet
Williams
concluded that "we can only satisfy the language of the [eminent domain] statute by construing the language used as embracing personal property."
Id. at 702,
In another such case,
Town of Cape Charles v. Ballard Bros. Fish
,
The County, however, draws our attention to a separate line of cases in support of its argument that only fixtures appurtenant to real property can be included in a damage award. We do not read these cases so broadly.
In
Potomac Electric Power Co. v. Fugate
, two power companies sought a declaratory judgment that the State Highway Commissioner was "required to reimburse [them] for the costs" of relocating their "utility facilities" that they were required to move when the Commissioner acquired the land on which the facilities were located.
16
The power companies in
Fugate
had no property right to place their facilities at that particular location. There was no easement or lease granting such a right. They were located there pursuant to "mere licenses, revocable at will," and, under common law, the utility bore "the burden of relocating facilities at its own cost" under such circumstances.
The irony of Fugate , at least in the manner that the County uses it, is that we specifically distinguished the situation in that case from the one here-an inverse condemnation claim by a lessee for damage to personal property:
What has been said distinguishes the cases of
Town of Cape Charles v. Fish Co. ,200 Va. 667 ,107 S.E.2d 436 (1959), and Richmond v. Williams ,114 Va. 698 ,77 S.E. 492 (1913), relied upon by the plaintiffs. In each of those cases, the personal property damaged or required to be removed by public undertaking was in place under a leasehold right . Thus, as incidental to the damaging of a property right, i.e. , the leasehold interest, compensation for the costs of relocating the personal property was constitutionally required.
Id. at 750,
The County also relies upon
Taco Bell of America, Inc. v. Commonwealth Transportation Commissioner of Virginia
,
The trial court agreed with the Commissioner and struck Taco Bell's evidence on this issue. We reversed. In our view, Taco Bell had presented enough evidence that these items were fixtures, and thus part of the real property that the Commissioner had taken, to survive a motion to strike and submit the question to the jury.
See
Taco
Bell
,
Finally, the County turns to
Livingston
, our most recent pronouncement on these issues. Our opinion in
Livingston
, the County contends, adopted a per se rule that an inverse condemnation claimant cannot recover for damages to personal property that does not constitute a fixture appurtenant to real property. In fairness, we must acknowledge that a single sentence of our opinion,
see
Livingston
,
In
Livingston
, the debate over recovery for damages to personal property centered on VDOT's argument that, because it lacked specific statutory authorization to condemn personal property, it could not as a matter of law be liable in inverse condemnation for taking or damaging personal property. Our entire analysis, save one sentence, responded solely to VDOT's specific argument. "We reject[ed] VDOT's contention" because nothing in our precedent prohibited inverse condemnation liability for personal property not included within the condemning authority's grant of eminent domain power and because
Williams
and
Fugate
supported recovery for personal property.
See
id.
at 160-61,
While often used interchangeably, "appurtenances" and "fixtures" are not identical synonyms in the lexicon of law. All fixtures are appurtenances, but not all appurtenances are fixtures. A fixture is but one kind of appurtenance. For example, an above-ground hot tub may or may not be an appurtenant fixture, but a custom-built, in-ground swimming pool could be considered an appurtenance but not a fixture. We thus find it implausible that the ambiguous "appurtenant to" sentence in Livingston was meant to overrule Williams and Fugate and thereby establish a per se rule under Virginia law that inverse condemnation liability can never extend to personal property that does not become transformed into realty under fixture principles. 20
Our reluctance to adopt such a per se rule is confirmed by
Livingston
's earlier citation with approval of
Williams
and
Fugate
.
See
Livingston
,
3.
For these reasons, we hold that the prohibition against taking or damaging "private property ... except for public use," Va. Const. art. I, § 11, applies to personal property. Whether the personal property has been transformed into real property under fixture law is irrelevant. As Chief Justice Roberts succinctly stated: "The Government has a categorical duty to pay just compensation when it takes your car, just as when it takes your home."
Horne
, --- U.S. at ----,
III.
In sum, the circuit court correctly sustained the County's demurrer to the insurers' original complaint because its allegations did not state a viable legal claim for inverse condemnation. The court erred, however, in denying the insurers leave to amend their complaint. The allegations in the proffered amended complaint, coupled with the reasonable inferences arising from them, assert a prima facie case of inverse condemnation.
We thus affirm in part, reverse in part, and remand for further proceedings consistent with this opinion.
Affirmed in part, reversed in part, and remanded.
Though the underlying principles are constitutional, a multitude of legislative enactments manage the formal process of eminent domain and just compensation.
See
Code §§ 25.1-100 to -421;
see also
See
1 William Blackstone, Commentaries *129 (stating that individual rights and liberties "may be reduced to three principal or primary articles-the right of personal security, the right of personal liberty, and the right of private property-because as there is no other known method of compulsion ... but by an infringement or diminution of one or other of these important rights, the preservation of these, inviolate, may justly be said to include the preservation of our civil immunities in their largest and most extensive sense" (altering punctuation));
see also
Fuller v. Edwards
,
See also
Richmeade, L.P. v. City of Richmond
,
Code § 1-219.1(A) provides an exclusive definition of "public uses" and limits the "acquisition" of private property to these specified uses. The statute, however, does not address the "damaged ... for public use" language in Article I, Section 11 of the Constitution of Virginia. Each of the six "public uses" in the statutory definition applies to property that is "taken." See Code § 1-219.1(A)(i)-(vi). Nothing in the statute limits inverse condemnation liability for damage to personal property.
See also
City of Va. Beach v. Oakes
,
To varying degrees, other states are in substantial agreement with this view.
See
St. Francis Drainage Dist. v. Austin
,
We do not mean to imply that negligence allegations without fail defeat an otherwise valid inverse condemnation claim that satisfies the for-public-use requirement. Mere negligence is insufficient, as one court has aptly explained, but
[t]hat is not to say that the later characterization of a public agency's deliberate action as negligence automatically removes the action from the scope of the constitutional requirement for just compensation. So long as the entity has made the deliberate calculated decision to proceed with a course of conduct, in spite of a known risk, just compensation will be owed.... [T]o prove the type of governmental conduct that will support liability in inverse condemnation it is enough to show that the entity was aware of the risk posed by its public improvement and deliberately chose a course of action-or inaction-in the face of that known risk.
Arreola v. County of Monterey
,
In a different context, we made much the same point:
[W]e do not agree with the contention that the function of the "damage" clause of Article I, Section 11 is to waive sovereign immunity for the Commonwealth and its proxies in order to subject them to liability as private parties for any damage asserted by a property owner that might conceivably arise from a public use of land adjoining or proximate to the property allegedly damaged.
Byler v. Virginia Elec. & Power Co.
,
The General Assembly, not the courts, wholly occupies this field of law. As we have consistently said, "the State is immune from liability for the tortious acts of its servants, agents and employees, in the absence of express constitutional or statutory provisions making it liable."
Eriksen
,
At oral argument on appeal, the insurers conceded this point. See Oral Argument Audio at 14:18 to 15:31.
See also
A.W. Gans, Annotation,
Damage to Private Property Caused by Negligence of Governmental Agents as "Taking," "Damage," or "Use," for Public Purposes, in Constitutional Sense
,
There are occasions when the proffered amendments raise matters outside the arguments and briefing of the earlier demurrer. When this occurs, a circuit court need not make a dispositive finding that the amended complaint states a legally viable claim before granting leave to amend. It is sufficient, under those circumstances, to observe that amendment would not prejudice the responding parties.
See
Rule 1:8;
see, e.g.
,
Mortarino
,
At oral argument on appeal, the insurers suggested that Harris Teeter suffered damage to its real property in addition to its merchandise, including damage to its flooring, shelving, coolers, and freezers.
See
Oral Argument Audio at 1:08 to 1:31. They conceded, however, that the only damages that they seek in this action are for the lost merchandise and the cost of removing it and cleaning up the store.
See
See also
Superior Coal & Builders Supply Co. v. Board of Educ.
,
Our observation that "it would not be practicable to take up and replant these oysters" was only relevant to our conclusion that the duty of a property owner to minimize the damages that he sustains from a taking was inapplicable because the property owner "is not bound to enter upon a doubtful and speculative undertaking."
Ballard Bros.
,
The power company also asserted implied rights of action under various statutory provisions, which we also rejected, but that discussion has no relevance here.
Although the insurers do not seek compensation for the injury that Harris Teeter sustained to its leasehold interest (i.e., for the damage to the real property itself), the damage to the personal property did come as a result of, or "incident to," the flooding of the real property with raw sewage. See Black's Law Dictionary 879 (10th ed. 2014) (defining "incident" as "Dependent on, subordinate to, arising out of, or otherwise connected with (something else, usu[ally] of greater importance)"). Moreover, as was the case in Fugate , Harris Teeter's personal property was in place pursuant to a lease agreement.
Notably,
Taco Bell
did not involve a lessee claimant. Taco Bell was the owner of the restaurant, the land underneath it, and the equipment within it. In a dispute with a condemning authority, we treat lessees differently than fee simple owners and find that "as between the condemnor and lessee, structures attached to the condemned real estate but owned by the lessee are realty ... even though, as between the landlord and lessee, the structures may be personalty."
Lamar Corp. v. City of Richmond
,
Neither the County nor the insurers ask that we reconsider Livingston or any aspect of its holding.
Instead, the enigmatic sentence in
Livingston
should be contextualized by the specific facts and arguments made by the parties. The first clause of the sentence references "Plaintiffs" as the subject and appurtenances to "their homes" as its predicate object.
Livingston
,
See also
Clayton v. Lienhard
,
Reference
- Full Case Name
- AGCS MARINE INSURANCE COMPANY, A/K/A Allianz Global Corporate & Specialty, A/S/O Harris Teeter, Et Al. v. ARLINGTON COUNTY
- Cited By
- 37 cases
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- Published