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Caltex (Philippines), Inc. v. United States
100 F. Supp. 970
Ct. Cl.
1951
Check Treatment

*1 court justice. Since the interests of made findings of fact accepted the statutory exercise Referee, should sought. the relief powers grant unnecessary to makes This conclusion In between apparent conflict resolve the Pottasch supra, In re Faerstein, re 613, 101 Cir., F.2d Inc., Co., Bros. referee powers A.L.R. as to previously aside orders or set

to review made him. also, Ct.Cl., F.Supp. 657. See denying Referee The order confirming the order petition set aside reversed, and

sale Ordered, Decreed: Adjudged and

It Is of sale confirmation the order of 1. That July herein on

made into and entered is directed trustee is set aside here- petitioners forthwith to return by said $25,000upon delivery sum the 25 Im- trustee

petitioners to said bonds de-

perial Japanese Government sale. confirming -order

scribed in said findings fact certified

2. That hereby this court are

by the Referee to

adopted by this reference made a

part hereof. UNITED (PHILIPPINES), Inc. v.

CALTEX STATES. ISLANDS,

SHELL CO. PHILIPPINE OF UNITED Ltd. v. STATES. UNITED OIL CO. v.

STANDARD-VACUUM STATES. 48319.

Nos. Court Claims. Nov.

Decided

Leo Kissam and Albert T. R. Con- nelly, City (Cravath, New York Swaine & Moore, City, briefs), New York plaintiffs. Barnes, Washington, C, Kendall M. D. Clapp, City, Acting Newell A. New York (Holmes Atty. Baldridge, Asst. Asst. Gen. Gen., Atty. brief), on the defendant. JONES, Judge, Before Chief and LIT- TLETON, WHITAKER, MADDEN and HOWELL, Judges.

HOWELL, Judge. suits, these Plaintiffs in three which have consolidated, Company are Shell Philippine Islands, Ltd., Standard-Vac- Company, (Philip- uum Oil and Caltex Inc., pines), hereinafter referred to as Shell, Standard, Caltex, respectively. corporate which, All are entities at the arose, engaged time cause petroleum prod- commerical distribution of Philippine ucts Islands area. Each plaintiffs storage maintained operation trol supply District dis- the Pandacan terminal facilities position petroleum products Cebu. from the Manila, Island of I., P. companies stocks on hand of the oil companies suing for three oil All *3 troops their Pandacan terminals 'to of their compensation taking just for the field. In the exercise this control of. (Findings Pandacan terminal facilities land, the Army buildings, in- used fixed through 33). stallations, containers, equipment, rolling for claim an additional makes Standard stock, personnel companies’ and of the oil products petroleum just compensation for 29). (Finding Army Pandacan terminals Cebu at terminal at were its kept authorities track of the amount of on December taken time the terminal was products petroleum going military users 1941, 8, depot commander petroleum and organized the movements USAFFE, which were de- and name to the field. It was understood on terminal stroyed along with Standard’s Army pay would for all petroleum any 10, making April is not 1942. Standard Army for its own use. The also screened claim for sources, orders from allowing civilian sales (Findings on Cebu of its terminal facilities only to essential users such the fire de- through 41). partment, ambulances, etc. were Measures $3,943.20 for 131.44 suing is Shell safeguard taken to the facilities the use oil and Diesel sold troops, metric tons of fuel and the oil personnel of the com- 3, April Shell, on or about panies delivered job taking remained instruc- on Unit- Cebu for use personnel. to defendant at Army tions from Navy ed submarines. Defendant Army An effort was made promised pay agreed and the amount negotiate temporary leases with the oil (Findings claimed but -has not done so 34 companies facilities, of their terminal 35). press of Japanese did invasion completion

Pandacan Claim allow time for the agree- of such ments before it became necessary to aban- years prior several For outbreak 20). (Finding don Manila Japan, Army with the United States of war plans for had maintained detailed the de- 27, 1941, Until December no officer in the Philippine Islands. These fense Quartermaster Corps, Army, plans recognized quanti- for large need possessed authority, except to the extent supplies petroleum ties of extended delegated that was to him the com- Army possess defense effort. The did not general, manding requisi- to commandeer or adequate storage its facilities of own to use tion the or title of the stocks of the Rather, carry on full scale war effort. petroleum products, land, fixed install- day-to7day procured petroleum re- ations, equipment, supplies, rolling stock quirements from the oil com- commercial companies of the oil on Pandacan. Such rely upon panies planned to their stored authority delegated by was not the com- supplies in the of an emergency. case The manding general Quarter- to officers of the companies acquiesced were oil aware Corps except master on Pandacan as de- plan, cooperating Army by with the this Findings scribed in 13 to 20. maintaining certain stock so levels that the Between December adequate Army might supply be assured of companies oil were' notified that their re- of sudden mobilization. together maining stocks with all terminal requisitioned On December war between the facilities to be and that' Japan part United States and transported commenced at whatever could Simultaneously, Pearl Harbor. Japa- Army in the field was destroyed. to be Philippines nese attack on the got companies the oil under Officialsof were reluctant way. Army immediately responsibility comman- to take the for destruction quantities transport, deered necessity motor in- because of the imminent of an- cluding plaintiffs. belonging vehicles Japanese, swering to the Army and the December Army On agreed take took con- care demolition. On instance, appar requisitioned particularly Army as it December comply all ent that no effort was with made petroleum remaining stocks all question damages the Panda- Act. handling facilities at storage separated from companies, liability oil terminals can planned according 39(b) (1949 Reprint),1 Rule in fulfillment December (cid:127) and ly only facilities before the court policy, the terminal de- whether or not there remaining therein was a products all Army purpose plaintiffs’ terminal Pandacan2 by the facilities on molished Japanese. use to the which the Government denying their *4 required just compensation. make is to paid plaintiffs for States has The United of requisitioned for such plaintiffs and rolling stock contend that the ter- the Pandacan petroleum taking stocks in act Army’s over the control of the of Army. The used the operation supply as were minals of and distribution on De for the paid p'aintiffs 1941, also 12, States “taking” United cember a of amounted to ter- in the petroleum which were stocks properties the terminal for on that date use of at the time and were minals that and such use continued until mo the to com- Defendant has refused 31, demolition. ment of destruction on December 1941. of terminal pensate plaintiffs for the loss appears From the record that the of that ground the Pandacan on facilities Quartermaster Corps ficers the did not December on properties were taken these authority plaintiffs’ to have take title to 1941, purpose sole of destruction 27, prior terminal facilities on Pandacan enemy. by the prevent their use order to 27, 1941, December formal act no that tak- such contends that The Government place requisition date. took until that compensable Fifth the under ing is not Regarding Army’s substance of the the Amendment. findings, acts as related detail in the just com- base their claims for Plaintiffs exist, light known situation fa- pensation terminal for Pandacan the that we do not believe the control exercised Requisition Military upon the cilities 1941, Army between December 16, 1941, 55 Stat. Act of October Materials 27, 1941, and December amounted to U.S.C.A.Appendix, 742-43, amended, 50 as taking plaintiffs’ terminal on facilities 721-724, upon Fifth Amendment §§ public Army Pandacan for con use. Constitution, contending that the (1) instance, all trol in this circumstances con public taken for terminals were use sidered, complete more seems no us than on December United by Army inspectors that exercised meat by the until de- were used Government Safeway3 ap case. In that stroyed (2) December on peared Army representatives that en if taken for the first time on December orders, in Government set-aside forced solely purpose for of de- spected rejected slaughter meat at the keep from the terminals struction house, regulated shipments, etc. Besides compensable. enemy, such is Government, that, agen through other cies, slaugh this controlled amount of beef Inasmuch as court must render a tered, prepared, prices just compensation the cuts judgment for where Later, required charged. the Government there has been Safeway portions private property public to deliver it certain for use States of product require- the beef set aside. held the constitutional We on the basis use, alone, public taken for purpose in a to have been but it no is served dis- slaughter- was never contended that applicability of the statute cussion Reprint, applicable 38(e), Rules, new Rule 1. new 1951 Under liability, 38(c), and will be dealt rale U.S.C.A. opinion. separately in this with just compensation 2. claim Standard’s Stores, products Safeway alleged 3. Inc. have been v. United for oil F.Supp. properties 900. from Standard's Cebu Ct.Cl. taken 39(b), before the court Rule also 97á ing is noncom- case, into the hands In that itself was taken. house pensable remain and that the loss must subjected to

this,4 itself was facility ravages general falls as where it one permissible under the Govern- regulations of war. not powers, police and war ment’s have no doubt We use.5 The courts aside the use petroleum

that the set to delineate the ex had little occasion Army case was taken in the instant exception urged defendant tent However, Government public use. as the power principle the fundamental petro- all the paid plaintiffs in full for has subject in time requisition war is Pandacan, leum used and prohibition of the Fifth the constitutional us. problem does not confront against taking of Amendment com without ac- Government’s conclude that the We clear, however; pensation. It been made respect plaintiff’s Pandacan tions with power upon war Con conferred December terminal facilities between n gress abrogate by the Constitution does did 1941, and December *5 guaranty; this constitutional is sus facilities. to a of those amount pended or affected or the conditions war 1941, 27, the Government On December thereafter, subject following is it to be nor requisitioned ter- formally the Pandacan ing Generally, away by taken when statute. was By this date it minals destruction. requisitioned or con property is be apparent would have to that the area purposes, owner there fiscated for war the the it had deter- enemy, and yielded to, is ob is entitled the Government the and their contents mined that terminals ligated pay just compensation and full deny be to the them should A.L.R. 1290 See Annotation 137 therefor. enemy. Army prepara- the The took over Further, it is and the cases cited therein. and the actual demoli- demolition tion compensable property if settled that to be part, least, at at instance of the tion specific or es seized need not be interest companies’ who, representatives, oil under- agreement tate, only amount to an standably, did to answer to the not want covering period. an indefinite Portsmouth Japanese for such an act. From December Hotel United Company Harbor & v. Land moment of demolition 327, 135, States, 67 U.S. 43 S.Ct. L.Ed. 260 December afternoon of 256, 287; Causby, U.S. v. 328 United States Army complete control of premises had 1206; 1062, 66 90 L.Ed. S.Ct. engaged removing petroleum 373, Corp., Motors 323 U.S. 65 v. General laying field demolition to the 357, 311; L.Ed. United S.Ct. 89 v. Johnson charges. date the On latter entire ter- States, 391. 2 Ct.Cl. deny facilities minal were question Ordinarily, involving cases Japanese, their use to the who contents just compensation the Fifth already entering were this time Manila. involve the Government’s ex- Amendment Army plain- only power made of use the ercise of its of eminent domain or following req- tiffs’ terminal facilities whether or not some exer- 1941, 27, regulatory uisition December was to de- cise the Government’s au- stroy plaintiffs them. The claim that this amounted in to a thority law public property. destruction en- was such .a use as another’s The instant case is involving them to de- type titles for the a rarer the seizure stroyed position military property, is terminals. Defendant’s authorities of de- governmental required urgently destruction of which struction prevent republic. great peril in a fall- time of defense of period States, F.Supp. during from 118 4. At least Decem- Ct.Cl. 92 United 1016; Regis Paper ber 12 to December 1941. St. Co. v. United States, F.Supp. 831, 110 Ct.Cl. Co., Aleutian Cf. Livestock Inc. v. United denied 335 U.S. certiorari S.Ct. 626; F.Supp. 119 Ct.Cl. L.Ed. 370. Mines, Inc. v. Fino Oro Consolidated troops entering military to seize federate were Arizona power of from upheld by Texas with the intent cut- evident property was ting troops off Under Mitchell the Union Supreme in 1851 therein. Court given this state of 75. In affairs orders 14 L.Ed. Harmony, 54 U.S. such mili- case, Taney carried for the removal of deciding that Chief Justice tary transported stores and the as could be said, page 134: 54 U.S. destruction be re- of such as could not doubt, are, occasions without “There moved, together private property with such be may lawfully private property might of Grant value prevent destroyed to possession of or enemy. put At the time the public falling it from into hands flag torch the Confederate officer, enemy; where a and also actually flying city of Tucson im- charged particular duty, may with a citizenry the armed rebellious public serv- into the private property press threatening Grant was immediate attack. Unquestion- use. ice or take possession half be- ousted of mere hour cases, ably, in such his brought fore the destruction. Grant compensation to the full bound make suit in the of Claims and the Govern- Court trespasser. owner; but the officer is not a interposed here-—(cid:127) heard defense clearly opinion, that “But we are noncompensable the destruction was danger be im- cases, must all of these overruling necessity. because the law of necessity impending; or mediate and opinion, In learned and well-considered service, as will urgent such Wilmot, court, J., speaking held the action delay, and where not admit'of *6 property to that the destruction of Grant’s late in authority would be too the civil deny enemy’s it to the use was a the occasion means which providing the use for which par- impossible is to define calls for. It must be made under Fifth Amendment. neces- danger or ticular circumstances opinion In the cited course its the court lawfully sity power may be in which approval major with written treatises depend Every case must exercised. subject, Ibid., page at 44: Ct.Cl. emergency is the own circumstances. damages emergency “The under are consideration to right, that and gives the distinguished be into kinds —those done must shown exist before two be by sovereign, the State itself or the and justified.” can be kind, enemy. those done Of the first in Mitchell The Chief statement Justice’s by way deliberately some done supra, essentially Harmony, dictum v. was field, house, precaution, when a a a as or against action there had been because the person, garden, belonging is a Mitchell, had military officer who purpose erecting for the question, property as an seized spot town, rampart, any piece a a or other individual. fortification; standing or his where 1863, however, presented In a pre- corn or storehouses are to- essentially involving the same to this court enemy. being vent their of use to- Such question before us. Grant v. as is now good damages are to be made to the in- States, 1 Ct.Cl. 2 Ct.Cl. 551. United dividual, quota only who should bear his case, Grant, plaintiff that (Vattel, 403). loss furnishing contractor com- supplies this, missary quartermaster king “We must observe that ways military posts may deprive subjects United States forts and in two his mill, punishment right, way Arizona. Grant maintained flour their either houses, storehouses, shops power. dwelling virtue of his eminent But Tucson, way, Arizona. The outbreak if he do so in last corrals must be for people public advantage, subject of that then of the Civil War found the some open receive, possible, city against ought state rebellion if satis- troops and few Federal for the loss he suffers faction (Grotius, 7). area. Information came that stock b. ch. sec. Con- common prop- that if right presented “The State has an eminent had been then erty subjects, court, so to the goods contrary might over the result represent that the been obtained. State or those that See Walker United v. States, destroy 345; Presbyterian make even them, Ct.Cl. Church them, only and alienate on extreme Ct.Cl. Murfreesboro United v. benefit, necessity, At least one of these cases reached Supreme obliged Court, opinion we that the add State and the handed .must repair by any today down therein is damages suffered the chief reliance subject public the on that out of the defendant. That was account the case of 7).” Railroad, (Grotius, stock b. sec. states v. Pacific ch. U.S. 7 S.Ct. 30 L.Ed. 634. Mitch- Like disposed argument court then' Harmony, and, indeed, ell v. all the author- destroy possessed right the state upon point ities except Grant and necessity overruling because of cases, Wiggins applicable the language destroy an- pointing right out that the the instant case is dictum. And the dictum pressure other’s property of over- contrary to the dictum in Mitchell necessity, liability bearing be free of arid Harmony and to the holdings of the Grant act, as right ancient natural is an Wiggins cases. The Pacific Railroad individuals, concluded between The court case involved the following factual situa- rights that the of self-defense and of self- armies, retreat, tion. The Union had preservation have no connection with the plaintiff certain of the railroad right state’s domain. The latter eminent bridges. war, Later in the as 'the Union right is limited the Constitution—the advanced, armies it became a beyond former are its reach. necessity immediately bridges point The court went on to out that the restored to company use. The railroad denial of sustenance to the was of position in a financial to rebuild at the nearly importance providing .great as moment, and the Government rebuilt the army, for one’s own sustenance bridges on right-of-way. the railroad’s deny a destruction of another’s *7 Later, the Government withheld from enemy it to much the was as a use freight charges it owed the the railroad by friendly as been if liad consumed cost of rebuilding the bridges, claiming troops in battle. The dictum of Chief that bridges destroyed the as inci- an Taney Harmony, in Mitchell v. Justice dent to the campaign; the that supra, Supreme cited as evidence of loss to noncompen- Pacific Railroad was approval Court of this doctrine. sable; that, having built bridges the Ct.Cl..412, Wiggins States, v. .United 3 they the railroad and having been approved case, the doctrine of the Grant accepted used, implied promise of following it involving in similar case the repayment arose. The court found against powder destruction of belonging black to the Government on ground the an American living citizen abroad in a duty railroad was under no to rebuild and friendly country, keep powder from implied promise that no pay grew out falling into the hands of certain Central of the Government’s construction of the American then engaged banditti in hos- bridges to further the war effort. It against tilities the United States. The bridges, held that having been con- view taken the Court of Claims was upon railroad, structed the land of the approved applied by Judge, later Jus- realty adhered to the and that Rail- Pacific tice, Holmes Horton, v. 152 Miller Mass. road took title thereto obligation without 540, 100,102, 26 N.E. 10L.R.A. 116. To our repay the construction Field, costs. knowledge, directly no case involving Justice opinion court, who delivered the of point question has' been here decided gratuitously went question into the courts of the United of States since the Wiggins Grant and whether or not Pacific cases. Railroad Certain cases could have decided this court under Bowman recovered had been suing for the value ’ Act, 485, 22 Stat. contained dicta indicating destroyed bridges. It was stated

977 The v. 4 Cl. 543. have recovered Perrin United Ct. could that the railroad case, hand, or with deals that, embarrass instant on the other would “Whatever private enemy, property as not in hands impede advance of enemy, yet de- burning singled for deliberate roads, or breaking up of him, defeat cripple and struction. bridges, would or subsistence, destroying his means congressional third involved The action commanding by the lawfully ordered compensate his bill to a citizen for house * * * safety of state The general. enemy, had re- been all considerations overrides in such cases destroyed captured, deny then Ibid., page at 120 U.S. loss.” enemy possibility recapture. authority As page at S.Ct. 7 question actually involved whether Vattel, several position Field cites house Justice not the had cases, proceedings and the state court interpre- The latter course battle. Congress upon bills before certain President’s, Globe, Cong. was the tation suffering war losses. citizens the relief of and, Cong., 4155 42nd 2d Sess. al- (1872) though Congress majority dis- Ibid., Vattel, 120 U.S. from The citation agreed him, the bill with died under the page is the same as S.Ct. veto. upon Wilmot, J.,, in the Grant relied that where and includes statement Pacific Railroad decision does not standing or storehouses corn a citizen’s cases, mention the and Wiggins Grant being their prevent approval Harmony, cited with Mitchell v. must supra, with no contrary mention of its dic- court relied be made. Of state cases tum. Dall., Pa., upon, Respublica Sparhawk, 1 from the language obvious de 1 L.Ed. involved upon foregoing parties rely cases which the enemy; stroyed by Parham v. Justices the distinction between cases where court, Ga. involved inferior destroyed without liabil- relief; Taylor & injunctive v. Nashville ity because their destruction was an inci- Railroad, Tenn. in Chattanooga battle, and cases the owner dent where destruction, legality volved the Cf. property destroyed compensated must be York, Harmony, supra; Mitchell v. New is somewhat than clear less cut. We are of Lord, Wend., N.Y., Mayor, etc. v. opinion, however, that the reasoning involved the construction of statute case, where necessarily Grant the court not there had of whether or *8 very met the issue involved here and consid- compliance. fully, together ered it with Chief Justice subject-matter of bills before the Harmony, Taney’s pre- dictum in Mitchell v. not Congress Field do discussed Justice precedents upon sent sounder which to first involve the issue here. The was the today the found our decision than does dic- burned while in of a citizen’s home the Railroad tum of Pacific case. Clearly, possession enemy. a of the such The United States Government compensable. Juragua destruction is not organized a of limited as States, Iron v. United Co. U.S. powers a written constitution. One 29 S.Ct. 53 L.Ed. 520. Another in- purposes “pro to of its declared to be damaged by volved a citizen’s the common defence” To vide for (sic). from a to’ impede water levee breached Congress empowered artillery. end, enemy advance of This is a case effect system to funds a of taxation damage raise uni of battle. incidental to actual states, throughout an never the form maintain A state has been held liable for consequential navy, a damages upon army fall to> declare occu- war. Throughout history Republic, pants of it the battle area due to clash of recognized that the Federal Gov arms. Such losses those has been of chance alone, comparable ernment, being charged common to losses as with the sustained defense, upon citizenry the result of an unavoidable accident. Cf. must call of life would a violation of be as much country common sacrifice solely a has been Constitution as would a tax directed in that defense. treasure however, a principle, at named individual. fundamental make it less an exercise of eminent domain. burden, personal however, and the time so short that possible throughout Government is must pay dissenters, awarded as matter of because of termined that a domain under civilian control are followed but that the ordinary inhabitants burden spreads flicted conduct of a of life sary to call ing dinarily, time sential to war effort that must against losses should bear the able. The costs war among from the is immediate — nation, impressment volunteers. A employed put does our contribute. When itself, the financial burden to be met should summarily service our belief that the qualified classes. The Govern- people as upon according to their campaign. is distributed as is not so much due attempt necessity emergency may may own or impartial nature justified, slackers, in the armed specific person’s property cost select call for the contribution summary into service. Because procedures nation’s manhood uniformly system of to insure its or location is good would specific hand of ravages course. At in But impressing are not met it becomes neces- qualified acquisition.' it determined and even an officer be distributed among when forces uniformly as. and dictated be so forces, that the essence individuals as of eminent chance be- of war in- ability generally citizenry taxation seem it is de- men practic- nation, all so- es- times, aliens great alone Or- publica where involving in cases wealth be on house shall be ages, made the liable right spreading of a cases besides and no sponsibility was said: main for which action other Grant v. United compensation. Boston, ‘For the damage, as [citing further cases].” es necessitating the 551, but we face, appears contra, “The statute of “At the common law We are aware that necessity [******] a see goes, common law. In the same fire; nearness of the Prerogative, bearing remedy every destroy 101 U.S. Commonwealth dissenting Sparhawk, the destruction of life Army’s actual action.’ There are gives do not and a than an action are a plucked man for the owner. In the case upon ruile fire, real plaintiff saving as necessity, action lawful and thing for the part part believe opinion Loring, J., of fire—some Massachusetts, and there was no re destruction, down if the next to certain enemy applied. our Dall. Bowditch Rep. 1 Ct.Cl. bounty of the law.’ Res a personal everyone do is entitled 25 L.Ed. man, that it made city decision, such of eminent do- without [Pa.] prevent many shall suffer that which ‘The it is said: destroyer, principles v. Common property, the caus- we of them of dam- had the 2 Ct.Cl. town itself— City as far rights being other may feel, just one its it *9 could not have been claimed before.” provides The Constitution that for funds the common defense shall be aby raised involved, The Bowditch case as taxation; uniform provides method of concerned of Massa Commonwealth also the owner of that chusetts, a somewhat similar of affairs state taken for use—and the common de- presented as is here. statute referred fense is a justly use—shall com- compensation provided for to a home owner pensated. destroyed house was whose under certain appears spread

It prevent to us that to circumstances of fire. destruc tion Pandacan recognized gave terminals that the was use was statute thereof in the cognizable defense right common of action at common that plaintiffs’ taking of instant pur for law. In the case we are bound that pose making compensation without there- the Fifth Amendment to the Constitution chain, Philippine that right Cebu is an island in plaintiffs’ recognize to of Manila. English located some 350 miles southeast irrespective of Amendment Holmes precedents. common-law Depot On December the Cebu Justice that such' thought has, indeed, expressed the Commander, pursuant to his authorization tra- upon as much perhaps stood above, cases have meeting of mentioned called Pennsylvania principle. upon dition representatives companies as of three oil Mahon, 260 U.S. Coal Co. v. (1) informed them in the name of pointed As L.Ed. 322. S.Ct. sup- all USAFFE he was over their doctrine States, supra, the plies Grant United petroleum (2) of he products and destruction for a liability of products of absence price at of such freezing still necessity by overriding dictated Fie Army current contract rate. stated to country applied validity companies permitted that the oil would be Federal individuals, power but the take stock out a certain amount of from limited Government, derived from their terminals use the local for de- to the does not extend and for such civilian the Constitution on Cebu prop- individual’s agencies of an as were liberate destruction essential Island’s pay- without the economy. cause erty the common for compensation. just owner days Within a few after December Depot Commander established had com- the Government conclude We plete companies’ control over the oil ter- just com plaintiffs’ claim for on is liable patrols minals and had stationed Pan their pensation for the destruction petro- He issued an order that no thereon. facilities. dacan terminal products leum could be withdrawn without approval by repre- him his or authorized Claim Cebu pack- begun sentative. Work was plaintiff, No. In petroleum products tins aging or Company, seeks Oil Standard-Vacuum products drums the removal such for the value for recover dispersal or warehouses and or products petroleum certain protection supply dumps against possible the Island of April Cebu about enemy bombing. Japanese. deny their use Records were maintained of amounts petroleum stocks removed and the at terminal Pandacan In addition hand amounts on terminals. Petro- Standard, Luzon, on the Island Manila products leum released to civilians Caltex, Shell, operated each owned purposes civilian were recorded as stock No- In on the Island Cebu. terminals against initially credits amount Quartermaster, the Chief vember Army under the above-men- USAFFE, dispatch arranged for an requisition. companies tioned The oil Corps Quartermaster Cebu officer of the to' permitted charge the amount so re- Quar- and command advance to establish prices prevailing leased at for local civilian Depot Depot. Commander termaster This use. sup- procure directed to authorized and April companies’ On oil USAFFE, petroleum plies including petroleum products terminals and re- products, for use the southern islands maining in them were by order of Philippines. He authorized to ex- Commander, Depot pursuant to a demo- ercise his discretion as to the manner of plan, prevent the sup- lition facilities and procurement. had no bulk stocks USAFFE into plies falling from the hands of the products petroleum in or near Cebu and *10 enemy. Japanese forces were then in the negligible only amount in drums. began landings their harbor and on Cebu headquarters had been decided at USAFFE within hours after the demolition. petroleum products supplies not send to only petroleum paid The from Manila to Cebu. Standard for Defendant supplies were petroleum products in Cebu area those of the removed from Stand- companies. Opon dispersal or oil for use three terminal ard’s pay Opon in the Army, to but has' refused terminal on December petroleum the the products which remained in date taking. destroyed on terminal and with it were Commander, We Depot conclude that the

April 10, remaining products The 1942.6 so authority so, with full to do took Standard’s destroyed and so on 'hand on De- had been petroleum products for the United States 8, 1941, Opon cember terminal when at the destruction, 8, 1941, on December not for Depot requisitioned the Army Commander use, but for clearly Standard is entitled products all petroleum Standard’s just to products so for its name of USAFFE. , taken. Shell Contract Claim It is the contention that Government’s April 3, 1942, On or about Shell sold and there was no Cebu taking of Standard’s Cebu, delivered to defendant at on for use petroleum products on December Navy submarines, 131.44 Depot and that the Commander action of oil, metric tons of Diesel fuel for merely amounted establishment of promised defendant pay the agreed petroleum system priority Standard’s for $3,943.20. sum of parties agreed The products. Accordingly, the Government that Shell (case No. 48265) is entitled any taking at all concludes if there judgment $3,943.20 judg- in the sum of April 10, 1942, for taking was a on ment for in this amount will be entered purpose sole in same of destruction favor of Shell. maimer that the Government took Caltex, December Pandacan on facilities Standard and are entitled Shell recover for the of their terminal taking. Unlike situation the somewhat confused Pandacan, facilities on en- Standard is on Pandacan in December of relative titled to petro- recover for the of its authority Quartermaster officials products Cebu, leum the exact amounts Quarter- requisition private property, being reserved proceedings further Corps given master officialat Cebu was au- 38(c). Rule thority procure in November of It is so ordered. USAFFE, supplies petroleum including products any expedient. he found manner LITTLETON, MADDEN JJ., con- Depot On December Commander ac- cur. tually requisitioned these-products. These facts found Commisioner JONES, Judge part). Chief (dissenting in Findings excepted were not 37 and 38 and There are age-old, times when time- Depot defendant. Commander’s honored principles of law seem meet companies oil actions to take permitting hopeless head-on in conflict. of their stock for a certain amount may It is written that use of the local and their be taken for use without com- agencies, subject approval civilian pensation. Commhnder, Depot incon- On the hand recognized other it is well requisition. sistent with an act of that property in actual battle Army of December when As either side call compensation. does not petroleum products title to the took It is held that all rights human terminal, Opon Standard’s it did not take may -be victim battle If conditions. It took them destruction. them and used the battle lost all lost. approximately them four months. the Army n Between products which application of these two April 10, 1942, principles had been recognized twilight existence and zone installation, petroleum products 6. Standard’s Cebu known are in issue Opon terminal, storage included oil Standard’s Third Amended Petition. tanks, pipe lines, pumping equipment, any Shell Caltex have not made claim warehouses, facilities, can-making respect properties dock with to their Cebu machinery, containers, supplies, proceeding. n petroleum products. Only supplies

981 its operations to further difficult which are the boundaries factual armies.” differences The determine. fundamental. than rather opinion a care- The Pacific Railroad was attempt up the deliberate to sum ful and be cannot zone that uncertain In this private legal consequences of destruction yardstick mathematical by a measured military pursuant to the dictates fall. case facts of necessity. Mr. Field’s discussion Justice installations permanent plaintiffs’ Were have recovered whether railroad could the destruction use or was public taken for compensation for in an action for battle of substantial result the inevitable strictly bridges destruction of the was not conditions ? disposition necessary to the issue merely case. it cannot be dismissed But admit has seen fit defendant The case, propo- gratuitous. he As viewed the vehicles, gasoline, and movable converse involved sition and its were both paid them for were taken has articles not de- to be If both had discussed. liability, insists that or admitted us, his dis- cisive of the issue now before in a permanent fall fixtures buildings and persuasive. It strongly cussion is at least different classification. persuaded me has that the demolition of Railroad, 120 v. Pacific In United States was, II Pandacan facilities in War World 634, Mr. L.Ed. 7 S.Ct. U.S. bridges like the destruction the railroad gave consideration Field extended Justice War, in destruction of the Civil this court. That question now before war, by operations of “during railroad destruction of arose out of the field, by necessary or armies in the measures during the Civil bridges by Federal armies * * safety efficiency *.” their impede War; bridges were bridges railroad If were not Ibid. enemy. Later, again in the advance of the use”, were the then neither “taken military necessity, bridges response facilties Ad at Pandacan. oil terminal were rebuilt the United by States. mittedly, now before us sought charge the railroad presented Rail squarely in Pacific not as withholding rebuilding by for the cost of States, v. United Ct.Cl. road as Grant money the railroad for amount due Supreme But Court 2 Ct.Cl. passengers freight. The transporting Pacific Railroad not unaware railroad sued for the full amount Wiggins That case as well as Grant case. charges. transportation The Court decided had been Ct.Cl. that it was to recover that amount. entitled Supreme the railroad’s brief to the cited in however, Recovery, not based early cases These Court of Claims Court. Fifth Amendment. The created destruction 1887; Supreme sway did Court railroad; no cause of action neither sway they us now. do not believe should rebuilding (cid:127)did create action a cause of majority has “The stated: Govern- States; the United were dictated both attempt citizenry its ment does insure necessity. parties Where the ravages of in- against losses war due war, left fortunes there they own or flicted our forces in the Supreme left Court. campaign. it is But when conduct U.S., page At of 120 page 496 of specificperson’s property determined that S.Ct: “While the cannot be nature is so es- because of its or location to, charged injuries of, or destruction effort that it must taken war' sential private property caused by military oper- nation, put good use for field, ations of armies measures generally that the belief is our n safety their efficiency, acquisition.” the cost With should bear equally true, agree. .converse the doctrine I ap- is with that statement private parties quarrel. charged cannot be plication that I I works think applied way. their in a govern- (cid:127)constructed on lands here most unrealistic *12 I mode and time think we have here not a of of The delib- destruction. choice, rather erateness of this property plain- use putting to of the fact that properties tiffs’ destroyed singled a case of in the conduct were property for destruc- tion, campaign. majority’s of a seems to have influenced the conclusion that the was Fifth destruction around the While controls thrown taking. think, however, Amendment I that December in on only it emphasizes military nature given was not actual notice of the destruction. then made until December and it was destroyed. upholding This court has in clear that At been zealous it would be provision force Japanese time at the outskirts eminent domain of the hope Fifth have not city There was no Amendment. We Manila. principle unmindful were fur- that the Amend- saving property. city If suspended war, ment is defended, in and I undoubt- time of ther would propose do not destroyed. the hands that we should How- be it fell into be. edly If ever, scrupulous regard Amend- certainly be de- for the Japanese it would fact, require gave up. ignore does not us to the reali- stroyed they In before ; require say prop- ties it does not us to Manila, all residential and practically other- erty destroyed process by military action “taken- wise, destroyed of retak- was was possible'value use.” I the loss for think that ing years Any three later. here, compensation sought con- plaintiffs gone whichever horn was place,, sidered context of time is taken. dilemma regarded must be in law as what it was hopeless from a The situation battle, fact—a loss incident loss viewpoint army was with- military majority’s opinion, “inflicted words property was so Corregidor. drawn to The conduct, enemy our own or forces zone border as near to the battle « campaign.” of a flaming practical purposes all within its The law is based It is based’ presence reason. actually if not it. experience. on human It is the result of were de- The Pandacan installations ' part centuries of effort of the- very moment before at the molished almost minds, brightest legislative ju- both was a defensive The demolition retreat. dicial, to secure rules of action that will such, action, important As and an one. disputes justice assure between individ- tragic part battle inextricably govern- uals as as between citizen and well taking place on the island of Luzon. then ment. I not know how do to disassociate Applying very the rule to a difficult I pattern action from the of the battle. situation we are unable to find within the appreciation the realities of think range any just ground of reason for allow- requires plaintiffs’ to hold that situation us ing permanent in- destroyed in the course of properties were stallations. It was one darkest that battle. periods Japanese- World II. War occurred on December demolition advance at that time seemed irresistible. By January Manila Within, city. Shells were bursting in the Japanese the oil ter- control. Had a matter of hours everything would have- enemy minal fallen intact to the facilities been in the hands enemy and our and thereafter been army captured destroyed,, outnumbered forces, bombing, shelling, or other Corregidor. had it not been withdrawn to action, plaintiffs would admittedly that, I can reach no other conclusion than compensation. have no claim for Nor would the destruction was due battle conditions. compensation if the they have a claim for I plaintiffs’" dissent from the decision that property. had Of within, properties were taken for course, we had until Manila fell to waited meaning of the Fifth Amendment. installations, attempt destroy the it is not likely that the destruction would have beén I 'Company would the Shell allow Islands, Ltd., as effective. Philippine Our forces chose the surer to recover the sumt *13 $3,943.20 products and delivered sold Cebu, and which to defendant at dismiss the other paid would for. I plaintiffs. each of claims of

WHITAKER, foregoing J., joins opinion.

dissenting al. et MFG. CO. KILGORE

SULLIVAN

Civ. 1189. Court District New York. D.E.

May 1951.

Paul, Weiss, Rifkind, Wharton & Gar- rison, City, defendant, York Kil- New gore Mfg. Schelker, Dills, & Muecke New York D.C., F.Supp. 511.

See also defendant, City, Commercial Credit Corp. (Delaware). Fink, Jacquin Frank,

David M. New City, opposition to the motion. York RAYFIEL, Judge. District plaintiff, above-named and the plaintiffs similar actions now be- two court, wherein fore motions for the made, have been sue for same relief damages wrongful caused death of ammunition which explosion occurred Amboy, Jersey, New 19th South May, day

Case Details

Case Name: Caltex (Philippines), Inc. v. United States
Court Name: United States Court of Claims
Date Published: Nov 6, 1951
Citation: 100 F. Supp. 970
Docket Number: 48324, 48265, 48319
Court Abbreviation: Ct. Cl.
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