THE LEGAL ANGLE

The United States Supreme Court resolved a dispute between the secured creditors of the Penn Central Railroad and the Consolidated Rail Corp. (Conrail) through a decision whereby it was established that just compensation need not be paid in money. It was argued by the secured creditors that the forced transfer of railroad assests (in which they had secured interests) to Conrail by legislation in Congress would constitute a taking of their property without just compensation, because the Conrail securities being tendered to them in exchange were not the monetary equivalent of their interest, and because it was not clear whether they could sue the federal government in the court of claims to recover the difference. The court concluded that the secured creditors of Penn Central could be compelled to accept Conrail securities as compensation for their interest, with the further proviso that, should the value of those securities prove to be less than the value of the involuntarily transferred interests, the creditors could bring an inverse condemnation action in the U.S. Court of Claims under the Tucker Act to recover a cash award for any shortfall. The court refrained from indicating what valuation methods should be used, which suggests that the court is deferring to the appraisal profession to come up with appropriate valuation methods to be employed in such cases. In examining this matter it appears that nonmonetary just compensation can fall into the following categories: securities, commodities, other land, and services. Also, in partial taking cases, curative work could be offered in new complications into the valuation process. These problems are briefly discussed in the remainder of this article.

  • Availability:
  • Corporate Authors:

    Society of Environmental Engineers

    13-14 Homewell
    Havant, Hampshire,   England 
  • Authors:
    • Kanner, G
  • Publication Date: 1975-7

Media Info

  • Pagination: p. 460-463
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00126117
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Oct 18 1975 12:00AM