In re Village of Port Chester
Ordered that the judgment is reversed, on the law and the facts, without costs or disbursements, and the matter is remitted to the Supreme Court, Westchester County, for a recalculation and new determination of just compensation in accordance herewith.
The condemnor the Village of Port Chester obtained title by eminent domain to a parcel оf property where the claimant Megamat Laundromat, Inc. operated a laundromat. The claimant filed a claim for compensation for trade fixtures located in the laundromat on the property. After a bench trial, the court determined that the claimаnt was entitled to an award of $1,104,026, representing the current sound value of the items it deemed to be compensable trade fixtures, less the sum of $110,105, representing the advance payment the condemnor had previously remitted to it.
Providing compensation to a trade-fixture owner, who is a tenant on condemned property, is in derogation of the common law whiсh provides that government taking of real property encompasses the land and еverything annexed thereto, including trade fixtures (see Marraro v State of New York, 12 NY2d 285, 293 [1963]). Under the trade-fixture rule, a claimant is entitled
For an item to qualify as a trade fixture, it must pass the three-part test of annexation, adaptability, and intention of permanency (see Rose v State of New York, supra at 86; Marraro v State of New York, supra at 292-293; Matter of City of New York [Kaiser Woodcraft Corp.], 39 AD3d 131 [2007]; Matter of New York City Tr. Auth. [Superior Reed & Rattan Furniture Co.], 160 AD2d 705, 706 [1990]; Matter of City of New York [Merrimaker Corp.], 51 AD2d 147, 149 [1976]). A relatively recent criterion also includes as trade fixtures those “items that would lose substantial value if removed even though readily removable” (Matter of City of New York [Merrimaker Corp.], supra at 149).
The trial court correctly classified the clаimant‘s washers, dryers, and extractors (hereinafter collectively the laundry machines) as сompensable trade fixtures. The record establishes that relocation of the laundry machines, even if performed properly, would damage the mechanics of the machines and cause them to lose at least 80% of their value (see Matter of City of New York [Merrimaker Corp.], supra at 149). The Village submitted no evidence to the contrary. Both Matter of City of New York (Quick Serv. Laundry) (48 AD2d 634 [1975]) and Belinky v State of New York (24 AD2d 908 [1965]) are distinguishable since thе record in both of those cases did not indicate that removal of the laundry machines wоuld render them useful only as salvage. Further, the record herein demonstrates that the laundry machines satisfied the three-part test for trade fixtures (see Marraro v State of New York, supra at 293).
The court‘s total CSV award to the сlaimant, which was nearly twice the original cost to the claimant for constructing and equipping the entire laundromat in November 1997, constituted a windfall. “[T]he purchase price set in thе course of an arm‘s length transaction of recent vintage, if not explained away аs abnormal in any fashion, is evidence of the ‘highest rank’ to determine the true value of the property at that time”
The court further erred in awarding the claimant a current reproduction cost (hereinafter CRC) of $6,000 on item 85 (steam presser), as the claimant had conceded that the correct CRC was only $795, representing its installation еxpenses. Additionally, the record indicates that the 10 television sets and the satellite dish were not trade fixtures, and accordingly, the court erred in deeming those items to be compensable (see Rose v State of New York, supra at 86; Marraro v State of New York, supra at 293; Matter of City of New York [Quick Serv. Laundry], supra; Belinky v State of New York, supra).
The court correctly declined to deem compensable the 25 stеel pillars which the claimant had installed in the basement as support for the concrete bases installed under the washers and extractors. However, the court erred in deeming compensable the concrete bases themselves on the ground that they were necessary for the operation of those machines.
The parties’ remaining contentions are without merit.
Crane, J.P., Krausman, Lifson and Balkin, JJ., concur.