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Bydlon v. United States
175 F. Supp. 891
Ct. Cl.
1959
Check Treatment

*1 Minn., Paul, Essling, William St. W. Hanson, BYDLON, Minn., Andrew Jo- Paul, John D. Marlone, Thomas St. seph Perko, Skala, Jr., and Martin Minn., Domich, Ely, Willard S. briefs, Zupancich William plaintiffs. v. Washington, McKevitt, Thomas L. UNITED STATES. Morton, Perry C., W. D. with whom was Atty. Gen., for Asst. defendant. Ahola, AHOLA, TAITO Leithold Toimi Seaplane Service, Inc., Lynn, Arne PER CURIAM. Pete, Elwyn Jacob West plaintiffs This is an action v. taking result as a of their UNITED STATES. proclamation Order of Executive of the 421-55, Nos. 480-55. 10092, dated December No. United States Court of Claims. prohibited travel banned and July 15,1959. 4,000 feet over the air below Superior National areas northern Minnesota. court, This ease was referred U.S.C.A., 45(a),

pursuant to Rule Murray Bern- Trial Commissioner C. findings hardt, with directions to make for conclu- of fact and recommendations has done in sions of law which he report September filed having court, The considered the evi- argument dence, the briefs and coun- findings sel, adopts opinion of the slight modifi- Trial Commissioner with cations. Skala, plaintiffs, just compensation to recover

are entitled respective amounts $30,000, with interest thereon at four January 1, 1952, per percent annum part just payment as to date of com- judgment pensation, will be entered petition as to the to that effect. plaintiff in case No. 421-55 other dismissed, will be petition case No. also be dismissed. 480-55 will ordered. It is so dissenting WHITAKER, Judge, concurring part, part in which Judge ALBERT Y. BRYAN District designation) joins: (sitting per opinion curiam the ma- opinion adopts jority the Trial with certain modifications. Commissioner right opinion determines That compensation who owned upon the area whether within resorts way necessity through they had a *2 892 right access, Superior other National such of or of space the the air over properties. use and easement connected with the in to reach order enjoyment plain- property, other of his that The concluded Commissioner legitimate such than Zupancich have the exercice of

tiffs and Skala did public regulation, deprived of necessity, way he is but a ” Judgment property.’ was his not. did Pete and Hanson $25,- Zupancich for in rendered favor question elaborately This is discussed $30,000. 000, for of Skala favor (Story in the New York Elevated cases were petitions Hanson of Pete and The Co., N.Y. York 90 v. New Elevated R. dismissed. approval 122), which referred with is to Supreme United the Court of the judgments I think the amount the City York, 206 v. of New States Sauer and Skala rendered favor of 536, 545, 686, 51 L.Ed. U.S. 27 S.Ct. correct, to dis- it error are but that was right In the case this Sauer petition Hanson. the to Pete and miss as public property access one’s over I do not I think this error because highways fully recognized, is rights depend on whether think their there an distinction is drawn between they way necessity. I think not had a impairment right of access in the right all of resort owners had brought by improvements in the about air, properties by because to their access highway travel, public purpose for right highway. public is a This the air imposition use an additional right, property is a of access air highway upon the not for the which was away from cannot taken them be travel, purpose public but for some just compensa- payment of without the purpose. sovereign other The is li- pur- tion, when taken for the sole it is impairments for able which arise preserving pose of a wilder- area as improvements travel, but its to facilitate area, admittedly ness as it was. damage it is which results liable right property The of access one’s imposition from the of an additional use. highways public over established naviga- principle applies same right appurtenant prop- property to the property ble waters. An owner whose erty abutting highway. on the navigable riparian to a general stream rights public right navigable to the rights access stream highways and the of owners of (Yates Milwaukee, 497, 504, v. 10 Wall. abutting property thereon are extensive- 984; 505, 19 L.Ed. United States v. ly opinion by discussed an Mr. Justice Rouge Co., Imp. River 269 U.S. Harlan, speaking court, for a unanimous 419, 144, 339), 46 but this Pennsylvania S.Ct. L.Ed. Co., in Donovan 279, beginning v. U.S. subject right of access is to the domi- page 300, 91, on 26 S.Ct. nant servitude of the beginning 96, United States to page on 50 L.Ed. 192. necessary steps improve take all interest, navi- but, The entire discussion is of gation, may away, taken brevity, quote I for the sake of impunity, improve- course following of such quotation from Dillon on Mu- ments. nicipal Corporations, pages 199 U.S. at

302-303, page 98, of 26 S.Ct. at Park, Commodore v. United States opinion: Court’s Inc., S.Ct. U.S. dredged general 1017, the Government L.Ed. doctrine is correct- “The navigable deposited bay Municipal ly Dillon tidewater stated in dredged in the mouth of example, materials Corporations: ‘For bay navigable right abutting called Mason arm of access to owner’s street, property subject only owners The residential Creek. deprived regulation, were thus legitimate public Mason Creek is as navigable and, right property waters accord- his his much ingly, boundary of their decreas- lines. value soil within ** * basing recovery, deprived refused he is The Court ed. When ground plaintiff’s navigable waters, As in its refusal on the the case of rights riparian subservient nation has a dominant servitude power purpose commerce. It Government’s to control air commerce. air U.S., gets page air, 391 of 324 Court states at this servitude over the *3 navigable page waters, at 805 of 65 does over from the S.Ct.: “ * * * giving provision in the Constitution against the demands As regulate power interstate for- commerce, of of lands ad- owner eign Airways, commerce. Braniff Inc. jacent navigable waters, whose 590, Board, v. Nebraska State 347 U.S. uninvaded, no fast lands are left has 757, 74 S.Ct. 98 owner- L.Ed. 967. The rights private riparian of access * * ship space of the air is in the states or Riparian the waters *. surface, in the owner of the United rights navigable waters, of Causby, 256, States v. 1062, 328 66 U.S. S.Ct. against government’s cannot, 1206; 90 L.Ed. Matson v. United power commerce, to control States, Ct.Cl., 283, F.Supp. opinion 171 Reed, (ret.) bought sold.” Mr. Justice sub- but it is However, right superior or servi ject to this servitude in the United States possesses tude which re the Government purpose regulating for the of commerce. duty pay compensation lieves it of its right of the United States in the only reg power when it acts under its space air above the surface the Unit- improve ulate and commerce. Yates v. carefully ed States stated Braniff Milwaukee, supra, and United v. States Airways, Board, Inc. v. Nebraska State Rouge Imp. Co., supra. River If it acts supra, quote, from which I 347 U.S. purpose, for some other such as the rec pages 595-597, page 74 S.Ct. at 761: lands, pay lamation of arid then it must regulating “These Federal just Acts compensation taking for air commerce are bottomed on the rights. riparian Gerlach Live Stock Co. power Congress, commerce not States, F.Supp. 87, v. United 76 111 Ct. ownership on national of the navi- Cl. 1. Cf. Colorado, of Kansas State v. State gable space, distinguished air 85-86, 46, 206 U.S. 27 S.Ct. sovereignty. reporting 655, 956. The L.Ed. Constitution bill which became the Air Commerce vests in the national Government domi Act, it was said: power navigable nant the use of over “ regulating purpose waters for ‘The declaration what con- commerce on them. If the Government navigable space air is an stitutes appropriates them to own its use for pow- of the exercise same source of purpose, some other or diverts them from er, clause, the interstate commerce riparian owner the use of an Congress as that under which has other, power it does so under its of emi long many declared acts what con- domain, nent quires the exercise of which re navigable nonnavigable stitutes or payment just compensation. right flight public waters. navigable space in the air owes its space The air over the United States to the same source constitutional ba-- public highway, is also a which the own- which, sis Supreme under decisions of the right er of has the to use to given Court, has rise to a property. Congress secure access to his navigation public easement in section 3 of the Civil Aeronautics Act navigable waters of the United 973; (52 of 1938 Stat. U.S.C.A. § regardless States, ownership seq.) recognized et declared: “There is adjacent subjacent soil.’ and declared to exist in behalf of H.R.Rep. Cong., No. 69th 1st citizen of the United States Sess., p. right freedom transit in air com- navigable power, space merce air “The commerce since Gib- Ogden, 1, 193, of the United States.” bons v. Wheat. Having es- naviga been comprehended as a wilderness area. L.Ed. purpose, United tablished for this covers Its breadth of streams. tion liability escape tak- But the States cannot intercourse. all commercial ing right plaintiffs’ access to power navi over commerce federal properties by air, neces- which was gable prevent state not streams does sary power. result of the airban. action consistent Philadelphia, City Gilman v. Co. United In Gerlach Live Stock v. Since, 18 L.Ed. Wall. States, supra, United States we held the Congress streams, acts vir over rights riparian taken in the liable power, the sov of the commerce tue irrigation carrying project. of an out impaired. ereignty of is not the state Supreme expressly Court did *4 Phillips ex rel. of Oklahoma 726, State 725, (339 question U.S. rule this Co., Guy U.S. F. Atkinson v. 1231), 955, the since 70 S.Ct. 94 L.Ed. 1050, 534, 508, 85 L.Ed. 61 S.Ct. payment the Reclamation Act directed and the beds title doubt, property for taken. I do not and the the states are in banks however, the United States cannot that subject owners, to the fed riparian escape the mandate of the Constitution navigation.” power Cf. over eral private property not taken that shall be States, supra. United v. Matson just payment compensa the of without taking purpose tion where of the was the may said, therefore, on the analo It be preserve certain to area a wilder navigable gy public the roads of ness, promote to not commerce. property waters, of the that while owner by air, right this it Appeals of access to has the The Court of for the 8th Cir- subject right the States, to domi is of access cuit in Perko 204 F.2d v. United to 446, injunction against in the United States servitude nant the sustained an regulate if a although recog- air. But ban, commerce the violation of the it flight planes within a cer “injures the ban on nized that it the value of their designed promote to com properties but, is not purposes;” tain area for resort it respond in merce, must said, defendant question the “that is not involved taking plaintiffs’ damages for except indirectly.” this case deny I not do properties their of access to power means the Government’s to issue long long recognized .air, used there say ban, pay just I it must the pensation but com- only by of the clause virtue It is consequent deprivation tofore. for the 3, Constitution, cl. right art. § plaintiffs’ of access their to po giving Government properties by the Federal consequent air and the regulate the Con commerce properties. werto gress duction value their sovereignty to assert authorized is liability predi- should be I not think do hence, and, space, it has a air in the ways of necessi- doctrine of on the cated only therein interest dominant way necessity ty. over the land of A regulating commerce. purpose of up- grantor depends arises grantee. conveyance of to land promulgated on the airban was While only means of access to the land If the Air pursuant of the Com to section remaining conveyed in the (44 over lands merce Act of 1926 Stat. grantor, presumed from indeed, it is 174),1 hands it is § U.S.C.A. manifest — grantor conveyance that the it the deed the defendant—-that it is conceded convey this promote means also promulgated intended air not was access; or, it is reasonable to infer defense, if the national or for commerce conveyance govern area, partly the time at this establish depended upon grantee owned, must have partly privately ment-owned gov or other “The President au defense national 4 reads: States for 1. Section addition, and, provide purposes Executive order ernmental thorized protection apart safe setting and the of Columbia District ” * * * purposes. ty airspace United reservations give judgment, I access, easement is to means such an Skala, implied. but also to Pete be and Hanson. Commissioner finds necessity by So, way no air can that the value of Pete’s de- grants the Govern- inferred from the preciated in the amount of Superior Na- ment lands within the airban, and the value of Hanson’s Forest, the time tional grants unless at property by $15,000. I think these find- suppose that was reasonable ings give are correct I would them grantees upon depended the use of judgment in these amounts. properties. such means of access to grants by If the time of the Gov- Opinion of Commissioner present owners of land ernment to the predecessors area, within this or to their President,, On December title, access was un- such means of authority under the cited of the Air known, rarely used, in- it cannot be (44 570; Commerce Act of 1926 Stat. 49' ferred that the Government intended 174), U.S.C.A. issued Executive Order § convey The dates of such an easement. which, pres- No. 10092 effective as to the grants by var- the Government January 1, 1952, pro- *5 ent parcels area, of ex- ious land within the flights 4,000 hibited below feet over the- cept Hanson, the is not disclosed one to Superior so-called of roadless areas the and, hence, record we cannot de- the National Forest in northern Minnesota. termine whether or it was intended not plaintiffs, Elwyn The West and Leithold flight parties of the that an easement Seaplane Inc., Service, were in the com- remaining its over lands hands should Ely, mercial airline business at Minne- conveyed. sota, and their business consisted almost Judging long- from the Government’s exclusively flights of into the roadless- standing policy acquisition of of lands plaintiffs op- areas. The other own and area, acquisition of in this the land properties erate resort on lakes situated by private therein from the Government region airban, the within covered the place taken individuals could not have them, stopped by all but two of until and probably much later than and much airban, the traveled their resorts true, that. If it before this is most, seaplane habitual, permitted, as the extremely seem doubtful that an ease- practical and economical method of access- flight implied. of ment would be Avia- themselves, guests, sup- for their infancy was then in tion its and would plies. just, sue to recover imply have been reasonable to not that compensation depreciation in the- ingress egress it was method of respective properties- of their value contemplated by parties. the brought about of because the airban. rights my opinion plaintiffs’ depend Superior National Forest was es- implied on an easement to be from by presidential procla- tablished in 1909 grants them, predeces- their the mation, enlarged It since. contains- title, by Government; the sors but acres, along- extends 110 miles 3.000. the Canadian space on the fact that the air rather border, adjoins the- through highway, every Forest, Quetico 000-acre National 1.000. may going property owner travel to across the border in Canada. Since at. property. If of the plan 1926 it the least has been official deprived plaintiffs have been of this certain, Forest set the Service to aside access, they are entitled to means re- parts Superior National Forest as- cover, if even another means of access primitive area, free roads and other to them. is available vestiges civilization, enjoy- for the seeking another That means of access is avail- of the vacationer ment the ad- pertinent, question vantages remaining- not to the able last one liability, only but to the amount of areas in United wilderness States. damage. envisaged was canoe It and foot pai't policy Forest of trans- means the sole travel would be containing resorts, tenor perpetuated state portation into this right- expressions feel official made them nature. availability fully sure of the continued policy constancy has been of this by seaplane to and from years various evidenced The 1949 Order ban- resorts. Executive Congres- pronouncements and executive ning candidly flights admitted when enactments sional effort eliminate those trial be an Agriculture an Secretary announced resorts to sell out which refused Superior policy for administration strictly Forest as to serve the Service so excep- recognizing the National purpose keeping forest aesthetic large portions of it “for tional values virginal, although order itself was game, for propagation of fish and revealing terms as couched less affording travel, recrea- canoe authority regulatory under exercise of who seek opportunities those tional By the Air Commerce Act of 1926. conditions,” to 1948 enjoy wilderness purchas- time of trial the defendant had Thye-Blatnik Congress passed the when ed miscellaneous resorts in the road- 577c-577h; (16 62 Stat. U.S.C.A. Act §§ less area and there remained unsold money 568-570) appropriated privately and resi- about 18 owned resort purchase Forest Service having properties dential im- substantial ex- property in areas the roadless including provements, the four resorts proper- empted such from condemnation in suit. Both of the airlines unless own- resorts suit ties them, down, were forced to close one In the condemnation. consented to ers West, doing so when the Govern- *6 Agriculture Secretary year the latter July impounded planes ment his 1953 plan slightly form altered reaffirmed obey enjoin- to flights. for refusal a court order management for roadless areas the ing further proposed in first 1939 had been which plan The reaffirmed Forest Service. the legality Executive Order the precise boundaries the delineated has been tested and sustained court Forest, of in the roadless areas three involving proceedings pres several of Superior Area Roadless the Collectively, Perko, plaintiffs. ent United States v. pro- various these (cid:127)one. Zupancich, and United States v. decided regulated laws and nouncements and by the United States District Court logging, prohibited all but tem- stricted 26, September (108 Minnesota 1952 roads, prohibited porary alterations of F.Supp. 315), (Perko appeal affirmed on rights pri- levels, preserved the lake 446, States, Cir., 8 204 United F.2d v. roadless within the areas vate owners 832, 346 74 certiorari denied U.S. S.Ct. impliedly continued them of assured and rights injunc 48, 355). 98 L.Ed. These were ingress egress, sanctioned and brought against proceedings plain tion flights regarded aircraft resorts and Skala, West, Zupancieh, tiffs and and as not serious effect, roadless areas owner, repeated another viola wilderness view- threats subsequent tions of the airban order increasing marked disfavor ed with granting In its effective date. the in fishing prevalence of airborne excursions recognized junctions the court that the taking landing off from lakes in the and be effect of airban would to discour recognized many areas, and roadless age patronage, pointedly stated that question developed resorts had just question compensation perfectly lawful manner and from “in a resort owners reason of the dim legitimate quite motives.” in value of resorts was not inution the court. Whether or not these before established and devel- may judicata, largely during res here properties as to oped the decisions validity order, they of the airban rea 1940’s. While must decade soning persuasive earlier aware much advanced have been

§07 result, adopted banning here to the same reach because of the Order Executive leaving .flights. question of enjoys still compensability. unresolved With access air he very

unrivaled location whose remoteness appeal adds to its to vacationers. Since further, the claims proceeding Before flights cessation he has had operators, Leithold airline of the two bring guests supplies his over plain- West, These be considered. should lakes, portages, dangerous miles of within the tiffs had no rapids via a series of ve- boats land consequen- is well-settled area. It Zupancich hicles. resisted the airban resulting gov- damages lawful tial strenuously. Defying fly- initially by basis form the action cannot ernmental ing July supplies in until taking. compensable Mitchell v. of a 1953, stopped upon he exhaustion affirming 341, States, 267 U.S. United procedures. of court United States v. Corpo- 443, Mullen Benevolent 58 Ct.Cl. Zupancich, supra. Thereafter he 89, States, 94- 290 U.S. ration v. United owner, Perko, another resort one used 192; 95, 38, Bothwell 78 L.Ed. S.Ct. log- properties for access to their an old 231, States, 41 S.Ct. v. 254 U.S. United ging which, permit by road under 238; 74, Commercial 65 L.Ed. Omnia United States issued to the Northwest States, 502, Company v. United U.S. Paper Company 1950, was extended 510-511, 43 67 L.Ed. af- S.Ct. fewa miles into the roadless area. Over 392; firming Southern Coun- 56 Ct.Cl. this road and Perko ve- drove States, Co. of v. United ties Gas Cal. equipment hicles and construction in or- F.Supp. 141 Ct.Cl. More- der to reach waters accessible to their over, Leithold, toas fails evidence violating properties, gate even a locked 18c). (finding establish a loss boundary which had been erected at the resort-owning plaintiffs As it is instigation of the roadless area at necessary they first to ascertain whether May of the United States. enjoyed time air as a District Court in Perko v. Northwest right, they matter of for if no such Paper Company, Inc., D.C., F.Supp. right they compensation cannot claim for 560, temporary injunction denied *7 suspension plain- its or withdrawal. The sought by plaintiffs to restrain defend- they tiffs contend in brief that had a preventing ants this means of ac- right navigable airspace to use the as Disregarding cess. this setback the long members of the so it does plaintiffs road, continued to use the until sovereign not conflict with the uses of July in 1955 the District Court in Unit- the Federal in Government the same air- Perko, D.C., F.Supp. ed States 564, v. space, and that the since creation injunction temporary pro- issued a airspace over reservation the roadless hibiting such use. these Since events by areas the Order Executive established Zupancich pro- has been to forced follow otherwise, of absence use rather than finding cedures described 17a to reach right plaintiffs’ the to use it for access his resort. This ex- alternate route is purposes remains intact. It seems unnec- cessively dangerous inconvenient, ex- essary engage per- to in an extended and pensive. apparently The Forest Service haps profitless discussion of owner- the particular no control over has this route along ship in, sovereignty of use over the skirts the which Canadian border airspace as between the Federal Govern- navigable Presumably waters. the ment, governments, state and citizens. of method access which would receive right plain- of at least some of the the the sanction of Forest Service would may light tiffs be considered the of using involve wilderness trails and wa- ways the of traditional doctrine of ne- by canoes, packhorses, walking. ters cessity. a method of Such access would un- be resort-owning plaintiffs, destroy Of four Zupan- reasonable would problem property purposes. the access of is the cich’s resort aggravated planned exclusively most and difficult since and resort with air into him to of ac- a wilderness resort entitles means other mind. No whatever means of communication that permitted Forest Service under cess technology require- by remotely are afforded modern to suited rules and reasonably consistent with the Govern- ments is available. objectives preserving un- ment’s right analo Zupaneieh have a Does defiled area. nature the roadless gous having to similar incidents to and determining necessity particular of a prop necessity way to his those given way, consideration must be to neighboring erty by land own air above property uses to natu- which the defendant, Minne the State ed rally put. be Feoffees of Grammar sota, ? The Act and other owners Ipswich Proprietors School of Jef- v. 1897, estab 4, provided for the of June frey’s Pasture, Neck 174 Mass. of the na administration lishment and gives N.E. 462. The reason to record Chapter 2, tional forests. Section believe the Forest found Service 36) 478; (16 30 Stat. the Act U.S.C.A. § flights brief from the few resorts the national inside settlers assured to seaplanes in the roadless area small ingress egress and means of forests far be less detractive from the de- wagon same, loads “and such across general fendant’s aesthetic aims than may improvements be con other practice of the airline conduct- necessary may be thereon as structed ing fishing parties airborne which land- utilize their and to their homes reach property briefly pon- ed on the lakes to fish regula rules and under such plane portable toons or from col- may prescribed the Secre tions lapsible rafts. plain Agriculture.” tary All of the rights enjoy Zupancich’s to at least of access been as to tiffs What has said statutory right degree. applies Even without of access air with almost this assurance, equal Skala, rule that universal force it is the whose grantee along hemmed lies route the same as the right-of- grantor’s property former’s ten miles but is less distance. latter, necessity party way prior on the was not to all of across Skala involving prop litigation Perko, public policy Zupaneieh that whenever rule conveys grantor litigation conveyed erty also outcome fore- necessary by implication him closed as much as it un- whatever did the litigants. large use, expendi- 17A Am.Jur. and successful its beneficial authority ex n. A he cases conflict degree tures was forced to make in order to necessity provide transportation system re ists as to quired as the way necessity. imply flights, A sole alternative banned *8 general necessity rule, finding 16b, plus is the in reasonable are mentioned authority although supports respectable right questionable nature of his con- necessity. requirement remaining using of absolute this sole means tinue agreed being access, the alternative access is that It it as condemn unreason- something merely more than in must be The fact that his resort en- able. joyed has way necessity mounting receipts through for a to ex convenient Bauchmann, v. 132 Conn. years Rischall ist. is since the airban more of a trib- 559; 898, 637, 165 A.L.R. 46 Back A.2d his a ute to sales talents than reason 286, Mayer, 204 Wis. 234 N. v. hausen his access route to consider feasible. 1245; 904, right airplanes continued, A.L.R. Littlefield v. 74 W. his use Had 299, 285, Hubbard, 128 only large 124 Me. A. 38 he have been saved not would a Contra, undoubtedly 1306. United States expense v. A.L.R. but would also D.C., Rindge, larger F. 611. patronage. 208 enjoying a cannot Pete claim that 484 of Restatement on Section by suggests to his resort is a air matter Property the entire- access Servitudes degree necessity theory to the same Zu- ly the normal as that de- of reasonable establishing property Zupancich’s paneich and Skala. his velopment forest

899 rely seaplane right property service was resort he on considered more did a recently by As principal of access. as his means this court in Boush Creek finding Corporation States, a in at most Land 68 stated 15c v. United by guests 56, air fourth of his any arrived Ct.Cl. v. United Fonalledas States, principal 1019, of ac- F.Supp. means 107 season. His 123 Ct.Cl. now, then, Minnesota, is a six- means That is also cess sole the law of by Ely, perforce six applies a mile road from followed in these actions. United trip Fall Lake and one-half mile across ex States rel. and for Use Tennessee Valley Authority Powelson, Four Mile four miles across the and Portage. v. 319 U.S. 1047, 1390; the end resort lies at Pete’s 63 S.Ct. 87 L.Ed. Portage Portage. Chicago, Co., Four Mile Adams v. B. & N. R. 39 286, 493; 629, is owned the Government which Minn. 39 N.W. 1 L.R.A. promised for ve- Burnquist it will remain available State Miller Home De v. long velopment, it is 1, 900, hicular traffic so needed. 243 Minn. 65 N.W.2d 905, 1377; Long Were its use to be terminated 50 A.L.R.2d State v. deprive plain- year Holding so Co., 451, Government 224 Minn. transportation longer tiff this link his N.W.2d It is no rule chain, might the result be different. Un- physical there must be a invasion being doubtedly taking. convenience added to constitute a Unit fly supplies able Causby, 256, ed States v. 328 U.S. 66 S. patronage receipts 1062, increase his to an 1206; Ct. 90 L.Ed. United States existing extent, Lynah, unknown but the means 445, 349, v. 188 U.S. S.Ct. give is not so inconvenient as to rights L.Ed. 539. If such are divested way necessity him air in the con- impaired by sovereign, just com though decisions, dep- text even pensation paid. Rapids must be Pike rivation of it has caused loss in mar- Minneapolis, Power Co. v. Paul St. & S. ket To value of his resort. reach Han- Co., Cir., S. M. R. 99 F.2d 902. followed, son’s the same route resort argues nonliability The defendant be except that he must travel 13 miles damages merely cause the the con beyond Portage water the Four Mile on sequences regulation. of a valid As a establishing True, in Basswood Lake. generality validity this is true. The plans transporta- Hanson’s constituting the Executive Order the air- exclusively seaplane tion centered upheld ban these cases was in United already service available and sanctioned Perico, States v. and United States v. by the authorities that time. Because Zupancich, supra, and, both as has been of this other matters described said, logic opinions those is con findings the airban has had a more vincing. say, however, is not to That upon serious effect Hanson than Pete. the order the instant eases did Nevertheless, it cannot be said that the liability. recognized It not create degree expense of his inconvenience and United v. Central States Eureka Min give way necessity as to him such ing Company, 1958, 155, 78 S. U.S. via air. Ct. L.Ed.2d that “ac *9 residue, there are left the regulation of tion form can so Zupancich claims of and Skala. That the property the value of diminish as to way necessity prop- of to and from their taking,” a and that constitute “Tradi right property dep- was a erties whose tionally, we have treated the issue as to rivation Government action can governmental a particular be a whether re taking obliquely is shown in Friend v. amounted to a striction constitutional States, 94, United 30 Ct.Cl. taking being where at question properly a as turn page private 105 it was said that “A ing upon particular circumstances of property meaning easement is within citing case,” Pennsylvania each Coal Co. physical of the law as much as the Mahon, 393, sub- 416, 158, 260 U.S. 43 v. S.Ct. springs.” stance from which it Access 322. L.Ed. 67 gone. 1926, upon fact for con- clauses are One of The Air Act Commerce determining lim- predicat sideration such which the Order was Executive diminution. ed, vitality its is the extent of the the commerce draws its magni- 4 it reaches a certain When of Section clause gives the Constitution. tude, cases power if not in all to estab most President airspace eminent must be an exercise of “for national there lish reservations compensation governmental purposes.” to sustain domain defense or other depends question 174; The 44 act. So the 49 U.S.C.A. Stat. § * * * upon particular airspace facts. established reservation of the Su order over the roadless areas general is, at least “The rule perior exer not an National Forest was regulated may property be while power. cise of commerce It was goes extent, regulation certain if power police exercise of the federal recognized aas too far it will be purpose public protecting wel of * * taking. preserving for of fare means a view are Jackson Consistent with such of values aesthetic use recreational F.Supp. 1019, States, 122 v. United 103 pri the value Where the wilderness. 197, 206, and Gerlach Livestock destroyed Ct.Cl. the exercise property is vate 87, F.Supp. States, 111 76 compensation v.Co. United power, police sometimes 725, (affirmed, County, 1, 71 70 U.S. Ct.Cl. (Conger Pierce paid v. must be 1231). 955, 399, 94 L.Ed. 377, A.L.R. S.Ct. 27, 198 P. 116 Wash. Control 393; Board v. Bacich It thus seems clear that the United 824), 818, 343, P.2d Calif., 23 Cal.2d guise taken, of its under the States (Mugler v. State and sometimes right police power, 669, 664, 668, 623, Kansas, 123 U.S. consisting Zupancich plaintiffs and Skala power 205). 273, Police L.Ed. S.Ct. necessity way properties. to their preservation may exercised be Thye-Blatnik Act, supra, prohibits The just compensa values, but aesthetic plaintiffs’ properties condemnation of whose paid to the owners must tion property be consent, without their and that consent Parker, v. Berman taken. given. plaintiffs was not The have re- 98, 99 L.Ed. 75 S.Ct. 348 U.S. prices by the fused to sell at offered paid where Compensation need not Obviously Service. Executive compelling emer an extreme there is accomplish Order was devised as a pow gency requiring of such the exercise resort what the Government last health, morals, safety, er to conserve powerless to do in more normal fashion public. general of the Con welfare and ger plaintiffs’ —compel the evacuation County, supra. Aesthetic Pierce v. this, properties. as a exercise But valid held to be have been considerations luxury power, police cannot be done with- necessity such a rather than just payment compensation. out taking prop justify would erty properties fair market values of the City compensation. of Pas without Skala, exclusive Posting, Bill Paterson Adv. & S. v. saic $100,000 personalty, of removable were Co., 72 N.J.L. A. 267. P. January $130,000,respectively, as of well-expressed the late Justice rule date of the the effective airban. Pennsylvania Coal Co. v. Ma Holmes airban, result those As a values hon, supra U.S. 43 S.Ct. [260 : 159] reduced date respectively. $100,000, plain- “ * * * long recognized As Zupancich and Skala are tiffs entitled to enjoyed some values are under an *10 just compensation paid respec- in yield implied limitation and must $30,000, amounts tive power. obviously police But percent interest thereon at four with implied limitation must have its lim- January its, 1, 1952, process part per or the contract and due annum just ada has established as a compensation. The claims and maintains Quetico natural wilderness the Provincial plaintiffs be dismissed. should other approximately 1,000,000 Park of acres. Findings Fact Although lumbering activity some large allowed, having been court, evi- to a considered the extent the wild- part erness dence, report the Forest of Trial Commissioner remains today Murray Bernhardt, much the same days condition briefs C. findings early voyageurs argument counsel, makes who traveled through by canoe. follows: fact as , proceedings 1. These consolidated 3. boundaries of the Forest in- brought by eight originally were clude not land owned the United! resorts), (representing two seven owners by private States but also that owned flying operations, of commercial owners parties municipal state and au- of a boat rental business and one owner thorities. Most of the land in the Forest just compensation to recover for diminu- public domain, was reserved from the allegedly properties tion in of their value although large additional areas have been resulting from of an air- establishment acquired by pur- the United States portion space of the over a reservation exchange chase or since the establish- (hereinafter Superior Forest National ment of the Forest. The lands so held Forest) alternatively as the referred acquired the United States are Byd- in northern Minnesota. Plaintiffs administered as national forest lands. lon, Perko, Toimi Taito and Ahola acquired by purchase Much of the land Lynn longer parties to ac- are no these exchange subject or rights are to mineral tions. All of are the individual private persons, today in mately approxi- so that citizens of the resi- United States and ownership one-third of all federal West, Minnesota, except Elwyn dents of subject is Forest to such mineral who is a resident of Wisconsin. reservations. Superior 2. The National Forest was (Ely being 4. Numerous cities by presidential proclamation created dat- largest, population 6,000), about towns February 13, ed 35 Stat. villages and, and along exist in the Forest area public which reserved lands the Unit- county with State and authorities- designated ed States within a area governmental exercise power* purposes northern Minnesota for forest State, county, high- there. and federal pursuant to Section 24 of the Act ways parts exist in of the Forest area. 1095, 1103; March 26 Stat. airport Ely An was established in Thereafter, 471. U.S.C.A. the reserva- § Prior 1929. to 1938 even the remote procla- tion was extended additional developed areas Forest with 2904; mations. 45 Stat. 50 Stat. 1799. summer homes and resorts. The Secre- The lands within the boundaries of the Agriculture tary charged with the along Forest lie and south of the interna- management forest lands1 and boundary separating tional the United empowered to regu- makes rules and States from Canada. Much of the land concerning lations their use and occu- containing area is a natural wilderness pancy.2 Department regu- does not streams, numerous lakes and and afford- hunting fishing or late control or use ing unique opportunities. recreational navigable boating waters for boundary The northern of the Forest the Forest. approximately along runs 110 miles Acting authority 5. under pre Canadian border. The total area within regulations scribe rules respect the Forest 3,000,000 boundaries is excess of occupancy Superior of approximately 4,700 acres or National square (16 551), miles. North of the U.S.C.A. border Can- § Secre February 1905; 628; 1. Act of 33 Stat. § 16 U.S.C.A. seq. et § U.S.C.A. *11 hibiting any natural September the tary Agriculture, on alteration 17 , region.3 in policy water levels the for administra announced a recognized the Forest which tion of the exceptional 30, 1934, 7. On June the President large portions . itof value the the established United States

(cid:127) game, propagation of fish and the “for Quetico-Superior under Exec- Committee affording travel, recre for canoe purpose Order for the of co- utive opportunities seek to those who ational existing ordinating the activities of Ca- enjoy Ac conditions.” wilderness .and organizations nadian and United States Secretary inten cordingly, the stated the maintaining the interested wilderness Department as a to retain of his tion region. character of the The Committee possible the as wilderness “as much has been extended executive orders. opportuni which has recreational land Acting July 25, 1939, 8. a. On the policy contem This announced ties.” designated Chief of the Forest Service plated be built that no roads would portion an area in north central the de no recreational that areas such Superior the Forest the as Roadless public permitted however, velopments would Primitive Area be administered as the recognizing, lands, subject primitive provisions area the power control no Government defining accompanying plan of an private lands development of use precise detailing boundaries and man- contemplat policy also This Forest. agement policy. All of in- the resorts one thousand less than “Not ed that volved these suits are within located containing of the best square miles Superior (name Roadless Area used kept waterways be’ as will lakes and plan to describe the same area areas,” without recreation wilderness specific designated by Acting Chief of the designation boundaries of the Superior Forest Service as the Roadless effect of the areas. wilderness such Area) acquired Primitive from so- establish a was to 1926 declaration the United States e., the For policy, i. called predecessors pri- or their owners in title roads build no est Service Hereafter, or to 1939. when the term having rec lands government-owned singular area” “roadless is used in the would advocate value reational Superior refer to the will Roadless acquisition of public program following excerpts Area. from required holdings the area private approved plan are relevant to the issues for n “wilderness recreation.” in these suits: July Shipstead-Nolan Act of plan intent “It is the 1020; 16 § U.S.C.A. 46 Stat. supply essential to the facts a re- entry pub all seq., withdrew et present Superior of the dedication portion of the described changing lic lands without Area Roadless including region, boundary orig- approved Minnesota policy basic Superior Na outside lands some purpose Area.’ The ‘Wilderness inal logging pub Forest, prohibited tional of the forest this classification distances of certain within lic lands National taken alteration of shorelines, forbade the L-5, Manual, page 61 is as follows: lakes. The levels water “ natural prevent unnecessary ‘To Congressional purpose primary unique impairment of elimination or preserve legislation unmodified conserve, values, natural so region. beauty of the scenic natural controlling economic consid- far use lands affect opportunity It did permit, will erations The State Minnesota the area. to observe the within condi- by pro- pioneer existed in the this Act supplemented tions (1936 Supp.), (1933), Minnesota c. Sec. Mason’s Stats. Laws Minnesota Minn.Stat.Ann., (2), 110.13. Sec. *12 transportation development, cannot that phases of the Nation’s stopped present To a engage out- at the time. in the forms and to large extent, provides airplane characteristic recreation door aiding preserve initial the Forest period, Service with thus transportation ideals, traditions, attack means of and char- national acteristics, fires; and, planes promoting since not own- a truer are Government, understanding phases ed neces-. it is of historical sary pri- planes progress.’ to secure these of national ****** vate individuals. with the Contract use of come tracted this will be a Roadless ministrative success lands. The free and unrestricted development, ed must be but the lands trative “10(b) Private land ............ lows: “8. Government owned ...... ownership State owners State of Minnesota ...... Water “ [******] “All ^ “The [******] private * Total Ownership. under Government policies * * organization. Means less Area. .................. of these gross acreage íf major objective cooperation of Area is dotted with major job ................927,158 great accepted type to follow these and the interests and policies. The outer rim of the Í7 hereinafter well as Government July 1, 1937, water pioneers Access to # of the adminis- investment and as is divided area has at- private applying ownership, íf establish- have be- the ad- 108,740 policies 600,131 143,510 resorts Acres as fol- 74,777 Road- # prior to the extension of wood mile and a half less Area boundaries to ment ed in the Roadless territory, aries. passable and the four miles is now located on use within the Roadless tion connects Fall Lake with Bass- Since venient for Government service. initiative has conspicuous portage justify planes tioned at the various additional planes income tioning into the fore Government public thoroughfare, * “Where resorts “b. Truck ****** accessible free use of this it is this Lake, constructed * * justifies accepted policy * these interior, it is an type transport private parties assistance, passable by automobiles. The most *. * * by automobile, Portages: of this * planes developed portages of new have been usage and this means of insufficient size accepted approximately *. The Govern- operators * Area, of this description points and the thoroughfare. Area bound- automobiles, was in include this points portage, allow the Road- * or where is there- form of develop- descrip- without private in sta- place these con- sta- * so water equipped to land and take off from “11. *-*«**$(cid:127) [******] “The picture Transportation. surfaces has development greatly primitive area; airplanes changed est moved. cept purely temporary and maintained to the removal of Such “No roads will be constructed ex- products temporary are roads will be built actually forest at the time for- roads incident to be products. figure, ties into the today hydroplanes working and it adjacent territory interior appears at a to be reasonable take a means par- out ment within “2. “ [******] * * Improvements. * area is generally develop-

published, hibited who volved knew vide nesota, adopted, and prior derness less in its less of common sion Commissioners excludes all tration pancy located ture will be over [*] “3. tional Forest b. The dedicated derness the area. “5. on Government owned Superior forth bility guarding of recreational natural specifically: derstanding resorts, is for ditions ing istence.” [*] “No [*] “(a) “Policies “(c) “(b) areas preferred between policy [*] to 1939 and was a or should On the destruction ownership of the Developments which we Secretary’s primitive [*] policy will be Nation’s of the special use recreational these typical of the Development Preservation April and scenic values within Increase [*] [*] on area where such or existence of the Forest to the lakes National knowledge future * * zoning throughout area. those types of summer privately owned semipermanent governing the adminis- suits. as to roads Wilderness adhered to have issued within Secretary [*] [*] original Superior Na- region by have progress *. St. state. Policy. of recreational sta- wilderness construction, occupa- nomic These early American ex- ordinance which who wanted Forest. permits for occu- known of of the federal wil- under Louis historical purposes. This subsequently [*] (cid:127)» no by road for several of the source primitive con- lands jurisdiction. policies properties was a matter advantages. the Board of by prevent- Area as set in this County, Permit. occupancy [*] [*] truer the safe- periods Agricul- the wil- shelters n and those the road- the road- homes, unique within phases lands, remain dissen- are, [*] [*] un- years re- Min- duly pro- pro- in- nized tion or use of industry aries time 26 form tions inwas areas), tle Indian ness, (c) prohibited. mits management oped thereby placing homes in remote ing quarry, construction purpose been residential substation) “essential ment-owned land tions in the Forest cluded minerals furnishing of school service. less area courage dam, flowage area, moval of landing cutting Secretary acteristics, (finding (except (a) 10. On plaintiffs solely water, ingress percent, or plan, (/) imposed certain restrictions as to prohibited in nonfederal respect except for removal of timber and except for minor and restricted so as recreation served, in the roadless areas airplanes on national forest Forest Service importance which had strips gravel areas after 8, supra), individuals percent of the in Minnesota used of the ordinance was and for conduct of approved by (e) limited dock logging temporary logging February 13, purposes, Sioux, (6) prohibited hunting, Skala and for the three roadless exercising of dams. The to road (namely, Agriculture preserve a (d) prohibited Forest, egress” pertained pit, about logging ownership. to be connection areas large of total in the roadless closely burden on the and Caribou restrictions. been was ownership, of which transmission logging in to citizens hydro dam, private *13 building construction their roads or unless it fishing changes and of including of the part reaffirmed the lawful Zupancich. wilderness char- originally in certain sec- restricted land- occupancy per- land areas July third Superior, Lit- making square Acting of the Forest purpose construction, with a except required plan or summer county as a major other sec- in bound- roads airplane the land general, ranking At govern- plan of to dis- line or county or the recog- rights areas, miles, devel- mine, home Chief areas those road- same their busi- land eco- in-

9Q5 generally The fol- part influence of the State. ineffective northeastern lowing plan of man- the situation. excerpts from the ****** agement issues in relevant to the are these suits: Landing Strips “C. Roads and pri- e., development *14 [i. “This may Except held es- “1. as be area] in the roadless vate resorts exercising lawful sential rights place over considerable has taken ingress egress, no of and beginning time, period with the of required for other those roads than lumbering along border wane of timber, and of mineral removal however, Recently, there waters. permitted. shall be other resources * * * rate of de- been accelerated has mainly velopment, in- due ****** availability of air- use creased and landing strips “3. No aircraft ingress egress. craft for permitted. shall be of result the invasion sev- has been Area “D. Use Aircraft of high eral wilderness value lakes Motorboats previously free of de- which were landing airplanes on “The of na- reducing seriously velopment, thus tional land or and the forest water truly primitive por- remote and use of motor forest boats national tions of that roadless area. closely be waters will restricted. n is* # 4c1 # prohibited except Both will be “Many complicating of factors employment where the of such areas ownership, result from the mixed es- already facilities presence pecially the of considerable * * become well established. *. privately areas of owned land. * * * * * * holdings represent appropria- These * * * However, pur- “A. federal long standing, tions of and in con- tracts, types chase of certain of such many them, particu- nection with improvements as where account for larly properties, lake shore certain major value, portion the clearly is not types improvements, use and existing by any authorized

transportation developed have legislation law. is Such needed. years perfectly law- quite legiti- ful manner and from “B. Use Aircraft expansions mate motives. Recent generally recognized “It development, particularly to lakes hydro- increase the use of undisturbed, heretofore force atten- planes constitutes a critical threat significance private tion to the of qualities to the that make the areas Incomplete public land situation. outstanding. Were such use confin- ownership effectively cannot curb ed to travel to resorts and summer development regardless additional homes, necessarily it would not be objective how desirable that is. However, too serious. there is a complicating constantly growing plane “Another factor is traffic growing hydroplanes. use portions It and from all of the arrea remaining is a critical threat adequate to the that afford water surfaces qualities landing taking wilderness Thus, of the area and off. to such increasing, native poten- resources fish there is an game. tially unlimited, It is a stimulant de- disturbance of the velopment qualities remqteness, quietness, heretofore undisturbed areas. Control of the use of navi- and solitude that furnish much gable waters is not in abut- vested the charm of the areas. The result- ting ownerships, ing pressures population hence federal land fish have very already controls can have but a indirect been mentioned. Much dwelling. permanent-type purpose visits but short the business involves day less, “unique areas, of the Act often but a conserve qualities by-passes resorts in the natural features of the re- and thus eventually maining expected country.” wilderness canoe areas. It can regulated large by-pass logging, even the Act also measure limited al- adjacent levels, Al- areas. teration natural water lake communities given study, exchange though government- already some authorized the navigable

authority owned lands for for control over lands. The Act jurisdiction (P.L. 607, of June under the waters not Stat. yet clear, Cong., Sess.), 84th 2d the Forest Service increased au- yet plan has appropriations been $2,500,- no concrete thorization *15 for expanded need purchase 000 evolved. There definite area to specific this attention be further and coextensive all with three roadless By problem.” areas the Forest. the time of trial Little Indian Sioux areas condemnation owned available. up to federal chased area, able Very areas. The supra, chase dowment, Incorporated, chase this streams appropriated June Forest and almost doubted the March under Weeks U.S.C.A. § in this area had §§ 12. 11. Prior to turned over to less than 577-577h, all federal land protection for land period little funds were available including improved lands. land, In authorized 1, or for the area. reimbursement lands so 1911, the Izaak Walton 516 et availability of funds to including some purchased Department of 500 acres under the Weeks any privately of watersheds purchases in the roadless majority in the The Act some been 36 Stat. Law Stat. private production of timber. no funds were avail- and Caribou roadless seq. Land Thye-Blatnik purchase United States paid for with funds Thye-Blatnik resorts, Superior land in all of the was appropriation improved However, could 568, exempted 962 et funds became in order that lands in the acquired for owned tract of League acquisitions Agriculture 16 eventually navigable privately Superior National acquired U.S.C.A. Law seq., with a during Act when from Act, pur- pur- pur- En- of of tion over to hereafter as the “airban order” or tinent mulgated, ments. the United States had properties Order “airban,” are as follows: privately owned resort and residential mained sorts person and which Indian scribed Louis, have Caribou tude reservation:4 reserved within over the 13. On December Superior Superior “2. [*] “1. “Those areas in the Superior Secretary counties of No. provisions of this heretofore been in the State of After Sioux as follows: the so-called roadless areas of shall [*****] creating Roadless following-described 10092, 14 F.R. 4,000 Roadless with substantial roadless are more National Forest. airspace exterior set Roadless National January 1, 1951,5 navigate roadless area about 18 feet above Minnesota, Cook, Lake, apart Agriculture Area, respectively, 17, 1949, Executive area, Area, the Little land particularly airspace below the alti- purchased boundaries designated by as an Area, and the Order, an aircraft and there re- sea airspace areas hereby improve- was as the referred reserva- water level 14 re- de- St. no pro- per- January 1, present as to the roadless areas elevations 5. Effective Surface 2,230 1,000 range plaintiffs. feet above sea from the airban elevations above Thus level. ground range 1,770 from level would 3,000 feet. per trip for the 15- ex- round $10 airspace reservation within flight exchange, and, provi- flew in minute conformity cept equipment supplies for with- permitted Hanson of this order and sions charge. regula- guests' authority arrived in their out Some under the or Secretary planes. own prescribed by the tions Agriculture.” the air- c. date of Since the effective pur- foregoing issued Order bring guests' Hanson ban has had Air Commerce Section 4 of the suant to lodge Ely over land and in to his 570; 49 U.S.C.A. Stat. Act They motor vehicle six water. travel primary purpose elimi- was to Its § Ely Lake, then miles to Fall areas of from the roadless nate resorts six Fall boat and one-half miles across preserve help in order to the Forest Portage, them Lake the Four Mile enjoyment of character wilderness Portage by across the motor vehicle employing primitive means visitors Lake, lower end of Basswood then It had transportation and subsistence. Quetico Lodge from there boat to relevancy promotion, encour- no away upper miles end of Basswood agement, regulation the use of air- good trip Lake. weather the takes *16 in commerce. craft way, to requires two three hours each loading unloading passengers freight change of John Hanson each Claim D. time a is made from (Quetico Lodge) transportation to land water and vice versa, and costs per Hanson about $15 John D. Han- 14. a. trip round for fuel and maintenance bought up- islands in son six charges guest his vehicles. Hanson each part per Lake in Su- Basswood trip $10 and makes about 100 bordering perior roadless area Canada. trips season, many each solely of them acquired predecessor A in title had supplies. haul charge guests to to property in from the United 1932. States always does not cover the immediate cost. comprise 44.13 The six islands acres transportation Conduct the alternate land, approximately two miles of consumes time spend which Hanson could Hanson informed the shoreline. profitably catering more to the needs build Service his intention to a resort guests. The alternate method of bring on one the islands and to in his transportation necessitated the airban supplies by air. From 1945 approximately Hanson invest caused he built on to 1951 one of islands a $8,000 purchase in the of land and water Quetico Lodge, home and resort known as building site, and the vehicles a dock consisting group prin- 14of structures living quarters parking space lodge, cipally cabins, a main three elec- Winton, for none of which he had need house, house, plant, fish tric ing dock, seawall, motor float- prior to the airban. He also rented addi- storage facility, fuel parking spaces dock sites tional from cabin, shop, employees’ small three cess- private owner at each end of the Four pools, a sawmill. The resort was Portage. Mile Because the elimina- furnished, well-equipped and and en- of air family tion access he moved his joyed modern all conveniences such as during periods Queti- the off-season from running water, plumbing, cold hot and Winton; Lodge quarters co built at operations telephone, etc. It commenced summer of in the late d. Hanson built his resort and all of exclusively facilities its almost with his January 1, 1952, Prior b. the ef- investment, hands. His own total includ- order, date of fective the 1949 airban ing an estimated allowance for his own guests were flown into the resort labor, approximately $45,000 Ely by provided has been air service contract Elwyn by co-plaintiff West, charged who follows: furnish- wood Lake at the of the Four Structures terminus ings Portage. $28,000 Mile .................. On land he erected this Boats, operated canoes, mo- some outboard structures from which he 6,000 so-called “cabin on Basswood tors .................. boats” 1,500 sometime' Subsequently, Lake. Tools .................. one- Launches, 1940’s, acquired undivided and ac- he an vehicles quarter to lack interest and one-half due three commodations fronting 8,000 .......... acres of land 500 to 600 feet on of air access Bay adjoining Original 1,500 Hoist the land cost of land...... previously occupied he under a lease. 45,000 remaining three-quarters undivided privately property interest 20-guest lodge ca- e. Hanson’s others when owned until about May open pacity from about and is acquired title to United States year. September Gross 15 of each one-quarter buy- interest undivided operation ceipts from increas- the resort ing it from owner. Pete $7,852.87 $3,864.51 in 1948 to substantially ed pays real taxes on his billed and estate Receipts declined one-quarter interest. None of undivided large during years 1951-1953 due the other co-owners of the have part Air Force recall to the Hanson’s improve- part made a claim starting January 1951. months placed on Pete has ments which During period his wife of his absence any part property, or to of the income lodge opera- keep endeavored improve- Pete’s from Although use of the derived took dur- tion. The airban order effect the record ments. Pete is own- ing period. the 1954 season With one-quarter er interest building had to a new Hanson commence *17 property from in- which he conducts his clientele, for the effective after date dividually unincorporated owned and airban, former airborne few of his Boats, business known as Pete’s Cabin guests There is to be- returned. reason son, Pete’s from 1948 1953 receipts his been have lieve Pete, reported income James W. expenses and post-ban in the increased over the actual own, from the business as his years for the on not been ban they plain- reported on the and were flights. starting income tax return until tiff's of the fair f. Estimates market value when, 1954 and thereafter at the instance improvements fixed of the land and Quetico Lodge, at Bureau, Internal Revenue the busi- assuming by air, access expenses reported and ness income were $20,750 $35,000 from to varied both plaintiff on returns of Pete. The according to defendant’s foregoing upon facts are based not best witnesses, $31,590 $196,- from two evidence, offered, up- which was not according in 1949 and 628.03 testimony objected on which was not to. plaintiff’s two Defendant’s witnesses. found no decline in market witnesses one-quarter acquiring After b. his airban, because while Han- value interest undivided land described witnesses found resultant two val- son’s 1940’s, erected above Pete thereon $8,298, respectively. ues expense buildings, at his own six frame prop- fair market value Hanson’s including cabin, storage building, com- erty, by air, with and without storage building, warehouse and bination finding reported in house, oil boat icehouse. shed and He large retaining dock, wall, (Pete’s Fishing built a Pete Jacob Claim Cabins) swampy areas of the filled shoreline. By he had built the site five In 1935 the 15. a. Jacob five-guest dwelling boats, e., cabin i. on a business started leased land Pete Bay barge, lying of Hoist shore on Bass- on a water-borne furnish- erected way verify equipped As of 1949 housekeeping, these costs. simple ed for equip- In his income tax return reflects for propulsion. for motors with inboard original $13,404.41, ment alone an cost boats the cabin one of 1954 he installed $7,143.47, depreciated shore, replaced while same location on in a fixed figures $3,- ten-guest $13,510.01 for 1951 double are water with it on the cabin 900.52. His cabin boat. decker cabin guests. capacity for 45 total boats have a upon e. Based federal income tax boats cabin fish from the Guests turns, gross plaintiff’s receipts from the ac- Lake and Basswood cruise around operation of Boats have Pete’s Cabin miles as 28 as far cessible waters year through 1956, risen each from 1948 base, waters. in Canadian sometimes year report- and each a net loss has been leading installed tracks has also Pete ed, despite Pete’s irreconcilable testi- prop- to the shore from the water mony profits have been made. hauling erty purpose the cabin guests 1956 the number of reached the repairs. He owns up on land boats previous peak same as the in 1950. hauling purpose of launch for a guests guests Whether years 1952, number of end Lake to the near Fall across seq., et would have been speed- Portage, and a the Four Mile greater actually experienced than if air guests prop- carry from his boat permitted access were is a matter of con- they erty cabin boats wherever jecture. equipment Pete’s investment in may Basswood Lake. be located on $13,510.01 increased from in 1951 to $34,957.04in 1956. Commencing in 1943 and continu c. many ing January 1, 1952, as as 25 widely f. Estimates varied as to the guests by seaplane percent flew in of his market value Pete’s Lake either at and landed Basswood expert and without access air. His directly to the immediate ihe docks $21,- witness testified to market values of guests of the cabin boats. The location (including $5,000 value) for land flying transpor paid service percent with air access and 25 less or tation, expense which was thus no $16,000 without, about 1949, as of December transported All other Pete. promulgation date of the air- Ely via Fall Lake and the Four Mile experts ban. Defendant’s two found val- *18 Portage by bus, launch and at Pete’s $14,450 $11,000, respectively, ues of and expense but included in his rates. Since 1957, finding as of both 1951 and no loss January 1, 1952, guests all have come in in value because of the airban. None of by this means. Prior to the airban Pete figure the estimates included a for cabin supplies by Many received some .also air. personal property boats and such as guests profes of his were business and equipment. The fair market value of who, pressed men for sional time and property reported finding 20, Pete’s is only day spend or .able to .ation, two of recre infra. flying adapt found the service well (Lac Claim of Martin Skala LaCroix ed to time limitations and more Lodge) (cid:127) than convenient alternate means of transportation. Most the airborne plaintiff 1944 Martin Ska- 16. a. .guests longer patronize no Pete’s facili bought 8acres land for on $300 la ties since the effective date the air in the northwest corner of Lae LaCroix Iban. 1,500 area. It has about frontage d. It cannot be and determined with of lakeshore includes a feet .accuracy By built, what 1949 he Pete’s investment has sand beach. knowledge opposi- He been. estimated a total and without the cost invest- $45,797, including Service, ment of a resort for tion improvements place Lodge, consisting LaCroix the land as Lac and known including large .$21,787 boats, buildings, lodge, in cabin there is no 17 icehouse, lodge, cabins, LaCroix of 31 dormitories, ware- Lac to a total four cellar, pump- house, light and two and hours plants, miles one-half three root two depot, house, docks, from the Lake as contrasted septic Crane tanks. and flight guests, Ely a 25-minute capacity sort has lodge, trip superior construction, and a five-hour surface via and has all modern Passengers designed Loon route. and Lake exclusive- It was conveniences. ly freight and, and reloaded June must be unloaded until as an air resort during Ely by guests Lake several times both the Loon in from co- all were flown Portage flying Dawson routes in transfer- under an and service West’s ring arrangement guests whereby paid from land to water and vice versa. Portage trip ter- flew The Dawson is Canadian round and West West $11.50 ritory freight supplies and uses it suffer- free Skala at and Skala charge. operation In or- ance Canadian authorities. May September der use it road each he had to build truck about ground year, depending across the four miles of which on the weather. repeatedly dams flood and cause beaver flights into b. the cessation Since maintenance costs. Skala continual Ska- airban, occasioned expended approximately $39,000 la has guests brought in to the all have been system operating transportation charge lodge trip by plaintiff at a round Portage route, across the includ- Dawson Lake the Loon route either $11.50 ing building road, the cost of the truck Portage route. Both or the Dawson hiring employees during the season originate just routes Crane Lake out- boats, depots, man the vehicles and extremity side the road- western maintaining purchasing equipment building area, less in a Skala which including facilities, the Crane Lake bought improved pur- sole Lake, depot, two boats on Crane docks pose $8,500. keeps at a cost of He Portage, trucks, at Dawson four two during employee there full-time sea- tractors, grader, trailers, loader, two flights son. From cessation gasoline storage facilities Dawson Portage June 1953 until the Dawson Portage, and three boats on Lac LaCroix. during the route became available expended $2,200 He for a tele- also radio season, transported Skala over lodge phone service between his route, Lake the Loon boat went expenses depot. Lake These Crane depot, from the Lake Crane followed exclusively equipment items at- Vermilion Canadian border down River Portage to the Dawson trans- tributable portation Lake, and into Loon into Lac La- thence system Skala would lodge crossing location, Croix to the over had them had not been for have cessa- portages en route which necessi- two land flights into his resort tion of due to the charges payment of in toll $3 tated salvage Their *19 airban. market value distances, portages. Due to low for the charges guests is not shown. Skala his early spring in the and fall water levels making round-trip transportation fee of $11.50' non-navigable, River Vermilion if not know this does reimburses his and conditions, generally hazardous and transports, Skala also un- costs. imprac- route became and is Lake Loon fee, co-plaintiff Zupancich’s disclosed long so not used and Daw- ticable guests from Crane Lake to the end of Portage route is available. The son Portage. the Dawson Portage originates route also at Dawson flights depot, proceeds by into Cessation the resort Lake c. Crane Skala’s positive but across Crane Lake to had unmeasux-ablead- miles has boat seven plaintiff’s Portage, stopping effect on en volume of route verse at Dawson although customs, guests, for other then four x-easons the miles Canadian greater Portage to in 1956 was than in the Dawson Lac volume truck across flight year operations. LaCroix, 20 miles boat full About thence across last records, believable. Not verifiable from

9H $195,776.10 and percent former values for the same of of the percent 10 $114,716, by air, respectively, patronize the guests with access continue airborne flights (a 1951, $97,888.05 as of 1949 resort, of the and and the end since so that substantially percent decline) respec- $50,000, and plaintiff has accumulated a oper- tively, year The fair he without access air. In no new clientele. property re- greater one- market value of the estimated Skala than an ated at finding logical ported 20, capacity. to assume It is third infra. period post-flight he would in the (Curtain Zupancich Claim William flights guests con- if had more have had Fishing Camp) Falls lodge Flight made service tinued. plaintiff Zu- 17. a. In 1939 William guests elderly many who accessible to pancich paid $1,500 for a 56-acre tract sys- transportation present now find of land situated in the roadless area and longer exhausting pa- so no and tem too fronting 9,900 feet on Crooked Lake and the resort. tronize Falls, highly Curtain scenic location. flights Up until the cessation d. separates property Curtain Falls approximately had invested Skala knowledge from Canada. With excluding property, some his op- the Forest Service and without its acquired equipment previously position, Zupan- from late to 1950 acquir- equipment all of the and facilities cich built a resort on the known existing in connection trans- ed portation Fishing Camp as the Curtain Falls con- system. sisting lodge, cabins, of a twelve two years Income tax e. returns dormitories, house, icehouses, bath two commingle receipts shed, pump house, house, motor tool lodge expenses and a tackle light plant. Seventy-five percent of the Ely by Skala, store owned but it building materials were flown in. Much year from inferable them that each provided charge of the labor was without except 1953 the resort has returned a by his friends and relations in so-called profit. receipts Gross in each of the “building bees,” apparently a rural cus- years post-flight have exceeded those in tom. Lumber was sawed at the site years, being preceding attributable locally logs. available greater promotional efforts, improved buildings good design were of con- conditions, increasing economic rec- struction, improvements modern activity large. Throughout, reational guests. capacity facilities, for 52 and a expenses fairly have maintained a stable necessary equipped with resort was guests receipts. ratio to Volume of required paraphernalia other boats fairly mained constant until when designed purposes. It was ex- for its clusively pronounced there was a increase. Ska- guest contemplation trans- la’s records and income tax returns con- by airplane. portation All of its many ambigui- tain inconsistencies and Ely until June flown in satisfactorily explained ties not record, legal upon proceedings based when foregoing reported facts flights earlier ban termi- defendant’s subject in reliance on them are to some flight activity. Thereafter further nated doubt. brought until June using provided by guests estimates land and water in over Valuation f. *20 logging widely. Road, temporary expert De- varied Lake a witnesses the Gun belonging respective Paper to the Northwest two witnesses found road fendant’s by $99,725 $115,000 which, permit by Company and issued values the market improvements (ex- in and fixed was extended a the land Forest' Service for personal cluding equipment, property, the roadless miles into area. At all few instigation depot), the United Lake with or States Crane with- and the the by air, gate into as of both 1951 barred access the and road- out access locked area, Zupancich Perko, two witnesses found but and an- Plaintiff’s less 1957. gate then owner, on drive 93 miles to Lake and the Crane other violated proceed the more the resort in into miles to numerous occasions and drove heavy Passengers the freight and manner described. and with vehicles roadless area get be unloaded each equipment order must change loaded and in construction made, giving proper- land time vehicles to waters brought type Zupancich suit versa. The resort Perko water vice ties. and Ely by May 1955, and, their mo- lies about 25 minutes from air. denied in were seeking injunction him temporary The Forest the Service has denied tion for a govern- Paper portage Com- use of across two trails the Northwest restrain deny- in area pany from ment-owned land the roadless the and Forest Service logging ing road. which would somewhat ease the trans- them access to Inc., Company, portation Paper problem. Perko v. Northwest D.C., this, F.Supp. Despite use 560. depreciated of his In 1952 cost b. by the un- of the route was continued land, improvements, equipment and, July in successful salvage $48,000. time value that injunc- granted temporary the court any likely pur- is unknown. It is preventing tion to the United States except be chaser the Government could by Zupancich further use of route for found the resort since cessation Perko, indicating pack- flights. In 1946 the Izaak Walton walking horses, canoes, and League pur- of America contracted to only means of access available to their Zupan- chase entire resorts, though even the use of vehicles negotiations $65,000, cich for but portages resort owners elsewhere collapsed for reasons not clear roadless area was found flight After record. ban the discriminatory. court United pay him Service offered to for Perko, D.C., F.Supp. States v. improvements, the land and fixed period Zupan- For a two-week in 1954 open. he offer still declined. The nearby by plane guests cich landed Zupancich operates his resort from c. them across and ferried waters Canadian May year, early to mid-October of each resort, the Canadian to his the Lake permitting. Prior to 1953 he weather prohibited this means ac- authorities would accommodate duck hunters guests all of June cess. Since receipts operation from the fall. Gross departed the Daw- via have arrived grew through steadily of the resort Portage by co-plaintiff route used son year 1952, year full of air last ac- finding supra. and described Skala they cess, $57,383.64, reached then when guests Zupancich’s transports Skala dropped approximately one-half suc- Portage lying be- Bottle Lake far as ceeding years through Similarly, Lodge and the Cur- Lac LaCroix tween profits on earned the resort Fishing Camp, and from that tain Falls through 1952, shown a loss or transports Zupancich them point boat succeeding year profit in each a minute doing property. portage to his number 1956. The two cross and sometimes has to so he radically 1952, reaching dropped after portages, one of them Canadian three figure in 1955 of than low less one-third negotiate soil, three hazard- and has the number 1952. Without doubt Solely pur- rapids boat. ous chiefly been lack of access air has acquired

pose and maintains sponsible patronage diminished amphibious jeep. and one boats three plaintiff’s resort. Crane Lake to his resort route by expert 41 miles involves three Estimates value thus covers d. wit- portages, widely. four land sometimes two nesses varied Plaintiff’s two wit- soil, improvements across Canadian and three valued the fixed of them nesses Traveling access, Ely $73,201.20 alone, rapids. from his home in with air to be *21 property Zupancich $36,900, respectively, as of their to his must and se-

Q13 De- lected dates of December 1949 and capacity. Leithold his individual $36,- cember corporation and found a decline to He seaplanes transferred several $7,380, respectively, 600.60 on the equipment and and v/ith a book They receiving $36,000, same dates without air access. value of in return $90,000 $10,000 corporation estimated land values at about in stock of the new $46,200, access, assumption by and $45,000 and about with air the latter of debts against $9,240 Defendant’s seaplanes. without. the transferred The plaintiff corporation two values of operated flying witnesses found market its improvements the land in 1951 and fixed service in the same manner as had Leit- $51,835 $75,000, hold, and 1957 to be spectively, entered into successive licenses for occupancy them to the cluding seaplane and found be affected (in- of the base promise neither in time nor difference to remove all struc- upon loss of air access. The fair market value agree- tures termination of the improve- ment), of the land and fixed five-plane and in 1948 built a finding given 20, infra,. ments hangar, ramp aluminum and docks on property. plaintiff The conducted a Seaplane Service, Claim of Leithold Inc. flying school under a Veterans Admin- 18. a. In 1936 Leit- William Fred program during istration the winters of hold, subsequently president 1948 and and in 1949 secured a Seaplane Service, Inc., Leithold contract- permit from the State Minnesota to ed with the Forest to furnish Service fly passengers freight into the road- flying seaplane Ely, Min- services By less area and elsewhere. 1949 and nesota, pro- to assist the fire control succeeding years approximately half gram Superior National Forest. plaintiff corporation business of renewed for contract was several flying personnel, guests, was equip- years. Concurrently operated he from ment into resorts in the roadless area. Ely capacity in his individual a commer- The flying fishing other half consisted of flying service, cial and from 1936 until parties into various lakes in the roadless many flights 1947 he made commercial area where the would fish for carrying freight passengers and into the usually periods short either from the resorts, private homes, area seaplane pontoons collapsible or from logging operators, and on Forest Service planes. boats carried Permission Operating seaplanes, missions. he flights to make into the roadless area off would land and take from the lake indispensable plaintiff’s business. area, surfaces in the roadless for in those April In 1949 Leithold b. left years up transpor- 1951 air plaintiff corporation accept employ- widely tation was utilized as the most pilot By as a ment elsewhere. then convenient mode of travel into the road- flying rumors that into the roadless area early less area. As as 1937 Leithold was stopped plaintiff’s affected policy familiar with the Forest Service to maintain this adversely. corporation business con- part of the forest in its 1951, just tinued in business until late natural state and as a roadless area. prior to the effective date the Decem- procured 1946 he license from the corporation 1949 airban ber order. The owner the use of some land and three engages existence, still still the use buildings Shagawa frame Lake at seaplane base neither uses nor Ely, seaplane base, for use as a with the it, aircraft, maintains has sold its dis- provision that he would have to remove personnel, persed fully its and has sus- buildings the frame other struc- operations pended since late 1951. tures on the land at the termination of occupancy. he, others, plaintiff corporation In 1947 c. contends plaintiff corporation formed the order under the airban terminated its busi- Minnesota, carry depreciation the laws of on the ness caused a in same business as theretofore of its assets from carried on value down to *22 guests fly However, out to their' in by area $41,725. $23,275, a loss guests. seaplane, paid sea- for a fee that not establish does evidence charge exchange, In in liquidated were West flew without plaintiff planes which supplies and to the resort owners value. various fair market less than their for sold replace- addition, In least materials. at that is it established Nor yearly equipment, 1950 West had contracts with parts, miscellaneous ment provide plane were Forest Service to services boats, equipment which office inventory in fire control closing suffered connection with the forest plaintiff’s in program. All his in- but a fraction of of the airban in because a loss value come, however, from his effort was derived plaintiff made or that order transportation few boats to and from re- except for a dispose themof to in sorts the roadless unclear. area. record as which occupied buildings on frame three fly b. West continued into the plain- not the property were roadless area after December its on a claim constitute cannot tiff and the effective date of the December 1949 plaintiff best would behalf. September airban order. In 1952 the between only difference to the entitled injunction District Court issued an hangar, intact value the market ramp, against flights a continuation of these ab- 1951 in the in late and docks permitting him, however, fly until the salvage and its order the airban sence of the 1952 end season and to make win- assuming time, there same at the value flights landing ter into the roadless area anything, but the right to recover were a proof on the lake ice. West continued his demand a either establish fails to flights during pendency appeal of his Finally, salvage included value. aor injunction from the subsequent pe- an item plaintiff’s claim tition for a preme writ certiorari to the Su- intangible equivalent. good or its for will Court, both of which were denied. good will that the is not established It July In contempt he was fined corporation, suffered planes of court and three of his six were five $7,458.50 its almost loss net years impounded. In the winter of 1953 he profit operation showed a planes secured the release of his and en- years, was worth only of those two deavored find another North American summary, Leithold anything. In comparable resort area one suit Inc., Service, (1) establish- Seaplane has where he could conduct the same kind itself of 1949 order airban that the ed seaplane service. None could be found. its char- impossible to conduct it made seaplane Shagawa c. West’s on base (2) successfully, has business tered strongly hangar, Lake consisted a rented an- the business indicated hangar shop other and tool built on leas- highly unprofitable to be continue would ed land in the ap- winter of 1946-47 permitted flights into if even proximately $3,500, and docks. He has (3) area, not establish- use, been unable hangar rent or sell the latter physical of the cor- assets ed stopped flying. since he Since depreciated below poration were on was built leased land and the record of late 1951. value market fair nothing ownership shows as to (West Seaplane Elwyn West hangar, Claim it would seem that at best West Service) salvage own value of the hangar, toas which there is no July evidence. until From 1943 19. a. hangar West, value, thus no Elwyn had market conducted plaintiff, only private depend- but value individually known as the West business owned entirely upon seaplane the existence of his Seaplane from his ent Service West engage Ely, permission Shagawa Minneso- Lake at lease and busi- base December 1949 West had exclusive contracts ness. He ta. háving aircraft, all one six the roadless hand been resort owners

About *23 attaching through by year seaplanes operations, floats' his converted ninth of during altering patronage at con- their tail structures time when and resort expense. planes increasing, in the All were roadless siderable area was it operating and subse- concluded that condition at that West’s business was anot largest profitable quent material times. All but of business and the value good seaplanes, negligible of of their short his will his because was nonexist- large load-carrying range relatively ent. and adapted capacity, peculiarly to the were flights f. into With the roadless area supplies ferrying passengers of and a being banned, Seaplane the West Service compact region, such roadless lake liquidating became worth value found in the area Su- assets, of its and same assets would perior National Forest and nowhere else greater De- have commanded value in flight Thus, the in the United States. flight cember ban not been market of ban reduced the value these promulgated. depreciation by eliminating large planes share of De- value of West’s business assets in By potential market. the time of $4,500, cember amounted confined all but two of the trial West had sold aircraft, supplies equip- to his flimsy planes. six From the evidence ment.7 reasonably available it is concluded that Properties December 1949 the fair market of Valuation of Resort by planes value of the six then owned Preceding findings through $24,000, West was and that the value was provided set forth the essential .elements $20,000 by depreciated to of reason the by determining the record for the fair flights ban on announced at that time. by market value of resorts owned It is not shown that values in 1953 were plaintiffs Hanson, Pete, Skala, Zu- any different. pancich, with and without burden by imposed the airban of order Decem- d. In December 1949 West had on ber assessed as of December supply parts equipment hand a of 1951, when the airban order became ef- repair the maintenance of his It fective. is assumed and so found that being peculiarly parts, These aircraft. by deprivation of access air diminished adapted aircraft, of needs West’s vary- the value of each the resorts in greater

had a value to the owner those ing degrees, largely by controlled reasonably aircraft than to others. It is comparative inadequacies other means estimated that the fair market value of example, For access. the resorts own- supplies question as of December by ed Skala are $1,500, 1949 was and that the ban on ingress so remote that surface means flights depreciated their value as of the egress unreasonably are $1,000. same time to expensive, cumbersome and while the readily e. West’s books account were no Pete is more resort accessible longer planned in existence the time of means trial. surface with that transportation primarily From his income tax returns 1948 means gross appears 1953 it mind. Hanson lies some- higher ceipts were degrees 1948 than in sub- where in between these of in- years, sequent although convenience, operates and that he showed losses more profits efficiently in 1948 and 1953 and modest air access and was intervening years, computed exclusively planned all with- basis depreciation expert out benefit deductions air. The witnesses relied profit reproduction have reduced the variations cost de- showings. gross receipts estimating Since preciated values, method constantly diminishing authenticity from his sixth but the the unit cost cri- In contrast West $20,650, contended for before and after values $33,850. claimed loss capitalization of income because not satis- employed them was teria *24 incomplete In explained data. and unreliable factorily established analysis problem is suggested final the valuation helpful. instances some' nebulous, speculative by fan- controlled exorbitant values were too land would factor what market data and unascertainable ciful to be credible. profit from airborne applicable of and here be the volume is not method of valuation patronage of resorts because, contains some whose record while the solely by prevented the elimination in the roadless was sales evidence area, they comparison Avail- capable medium of access. of the air as a ability are to income and dis- properties occurred data in suit and bursements, costs, during flight reproduction period and other ban the main area, meticu- probably no matter how of air access was sales when lack provide complete, depressant. would not price of resort lous and Purchases problem. properties by formula to meet this reasonable Nevertheless, the United States considera- properly based on these reflective roadless area are not whole, as a tions the evidence reason and same of market value willing- fair market found that the concluded and reason that the further improvements accept fixed of the land and the offered value sellers ness prices undoubtedly area each of the in the roadless influenced January suit, properties the airban. caused conditions access imposed by competing the burden However, and without elimination order, assuming per- acquisition the airban manency would Government sorts present access,8 means of transfer of to benefit tend following forth table: established as set patronage. cannot be Values though taking, example, amount to a total even all means of If capable anticipa- paying guests in suit were total shutout was not to the resorts January terminated, tion the effect of the airban

Case Details

Case Name: Bydlon v. United States
Court Name: United States Court of Claims
Date Published: Jul 15, 1959
Citation: 175 F. Supp. 891
Docket Number: 421-55, 480-55
Court Abbreviation: Ct. Cl.
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