# Appendix — Canfield v. New York City

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 1980
- **Citation:** 447 U.S. 906

## Text

Supreme Court, U,
FILED

APR 18 1980

— ROUAK, JR. CLERRE

Supreme Comsat

OCTOBER TERM, 1979

No @9-1644

LLOYD F. and ELOISE i. CANFIELD,

Petitioners,

Vv.

THE CITY OF NEW YORK,
Respondent.

APPENDIX TO PETITION FOR A WRIT
OF CERTIORARI TO THE UNITED STATES
COURT OF APPEALS FOR THE SECOND CIRCUIT

Jack WEINBERG
345 Park Avenue
New York, New York 10022
(212) 593-3000

Counsel for Petitioners

Of Counsel

GrauBarRD Moskovirz McGo.tprick
Dannett & Horowitz

Herman E. Gorrrriep

April 18, 1980

TABLE OF CONTENTS

Page in
Appendix
Appendix A Opinion of the la-145a
United States District
Court For the Southern
District of New York
Appendix B Judgment of the lb-2b

District Court

Appendix C Opinion of the United le-28c
States Court of
Appeals For the
Second Circuit

Appendix D Judgment of the Court 1d-4d
of Appeals

Appendix E Orders of the Court le-4e
of Appeals Denying
Rehearing and Re-
hearing in banc

Appendix F Constitutional, 1f-14F
Statutory and Regula-
tory Provisions
Involved

Appendix

Appendix

Appendix

Appendix

Appendix

Appendix

Page in
Appendix

Map Showing the Dela- lg
ware River and Three
City Reservoirs

Legislative History lh-4h
of Delaware River
Basin Compact § 14.19

Memorandum Acknowledg- 1i-3i
ing that New York City

Pays Damages to New

York State Riparian
Landowners

Col. l, p. 36

City's Revenues from lk
Water Charges, as Re-
flected in the Comp-
troller's Reports for
Fiscal Years 1970-1977

Report of the Special 1L-2L

Master, New Jersey v.

New York, 283 U.S. 336
Record, Index

No. 64, Original at
23 and 41

Connecticut v. Massa- 2L-3L
chusetts, 282 U.S. 660

, Record, Index
No. 15 at 27-28

ii

Na sy so

Page in
Appendix

Hinderlider v. La 3L-4L
Plata, 304 U.S. 92

), Record, In-
dex No. 437 at 53

iii

i
'
;
!

- ee ete,

APPENDIX A

APPENDIX A

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

See ew ee mee eee ee ee we Oe ewe oe oe oe X
GEORGE ELWOOD, Administrator 62 Civ.
of the Estate of Beatrice A. 2562-CLB
Van Loan,
Plaintiff,
- against -
THE CITY OF NEW YORK,
Defendant.
----------------------------- X FINDINGS
AND
LLOYD F. CANFIELD and ELOISE CONCLUSIONS
L. CANFIELD,
Plaintiffs, 71 Civ.
5568-CLB
- against -
THE CITY OF NEW YORK,
Defendant.
AND 3 OTHER RELATED ACTIONS.
me oa oe wwe ow on wn on on we oe ee ee X

Brieant, J.

These five actions, consolidated
for trial, have been brought by, or in the
name of, owners of riparian land situated
in Pennsylvania, who claim that the value

of their lands along the Delaware River

la

~I
29 Peat emg

District Court Opinion

and its West Branch was diminished by the
City of New York's diversion of the head-
waters of the Delaware River for public
water supply purposes.

The Court has subject matter juris-
diction based upon diversity of citizen-
ship of the parties at the dates of
commencement of the actions, pursuant to
28 U.S.C. § 1332(a) (1). Trial was before
the Court without a jury, commencing on
June 2, 1975. Post-trial briefs, memoran-
da and submissions of the parties have
been read and considered.

The Delaware River

An understanding of the location,
design and operation of that portion of
the New York City water supply system
drawn from the Delaware River is essential
to an understanding of this litigation.
The Delaware is one of the major rivers on

the Atlantic seaboard. From its sources

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District Court Opinion

in New York State to Delaware Bay, the
River runs 410 miles, and drains a water-
shed of some 12,765 square miles. The
Delaware River has two main branches, the
East Branch and the West Branch. The West
Branch rises north of Stamford, New York
in Delaware County. The East Branch has
its origin near Margaretville, New York.
On its way to the sea, the Delaware River
is joined by many streams and tributaries.
/ The two branches join at Hancock,
New York. Thereafter, the River flows

in a generally southeasterly direction.
Commencing near Deposit, New York, the
West Branch forms the boundary line be-
tween New York and Pennsylvania. At Tri-
State Rock, near Port Jervis, New York,
the boundaries of New Jersey, New York and
Pennsylvania converge. Below Tri-State

Rock, the River constitutes the boundary

between New Jersey and Pennsylvania. The

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District Court Opinion

Lehigh River joins the Delaware near
Easton, Pennsylvania. At the head of
Delaware Bay near Wilmington, Delaware,
it discharges into the Atlantic Ocean.

Pursuant to proceedings in the
Supreme Court, discussed below, the City
of New York constructed Pepacton Reservoir,
on the East Branch of the Delaware near
Downsville, New York. MThis, and all of
the City's reservoirs discussed herein are
located entirely in New York State. No
part of New York City is located in the
drainage basin of the Delaware or any of
its tributaries.

Impoundment of water behind, the dam
erected to create the Pepacton Reservoir
began in September 1954; the first diver-
sion to New York City occurred in January
1955; and the dam spilled for the first

time on April 16, 1956. Pepacton Reser-

4a

District Court Opinion

voir is 180 feet deep at its deepest point,
and has a capacity of some 147 billion
gallons. The drainage area impounded by
Pepacton is 371 square miles.

Thereafter, the City constructed
Cannonsville Reservoir, on the West Branch
of the Delaware near Stilesville, New York.
Impoundment at the Cannonsville Reservoir
began in September 1963; the first diver-
sion to New York City occurred in January
1964; and that dam first spilled on May 9,
1967. The Cannonsville Reservoir has a
maximum depth of 150 feet and a capacity
of 97.4 billion gallons. The drainage area
impounded by Cannonsville is 450 square
miles. On the Neversink River, a tribu-
tary of the Delaware, the City also has
the older and smaller Neversink Reservoir,
impounding a drainage area of 92 square
miles and having a maximum storage capa-

city of 37.1 billion gallons.

5a

District Court Opinion

The premises of the plaintiffs de-
scribed below, are all, except for Van
Loan, located downstream of the confluence
of the West Branch and East Branch of the
Delaware, and above the point where the
Neversink River enters the Delaware. The
Van Loan property is situated upstream
from Hancock, near Ball's Eddy, New York,
and is affected only by operation of the
Cannonsville Reservoir.

Water flows in the Delaware River
are affected by the impoundment activities
of third parties. Lake Wallenpaupack in
Pennsylvania has been dammed by a hydro-
electric generating station. It contains
a drainage area of 228 square miles, and
discharges into the Delaware through the
Lackawaxen River at a point upstream from
Barryville, New York, and also upstream
from the Montague, New Jersey gauging

station, mentioned below. As electric

6a

BU Re eee a a ity oh

tis ctl tant i ct O29 ae PLE IS te A NY SES alg

District Court Opinion

demand varies, the amount of impounded
water being released increases or de-
creases. A similar project on the Mongaup
River in New York State has a similar
effect. The Mongaup also joins the Dela-
ware above Montague, New Jersey.

All plaintiffs are located upstream
from the Lackawaxen, Mongaup and Neversink
Rivers. Streamflow in the Delaware at
their parcels is not augmented when water
is released downstream by the City from
the Neversink Reservoir, or by the genera-
tion of electric power by unrelated per-
sons on the Lackawaxen and the Mongaup.

The function of the three City
reservoirs mentioned above is to impound
spring runoff, store it during periods of
little or no rainfall, and divert the
stored water from the watershed of the
Delaware to the Hudson River Valley by

means of the Delaware Aqueduct System.

7a

District Court Opinion

The water is used by the City of New York,
and, to a minimal extent, also by other
New York communities situated along the
course of the Aqueduct. After use, it is
discharged into drainage basins other than
that of the Delaware River, generally the
Hudson River and New York Bay.

The term "diversion" is neutral in
the law. It can indicate the perfectly

proper "ordinary and domestic uses," York

Haven Water & Power Co. v. York Haven Paper

Co., 201 F. 270, 275 (3d Cir. 1912), to
which every riparian owner can turn the
waters of a stream flowing through or at
the boundary of his land, so long as he
returns the residue to the stream within

the boundaries of his land. See, Mayor v.

Commissioners, 7 Pa. 348, 367-68 (1847).

To be lawful, such uses need only be
reasonable. Where, however, a riparian

owner's uses of the waters of a stream un-

8a

District Court Opinion

reasonably deprive a downstream riparian
owner of the value of his location, see,

Williams v. Fulmer, 151 Pa. 405, 414

(1892), by changing the channel, direc-
tion, flow, stage, quality, etc., of the
stream -- all of which are summed up in
the common law phrase “currere solebat,"
-- the diversion invades a valuable pro-
perty right of a downstream owner and is

actionable. See, United States v. Rio

Grande Dam & Irrigation Co., 174 U.S. 690,

702 (1899); Hackensack Water Co. v. Vil-

lage of Nyack, 289 F.Supp. 671 (S.D.N.Y.

1968). The permanent massive diversion of
water out of a channel for uses outside

the drainage area and unconnected with the
ownership and use of riparian land, as, for
example, to add to the water supply of a
community that is not within the drainage
area of the stream, is unreasonable. See,

e.g., Standard Plate Glass Co. v. Butler

9a

District Court Opinion

Water Co., 5 Pa. Super. Ct. 563 (1897).

At the present time, New York City
relies on three principal sources to meet
its water supply needs. The two older
sources are the Croton System, on the
Croton, Bronx and Byram Rivers, and the
Catskill System, on Esopus Creek and
Schoharie Creek. The Delaware System, com-
prising the reservoirs on the East and
West Branches and on the Neversink River,
is the City's most recent source of supply
and provides fully 50% of the City's needs.
Since in years of normal rainfall the
available water exceeds requirements, the
City can and does draw at varying times
greater or lesser amounts from its differ-
ent sources, having regard to operating
costs, pending maintenance and repair pro-
jects, comparable quality, tastes and

odors, and related operating criteria.

Because of its larger size, and the rela-

10a

ce eee

FO bie a 0 VLE BO AAS eh ARE ae AIDE ae

Ss Ws sh. See a etna

District Court Opinion

tively smaller human population and in-
dustrial activity in the watershed area,
Delaware water is regarded as the best
quality water presently available from the
various City sources. New York chlori-
nates its supply but has not yet found it
necessary to filter or otherwise treat its
water, as do most communities.

The Parties and Their Properties

The lands of four of the plaintiffs
here are located on the Pennsylvania side
of the main body of the Delaware River
between Hancock, New York and Narrowsburg,
New York. The property of one of the
plaintiffs, Van Loan/Elwood, is located
on the Pennsylvania side of the West
Branch, above Hancock, New York near Ball's
Eddy. All are located upstream from
Montague, New Jersey, and upstream from

the points where the Lackawaxen, Mongaup

and Neversink Rivers join the Delaware.

lla

District Court Opinion

(1) Van Loan/Elwood. Mrs. Beatrice

Van Loan was the first of these plaintiffs
to commence action against the City. Con-
sequently, the procedural history of her
action is the most complex.

Mrs. Van Loan owned 124 acres of
land with approximately one-half mile
frontage on the West Branch of the Dela-
ware, about five miles above the confluence
of the East and West Branches at Hancock,
New York. Hers is the only property not
located on the main body of the Delaware.
She bought the property in 1922, and oper-
ated a dairy farm at the time of her death.

On July 23, 1962, she filed her
original complaint seeking to enjoin con-
struction of the Cannonsville Reservoir,
then being built some 10 miles upstream
from her property. She alleged that since

no express statutory provision had been

made by New York State to compensate

12a

4 ER DAL ODI Pl Calas Ia ln A tr AA GR CRB Nitin, Reva

irre WEE

District Court Opinion

Pennsylvania riparians for the City's
damage to riverfront property, the City's
action constituted a "taking" without com-
pensation.

By a Memorandum Opinion dated Novem-
ber 14, 1963, the late Judge McLean of this
Court dismissed Van Loan's complaint as
premature, since the Cannonsville Dam had
not yet been completed and would, when
complete, cause no injury for which money
damages would not be adequate compensation.
Judge McLean granted leave to amend the
complaint when the dam was completed. 2/

Mrs. Van Loan died testate in May
1965. By a Memorandum Decision dated May
31, 1966, Judge Wyatt of this Court allow-
ed the filing of an amended complaint by
George Elwood, the ancillary administrator
d.b.n., c.t.a. of Mrs. Van Loan's Estate,
who had been appointed after the resigna-

tion of the named executor. The amended

l3a

District Court Opinion

complaint was filed on May 4, 1966.

On November 12, 1966, the adminis-
trator sold the Van loan property at
auction for $15,200.00. Title was con-
veyed on February 23, 1967. The admin-
istrator's deed expressly reserved all
rights against the City of New York, for
past or future damages or the taking. The
Deed (Ex. 39) reads in relevant part as

follows:

"ALSO EXCEPTING AND RESERVING unto
the seller, the heirs, legatees

and devisees of the Beatrice VanLoan
Estate or their assigns, a claim or
claims against the City of New York
arising out of and by reason of
rights heretofore acquired and to
be acquired in connection with the
past and future diversion of the
West Branch of the Delaware River
which has already and will cause a
decrease in the market value of the
real estate being sold, and for
business damages heretofore in-
curred, and all aspects thereof."

For a discussion of the effect of
this Reservation of rights see text infra,

PP. 52-53.

l4a

? aac th Wot te iit tin WRT ATI,

District Court Opinion

On August 7, 1967, Judge Bonsal of
this Court denied cross-motions for sum-

mary judgment in the Van Loan/Elwood

| action, holding that apparent disputed

factual issues were present. Elwood v.

City of New York, 271 F.Supp. 62 (S.D.N.Y.

1967).

By a Memorandum Decision dated
March 27, 1973, Judge Pierce ot this Court
dismissed the Elwood complaint for failure
to allege the filing of a Notice of Claim
pursuant to New York General Municipal Law
§§ 50-e and 50-i. However, in light of
plaintiff's claim of a continuing trespass,
leave to amend the complaint on filing of
a Notice of Claim was granted. The Court
noted that "the initial period of the claim
would be limited by this late filing to en-
compass trespass only up to 90 days before

the notice of claim was filed," citing

Hackensack Water Co. v. Village of Nyack,

15a

District Court Opinion

289 F.Supp. 671 (S.D.N.Y. 1968).

Elwood filed his Notice of Claim
on April 24, 1973, and on June 1l, 1973
filed his amended complaint.

(2) Badgley. Mrs. Lillian Badgley
commenced her action against the City on
July 15, 1966. In 1958 she and her
husband had purchased approximately two
acres of land with 530 feet of River
frontage on the main body of the Delaware
River just above the Lake parcel. They
paid $22,500.00 for the property and she
claims to have made some $40,000.00 worth
of improvements on the property in order
to make it into a resort. Her husband,
Foster Badgley, died in 1965, and as a
result, title vested in her. She has since
remarried, to one Dixon, but retains
title to the property in her prior name.

Mrs. Dixon filed her Notice of

Claim against the City on May 24, 1972.

l6a

ee ee Te

ee ee a, ee

District Court Opinion

On March 22, 1973, on the City's

motion in Lake, Badgley and in a third

case, Duryea Pine Flats Hunting Lodge, 66

Civ. 2151, which is no longer pending, 2/

this Court issued a Memorandum Decision
dismissing the complaints with leave to
amend the complaints to include proper
allegations of filing the required Notices
of Clain.

That decision held that, although
the plaintiffs could not avail themselves
of Ticle K of the Administrative Code of
the City of New york, 3/ and although, for
the reasons therein stated, they had suf-
fered no extraterritorial "taking" of their
Pennsylvania property by the City of New
York, they were entitled to pursue their
actions for a continuing trespass, and to
recover "damages not only to the date of
judgment, but for anticipated future in-

jury to the property during the foresee-

17a

District Court Opinion

able life of the diversion works, or in
perpetuity." Td. at 4.

Decision was reserved on the ques-
tion whether, under Pennsylvania law, “one
who conveys title may reserve to himself
[in his deed of conveyance] the right to
assert a claim for a permanent continuing
trespass in futuro," but I rejected the
City's defenses based on the interstate
allocation of the waters of the Delaware
River:

"Nothing is found in New Jersey v.

New York, 347 U.S. 995 (1954), or

in the Delaware River Basin Com-

pact, as approved in Pub. Law 87-

328, or in any Pennsylvania

statute enacted pursuant thereto,

which implies otherwise." Id. at
10.

An amended complaint in Badgley
was filed thereafter, on April 25, 1973.

(3) Lake. Emil and Helen Lake
filed their complaint against the City on

July 15, 1966. At that time they owned

18a

se a

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District Court Opinion

some 15 acres, bought in 1945 and 1951 for
approximately $4,200.00, with 600 feet of

frontage on the main body of the Delaware

just upstream from the Gregory parcel, de-
scribed below.

On September 27, 1968 the Lakes
sold their property for $18,500.00. By
recital essentially the same as that found
in the Elwood/Van Loan deed, they reserved
all rights against the City of New York.

On May 23, 1972, alerted by the
pending City motion to dismiss in Gregory

v. City of New York, supra, the Lakes filed

the Notice of Claim required by the Gener-
al Municipal Law, and amended their com-
plaint on April 4, 1973.

(4) Gregory. George and Helen
Gregory commenced their action against
the City of New York on July 15, 1966.
They are New Jersey residents, who, in

1960, purchased 124 acres of riparian land

19a

District Court Opinion

in Pennsylvania with some 4,000 feet of

frontage on the Delaware River. They paid

$20,000.00 for the property, which in-
cluded at the time of purchase a house,
barn, sauna and four cottages. Between
1964 and the time of trial they sold some
34.5 acres of their land, including 3,323
feet of River frontage, for $48,900.00,
and retained at the time of trial some 8°
acres and 750 feet of frontage. The
Gregory parcel is located some 39 miles
downstream from the Pepacton Reservoir,
and 22 miles downstream from the Cannons-
ville Reservoir.

In a prior decision [Gregory v.

City of New York, 346 F.Supp. 140 (S.D.N.Y.

1972)], familiarity with which is assumed,
this Court held that the Water Supply Act,
Title K, Chapter 51 of the Administrative

Code of the City of New York, which pre-

scribes a procedure by which owners can be

20a

np

District Court Opinion

‘compensated for the City's impairment of

their riparian rights, was not available
to holders of property in Pennsylvania,
but that both New York and Pennsylvania
law provided a cause of action to recover
damages, if any, resulting from the City's
continuing trespass. However, the origin-
al Gregory complaint was dismissed because
of the plaintiffs' failure to file the
Notice of Claim required by Sections 50-e
and 50-i of New York's General Municipal
Law. Plaintiffs were granted leave to
file the Notice, and thereafter, an amend-
ed complaint alleging a continuing tres-
pass to their rights as riparians to the
extent not time barred. On May 25, 1972,
these plaintiffs filed their Notice of
Claim, and on July 27, 1972, filed an
amended complaint demanding $50,000.00
damages tor the City's continuing tres-

pass.

2la

District Court Opinion

The claims alleged in the
Gregory's amended complaint are typical
of those made by all plaintiffs in this
consolidated action, and are as follows:

"That by reason of the aforesaid
diversions of the [Delaware}

river and the trespasses by the de-
fendants herein and absence of
water in said river at the plain-
tiff's premises downstream there-
from, and the permanence of said
diversion and of said trespasses
and past, present and future opera-
tion by the City of New York of
said dams at Cannonsville and
Downsville, and the said Pepacton
and Cannonsville Reservoirs, the
said river has and will become

a swamp, fishing therein has [been]
and will be destroyed, and the
river will become oderiferous, un-
Sightly, and will be unable to
provide plaintiff's property with
ground water and surface water,
will decrease the fertility of said
property, will make such property
unsuitable for recreational pur-
poses, all of which has and will
greatly decrease the market value
of the plaintiff's property and
cause damage thereto by reason of
the foregoing and other effects of
said diversions and trespasses too
numerous to mention, all to the
plaintiff's damage ...." [4 9,
matter in brackets added. ]

22a

District Court Opinion

(5) Canfield. Lloyd and Eloise

Canfield filed their complaint against

the City on December 22, 1971, at which
time they owned 166 acres on the main

body of the Delaware with about 6,700 feet
of River frontage. Their Notice of Claim
against the City was filed on October 20,
1971, and was properly pleaded in their
complaint.

In 1954 Canfield acquired title to
the property, then consisting of 278 acres,
for $5,000.00 from his half brother, Grant
Lee Canfield, a minor under the age of 14
years. This was accomplished through a
judicial proceeding in a Pennsylvania
court in which the Wayne County Savings
Bank as guardian of the Estate of Grant
Lee Canfield, sold the premises to these
plaintiffs for $5,000.00. 4/

The Court has visited each of the

premises affected by this litigation and

23a

District Court Opinion

has made a personal inspection thereof in
the presence of counsel for all parties.
The price of $5,000.00 paid for the Can-
field property, even in 1954, could not
be, and is not regarded as reflecting an
arms length sale. The price which a fully
informed seller under no necessity of
making a prompt sale would receive from an
unrelated purchaser, in an arms length
sale would be much larger.

In a Memorandum Decision dated May
11, 1972, Judge Tenney of this Court de-
nied the City's motion to dismiss the

Canfield action, holding that the plain-

tiffs had a cause of action for a continu-
ing trespass, and that the measure of
damages for such trespass was the same as
that provided in Title K of the Administra-
tive Code of the City of New York, to wit:
the difference between the market value of

the property with the City’s diversion of

24a

District Court Opinion

the stream and the market value without
such diversion.
Class action status was denied in

the Canfield case after the decision of

the Supreme Court in Zahn v. Int'l. Paper

Co., 414 U.S. 291 (1974). The Canfields
had participated unsuccessfully in the

Zahn case as amicus curiae favoring plain-

tiff Zahn's position. They had planned

to assert the interest of all downstream
owners adversely affected by the diversion.
Some part of the delay in the case arose
while the parties awaited the resolution

of the Zahn class action issue.

25a

District Court Opinion

Proceedings Affecting the Delaware River;
The River Master

Beginning in 1929, the City of New
York planned the diversion of the Delaware
River and its tributaries to meet the in-
creasing municipal water supply needs of
the City, and other municipalities depen-

dent on the City for all or part of such

supply.

To restrain this proposed diversion,

the State of New Jersey began an original
suit in the Supreme Court against the
State of New York and the City. Pennsyl-
vania intervened to protect its own sover-
eign interests in the Delaware River. New

Jersey v. New York, 283 U.S. 336 (1931).

The Supreme Court found the River
and its tributaries "a necessity of life
[to] be rationed among those who have
power over it,” id. at 342, and applied

the federal common law doctrine of equita-

26a

District Court Opinion

ble apportionment, to allow the City to
divert from the Delaware watershed up to
440 million gallons of water a day, pro-
vided certain stream management conditions
were met. Principal among these was the
requirement that a sewage treatment plant
be constructed at Port Jervis, New York,
to lessen the accumulated pollution pre-
sent in the diminished downstream flow of
the River. A constantly maintained flow
of .50 c.s.m. (1,535 c.f.s.) was also re-
quired to be maintained at Montague, New
Jersey, just below Port Jervis.

The Supreme Court retained continu-
ing jurisdiction over its equitable decree
in order to adjust the rights of the
parties as equity might require in the
future. The Court explicitly held that
the diversion should "not constitute a

prior appropriation, and shall not give

27a

District Court Opinion

the State of New York and City of New
York any superiority of right over the
State of New Jersey and Commonwealth of
Pennsylvania in the enjoyment and use of
the Delaware River and its tributaries."
Id. at 347.

Until 1953, when the Neversink
Reservoir was completed, the City did not
avail itself of its right under this de-
cree to withdraw 440 m.g.d. from the
Delaware and its tributaries. The Never-
sink is tributary to the Delaware at a
point downstream from the properties
which are the subject of this suit. These
plaintiffs were not affected by the diver-
. sion of water from the Neversink. Those
waterworks are involved here only insofar
as releases from Neversink Reservoir form
one element contributing to the combined
minimum flow that must be maintained at

Montague, New Jersey under the Supreme

28a

District Court Opinion

Court's revised Decree of 1954. Fora
discussion of compensation of riparians

on the Neversink River, see In re Ford

(Whitton), 35 App.Div.2d 626 (3d Dept.

1970). All such properties are in New
York State.

In 1952, the City, with the appro-
val and support of New York State, peti-
tioned the Supreme Court for a modifica-
tion of the 1931 Decree which would allow
additional diversions of water from the
Delaware by means of proposed dams at
Cannonsville and Downsville (Pepacton) New
York. The petition was allowed. New

Jersey v. New York, 343 U.S. 974 (1952).

A motion by the City of Philadelphia to
intervene in the proceedings to protect
its interests in the River was denied on
the finding that its rights were "invari-
ably served by the Commonwealth's [i.e.,

Commonwealth of Pennsylvania's] position."

29a

District Court Opinion

345 U.S. 369, 374 (1953).

In 1954, the Supreme Court modified
and superseded its 1931 Decree. 347 U.S.
995 (1954). Under the terms of the new
Decree, the City was allowed to continue
the diversion of 440 m.g.d. from the Dela-
ware and its tributaries until the comple-
tion of the Pepacton Reservoir then under
construction on the East Branch, at which
time it could begin to divert 490 m.g.d.,
subject to a requirement of maintaining
a flow of 1,525 c.f.s. at Montague, New
Jersey. After the completion of the
Cannonsville Reservoir on the West Branch
of the Delaware, the City was authorized
to divert the full amount of 800 m.g.d.
on a cumulative average basis, subject
again to the requirement of maintaining
a minimum flow of at least 1,75" c.f.s.
at Montague, New Jersey.

In addition to the aforementioned

30a

\

District Court Opinion

minimum flow requirement at Montague, New
Jersey, the City is also required to re-
lease an "excess release quantity" of its
impounded water into the Delaware. Essen-
tially, this is a device to enable the
City gradually to adapt to increased de-
mands for water. On the first day of each
calendar year, the City is required to
make an estimate of its total annual con-
sumption of water from all sources (exclu-
ding pumping) for the next year. This
estimate is based on the maximum consump-
tion for any previous year plus an annual
increment of 7.25 billion gallons. The
City is then required to release over any
120 day period after the fifteenth day of
June of each year, an additional amount of
water into the Delaware equal to 83% of
the amount by which its estimated consump-

tion and yearly increment exceed 1,665

3la

District Court Opinion

m.g.d. (the City's minimum "safe yield"
from all sources, excluding pumping, as
determined by the Supreme Court). In no
calendar year is this "excess release
quantity” of water so computed required

to exceed 70 billion gallons, and the City
is never required to maintain a flow at
Montague, New Jersey greater than 2,650
c.f.s. Since 1968, as New York City's
consumption has increased, this "excess

release quantity” has steadily diminished.

At the time of trial, the flow at Montague,

New Jersey was being maintained at approx-
imately 2,000 c.f.s.

Under the system of stream manage-
ment established by the Supreme Court, any
daily diversion, no matter how large, is
permitted from any one or all of the three
reservoirs (Pepacton, Cannonsville and
Neversink) so long as the required mini-

mum flow at Montague, New Jersey is main-

32a

District Court Opinion

tained, and so long as the quotient cf the
total amount of water diverted that year,
divided by the number of days of the year
to that date, does not exceed 800 m.g.d.,
and so long as it satifies the “excess
release quantity" provision.

In its 1954 Decree, the Supreme
Court appointed a River Master, the Chief
Hydraulic Engineer of the United States
Geological Survey, to oversee and imple-
ment the Decree. It is the River Master's
duty to require the City to maintain the
required flow at Montague. Under the
Decree, the City is not required to make
any releases of impounded water unless
and until the River Master calls for them.
On at least one occasion, during the
drought in June 1965, the City has refused
to comply with the River Master's requests

3/

for increased flow.—

33a

District Court Opinion

Under the provisions of the re-
vised Decree, the Supreme Court continued
to retain jurisdiction over the contro-
versy. 347 U.S. at 1005. The City has a
continuing equitable duty to develop its
available sources of water to meet its in-
creasing needs, by the construction of
additional impoundment and storage facili-
ties, and by developing those other sources,
including the Hudson River, directly avail-
able to it, and can be required to do so
by the Supreme Court. All parties have
assumed, correctly, that in times of un-
usually high consumption, drought, fires
or similar situations of short or long
duration, the City would discharge its
obligations to the public consumers of
water prior to performing its duties owed
under the Decree to downstream communi-

ties and riparian owners. When and how

34a

District Court Opinion

often in the future the City, will refuse

ex necessitate to comply with the River

Master's requests presents a question

which is primarily speculative, but plain-

tiffs and the Court must assume that such
occasions will arise again during the
existence of these Dams, as happened in
1965.

A more serious and recurring pro-
blem with this regulatory scheme from the
point of view of these plaintiffs is that
the River Master is unconcerned, nor is
he required to be concerned, with the
sources of the required minimum flow at
Montague. In planning how to assure the
daily flow at Montague, the River Master
must and does take into account the anti-
cipated releases resulting from electric
power generation on the Mongaup and the

Lackawaxen (Lake Wallenpaupack), describ-

ed supra, p. 4.

35a

———a—aaaaaoO7'O73T rae

District Court Opinion

These electric generating utilities
each make independent determinations as to
the amount of water which will be dis-
charged. Such determinations are based
only on the economics of the electric
generating activities of the utility, and
the demand for power. The amounts of such
discharges are unpredictable, and vary
significantly from day to day. There is
no provision in the Delaware River Compact
or the Supreme Court's Decree by which
the River Master can require the power
plant operators to make any minimum re-
lease from impounded water on any particu-
lar date, in addition to that needed for
power generation. Presumably, provisions
authorizing any such direction would re-
quire compensation to be made to the power

6
plant owners.—

36a

District Court Opinion

Uncontradicted testimony at trial
showed that the River Master has relied
increasingly over the years on these
power plant releases to make up the re-
quired flow at Montague. Only when the
projected run-off of all upstream tribu-
taries and the projected releases of the
two power plant reservoirs are anticipated
to produce less than the minimum required
flow at Montague Gauging Station does the
River Master call on the City for net
releases from its dams. These demands, in
a typical year, range from zero to as much
as 1.5 billion gallons on a given day.

Once a demand has been made upon
the City for releases to maintain the re-
quired flow at Montague, the City is faced
with a choice of three reservoirs (Cannons-
ville, Pepacton, Neversink) from any or

all of which it may make the required re-

37a

District Court Opinion

leases in whole or in part.

The testimony of the City's expert
witness, Mr. Paul Blomquist, former head
of the Bureau of Claims of the Board of
Water Supply for the City, establishes the
existence of a general policy of the City
to make major releases through the Cannons-
ville dam because of its greater release
capacity (2,440 c.f.s., as compared with
760 c.f.s. from the Pepacton Reservoir) ./

On numerous occasions these re-
leases from the Cannonsville Reservoir
into the West Branch have amounted to
approximately One Billion Gallons during
a day.

A second decision facing the City
is the time span within which to make its
required releases. The River Master re-
quires only an average daily flow at
Montague, and it is within the discretion

of the City to release the required

38a

District Court Opinion

amounts over the whole 24-hour period, or
in some shorter time. No evidence was
introduced, however, which would indicate
that such precipitous releases have ever
been made by the City.

The final element affecting the
flow of water in the River is the "con-
servation releases" that the City is re-
quired by order of the New York Supreme
Court to make daily from each of its re-
servoirs releasing into the Delaware
River. Such releases must be made inde-
pendently of any called for by the River
Master, but they are taken into considera-
tion by the River Master in projecting the
flow at Montague. The Cannonsville Reser-
voir is required to release 15 m.g.d. dur-
ing the summer (April 16th through
November 30, inclusive) and 5 m.g.a. dur-
ing the winter (December lst through

April 15th, inclusive); the Pepacton

39a

District Court Opinion

Reservoir is required to release 12 m.g.d.
during the summer (April 8th through Octo-
ber 3lst, inclusive) and 4 m.g.d. in the
winter (November lst through April 7th,
inclusive). These figures were arrived
at on the basis of pre-diversion low flows
in the West and East Branches, and were
ordered in order to maintain the environ-
mental quality of the River. It has
frequently happened that these "conserva-
tion releases” were, over extended periods
of time, the only waters released into
the Delaware River from the City's reser-
voirs. The right to have such "conserva-
tion releases" continued into the indefin-
ite future is, of course, not graven in
stone, nor do these plaintiffs have any
vested property right in their perpetua-
tion.

All the City's dams release water

into the Delaware River from spillways or

40a

District Court Opinion

outlets at the bottom of the dam.

Because the required minimum flow
is implemented at the Gauging Station at
Montague, New Jersey, downstream from Port
Jervis, when the River Master calls upon
the City to release water from its various
impoundments, he does so based only on the
flow at Montague, and makes no specifica-
tion as to the facility from which the
City shall make the required releases.

As a result, the flow of water past
plaintiffs' premises on any given day is
not directly assured by provisions of the
Decree and of the Compact, all of which
are directly related to the flow at Monta-
gue, New Jersey, affected in great degree
by power company releases and Neversink
releases, which, as noted, enter the
Delaware upstream of Montague, but down-
stream from plaintiffs' properties. The

various facilities, drainage areas and

4la

se

District Court Opinion

their relative locations with respect to
each other and the plaintiffs’ premises
are all set forth in Defendant's Ex. A.

The Delaware River Compact and New York's
Environmental Conservation Law

In 1961, all of the states touching
on the Delaware River and affected by its
flow entered into an Interstate Compact,
with the approval of Congress, creating
a Commission to regulate all diversions
of water from the Delaware. Pub.L. No.
87-328, 75 Stat. 688 (1961). Section 3.5
of the Compact specifically prevented the
Commission from impairing rights created

by the Decree in New Jersey v. New York

in 1954, except by the unanimous consent
of the parties to that Decree. Under
section 3.4, the parties relinq ished,
with certain immaterial exceptions, their
rights to apply to the Supreme Court for

a modification of the 1954 Decree.

42a

District Court Opinion

On July 27, 1976, without consulta-
tion with the other signatory parties to
the Compact or with the parties to the
1954 Supreme Court Decree, New York enac-
ted an amendment to Title 15 of the New
York Environmental Conservation Law, en-
titled "Regulation of Reservoir Releases."
Although this occurred after the trial in
this matter, the record in the case was
re-opened and a hearing held on September
14, 1976, in order to consider the effect,
if any, of the new statute.

The legislative findings accompany-
ing the amendment are in relevant part
as follows [matter in brackets added]:

"(T]he legislature hereby finds

that the volume and abrupt changes

in the volume of releases of water
from impounding reservoirs of water
having a capacity of more than one
billion gallons [including the

Cannonsville and Pepacton Reser-

voirs] and located in the counties

of Delaware, Greene, Putnam,

Schoharie, Sullivan, Ulster and
Westchester have damaged the re-

43a

District Court Opinion

creational uses, such as trout
fishing and canoeing, of waters
affected by such releases, that
such waters are a recreational
resource for residents from all
parts of the state of New York
and elsewhere, that such recrea-
tional resource benefits the
economy and welfare of this state
and that the volume and rate of
change of volume of such releases
can be regulated to protect and
enhance the recreational use of
waters affected by such releases
while ensuring and without im-
pairing an adequate supply of
water for power production or for
any municipality which uses water
from such reservoirs for drinking
and other purposes." (N.Y. Envir.
Conserv. L. § 15-0801).

Under the provisions of the law,
the New York Commissioner of Environmental
Conservation is empowered to promulgate
rules regulating the "volume, timing and
rate of change in volume of releases of
water" from impounding reservoirs in order
to achieve the purposes of the Act. Id.

§ 15-0805(2).
The new statute is silent on the

effects, if any, of the 1954 Supreme Court

44a

District Court Opinion

Decree or’ the Interstate Compact on the
Commissioner's powers.

In late 1976, at the request of
the Supreme Court, the parties to the 1954
Decree submitted memoranda concerning the
effect, if any, of the New York legisla-
tion on that Decree. In its Memorandum,
the State of New York concedes, as it
must, that "the new law cannot legally
conflict with the Decree, [and consequent-
ly] must be enforced so as to dovetail
directly with the Decree." Memorandum at
p. 7. The proposals for regulations sub-
mitted to the Commissioner by the State
incorporate this principle. Id.

By a letter of January 22, 1977,
the Clerk of the Supreme Court advised the
River Master that the Court contemplated
no further action in the matter.

In June 1977, the parties to the

45a

District Court Opinion

1954 Decree signed a Memorandum of Agree-
ment stipulating to a two-year redistribu-
tion of the "annual excess quantity" com-
mencing on June 1, 1977. The River Master
approved this Agreement on July 7, 1977.
Under the provisions of the June i
1977 Agreement, the Pepacton Reservoir
must release 70 c.f.s. of water each day
from April through October of each year,

and 50 c.f.s. daily from November through

March. The Cannonsville Reservoir must
release 45 c.f.s. daily from April lst
through June 14th; 325 c.f.s. daily from
June 15th through August 15th; 45 c.f.s.
daily from August 16th through October
3lst; and 33 c.f.s. daily from November
lst through March 3lst, each year. In
addition, at times and from reservoirs to
be determined by the State of New York,

an amount not to exceed 6,000 second-

46a

District Court Opinion

foot-days per year must be released. The
stated purpose of the releases is to pre-
vent, as far as possible, the water tem-

perature of the Delaware from exceeding

75° F., as measured at Callicoon, New
York.

This Agreement between the parties
to the 1954 Decree obviates, at least
until its expiration in May 1979, any
possible conflicts between the New York
legislation and the Supreme Court Decree.
In essence, the Agreement merely redistri-
butes the "excess release quantity” cna
daily basis, rather than over a 120-day
period. The schedules governing the re-
leases will be met only "to the extent the
annual excess quantity will permit ...."
Memorandum of Agreement at 2. Over the
year, no quantity of water will be re-

leased into the Delaware greater than the

47a

District Court Opinion

amount which would have been released
under the superseded system. Furthermore,
it is implicit in the regulatory scheme
that any excess releases are subject to
the paramount needs of the City's water
consumers in the event of extreme drought
and/or temporary failure of the Croton or
Catskill systems.

On November 2, 1977, the Commis-
sioner of Environmental Conservation
issued the regulations required by section
15-0805 of New York Environmental Conser-
vation Law. 6 N.Y.C.R.R. Part 671.1. The
regulations establish a two-year experi-
mental program running concurrently with,
ent exactly duplicating the provisions of
the June 1977 Memorandum of Agreement
entered into between the parties to the
1954 Supreme Court Decree. The results
of this experimental program, in turn,

will "provide a basis for determining the

48a

District Court Opinion

manner such [reservoir] releases should
be regulated on a long-term basis." 6
N.Y.C.R.R. § 671.1.

These regulations also specifical-
ly preserve all rights established under
the Supreme Court's Decree, and set the
maximum quantity of water to be released
yearly under the regulations as the sum
of (1) the releases necessary to maintain
a flow of 1,750 c.f.s. at Montague, New
Jersey, (2) the court-ordered conserva-
tion releases; and (3) the "excess
quantity" releases required by the 1954
Decree. 6 N.Y.C.R.R. § 671.8.

In essence, the new regulations and
the June 1977 Memorandum of Agreement
merely provide for a more rational dis-
tribution of excess water already required
to be released. As we discuss, infra pp.
45-51, a substantial item of damage re-

sulting to plaintiffs from the City's

49a

District Court Opinion

impoundment and diversion activities on
the Delaware and its tributaries is caused
by (1) a marked change (decrease) in the
average stream temperature of the water,
compared to that found prior to the
activities complained of; and (2) drastic
fluctuations during the summer months
occurring as the City makes sudden re-
leases of water from the colder, bottom
levels of its dams.

The long-term effect of these re-
leases on ameliorating this situation with
respect to water temperatures on the Dela-
ware River is speculative at best. The
City has consistently maintained, both
before the Commissioner of Environmental
Conservation and in this Court, that any
requirement in future permanent regula-~
tions that quantities of water be re-

leased in excess of those ordered by the

50a

District Court Opinion

- River Master would conflict with the 1954

Supreme Court Decree. The City points to
the River Master's power over the "super-
vision and direction" of releases, New

Jersey v. New York, 347 U.S. 995, 997

(1954), and to the fact that releases in
excess of those required by the River
Master have in fact never been made by
the City. For our purposes we concur in
the validity of the legal position taken
by the City, namely that the scheme of
river regulation found in the Supreme
Court Decree as amended is paramount.
While a municipal corporation enjoys no

rights under the Fourteenth Amendment

against the state which created it, there

are probably intervening rights of indi-
vidual and corporate water users in the
City which would be protected in a proper

case, arising out of the Supreme Court

5la

District Court Opinion

Decree.

Plaintiffs' Property Rights Under Pennsyl-
vania Law

In prior decisions in these cases
it has been consistently held that under
Pennsylvania law riparian property owners
enjoy rights in the natural flow of their
adjacent streams, for injury to which they
are entitled to bring an action for a
continuing trespass. Familiarity with
these prior holdings is assumed. Because
the City has argued at length that all of
the cases relied on in prior decisions in-
volve riparian rights on non-navigable
rivers, the Court will consider the issue
further.

Under our diversity jurisdiction,
we are bound here by New York choice-of-

law rules. Klaxon Co. v. Stentor Electric

Manufacturing Co., 313 U.S. 487 (1941);

52a

District Court Opinion

Rosenthal v. Warren, 475 F.2d 438 (2d

Cir.), cert. denied 414 U.S. 856 (1973).

Under the New York conflicts rules, when,
as is the case here, the property against
which the tort was committed is located

in Pennsylvania, and the last act neces-
sary to complete the tort (i.e., the
damage) occurred there, the law of Pennsyl-
vania regulates the property rights of the
plaintiffs, and defines the tort against
those rights. It also determines the re-
covery. This is so whether the older lex

loci delicti rule or the more current

"center of gravity" or "grouping of con-

tacts" theory is applied. See, Babcock

v. Jackson, 12 N.Y.2d 473 (1963); Conklin

v. Canadian-Colonial Airways, 266 N.Y. 244,

248 (1935).
Under the common law of England as

applied in most of the states on the

53a

a

District Court Opinion

Atlantic seaboard, the holder of lands
adjacent to a fresh-water stream, no
matter what its size, was presumed to hold
title to the stream and its bed ad medium

filum agquae (to the center thread of the

waters). Such riparian holders accord-
ingly possessed certain extraordinary
rights in the stream, such as the right to

an exclusive fishery. See generally,

Attorney-General v. Philpott (1632) [un-

reported, but discussed in Attorney-

General v. Richards, 145 Eng. Rep. 980

(Ex. 1795)]; S. Moore, A History of the

Foreshore and the Law Relating Thereto,

896-907 (3d ed. 1888); Fraser, Title to

the Soil under Public Waters--A Question

of Fact (pts. 1-2), 2 Minn. L. Rev. 313,
429 (1918).

The contrary presumption prevailed
when lands adjoined tidal waters. The

holders of such lands were presumed to

54a

District Court Opinion

hold only to the line of mean-high water.

See generally, Dolphin Lane Associates,

Ltd. v. Town of Southampton, 37 N.Y.2d

292 (1975); Deveney, Title, Jus Publicumn,

and the Public Trust: An Historical

Analysis, * Sea Grant L. J. 13 (1976).

Both of these presumptions were
phrased in terms of "navigability": tidal
water was by definition "navigable," and
fresh water "“non-navigable.”

This legal system was poorly suited
to America, with its great coastal rivers,
and historical practice of using mountain
streams for driving logs. Accordingly,
several states, including Pennsyivania,
adopted the rule of the civil law accord-
ing to which title to lands adjoining
eben’ which were navigable-in-fact ex-
tended only to the line of high or low
water, rather than to the thread of the

stream. See, Rundle v. Delaware & Raritan

55a

——--

District Court Opinion

Canal Co., 55 U.S. 79, 90-91 (1852); 3

Kent's Commentaries *430-31 (12th ed. 1873).

It is settled under Pennsylvania
law that the main body of the Delaware

River is navigable-in-fact. See, Rundle,

supra; Fulmer v. Williams, 122 Pa. 191, 15

A. 726 (1888); Carson v. Blazer, 2 Binn.
475 (Sup. Ct. Pa. 1810). Under the cri-
teria there set forth, as well as under
the commonly accepted and applied federal
criteria, it is clear, and I so find, that
all of the sections of the Delaware River
relevant to this case, including the West
Branch adjacent to the Van Loan/Elwood
property, are navigable-in-fact. See,

e.g., The Daniel Ball, 77 U.S. (10 Wall.)

557, 563 (1870).
The Van Loan/Elwood property is
located near Ball's Eddy, less than five

miles above the confluence of the East and

West Branches of the Delaware. In the last

56a

District Court Opinion

century, considerable rafting of lumber
was done between Hancock, New York and
Deposit, New York on the West Branch, and
at the time "Ball's Eddy was said by some
to be the rafting center of the West
Branch of the Delaware, and more timber
was reported rafted from [there] than any
other one point along this branch.”

Leslie C. Wood, Rafting on the Delaware

River, 179 (Livingston Manor, N.Y. 1934).

See also, Report of the Special Master at

83, and Finding of Fact No. 25, at 203,

affirmed by the Supreme Court, New Jersey

v. New York, 283 U.S. 336 (1931).

Under Pennsylvania law, title to
lands adjoining navigable waters runs to
low-water mark, with the lands between
high and low-water mark being subject to
the public's superior right of navigation

and fishery. See, Pa. Act of June 25,

1937, P.L. 425 (1937); Shaffer v. Baylor's

57a

District Court Opinion

Lake Association, 392 Pa. 403, 141 A.2d

583, 585 (1958); Monongahela Bridge Co.

v. Kirk, 46 Pa. 112 (1863); Bailey v.

Miltenberger, 31 Pa. 37 (1856); Shrunk v.

Schuylkill Navigation Co., 14 S. & R. 70,

78-79 (Sup. Ct. Pa. 1826); 3 Kent's Com-

mentaries *427(d) (12th ed. 1873).

Basing its arguments on this re-
jection by Pennsylvania of the common law
doctrine of title to mid-stream on non-
tidal rivers, the City has argued that
Pennsylvania has also rejected the entire
common law doctrine of riparian rights on
such waters, and consequently plaintiffs
have no rights against which a trespass
could be committed.

There is no doubt that some ripar-
ian rights held at common law are not
possessed by riparian holders on the Dela-
ware River. See, e.g., Shrunk v. Schuyl-

kill Navigation Co., supra and Carson v.

58a

District Court Opinion

Blazer, supra, which deny such holders an

exclusive right of fishery.

The majority of cases referred to
by defendant, however, are based on the
unquestioned fact that riparians on navig-
able water in Pennsylvania do not hold
title to the water itself, and may use it,
for example, as a source of power, only at
the will of the state. See, e.g., Rundle

v. Delaware & Raritan Canal Co., 55 U.S.

79 (1852); Susquehanna Canal Co. v. Wright,

9 Watts & S. 9 (Sup. Ct. Pa. 1845); Monon-

gahela Navigation Co. v. Coons, 6 Watts &

S. 101 (Sup. Ct. Pa. 1843). These cases
are totally inapposite here, however, both
because they relate to the absolute owner-
ship of the water of a navigable stream--
which is not in contention here--and be-
cause they are uniformly based on the Com-

monwealth of Pennsylvania's superior right

59a

District Court Opinion

to control the flow of streams in aid of
navigation. Moreover, even these cases
relied on by defendant do not purport to
exclude all riparian rights along naviga-
ble streams. See, e.g., Mayor v. Com-

missioners, 7 Pa. 348, 367-68 (1847),

which holds that a riparian owner on the
navigable Schuylkill River retains the
right to reasonable diversion and use of

the stream.
At common law, every riparian en-
joyed the right to have the stream flow

as it was wont

LILLIAN J. BADGLEY
EMIL LAKE and HELEN LAKE,
GEORGE ELwoop, Admr., ESTATE OF B. VAN LOAN,
LLoyp and ELOISE L. CANFIELD,
GEORGE and HELEN GREGORY,
Plaintiffs-Appellees.

—YV.—

THE City OF NEW YORK,
Defendant-Appellant.

Before:

WATERMAN, MANSFIELD and TIMBERS,
Circuit Judges.

>

City of New York appeals from judgments entered
below, Southern District of New York, Brieant, J.,

lc (4867 )

COURT OF APPEALS OPINION

opinion reported at 450 F.Supp. 846 (1978), holding
appellant liable to these appellees in these cases, con-
solidated upon appeal. Appellees are Pennsylvania
owners of Pennsylvanian riparian lands along the
Delaware River, and they obtained judgments against
the City for its alleged tortious manipulation of the
waters of the River. Judgments reversed.

>

MICHAEL R. GOTTLIEB (Kalter & Gottlieb,
Woodbourne, N.Y. on the brief) for
Appellees Elwood, Gregory, Badgley
and Lake.

JACK WEINBERG (Graubard, Moskowitz,
McGoldrick, [Dannett and Horowitz,
New York City, and Herman E. Gott-
fried, Margaretville, N.Y., Jay C.
Cooke and Steven J. Brill, of counsel,
on the brief) for Appellees Canfield.

Morris EINHORN (Allen G. Schwartz, Cor-
poration Counsel, New York City, L.
Kevin Sheridan, Leonard Olarsch and
William Murray, of counsel, on the
brief) for Appellant.

—>—

WATERMAN, Circuit Judge:

These actions consolidated for trial, were brought
by or in the name of, owners of riparian land
situated in Pennsylvania, who claim that the value of
their lands along the Delaware River and its West
Branch was diminished by the City of New York’s
impoundment, diversion and manipulation of the
headwaters of the Delaware River for the City’s

COURT OF APPEALS OPINION

public water supply purposes. The City’s answer ad-
mitted that it impounds and diverts the Delaware
waters and that it manipulates the flow of the river.
The City contended, however, that these acts were
authorized by the U.S. Supreme Court’s equitable ap-
portionment of the Delaware River waters, decreed in
New Jersey v. New York, 347 U.S. 995 (1954) [New
Jersey v. New York IV], litigation to which the
Commonwealth of Pennsylvania was a party. Accord-
ingly, the City asserted that the rights of these in-
dividual riparian landowners in Pennsylvania were
adjudicated with those of Pennsylvania itself and are
thus barred.

In June 1975, a non-jury trial on the issues of
liability and damages was held in the United States
District Court for the Southern District of New York
(Brieant, District Judge). On September 4, 1976, the
trial record was reopened to allow submissions by
the parties with reference to legislation enacted in
July 1976 (1976 N.Y. Laws ch. 888, codified at N.Y.
Envir. Conserv. Law §§ 15-0801 to -0807 (McKinney
Supp. 1979). On March 31, 1978, the trial court
issued its decision, 450 F.Supp. 846 (SDNY 1978),
setting forth its findings of fact and conclusions of

1 In the course of this opinion, reference will be made to
various stages of the litigation concerning the equitable appor-
tionment of the waters of the Delaware River by the United
States Supreme Court. Because the same parties were involved
at each stage, a Roman numeral suffix has been appended to the
official citation to differentiate the separate stages. It should be
noted that the separate stages, as set forth in the list below,
follow a chronological order, rather than the order of their ap-
pearance in this opinion.
New Jersey v. New York I, 280 U.S. 528 (1930)

New Jersey v. New York II, 283 U.S. 805 (1931)
New Jersey v. New York III, 345 U.S. 369 (1953)
New Jersey v. New York IV, 347 U.S. 995 (1954).

3c (4869 )

COURT OF APPEALS OPINION

law, awarding damages plus interest to the plaintiffs
appellees and against the City. From that judgment
the City appeals, raising three allegations of error:
(1) that the district court erred in holding that com-
mon law riparian rights are not destroyed or altered
in streams, the waters of which have been appor-
tioned by a United States Supreme Court decree in-
voking the common law doctrine of equitable appor-
tionment; (2) that the district court was incorrect in
determining that the amount of damages to be
awarded to appellees should not be affected by a
post-trial two-year experimental program to ascertain
if and to what extent certain of the damaging condi-
tions underlying the judgment herein can be ameli-
orated; and (3) that the district court’s method of
computing damages was erroneous.

Inasmuch as we reverse the judgment below and
order the entry of judgment for the appellant City,
and as we base our holding upon the first issue, we
need not and do not reach the latter two issues.

The Delaware River begins its flow within the
bounds of New York State. The East Branch, which
is entirely within New York State, and the West
Branch, which is also entirely within New York
State, except for approximately 8 miles above Han-
cock, N.Y., join at Hancock to form the main stream
of the Delaware River. Thereafter the river flows in
a generally southeasterly direction. Commencing
about 4 miles south of Deposit, New York, the West
Branch forms the boundary line between New York
and Pennsylvania for approximately 8 miles, and
thereafter the main stream forms the boundary line
for some 68 miles to Port Jervis, N.Y. At Tri-State
Rock, near Port Jervis, New York, the boundaries of

4c (4870 )

COURT OF APPEALS OPINION

New Jersey, New York and Pennsylvania converge.
Below Tri-State Rock the river constitutes the boun-
dary between New Jersey and Pennsylvania, and at
the head of Delaware Bay near Wilmington, Dela-
ware it discharges into the Atlantic Ocean.

In order to meet its increasing need for supplies of
public water New York City in 1929 began to plan
the diversion of the waters of the Delaware River
and its tributaries. Shortly thereafter, the State of
New Jersey commenced an original suit in the U. S.
Supreme Court against the State of New York and
the City of New York to enjoin and restrain any
diversion of the waters of the Delaware River and its
tributaries. In its bill of complaint New Jersey al-
leged that the proposed diversion would deprive New
Jersey “and its citizens as riparian owners along the
Delaware River of the natural, unobstructed and un-
diminished flow of its ‘waters in violation of their
rights under the common-law.” and would thereby
“take the property of the plaintiff and its citizens
without due process of law,” in viclation of the four-
teenth amendment of the U.S. Constitution. New
Jersey further alleged that the proposed diversion
would substantially harm navigation, water power,
sanitation, industrial use, oysters, fish, water supply,
agriculture and recreation in the Delaware Valley
basin.

The Commonwealth of Pennsylvania was permitted
to intervene, New Jersey v. New York I, 280 US.
528 (1930), upon filing a Statement of Interest and
Relief desired. In its statement Pennsylvania set
forth its opposition to the application of the common
law doctrine of riparian rights advocated by New
Jersey inasmuch as that doctrine would prevent the

5c (4871 )

COURT OF APPEALS OPINION

development and use of the Delaware River and its
tributaries as a present and future source of water
supply for Philadelphia and eastern Pennsylvania. In-
stead, Pennsylvania proposed a fair and equitable
division of the waters of the Delaware River and its
tributaries between the three states in accordance
with the doctrine of equitable apportionment.

Following considerable testimony before Special
Master Charles N. Burch, Esq., the Special Master
prepared a report and recommended decree to the
Supreme Court which was adopted and incorporated
in the decision and decree entered on May 25, 1931.
New Jersey v. New York II, 283 US. 805 (1931).
The Decree, adopting the doctrine of equitable appor-
tionment, limited New York’s diversion to 440
million gallons daily (m.g.d.), and, as proposed by the
Commonwealth of Pennsylvania, imposed a compen-
satory release plan. Under this plan, releases were re-
quired from New York reservoirs to maintain flows
at Port Jervis, New York, at or above 1535 cubic
feet per second (c.f.s.), and at Trenton, New Jersey,
at or above 3400 c.f.s., provided that the maximum
release required would be 30 per cent of the average
diversion area’s yield, or 402.6 c.f.s. The purpose of
these releases was to protect downstream states from
potential injuries to municipal, recreational and
fishery uses, particularly during low-flow periods.
The Decree also required the construction of a
sewage treatment plant at Port Jervis. Paragraph 6
of the 1931 Decree provided that the Court’s jurisdic-
tion should be a continuing one and any party was
authorized to apply subsequently for further action
or relief, or for any modification of the Decree.

6c (4872 )

COURT OF APPEALS OPINION

In April 1952 the City petitioned the Court to
amend the 1931 Decree so as to allow an increase in
the diversion of Delaware River waters of as much
as 800 m.g.d. The States of New York, New Jersey,
Pennsylvania and Delaware appeared as parties or as
interveners, and the matter was referred to Special
Master Kurt F. Pantzer, Esq. Following hearings
before the Special Master and a lengthy series of
negotiating sessions, the parties agreed to the terms
of a consent decree to replace the 1931 Decree. This
consent decree was reported by the Special Master
and entered by the Court on June 7, 1954. New
Jersey v. New York IV, 347 U.S. 995 (1954).

The 1954 Consent Decree authorizes the City of
New York, following the completion of the Can-
nonsville Reservoir on the West Branch, to divert up
to 800 m.g.d. subject to a new and somewhat dif-
ferent scheme for compensatory releases known as
the “Montague Formula.” This Formula requires the
City to maintain certain minimum flows of water at
Montague, New Jersey, approximately 75 miles
downstream from the confluence of the East and
West Branches of the River. The 1954 Decree fur-
ther provides for certain excess releases depending
upon the City’s expected consumption of water, for
the appointment of a River Master, and continues to
require sewage treatment at Port Jervis. As in the
1931 Decree, the Court retained jurisdiction of the
dispute, permitting the parties to apply for modifica-
tion of the Decree, *r for any pertinent supplemental
orders. In 1961 the four basin states entered into a
Compact creating the Delaware River Basin Commis-
sion (hereinafter “DRBC), Del. Code tit.7,
§§ 6501-6511 (1974); N.J.Stat. Ann. §§32:11 D-1 to

7c( 4873 )

COURT OF APPEALS OPINION

D-110 (West 1963); N.Y. Envir. Conserv. Law
§§ 21-0701 to -0723 (McKinney 1973); Pa. Stat. Ann.
tit. 32, §§ 815.101—.106 (Purdon 1967), which Com-
pact subsequently was approved by Congress,
Delaware River Basin Compact, Pub. L. No. 87-328,
75 Stat. 688 (1961).

The general purposes of the Compact are “to pro-
mote interstate comity; to remove causes of present
and future controversy; to make secure and protect
present developments within the states; to encourage
and provide for the planning, conservation, utiliza-
tion, development, management and control of the
water resources of the basin; [and] to provide for
cooperative planning and action by the signatory par-
ties with respect to such water resources.” (Delaware
River Basin Compact, Art.I, par.1-3(e)).

Throughout Article 3 of the Compact, the Article
setting forth the powers and duties of the Commis-
sion, there is constant reference to limitations upon
the Commission, limitations deriving from the Decree
of the United States Supreme Court in New Jersey
v. New. York IV, 347 U.S. 995. Though in extraor-
dinary circumstances, such as drought, the Commis-
sion may direct increases or decreases in any alloca-
tion or diversion or release of water required by the
above mentioned decree, it is clear that, except for
such an emergency, the Commission may not act,—
and nothing in the Compact shall be construed—in
any way so as to impair, diminish, or otherwise
adversely affect the rights, powers, privileges, condi-
tions, and obligations contained in that decree. For
instance, Article 3, Section 3.3 reads as follows:

8c (4874 )

COURT OF APPEALS OPINION

3.3 Allocations, Diversions and Releases. The
Commission shall have the power from time to
time as need appears, in accordance with the
doctrine of equitable apportionment, to allocate
the waters of the basin to and among the states
signatory to this compact and to and among
their respective political subdivisions, and to im-
pose conditions, obligations and release _re-
quirements related thereto, subject to the follow-
ing limitations:

(a) The commission, without the unanimous
consent of the parties to the United States
Supreme Court decree in New Jersey v. New
York, 347 US. 995 (1954), shall not impair,
diminish or otherwise adversely affect the diver-
sions, compensating releases, rights, conditions,
obligations, and provisions for the administration
thereof as provided in said decree; ... .

subject, however, to the emergency provision pre-
viously mentioned.

Moreover, in Article 3, Section 3.4, each of the
signatory states waived or relinquished for the dura-
tion of the Compact, any right, privilege or power a
state may have to apply for any modification of the
terms of the Decree in New Jersey v. New York IV,
which would increase or decrease the releases re-
quired, except through a proceeding in the Supreme
Court to modify the Decree or in the event of an
emergency such as drought.

Despite the terms of the 1954 Decree and the
Compact, the district court below found, 450 F.Supp.
846 (1978), that the plaintiffs as riparian owners are
entitled to the “full natural flow of the Delaware
River,” id. at 864, and that “riparian rights within a

9c 4875 )

COURT OF APPEALS OPINION

state are purely a matter of that state’s concern .. .
and are not, by that fact alone, destroyed or altered
when the Supreme Court applies federal common law
to conflicts between the states and apportions the
total waters of the stream among the various com-
peting interests.” Jd. at 866. The district court noted
that any parens patriae suit brought by one state
against another state for the single purpose of pro-
tecting the property rights of its individual citizens
would be barred by the Eleventh Amendment to the
U. S. Constitution. From this the court below con-
cluded that the Commonwealth of Pennsylvania could
not have the rights of these individual plaintiffs ad-
judicated in the proceedings before the Supreme
Court. Accordingly, the district court rejected the
City’s argument that under the federal common law
doctrine of equitable apportionment, as applied by
the Supreme Court in New Jersey v. New York II,
supra, the rights of these Pennsylvania plaintiffs
were adjudicated with those of the Commonwealth of
Pennsylvania, barring recovery by them here.

We cannot agree with the district court’s conclu-
sions. A careful analysis of the nature of parens
patriae suits between states in original proceedings
before the Supreme Court convinces us that, as a
party to the proceeding, Pennsylvania represented all
of its citizens, United States v. Nevada, 412 US.
534, 539 (1973); Hinderlider v. La Plata Co., 304
U.S. 92, 106 (1938); Wyoming v. Colorado, 286 US.
494, 506-507 (1932); Kentucky v. Indiana, 281 US.
163, 173 (1930); Kansas v. Colorado, 206 US. 46, 99
(1907), and that the terms of the decree are thus
conclusive upon all Pennsylvania citizens and bind

their rights.
10c ( 4876)

COURT OF APPEALS OPINION

The Supreme Court has rejected reasoning similar
to that relied upon by the district court.? In Wyom-
ing v. Colorado, supra, the State of Wyoming
brought a suit against the State of Colorado to en-
force a decree of the Court rendered in an earlier
suit between the same states dealing with their
relative rights to divert and use for irrigation the
waters of the Laramie River. There the Court stated:

But it is said that water claims other than the
tunnel appropriation could not be, and were not,
affected by the decree, because the claimants
were not parties to the suit or represented
therein. In this the nature of the suit is mis-
conceived. It was one between States, each act-
ing aS a quasi-sovereign and representative of
the interests and rights of her people in a
controversy with the other. Counsel for Colorado
insisted in their brief in that suit that the
controversy was “not between private parties”
but “between the two sovereignties of Wyoming
and Colorado”; and this Court in its opinion
assented to that view, but observed that the con-
troversy was one of immediate and deep concern
to both States and that the interests of each
were indissolubly linked with those of her ap-
propriators. 259 U.S. 468. Decisions in other
cases also warrant the conclusion that the water

2 See Nebraska v. Wyoming, 295 U.S. 40, 43 (1935), where the
Court rejected the notion that the U.S. Secretary of the Interior
was a necessary party to original proceedings before the Court
to apportion the waters of the North Platte River. Inasmuch as
the position of the Secretary of the Interior is that of an ap-
propriator of water for storage under the laws of Wyoming, the
Court reasoned that “{hjis rights can rise no higher than those
of Wyoming, and an adjudication of the defendant's rights will
necessarily bind him. Wyoming will stand in judgment for him
as for any other appropriator in that state.”

llc( 4877 )

COURT OF APPEALS OPINION

claimants in Colorado, and those in Wyoming,
were represented by their respective States and
are bound by the decree.

286 U.S. at 508-509 (footnote omitted).

It is indeed true that the standing of states to
bring parens patriae actions on behalf of their
‘citizens is limited by the Eleventh Amendment's pro-
hibition against suits by citizens of one state against
another state. Thus a state acting parens patriae may
not invoke the Supreme Court’s original jurisdiction
to protect the individual rights of its citizens. Penn-
syluania v. New Jersey, 426 US. 660, 665-666
(1976); Hawaii v. Standard Oil Co. of California, 405
U.S. 251, 258-259 (1972); Oklahoma v. Atchison, T.
& S.F.Ry., 220 U.S. 277 (1911); Kansas v. Colorado,
supra, 206 U.S. at 98-99; Louisiana v. Texas, 176
U.S. 1 (1900); New Hampshire v. Louisiana: New
York v. Louisiana (companion cases), 108 U.S. 76
(1883); Pennsylvania v. National Ass'n of Flood In-
surers, 520 F.2d 11 (3d Cir. 1975). Nor may a state
sue to recover damages on behalf of its individual
citizens. North Dakota v. Minnesota, 263 U.S. 365,
375-376 (1923). Rather, a suit may be brought by a
state “for an injury to it in its capacity of
quasi-sovereign. In that capacity the State has an in-
terest independent of and behind the titles of its
citizens, in all the earth and air within its domain.”
Georgia v. Tennessee Copper Co., 206 U.S. 230, 237
(1907).

Thus, appellees are correct in asserting that Penn-
sylvania could not have brought suit or intervened in
the suit against New York to protect a mere collec-
tivity of private riparian rights. But to draw from

12c (4878 )

COURT OF APPEALS OFINION

this the conclusion that the individual interests of
Pennsylvania’s riparian owners were not represented
in the suit and are thus not affected by the Decree
is to ignore the obvious fact that the riparian rights
of the appellees are not independent of Pennsyl-
vania’s rights in the waters of the Delaware River
but rather are derivative therefrom and are subject
to change by the laws of that state. Connecticut v.
Massachusetts, 282 U.S. 660, 670 (1931). Thus. it
necessarily follows that the rights of Pennsylvania
citizens cannot exceed those of Pennsylvania itself?
and the extent of Pennsylvania’s rights in the Dela-
ware River was conclusively determined by the terms
of the Decree.

Appellees maintain that the Supreme Court
Decrees and Compact provisions cannot be _inter-
preted in such a way as to divest them of their
riparian nights to the full natural flow of the
Delaware River without just compensation. The fact
is, however, that Pennsylvania never had a right to

3 The Supreme Court early established that a
. . . tate
to private parties title to land which is later Seumuaiiad ee.
terstate compact or Supreme Court decree to be beyond the true

state. “Title, jurisdiction, sovereignty, are, there
questions, necessarily settled, on the stn gg scene
which, being the line of territory, is the line of power over it .
Rhode Island v. Massachusetts, supra, 37 US. at 733. In Poole
a ae of Fleeger, supra, the Court held that the fixing of the
undary does not result in a “divestiture” of citizens’ titles to
nds which were derived from grants under the state. Rather
the citizens titles are invalid, ab initio, due to “an intri ic
defect of title in the states.” 36 US. at 210 sa

13c (4879 )

COURT OF APPEALS OPINION

‘an undiminished flow of the Delaware River. As the
Supreme Court made clear in its Decree in L931:

A river is more than an amenity, it is a
treasure. It offers a necessity of life that must
be rationed among those who have power over
it. New York has the physical power to cut off
all the water within its jurisdiction. But clearly
the exercise of such a power to the destruction
of the interest of lower States could not be
tolerated. And on the other hand equally little
could New Jersey be permitted to require New
York to give up its power altogether in order
that the River might come down to it undimin-
ished. Both States have real and substantial in-
terests in the River that must be reconciled as
best as they may be.

283 U.S. at 342-343 (emphasis added)

It is manifest that a state cannot grant to private
parties any privately owned property interest in
riparian rights greater than the state’s own property
interest in them.‘ In Hinderlider v. La Plata Co.,

4 See footnote 3, supra; and we also reject the district court’s
reliance upon the following language in the Supreme Court’s
1954 opinion in New Jersey v. New York IV, supra, to suppert
its conclusion that the Supreme Court did not “directly rule on
the effect of its Decrees on individual riparian owners.” 450
Supp. at 865. “No diversion herein allowed shall constitute a
prior appropriation of the waters of the Delaware River or con-
fer any superiority of right upon any party hereto in respect of
the use of the waters.” 347 U.S. at 1004. To our mind, this
language reflects merely that the Court did not intend to
establish any permanent “superiority of right” in any party
because that party at the time of apportionment under the 1954
Decree was granted rights in the water apportioned by the
Decree. Rather, said apportionment was meant to be subject to
future modifications due to changes in circumstances affecting

14c( 4880 )

COURT OF APPEALS OPINION

supra, a Colorado company claimed that an interstate
compact allocating the waters of the La Plata River
denied its right to appropriate the water under an
earlier decree of a Colorado court, thereby depriving
it of its property without just compensation. The
Supreme Court rejected this claim, explaining:

It may be assumed that the right adjudicated
by the decree [of the Colorado court] to the
Ditch Company is a property right, indefeasible
so far as concerns the State of Colorado, its
citizens, and any other person claiming water
rights there. But the Colorado decree could not
confer upon the Ditch Company rights in excess
of Colorado’s share of the water of the stream;
and its share was only an equitable portion
thereof.

304 U.S. at 102.

Appellees attempt to avoid the clear applicability
of Hinderlider to the present case by arguing that
while the Supreme Court decree may preclude them >
from seeking equitable relief in order to obtain water
in excess of their State’s share of the river waters,
as was sought by the Ditch Company in Hinderlider,

the equities of the apportionment. See Nebraska v. Wyoming, .
325 U.S. 589, 622-623 (1945.) This interpretation is borne out in
part by the words of Special Master Burch in his Report to the
Supreme Court in 1931 wherein he identified this language as
not pertaining to the rights of the Delaware River Basin States:
“I do ret think that the mere fact that the State and City of
New York are first in point of time in taking waters from the
tributaries of the Delaware River gives any superiority of right.
While the doctrine of priority of appropriation is applied in
some of the arid states of the west and is part of the public
policy of such states, I find no such principle obtaining in New
York, New Jersey, or Pennsylvania,” at 191.

15c (4881)

COURT OF APPEALS OPINION

the decree does not affect their right to damages for
a diminished flow. We do not agree, for so to hold
would hobble or possibly even destroy the effect of
Supreme Court decrees or Congressionally approved
interstate water compacts by subjecting those who
rely upon the provisions of the decrees or interstate
compacts to unreasonable damage burdens. What the
Supreme Court decreed would be rendered nugatory
by damage awards to private owners, a result in-
herently inconsistent with the supremacy of the
Supreme Court’s decree of equitable apportionment.
Accordingly, we reverse the lower court’s holding
that New York City’s diversion of waters, diversion
done pursuant to the terms of the 1954 Supreme
Court decree, was an actionable wrong which could
form the basis for damages.

This does not end our discussion, however, for the
district court further held that

[e]ven if we accept for the sake of argument the ©

contention that Pennsylvania riparians on the
Delaware are presently enjoying the full volume
of water to which they were ever entitled, the
fact remains that the City by its dams has
materially altered and worsened the remaining
waters of the Delaware, that is, has worsened
the portions allotted, under the City’s arguments,
to Pennsylvania, New Jersey and Delaware... .
[T]he City’s works have adversely affected the
temperature, flow, stage and quality of the
River. The Supreme Court’s Decrees were cer-
tainly not intended as licenses for the City to
commit such injuries without liability.

450 F.Supp at 867.
16c (4882 )

COURT OF APPEALS OPINION

In order to comprehend more fully the effects that
the City’s diversions and compensatory releases have
had upon plaintiffs’ riparian properties, it is
necessary to describe in greater detail the location of
the City’s dams in relation to plaintiffs’ properties
and the manner in which the Montague Formula, as
set forth in the 1954 Decree, is being met.

Pursuant to the 1931 Decree and the 1954
Amended Decree, New York City constructed three
dams. The first to be built was that on the Never-
sink River, a tributary of the Delaware River, enter-
ing the Delaware River at Port Jervis, N.Y., a point
approximately 67 miles below the confluence of the
East and West Branches of the Delaware River at
Hancock and about 8 miles above Montague. Im-
poundment of the waters of the Neversink River by
the City began in 1953. The second dam to be con-
structed was the Pepacton Dam on the East Branch
of the Delaware River, impoundment beginning there
in 1954. The third dam was the Cannonsville Dam
on the West Branch of the Delaware River, impound-
ment commencing in 1963.

The Eiwood (Van Loan) parcel is the only one of
plaintiffs’ parcels located above the confluence of the
East and West Branches, it being situated on the
West Branch 13.5 miles down stream from the Can-
nonsville Dam. The remaining four parcels are on the
mainstream, ranging from six to thirty miles
downstream from Hancock.

There is no requirement in the Amended Decree
identifying the sources of the mandated minimum
flow at Montague. Uncontradicted testimony at trial
showed that the River Master (charged with enforce-
ment of the Decree) has relied increasingly over the

17c( 4883 )

COURT OF APPEALS OPINION

years on power plant: releases on the Mongaup and
Lackawaxen Rivers to make up the required flow at
Montague. However, these power plant releases are
not subject to the River Master’s control and fluc-
tuate greatly in the amounts of water released from
time to time. Moreover, when the River Master does
call upon the City for releases to supplement the
flow at Montague, the City has the discretion to
release the water called for from any one or from all
three of its reservoirs. Inasmuch as the power com-
pany releases and the Neversink Dam releases enter
the Delaware River upstream of Montague but down-
stream from plaintiffs’ properties, the flow of water
past plaintiffs’ premises on any given day is not
directly assured by the provisions of the decree.
Thus, while it is possible for the releases called for
to maintain the Montague Formula to be fulfilled
totally by the power plant releases, records indicate
that the City has, in the past, made releases from
the Cannonsville Reservoir which have approximated
one billion gallons of water per day. 450 F. Supp. at
859. Thus, the district court found that there were
substantial fluctuations on a daily basis in the flow
of water as it passed by appellees’ premises. The
court also found that, inasmuch as the City’s dams
were constructed in such a way as to release water
from the bottom of the dams, where the water
temperature averages 40° Fahrenheit year-round,
unaffected by air temperature, the river temperature
in the summer in front of plaintiff’s properties fluc-
tuated between the upper 50’s and the 70’s, render-
ing the river suitable as neither a warm-water
fishery nor a cold-water fishery. Also, it further
found that the fluctuations in volume, stage, flow

18c (4884 )

COURT OF APPEALS OPINION

and temperature of the river, produced by the City’s
meeting the Montague Formuls, nad adverse effects
on swimming, boating, and the general ecology of
the river, and, in particular, it noted the growth of
slime, algae and mosquitoes along the river. Id. at
870-871.

The rights of appellees to collect damages for the
City’s acts relative to the waters of the Delaware
River, as described above, depend upon the scope of
rights granted to the City under the terms of the
Decree and Compact. For, as we determined above,
the rights of these Pennsylvania citizens are no
greater than those of Pennsylvania, and they may
not exceed Pennsylvania’s rights to the extent that
they interfere with the rights granted to the City
under the terms of the Decree and Compact by plac-
ing an onerous price upon the exercise of those
rights.

The question then becomes one of interpretation as
to the scope of the ri, ats granted to the City under
the terms of the 1954 Decree and Compact. Put
simply, New York City was given the right to divert
800 m.g.d. subject to certain conditions of river
management. One must query whether these condi-
tions were meant to be exclusive, specifically leaving
to the City the right to exercise its discretion in
choosing the means by which to meet these condi-
tions of river management. Or did the Court merely
establish a very general release scheme, setting forth
only minimum standards of river regulation without
intending to address specifically issues relative to the
impact that the operation of such a general release
scheme might have upon the various downstream
riparian interests?

19c (4885 )

COURT OF APPEALS OPINION

An analysis of the proceedings before the Special
Masters and of the terms of the 1931 and 1954
Decrees convinces us that the Court intended to
establish a comprehensive scheme of river regulation,
all-inclusive as to all matters concerning the
manipulation of the flow of the undiverted portions
of the waters of the Delaware River. In arriving at
the terms of the Decrees the Special Masters took
into consideration numerous and varied factors, in-
dicating distinctly “the nature of the problem of ap-
portionment and the delicate adjustment of interests
which must be made.” Illinois v. City of Milwaukee,
406 US. %1, 106 (1972), (quoting Nebraska uv.
Wyoming, supra, 325 U.S. at 618). Evidence taken in
the proceedings covered not only considerations of
municipal water supply needs but also those of
ecology, sanitation, fisheries, and recreation on and
along the undiverted river waters.

Appellees maintain that their rights to the recrea-
tional value of the river properties could not have
been and were not advanced in the proceedings
before the Supreme Court. However, recreational in-
terests, and the possibility that such interests would
be harmed by the proposed diversion and release
schemes, were advanced by the State of New Jersey
on behalf of its citizens. And, indeed, such considera-
tions played a major role in the Court’s rejection of
the New York plan of release, a reduction of the
City’s original request in 1931 for diversion of 600
m.g.d. to an allowed diversion of only 400 m.g.d.
and in the requirement of sewage treatment.°

5 See page 146 of the Report of Special Master Charles N.
Burch to the U. S. Supreme Court in the proceedings of New
Jersey v. New York II (1931).

20c (4886 )

COURT OF APPEALS OPINION

Moreover, to the extent that their properties were
located across the river from those of the New
Jersey riparian landowners, the interests of
downstream Pennsylvania riparians in the recrea-
tional uses of the river were necessarily considered
along with those of the New Jersey property
owners.** That the recreational interests of Penn-
sylvania riparians, such as appellees, whose lands
were farther upstream, were not stressed in either
the 1931 or 1954 proceedings is due in large
measure to Pennsylvania’s emphasis in both pro-
ceedings upon the industrial and water supply needs
of Philadelphia and southeastern Pennsylvania. This
overriding concern of Pennsylvania was evident at
several stages of the proceedings before the Court.

In the 1931 proceeding evidence presented by
Pennsylvania pertained primarily to proof that no
substantial damage would be caused by the New
York diversion if taken pursuant to the Pennsylvania
plan of impounding and release, a plan which was
ultimately adopted by the Special Master as a better
plan than that proposed by New York. The New
York plan of release guaranteed only that there
would be a total flow of 275 c.f.s. during every day
of July, August, September and October immediately

6 On page 140 of his Report, Special Master Burch said with
reference to the recreational value of Pennsylvania riparian
lands: “In this connection it should be remembered that the
State of Pennsylvania, on the opposite bank of the Delaware
River from New Jersey, is just as much interested in any
damage to the Delaware River as the State of New Jersey and,
if any damage is sustained, those damages will be borne by Pen-
nsylvania to the same extent as New Jersey, with the exception
of damage to oyster beds. . . . The pleasure and recreational ac-
tivities and developments appear to be greater on the Penn-
sylvania shore than on the New Jersey shore.”

21c( 4887 )

COURT OF APPEALS OPINION

below the point of storage and that there would be a
similar flow of 275 c.f.s. below the point of storage
on every day during the remaining eight months
when the water yield of the diversion area was less
than 275 c.f.s.. Thu> it appears that the New York
plan of release proposed in 1931 would not have
resulted in the sort of drastic fluctuation in flow,
stage and temperature during the summer months
which appellees now find to be so objectionable. It
appears, however, that appellees’ sovereign, Penn-
sylvania, made the policy decision to oppose this plan
in favor of one providing for a greater stabilization
of downstream river conditions.

In the 1954 proceedings Pennsylvania conceded
that “no present injury will be done to it if New
York builds the Cannonsville Reservoir, diverts 800
m.g.d. and releases water according to the Montague
Formula.” Indeed, the Commonwealth of Penn-
sylvania explicitly recognized the beneficial value of
the Montague Formula to its citizens in its memoran-
dum of December 7, 1976, presented to the District
Court in response to that Court’s request that the
parties in the original action state their position with
regard to New York Environmental Conservation
Law §§ 15-0801 [1], 15-0805 [2] enacted in July 1976
(1976 N.Y. Laws ch. 888). This Conservation Law
represented an attempt by the New York legislature
to ameliorate the detrimental impact of New York
City’s release regime upon recreational uses of the
Delaware River and its tributaries below the dams.
In its memorandum, Pennsylvania opposed any new
release regimen that would in any way threaten the

7 See Report of Special Master Burch at 55.

22¢( 4888 )

COURT OF APPEALS OPINION

City’s ability to meet the Montague Formula in
periods of drought, stating that the

|mJjaintenance of the Montague Formula flows
is vital for the protection of downstream munici-
pal industrial, recreational, fishery and other
uses. It is not simply a legal requirement but a
physical necessity. During drought conditions,
the releases provided under the Formula are
crucial in assuring water supplies to southeastern
Pennsylvania and southern New Jersey. Without
adequate flow, saline intrusion migrates up the
River from the estuary threatening both Phila-
delphia and Cam¢ »» public water systems.

When one considers the cost to New York City of
meeting the requirement of the Montague plan, it
becomes apparent that Pennsylvania was indeed suc-
cessful in demanding and securing for its citizens
costly compensating benefits in exchange for the
City’s diversions. For instance, under the terms of
the Decrees, the City is required to devote approx-
imately 32% of the storage capacity of its three
dams to assure adequate flows at Montague during
dry or low-stage periods of the river, resulting in a
250% increase in the observed minimum flow of the
river." As counsel for appellant asserts without con-
tradiction, the City’s expenditure for that additional
storage capacity alone cost it approximately $30
million.’ In light of the City’s costly disbursements

& See page 82 of the Report of the Special Master Kurt F.
Pantzer to the U. S. Supreme Court in the proceedings of New
Jersey v. New York IV.

m) Appellant's Brief, p. 15.

23c (4889 )

COURT OF APPEALS OPINION

for the benefit of the lower basin states, it hardly
would appear equitable to require a supplemental
outlay for the payment of damages to riparian land-
owners such as appellees.

That appellees do not receive the same benefits of
stabilization in the stage and flow of the river as do
downstream Pennsylvania riparians is simply a mat-
ter of intramural dispute over the distribution of
water within the Commonwealth. Appellees cannot be
allowed to collaterally attack, in this suit against
New York City, the wisdom of the policy choices
made by their sovereign in the representation of all
of its citizens acting in its capacity of parens patriae.

In denying the City of Philadelphia’s motion to in-
tervene in the 1954 proceedings, the Court stated
that

the state, when a party to a suit involving a
matter of sovereign interest, “must be deemed to
represent all of its citizens.” Kentucky v. In-
diana, 281 U.S. 163, 173-174 (1930). The princi-
ple is a necessary recognition of sovereign dig-
nity, as well as a working rule for good judicial
administration. Otherwise, a state might be
judicially impeached on matters of policy by its
own subjects, and there would be no practical
limitation on the number of citizens, as such,
who would be entitled to be made parties.

New Jersey v. New York III, 345 U.S. 369, 372-373.

Appellees cannot recover from New York City for
what their own sovereign has ceded in their behalf.
Their rights of recovery, if any, lie against Penn-
sylvania. In both the 1931 and the 1954 proceedings

24c( 4890 )

COURT OF APPEALS OPINION

before the Supreme Court, Pennsylvania did not op-
pose the diversions by the City provided the water
was taken pursuant to the plans of impoundment
and release which were in fact ultimately adopted by
the Court. Moreover, in 1961, Pennsylvania entered
into the Delaware River Basin Compact, the provi-
sions of which deny the DRBC the power to

[e]xercise any jurisdiction, except upon consent of
all the parties [to the 1954 Supreme Court
Decree] over the planning, design, construction,
operation or control of any projects, structures
or facilities constructed or used in connection
with withdrawals, diversions and releases of
waters of the basin authorized by said decree or
of the withdrawals, diversions or releases there-
under.

Delaware River Basin Compact § 3.5(c).

The provisions of the compact further forbid the
DRBC to “{iJmpose or collect any fee, charge or
assessment with respect to diversions of waters of
the basin permitted by said decree.” Id. § 3.5(b).

To grant appellees damages for injuries to their
riparian properties which arise from the City’s
meeting of the Montague Formula would amount to
a total circumvention of these Compact provisions
and would accomplish what would otherwise require
the unanimous consent of all parties to the Decree.'®

10 Appellees cannot be permitted to mount such a collateral at-

tack seeking personal damages. For, as the Supreme Court stated
in Georgia v. Tennessee Copper Co., 206 U.S. 230, 239 (1907),
whether a state “by insisting upon [its claim in its capacity as
quasi-sovereign] is doing more harm than good to her own
citizens is for her to determine.”

See also City of Tacoma v. Taxpayers of Tacoma, 357 US.
320, 340-341 (1958) (citations omitted):

25c( 4891 )

COURT OF APPEALS OPINION

The 1954 Decree specifically allows the City to main-
tain the required flow at Montague by releasing
water from “one or more of its storage reservoirs in
the upper Delaware watershed.” New Jersey v. New
York IV, supra, 347 US. at 997 (emphasis added).
Thus the City is within its rights in choosing to
meet the calls by the Special Master for additional
water to maintain the flow at Montague by, for in-
stance, releases entirely from the Cannonsville Reser-
voir.

The Decree does not address itself to the location
on the dams to be constructed by the City of the
apertures thereon from which impounded water is to
be discharged, nor address itself to possible fluctua-
tions in temperature which could result from place-
ment of the apertures at the bottom of the dams. No
party to the Decree raised this issue in the course of
the proceedings before the Special Master. Indeed, it
“would appear that if the impoundment and release
procedure does produce injurious fluctuations in
water temperature, such an occurrence would be the
sort of “unforeseen particular”'' in anticipation of
which the Court retained jurisdiction to allow for

The final judgment of the Court of Appeals was effective,
not only against the State, but also against its citizens, in-
cluding the taxpayers of Tacoma, for they, in their common
public rights as citizens of the State, were represented by the
State in those proceedings, and, like it, were bound by the
judgment.

11 New Jersey v. New York II, supra, 283 U.S. at 344. See also,
page 207 of the Report of Special Master Burch, note 5 supra,
wherein he recommended that the Pennsylvania plan of release
be approved, “subject to such modifications as actual tests and
experience may indicate, and without prejudice to any party to
this case to apply for modification.”

26c (4892 )

COURT OF APPEALS OPINION

further modifications of the terms of its Decree.
However, by 1961 both the Neversink and Pepacton
Dams had been completed; none of the parties to the
Decree had applied for modification of its terms: and
all the parties to the Decree had entered into the
Delaware River Basin Compact, whose provisions fur-
ther clarify the circumstances under which the par-
ties to the Decree may apply to the United States
Supreme Court for a modification of the terms of
the Decree.

Curiously, appellees have placed great reliance
upon the following language in the Compact:
“N6thing contained in this compact shall be con-
strued as affecting or intending to affect or in any
way to interfere with the law of the respective
signatory parties relative to riparian rights.”
Delaware River Basin Compact, Art. 14, §14.19.
However, to interpret this provision as intending to
allow for an award of damages for injury resulting
from conduct clearly authorized by the terms of the
1954 Decree would put this section of the Compact
in unreasonable conflict with several other sections
thereof. See Delaware River Basin Compact, Art. 3,
§§ 3.3(a), 3.5. Accordingly, we construe this provision
to mean no more than that, within the limits of the
Supreme Court Decree, the private riparian owners
may enforce riparian rights against anyone who
violates them.

In short, appellees here have no direct means of
obtaining the relief they request from appellant City
for the injuries they complain of. If a remedy
directed at moderating these variations in water
temperature is now indicated, that remedy must now
lie either in an application to the United States

27c( 4893 )

COURT OF APPEALS OPINION

Supreme Court by a party to the Decree for a modi-
fication of its terms or in an application to the
DRBC by a signatory state to the Delaware River
Basin Compact for a_ similar modification to the
terms of the Compact, which application can only be
entertained upon the unanimous consent of all of the
parties to the Decree. -
The judgments below are reversed.

28c (4894 )
57U0—7-28-79 e USCA—4391
RECORD PRESS, INC.. 157 Chambers St.. N.Y. 10007. (212) 243-5775

ey

APPENDIX D

APPENDIX D

UNITED STATES COURT OF APPEALS
FOR THE

SECOND CIRCUIT

At a stated term of the United
States Court of Appeals for the Second
Circuit, held at the United States Court-
house in the City of New York, on the
twenty-seventh day of September one thou-
sand nine hundred and seventy-nine.

Present: HON. STERRY R. WATERMAN
HON. WALTER R. MANSFIELD
HON. WILLIAM H. TIMBERS

Circuit Judges,

LILLIAN J. BADGLEY,

EMIL LAKE and HELEN LAKE,

GEORGE ELWOOD, Admr., ESTATE of B.

VAN LOAN,

LLOYD and ELOISE L. CANFIELD,

GEORGE and HELEN GREGORY,
Plaintiffs-Appellees,

Vs.

THE CITY OF NEW YORK,
Defendant-Appellant.

(Docket Nos. 78-7196 - 78-7200)

DOCKETED AS
A JUDGMENT # 80,0196
ON February 25, 1980

ld

—— ee

FILED SEP 27, 1979
UNITED STATES COURT OF APPEALS
SECOND CIRCUIT

Appeal from the United States
District Court for the Southern District
of New York.

This cause came on to be heard on
the transcript of record from the United
States District Court for the Southern
District of New York, and was argued by
counsel.

ON CONSIDERATION WHEREOF, it is
now hereby ordered, adjudged, and de-
creed that the judgments of said District
Court be and they hereby are reversed in
accordance with the opinion of this court
with costs to be taxed against the appel-
lees.

A. DANIEL FUSARO,
Clerk

By: Arthur Heller,
Deputy Clerk

(A true copy,

A. Daniel Fusaro, Clerk

by Rolanne Henry,
Deputy Clerk

2d

UNITED STATES COURT OF APPEALS

FOR THE SECOND CIRCUIT

(Docket Nos. 78-7196 - 78-7200)
September Term, 1978.
STATEMENT OF COSTS
Taxed in favor of Agmeitent, in

LILLIAN J. BADGLEY, \
EMIL LAKE and HELEN LAKE,
GEORGE ELWOOD, Admr., Estate
of B. VAN LOAN,

LLOYD and ELOISE L. CANFIELD,
GEORGE and HELEN GREGORY,

Plaintiffs- No. 385-389

Appellees ‘
vs.

THE CITY OF NEW YORK

Defendant-
Appellant.

a

Docketing ACEION .scccccccacescS a50a00
Cost of Printing Appendix ..... 2,749.65
Cost of Printing Briet ..cccccc 210.55
Costs of Pringing [sic]
reply Brisk 6 esses ts tbeceesee 81.90
Taxed at the sum of ..$3, °

3d

A. DANIEL FUSARO,

Clerk

BY: Arthur Heller,
Deputy Clerk

4d

APPENDIX E

APPENDIX E

UNITED STATES COURT OF APPEALS

SECOND CIRCUIT

At a Stated Term of the United
States Court of Appeals, in and for the

Second Circuit, held at the United States

Court House, in the City of New York, on
the twenty-third day of January, one
thousand nine hundred and eighty.
Present: HON. STERRY R. WATERMAN

HON. WALTER R. MANSFIELD

HON. WILLIAM H. TIMBERS

Circuit Judges.

LLOYD and ELOISE L. CANFIELD,
Plaintiffs-Appellees 78-7199
¥.
THE CITY OF NEW YORK,

Defendant-Appellant.

A petition for a rehearing having
been filed herein by counsel for the

appellees.

Upon consideration thereof, it is

le

eS

Ordered that said petition be and

hereby is DENIED.

s/

A. DANIEL FUSARO, Clerk

FILED JAN 23 1980
UNITED STATES COURT OF APPEALS
SECOND CIRCUIT

2e

UNITED STATES COURT OF APPEALS
SECOND CIRCUIT

At a stated term of the United
States Court of Appeals, in and for the
Second Circuit, held at the United States
Court House, in the City of New York, on
the twenty-third day of January, one thou-

sand nine hundred and eighty.

sshd evan cs edeisalbiptin ain aa aapeaadietaimandiigckiias hates ciinaiein x

LLOYD and ELOISE L. CANFIELD,
Plaintiffs-Appellees 78-7199
ve

THE CITY OF NEW YORK,
Defendant-Appellant ‘

A petition for rehearing contain-
ing a suggestion that the action be re-
heard in banc having been filed herein by
counsel for the appellees, and no active
judge or judge who was a member of the

panel having requested that a vote be taken

3e

on said suggestion,

Upon consideration thereof, it is
Ordered that said petition be and

it hereby is DENIED.

s/ eae
Chief Judge
IRVING R. KAUFMAN

FILED JAN 23 1980
UNITED STATES COURT OF APPEALS
SECOND CIRCUIT "

4e

APPENDIX F

APPENDIX F

CONSTITUTIONAL, STATUTORY AND
REGULATORY PROVISIONS INVOLVED HEREIN

U.S. CONSTITUTION

U.S. CONST. amend V provides, in per-
tinent part:

"No person shall be .. . deprived
of . . . property, without due process
of law; nor shall private property be
taken for public use, without just
compensation."

U.S. CONST. amend. XIV provides, in
pertinent part:

e e« e No state shall... de-
prive any person of .. . property,
without due process of law....”

[APPENDIX F Continued]

lf

DELAWARE RIVER BASIN COMPACT

1.6 Duration of Compact.

(a) The duration of this compact shall
be for an initial period of 100 years from
its effective date, and it shall be con-
tinued for additional periods of 100 years
if not later than 20 years nor sooner than
25 years prior to the determination of the
initial period or any succeeding period
none of the signatory states, by authority
of ar. act of its legislature, notifies the
commission of intention to terminate the
compact at the end of the then current 100
year period.

* * *

3.4 Supreme Court Decree; Waivers.
Each of the signatory states and their re-
spective political subdivisions, in consid-
eration of like action by the others, and
in recognition of reciprocal benefits,
hereby waives and relinquishes for the
duration of this compact any right, pri-
vilege or power it may have to apply for
any modification of the terms of the de-
cree of the United States Supreme Court
in New Jersey v. New York, 347 U.S. 995
(1954) which would increase or decrease
the diversions authorized or increase or
decrease the releases required thereunder,
except that a proceeding to modify such
decree to increase diversions or compen-
sating releases in connection with such
increased diversions may be prosecuted
by a proper party to effectuate rights,

2f

powers, duties and obligations under
Section 3.3 of this compact, and except as
may be required to effectuate the pro-
visions of paragraphs IIIB3 and VB of

said decree.

* * *

14.19 Effect on Riparian Rights.
Nothing contained in this compact shall
be construed as affecting or intending
to affect or in any way to interfere with
the law of the respective signatory
parties relating to riparian rights.

STATE CONSTITUTION

Pa. CONST. art. 1, § 10, provides in
pertinent part:

"{P]rivate property [cannot] be
taken or applied to public use, with-
out authority of law and without just
compensation being first made or
secured." (Emphasis supplied)

STATE STATUTES AND REGULATIONS
1 Smith, Laws Pa., provides:

V. Be it therefore enacted, and it is
hereby enacted, That all and every the
estate, right, title, interest, property,
claim and demand of the heirs and devisees,
grantees, or other claiming as Proprieta-
ries of Pennsylvania, whereof they or
either of them stood seized, or to which
they or any of them were entitled, or
which to them were deemed to belong, on

3f

the fourth day of July, in the year of our
Lord one thousand seven hundred and seventy-
six, of, in or to the soil and land con-
tained within the limits of the said late
province, now state of Pennsylvania, or any
part thereof, together with the royalties,
franchises, lordships, and all other the
hereditaments and premises compromised,
mentioned and granted in the same charter,
or letters patent of the said King Charles
the second (except as herein after is ex-
cepted) shall be, and they are hereby
vested in the commonwealth of Pennsylvania,
for the use and benefit of the citizens
thereof; freed and discharged, and abso-
lutely acquitted, exempted and indemnified,
of, from and against all estates, uses,
trusts, entails, reversions, remainders,
limitations, charges, incumbrances, titles,
claims and demands, whatsoever, from, by
or under the said charter, or letters
patent, or otherwise, as fully, clearly,
and entirely, as it the said charter, or
letters patent, and the estates, interests,
hereditaments and premises, therein com-
prised, mentioned and granted, and all
other the estate, right and title of the
said Proprietaries, of, in and to the

same premises, were herein transcribed and
repealed.

VI. And be it further enacted, That
the said soil and lands, hereditaments
and premises, and every part and parcel
thereof (except as is herein excepted)
from and after the date hereof, shall be
subject to such disposal, alienation, con-
veyance, division and appropriation, as
to this or any future legislature of this
commonwealth, shall from time to time seem

4f

meet and expedient, in pursuance of such
law or laws as shall for that purpose
hereafter be made and provided.

VII. Provided always, and be it en-
acted, That all and every the rights,
titles, estates, claims and demands, which
were granted by or derived from the said
Proprietaries, their officers or others by
them duly commissioned, authorized and
appointed, or otherwise, or to which any
person or persons, other than the said
Proprietaries, were or are entitled,
either in law or equity, by virtue of any
deed, patent, warrant or survey, of, in
or to any part or portion of the lands
comprised and contained within the limits
of this state, or by virtue of any loca-
tion filed in the Land-Office, at any
time or times before the said fourth day of
July, in the year of our Lord one thou-
sand seven hundred and seventy-six, shall
be, and they are hereby confirmed, rati-
fied and established for ever, according
to such estate or estates, rights or in-
terests, and under such limitations and
uses, as in and by the several and re-
spective grants and conveyances thereof
are directed and appointed. (Emphasis
supplied)

VIII. Provided also, and be it enacted,
That all and every the private estates,
lands and hereditaments, of any of the
said Proprietaries, whereof they are now
possessed, or to which they are now en-
titled, in their private several right
or capacity, by devise, purchase or de-
scent; and likewise all the lands called
and known by the name of the Proprietary
Tenths or Manors, which were duly sur-

5f

veyed, and returned into the Land-Office,
on or before the fourth day of July, in
the year of our Lord one thousand seven
hundred and seventy-six, together with
the quit or other rents, and arrearages
of rents, reserved out of the said pro-
prietary tenths or manors, or any part or
parts thereof, which have been sold, be
confirmed, ratified and established for
ever, according to such estate or estates
therein, and under such limitations, uses,
and trusts, as in and by the several and
respective reservations, grants and con-
veyances thereof, are directed and
appointed.

Titles Confirmed
!
5 Smith, Laws Pa., provides:

Under the proprietaries' government,
no title was considered as good in law
until a patent was granted and enrolled
in the rolls office. See an extract from
a commission of the commissioners of pro-
perty in the preceding pages, as also
others in the land-office.

The reason is plain, because all war-
ranties and applications were granted
conditionally; which, if not complied
with, the proprietaries or their commis-
sioners, were at liberty, according to
said conditions, to grant the land to
others.

After the revolution the legislature,
by the act of the 27th of November, 1779,

6f

confirmed the titles, claims, or demands,
which had been derived from the proprie-
taries or their officers, either in law or
equity, “according to such estate, &c. as
in and by the several and respective
grants and conveyances thereof, ..c direc-
ted and appointed." And by the act of the
9th of April, 1781, patents are direc-

ted to issue to "all and every person or
persons," &c. for lands for which no
patents had been previously issued; pro-
vided the party applied within a limited
time, which time has been extended until
the lst of January, 1811, after which

time an additional interest is to be paid.
By an act passed 30th of December, 1785,
it was provided too, that no warrant
should issue for any tract of land on
which a settlement had been made, unless
to such person or persons respectively,
who had made the same, or their legal re-
presentative, until after the 10th day of
April, 1788. The benefit of this act to
such settlers, has also been extended till
the said lst of January, 1813, after which

it will rest with the legislature to extend

the provisions of said law, or make such
farther regulations as they may deem
necessary.

A patent was a grant complete both in
law and equity, and as such confirmed by
the act of 1779, to the holder, unless
some fraud had been practised in obtaining
it, or the land had been previously grant-
ed to some other person.

These unpatented proprietary rights
have, in many cases, been considered su-

7£

perior to rights acquired since the revo-
lution; yet there are cases where equity
would seem to ban such claims: that is,
where an original applicant or warantee
had not paid any purchase money or taxes,
nor had ever taken possession of the land,
or exercised acts of ownership on the same,
and the person under the later right had
done these things. In such cases it would
be just to plead the original applicant's
non-compliance, and the proprietaries'
usages, as a bar to his recovery: and cer-
tain it is, that the later right under

the practice of the proprietary's land-
office would have been preferred. Nor
does the acts of assembly confirm pro-
prietary rights otherwise than according
to the estate vested by said rights
agreeably to the usages; of course it
would be necessary to :efer to original
agreements, or the terms of warrants

and applications, to know how to decide.

The legislature having sanctioned such
claims, cannot again interfere until after
the lst of January, 1813, when they may
again extend the time for payment, or make
such other regulations as may be necessary,
because after that time, persons claiming
under proprietary rights will be in the
power of the legislature, as much as they
would have been in the power of the pro-
prietaries, after they had failed to com-
ply with the conditions, their warrants
or applications were subject to.

In testimony that the foregoing ex-
tracts are correct, as stated, and that
the notes subjoined are corresponding with
the usages of the land-office, during the

8f

proprietaries' government, to the best of
my knowledge and belief, I have hereunto
set may hand, at Harrisburgh, this 10th
day of October, Anno Domini, 1812.

JOHN COCHRAN, Secretary
Land-Office,.

N.Y.C. Admin. Code provides:

§ K51-26.0 Definitions; special pro-
vision concerning acquisition of real
estate used for public purposes.--The term
real estate as used in this article shall
be construed to signify and embrace all up-
lands, lands under water, the waters of
any lake, pond or stream, all water rights
or privileges, and any and all easements
and incorporated hereditaments and every
estate, interest and right, legal and
equitable, in land or water, including
terms for years, and liens thereon by way
of judgment, mortgages or otherwise, and
also all claims for damage to such real
estate. It shall also be construed to in-
clude all real estate (as the term is
above defined) heretofore or hereafter re-
quired or used for railroad, highway or
other public purposes, providing the per-
sons or corporations owning such real
estate or claiming interest therein, shall
be allowed the perpetual use for such pur-
poses of the same or of such other real
estate to be acquired for the purposes of
this article as will afford practicable
route or location for such railroad, high-
way or other public purpose, and in the
case of a railroad, commensurate with and
adapted to its needs; and provided also

9f

that such persons or corporations shall not
directly or indirectly be subject to ex-
pense, loss or damage by reason of chang-
ing such route or location, but that such
expense, loss or damage shall be borne by
the city. In case any real estate so
acquired, or used for public purposes, is
sought to be taken or affected for the pur-
pose of this article there shall be
designated upon the maps referred to in the
previous sections of this article, and
there shall be described in the petition,
hereinbefore referred to, such portion of
the other real estate shown on such maps
and described in such petition, as it is
proposed to substitute in place of the

real estate then used for such railroad,
highway or other public purposes. Pro-
vided, that wherever the board of water
supply has heretofore located on any map
filed in the office of such commissions,

a substituted route for any railroad, the
same shall not be subsequently changed
without the assent of such company. The
supreme court at the special term to which
the petition is presented or at such other
special term as the consideration thereof
may be adjourned to, shall either approve
the substituted route or refer the same
back to the board of water supply for al-
teration or amendment and may refer the
same back, with such directions or sugges~-
tions as such court may deem advisable,
and as often as necessary and until such
commissioners shall determine such sub-
stituted route as may be approved by the
court. An appeal from any order made by
such court at special term, under the pro-
visions of this section, may be taken by
any person or corporation interested in and

10f

aggrieved thereby to the appellate division
and court of appeals, and shall be heard
as a non-enumerated motion. The commis-
sioners of appraisal, hereinbefore referred
to, in determining the compensation to be
made to the persons or corporations owning
such real estate, or claiming interest
therein, shall include in the amount of
such compensation such sum as shall be
sufficient to defray the expenses of mak-
ing such change of route and location and
of building such railroad or highway.

Such commissioners of appraisal shall
suggest in their report, and the court

in the order confirming such report shall
determine, subject to review by the appel-
late division, what reasonable time after
payment of the awards to such persons or
corporations shall be sufficient within
which to complete the work of making such
change. Neither the city, nor the board
of water supply shall be entitled to take
possession or interfere with the use of
such real estate for the enumerated pur-
poses, before the expiration of such time.
Such time may be subsequently extended by
the court (subject to review as aforesaid)
upon a sufficient cause shown. After the
expiration of this time so determined or
extended no use shall be made of such

real estate which shall cause pollution to
the water in such reservoir or interfere
with its flow.

§ K51-44.0 Damage to value of real
property; businesses, and employees
thereof.--

a. The owner of any real estate not
taken by virtue of this article and arti-

lif

cle eleven o. the conservation law or of
any established business on the first day
of June, nineteen hundred five, except as
hereinafter provided, and situate in the
counties of Ulster, Albany or Greene,
directly or indirectly decreased in value
by reason of the acquiring of land by the
city for an additional water supply or by
reason of the execution of any pians for
such additional water supply by the city
under the provisions of this article and
article eleven of the conservation law,
their heirs, assigns or personal. repre-
sentatives shall have a right to damages
for such decrease in value. The owner of
any real estate not taken by virtue of this
article or of any established business on
the first day of December, nineteen hun-
dred fourteen, except as hereinafter pro-
vided, situate in the counties of Ulster,
Greene, Delaware or Schoharie, directly

or indirectly decreased in value by reason
of the acquisition, after the passage of
this article, of land by the city for an
additional water supply from the Scho-
harie watershed, or by reason of the execu-
tion of any plans for such additional

water supply from such watershed, under

the provisions of this article, his assigns
or personal representatives, shall have a
right to damages for such decrease in value.
The owner of any real estate, not taken,
situate in any one or more of the counties
of Ulster, Delaware, Orange or Sullivan, or
of any established business, directly or
indirectly decreased in value by reason of
the execution of any plans for or by the
acquisition of land by the city for a water
supply from the Rondout and Delaware water-
sheds except that portion of the Delaware
watershed of the west branch of the Dela-

12f

ware river within such counties, or any of
them, and the owner of any real estate,

not taken, situate in any one or more of
such counties or situate in the corporate
limits of the village of Deposit in the
county of Broome existing on the first day
of April, nineteen hundred fifty-nine, or
of any established business, which busi-
ness was established on or prior to the
first day of April, nineteen hundred fifty-
nine, which is directly or indirectly de-
creased in value by reason of the execu-
tion of any plans for or by the acquisition
of land by the city for a water supply from
the watershed of the west branch of the
Delaware river, pursuant to law, his or its
assigns, or personal representatives in

any such case shall have a right to dama-
ges for such decrease in value, from the
time of the beginning of such decrease in
value, provided, however, that in the case
of an established business, the recovery of
or award made to any claimant shall not
include any

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385006_2005%3A2. Public record. Not legal advice.
