Kohl Industrial Park Co. (A Partnership) v. The County of Rockland

MESKILL, Circuit Judge:

The County of Rockland (Rockland) appeals from an order of the United States District Court for the Southern District of New York, Gagliardi, J., granting the motion of plaintiff Kohl Industrial Park Co. (Kohl) for enforcement of a settlement agreement signed by the parties. This agreement was incorporated in a May 11, 1981 district court order that Rockland acquire by eminent domain Kohl’s entire legal interest in a thirty acre parcel of land.

Rockland advances three arguments on appeal, namely: (1) the district court’s interpretation of the agreement renders it unconstitutional and illegal; (2) the order of the district court cannot be enforced legally because the Rockland County legislature authorized only the acquisition of a permanent easement over Kohl’s property and therefore the County Executive is powerless to “take” an interest greater than that approved by the legislature; and (3) the district court’s interpretation of the settlement agreement is incorrect both as a matter of fact and law. We are not persuaded by these arguments and accordingly affirm the order of the district court.

BACKGROUND

Evidence was never presented in the underlying case because the parties settled their dispute prior to trial. However, there is no dispute with respect to the relevant facts. During March 1973, Kohl purchased sixty acres of land in Rockland County. Approximately one year prior to this acquisition, Rockland had authorized a feasibility study to determine the most appropriate measures to prevent flooding in the general area of the Kohl property. After the study was completed, Rockland decided to implement a plan whereby approximately thirty *898acres of the Kohl property would be acquired through eminent domain and used as a retention basin for the Nauraushaun Brook. Consistent with this objective, the County in 1977 prepared a legal description of the Kohl property and commissioned a private firm to survey the acreage. Kohl was thereafter notified that Rockland intended to acquire the thirty acre parcel through eminent domain. In January 1980, Rockland with the legislature’s approval offered Kohl $850,000 plus absolution of back taxes in exchange for the property. The offer was acceptable to Kohl, but the legislature subsequently withdrew its approval.

After considerable foot-dragging by Rockland, Kohl commenced a federal court action in November 1980. The gravamen of Kohl’s complaint was that Rockland officials had delayed eminent domain proceedings in an effort to acquire the thirty acre parcel without just compensation. Kohl specifically charged that even though its property was no longer commercially marketable given Rockland’s announced intention to acquire it, the County nonetheless continued to tax this parcel at its former value. According to plaintiff, County officials hoped to delay eminent domain proceedings until Kohl’s interest in the acreage was foreclosed for nonpayment of taxes. Kohl maintained that Rockland’s conduct was actionable under 42 U.S.C. § 1983 (Supp. IV 1980) as an unconstitutional “taking” of property.

Prior to trial, a settlement agreement was reached and a stipulation of settlement and discontinuance was duly executed and incorporated in an order entered by the district court on May 11, 1981. The order provided that Rockland would (1) engage an appraiser to determine the fair market value of the thirty acre parcel; (2) commence condemnation proceedings with the understanding that Kohl would be compensated for the appraised value of its land; and (3) simultaneous with its filing of the condemnation petition, “acquire title to the subject property.” See J. App. at 19 (emphasis added).

Rockland subsequently petitioned the County legislature and received permission to acquire the Kohl property by eminent domain. In the interim, however, counsel for the County apparently determined that Rockland could accomplish its anti-flooding objective more economically by obtaining an easement over the portion of the property needed for the retention basin. Rock-land thereafter obtained legislative approval to acquire the easement and, on motion by the County, Justice Sullivan of the New York State Supreme Court, Rockland County, approved Rockland’s petition to condemn a permanent easement. See J. App. at 61.

Kohl then petitioned the district court pursuant to Fed.R.Civ.P. 60(b)(6) to vacate the stipulation and reinstate the original action on grounds that Rockland had breached the settlement agreement. Kohl charged that the settlement agreement obligated Rockland to acquire a fee interest in the disputed acreage and, by refusing to condemn more than an easement, Rockland had failed to satisfy the terms of the agreement. The court agreed that a breach had occurred, but nonetheless denied Kohl’s Rule 60(b)(6) motion, explaining that plaintiff’s original action was extinguished upon execution of the settlement agreement and could not be reinstated on a Rule 60(b)(6) motion. The court noted, however, that the decision was without prejudice to plaintiff’s making a motion for enforcement of the settlement agreement. See J. App. at 136. Kohl moved for enforcement of the agreement and the court, after finding a breach by Rockland, ordered the County to condemn Kohl’s fee interest in the 30 acres.1 This appeal followed.

*899DISCUSSION

A. Jurisdiction

Although not raised by the parties, the issue of subject matter jurisdiction warrants brief discussion. Section 1983 provides in pertinent part:

Every person who, under color of any statute, ordinance, regulation, custom, or usage, of any State or Territory or the District of Columbia, subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws, shall be liable to the party injured in an action at law, suit in equity, or other proper proceeding for redress.

42 U.S.C. § 1983 (Supp. IY 1980).

28 U.S.C. § 1343 (1976), the jurisdictional predicate for section 1983 actions, provides in pertinent part:

The district courts shall have original jurisdiction of any civil action authorized by law to be commenced by any person:
(3) To redress the deprivation, under color of any State law, statute, ordinance, regulation, custom or usage, of any right, privilege or immunity secured by the Constitution of the United States or by any Act of Congress providing for equal rights of citizens or of all persons within the jurisdiction of the United States

Where the plaintiffs complaint alleges sufficient facts to state a cause of action under section 1983, the jurisdictional requirements of section 1343 are satisfied, provided the claim alleged is not “obviously frivolous,” “wholly insubstantial,” or “essentially fictitious.” See Parratt v. Taylor, 451 U.S. 527, 532, 101 S.Ct. 1908, 1911, 68 L.Ed.2d 420 (1981); Carey v. Piphus, 435 U.S. 247, 249-50, 98 S.Ct. 1042, 1044-45, 55 L.Ed.2d 252 (1978); Hagans v. Lavine, 415 U.S. 528, 536-37, 94 S.Ct. 1372, 1378-79, 39 L.Ed.2d 577 (1974); Bell v. Hood, 327 U.S. 678, 682-85, 66 S.Ct. 773, 776-77, 90 L.Ed. 939 (1946); Graseck v. Mauceri, 582 F.2d 203, 204 (2d Cir.1978), cert. denied, 439 U.S. 1129, 99 S.Ct. 1048, 59 L.Ed.2d 91 (1979).

Section 1983 finds its historical roots in the Civil Rights Act of 1871, 17 Stat. 13, a statute “intended to ‘[create] a species of tort liability’ in favor of persons who are deprived of ‘rights, privileges, or immunities secured’ to them by the Constitution.” Carey v. Piphus, 435 U.S. at 253, 98 S.Ct. at 1047 (citing Imbler v. Pachtman, 424 U.S. 409, 417, 96 S.Ct. 984, 988, 47 L.Ed.2d 128 (1976)). To state a cause of action under that section, plaintiff must allege that defendant, while acting under color of state law, Gomez v. Toledo, 446 U.S. 635, 640, 100 S.Ct. 1920, 1923, 64 L.Ed.2d 572 (1980); Adickes v. S.H. Kress & Co., 398 U.S. 144, 152, 90 S.Ct. 1598, 1605, 26 L.Ed.2d 142 (1970); Graseck v. Mauceri, 582 F.2d at 204 & n. 5, 207; see Moose Lodge No. 107 v. Irvis, 407 U.S. 163, 172-73, 92 S.Ct. 1965, 1971-72, 32 L.Ed.2d 627 (1972), deprived him of a protected civil or constitutional right, see City of Newport v. Fact Concerts, Inc., 453 U.S. 247, 258, 101 S.Ct. 2748, 2755, 69 L.Ed.2d 616 (1981); Monroe v. Pape, 365 U.S. 167, 172, 81 S.Ct. 473, 476, 5 L.Ed.2d 492 (1961).

Official acts of a county satisfy the “under color of state law” component of section 1983. See Morrison v. Jones, 607 F.2d 1269, 1273 (9th Cir.1979) (per curiam), cert. denied, 445 U.S. 962, 100 S.Ct. 1648, 64 L.Ed.2d 237 (1980); Redcross v. County of Rensselaer, 511 F.Supp. 364, 369 (N.D.N.Y.1981); see also Monell v. Department of Social Services, 436 U.S. 658, 690, 98 S.Ct. 2018, 2035, 56 L.Ed.2d 611 (1978) (“Our analysis of the legislative history of the Civil Rights Act of 1871 compels the conclusion that Congress did intend municipalities and other local government units to be included among those persons to whom § 1983 applies.”) (footnote omitted). We also find that Kohl’s complaint alleges sufficient facts, at least for purposes of jurisdictional pleading, to sustain the claim that it has been deprived of a constitutionally protected right. The gravamen of Kohl’s complaint is that Rockland wrongfully used its governmental powers intending ulti*900mately to “take” the disputed thirty acres without just compensation. Kohl specifically charges that its property was rendered commercially unmarketable when Rockland announced its intention to acquire this land by eminent domain. According to Kohl, the County intentionally delayed eminent domain proceedings while continuing to tax the Kohl parcel at full value with the expectation that this squeeze play ultimately would cause Kohl to forfeit its property interest through foreclosure for nonpayment of taxes.

The eminent domain power of the state has long been recognized as a necessary and important incident of its sovereignty. People v. Adirondack Railway, 160 N.Y. 225, 236-37, 54 N.E. 689, 692 (1899), aff’d, 176 U.S. 335, 20 S.Ct. 460, 44 L.Ed. 492 (1900); Heyward v. New York, 7 N.Y. 314, 324 (1852). Although largely unrestrained, the governmental right to “take” private property for a public use is subject to the constitutional limitation that just compensation be paid to the individual whose property is acquired by the government. See U.S. Const.Amends. V, XIV; N.Y. Const. Art. I, § 7. Reported decisions in New York have consistently reaffirmed the constitutional right to just compensation when property is taken by the state. See People v. Adirondack Railway, 160 N.Y. at 239, 54 N.E. at 693 (“Safeguards become necessary only when the question of compensation is reached, and then the courts are careful to see that the owner receives all that he is entitled to.”); City of New Rochelle v. Sigel, 65 Misc.2d 962, 964-65, 319 N.Y.S.2d 208, 211 (N.Y.Sup.Ct.1970).

The New York courts have duly recognized that judicial intervention is necessary where the state seeks to circumvent its constitutional duty to pay fair compensation for private property condemned through eminent domain: “The limits of police power may be extensive, although ill-defined, but common justice requires that such power should not be used to circumvent the constitutional inhibition against appropriating private property for a public use without compensation.” Her-kimer Pulp & Packaging Corp. v. McMorran, 45 Misc.2d 127, 134-35, 256 N.Y.S.2d 377, 384 (N.Y.Sup.Ct.1964), aff’d, 24 A.D.2d 929, 264 N.Y.S.2d 848 (3d Dep’t 1965); see Wolfe v. New York, 53 Misc.2d 14, 19, 277 N.Y.S.2d 985, 990 (N.Y.Ct.C1.1967) (“The ultimate responsibility for protection of private property rights lies with the courts, and the courts have a duty to do more than defer to the Legislature.”), rev’d on other grounds, 22 N.Y.2d 292, 292 N.Y.S.2d 635, 239 N.E.2d 517 (1968).

Kohl asserts in its complaint that Rockland intended, through use of governmental taxing and eminent domain power, to “take” its property without just compensation. We are satisfied that the constitutional deprivation alleged here is not “obviously frivolous,” see Hagan v. Lavine, 415 U.S. at 536-37, 94 S.Ct. at 1378-79, and is sufficient to meet the pleading requirements of section 1983 and its jurisdictional counterpart, 28 U.S.C. § 1343 (1976). Since the district court entered a settlement order in a case over which it had jurisdiction, it is not open to us to examine the merits of the now-extinguished original lawsuit. Having found subject matter jurisdiction to hear this dispute, we hold that the district court has the power to enforce the settlement agreement entered into by the parties and formally approved through court order. See Meetings & Expositions, Inc. v. Tandy Corp., 490 F.2d 714, 717 (2d Cir.1974), cited with approval in Sanchez v. Maher, 560 F.2d 1105, 1108 (2d Cir.1977).

B. Substantive Claims

1. Constitutionality of Taking

Counsel for Rockland crafts a creative, albeit unpersuasive, constitutional argument in an effort to evade its obligation under the settlement agreement. The County asserts that its eminent domain powers are limited by the constitutional prohibition against “taking” private property in excess of that amount necessary to accomplish the intended public use. Rock-land notes that it could satisfy its anti-flooding objective simply by “taking” an *901easement in the Kohl property and hence the acquisition of a fee simple interest would amount to an unconstitutional taking of a property interest greater than that necessary to achieve its public purpose.

We agree that a county has no right under its eminent domain power to condemn an estate in excess of that which is needed to accomplish the intended public purpose. See Hallock v. New York, 32 N.Y.2d 599, 605, 347 N.Y.S.2d 60, 64, 300 N.E.2d 430, 432 (1973); Mayo v. Windels, 255 A.D. 22, 27, 5 N.Y.S.2d 690, 693 (2d Dep’t 1938), aff’d, 281 N.Y. 837, 24 N.E.2d 494 (1939). This constitutional restriction does not, however, preclude the county from negotiating and then acquiring, with the owner’s consent, an estate greater than necessary to satisfy the immediate public interest. See Sherman v. McKeon, 38 N.Y. 266, 274 (1868); Embury v. Conner, 3 N.Y. 511, 518 (1850); see also Winslow v. Baltimore & Ohio Railroad, 208 U.S. 59, 62, 28 S.Ct. 190, 191, 52 L.Ed. 388 (1908) (owner of private property cannot complain of unconstitutional taking where owner consents to that taking); Mayo v. Windels, 255 A.D. at 27, 5 N.Y.S.2d at 693.

The “consent doctrine,” first adopted by the New York courts in Embury v. Conner, 3 N.Y. 511 (1850), recognizes that the constitutional limitation on the state’s eminent domain power was intended to protect the private property owner from the misuse of that power, not shield the government from its contractual obligations under the guise of concerns about excessive taking. Id. at 518; see Mayo v. Windels, 255 A.D. at 27, 5 N.Y.S.2d at 693. The state occupies a position of disproportionate strength when wielding its eminent domain power. Indeed, as an incident of its sovereignty, the state may take all property necessary for public use as long as just compensation is paid. The private property owner is at the mercy of the state; he cannot forestall the taking by objection or court decree as long as his property is necessary for a public use. A wholly different case is presented when the private property owner consents to the proposed condemnation. In that situation, the constitutional limitation on the state’s eminent domain power is not needed to protect the property owner from an excessive taking.

The reported decisions fully support the view that the constitutional limitation on the state’s eminent domain power was intended to protect the property owner, not the government. See, e.g., Embury v. Conner, 3 N.Y. at 511; see also Hallock v. New York, 32 N.Y.2d at 605, 347 N.Y.S.2d at 64, 300 N.E.2d at 432; Mayo v. Windels, 255 A.D. at 27, 5 N.Y.S.2d at 693. Appellant cites no case, and we find none, where the state has relied on the “necessity” doctrine to evade a contractual obligation. We will not allow Rockland to be relieved from its lawful obligation because, now, with the benefit of hindsight, it wants to renege on its agreement. Absent a showing of collusion or fraud, when the parties have consented to the taking, the constitutional limitation on the state’s power of eminent domain is inapplicable.

2. Legality of Taking

Rockland asserts that the district court erred by ordering it to condemn a property interest greater than that necessary for public use. Rockland claims that the acquisition of more than an easement in the Kohl property would be wasteful and illegal and hence potentially would subject the County to a citizen’s suit on these grounds.

We are not persuaded by this argument. Rockland has not shown that it would be liable for waste or illegality for condemning a fee interest rather than an easement. The New York courts show due deference to the state when it exercises sovereign powers:

In the absence of illegality, fraud, collusion, corruption or bad faith, the Court has no power to restrain the city from entering into or carrying out any agreement which it chooses to make. The terms ‘waste’ and ‘injury’, as used in the statute, comprehend only wrongful, dishonest or illegal official acts, and are not intended to subject the action of an administrative official, acting within the *902limits of his authority and jurisdiction, to the scrutiny and control of a judicial tribunal.

Hanrahan v. Corrou, 12 N.Y.S.2d 536, 539, 170 Misc. 922, 925 (N.Y.Sup.Ct.1938), quoted in Borek v. Golder, 190 Misc. 366, 390, 74 N.Y.S.2d 675, 697 (N.Y.Sup.Ct.1947).

Rockland cites no case where the exercise of the county’s eminent, domain power has been successfully challenged through citizen suit on grounds of waste or illegality. Rather, the County relies on cases where the plaintiff alleges a wrongful award of a government contract, see Campbell v. City of New York, 244 N.Y. 317, 328, 155 N.E. 628, 629 (1927), and charges wrongful distribution of cable television franchises, see Orth-O-Vision, Inc. v. City of New York, 101 Misc.2d 987, 989-90, 422 N.Y.S.2d 781, 784 (N.Y.Sup.Ct.1979). The absence of direct authority is not surprising, however, because the courts have traditionally accorded the state considerable discretion when exercising its “taking” power. People v. Adirondack Railway, 160 N.Y. 225, 239-40, 54 N.E. 689, 693 (1899), aff’d, 176 U.S. 335, 20 S.Ct. 460, 44 L.Ed. 492 (1900); see Berman v. Parker, 348 U.S. 26, 32, 75 S.Ct. 98,102, 99 L.Ed. 27 (1954) (once the legislature has declared a condemnation to be for a public use, the role of the courts is an extremely narrow one). In a representative democracy, extravagance and waste in the use of eminent domain are remedied better at the ballot box than at the courthouse. Rockland is not barred on grounds of illegality or waste from fulfilling its obligations under the settlement agreement.

.3. Compliance with District Court Order

Rockland advances two additional theories under New York eminent domain law to support its claims on appeal.

a. Legality of Compliance Under State Law

The County asserts that it cannot legally comply with the district court order mandating that it “take” by eminent domain Kohl’s entire fee interest in the disputed acreage. Rockland points out that under New York law it must obtain the approval of the County legislature before exercising its “taking” powers. Thus, according to Rockland, since the legislature has indicated that it will approve only the condemnation of an easement over the Kohl property, compliance with the district court order would require it to act beyond its legal authority.

But the County legislature did approve the settlement agreement signed by Rockland and Kohl. See J.App. at 107-09. Indeed, the legislature specifically authorized Rockland to acquire the Kohl parcel abutting the Nauraushaun Brook. See J.App. at 107. Thus, there is no legal bar under this theory to prevent Rockland from condemning a fee interest in the Kohl property.

b. Prior Legislative Approval

Section 204 of the New York Eminent Domain Procedure Law, N.Y.E.D.P.L. § 204 (McKinney 1979), requires a con-demnor to certify and approve the intended public use of a property before commencing eminent domain proceedings. Rockland asserts that the district court usurped the County’s governmental function under section 204 by ordering the County to “take” an interest without certification and approval as necessary for the public good.

This argument is circular. The district court did not usurp the County’s governmental function under section 204, it merely accepted a settlement agreement voluntarily entered by the parties and approved by the County legislature, pursuant to section 204.2

*9034. Interpretation of Agreement

Finally Rockland asserts that the parties could not have contemplated the “taking” of an entire fee simple interest because the Kohl property was encumbered by several outstanding easements. Hence, according to Rockland, the Court should interpret the parties’ use of the term “acquire title” as a reflection of their intent to condemn an easement as opposed to a fee interest.

This argument is frivolous. As with any settlement agreement or contract, we look first at the plain language of the agreement. Sanchez v. Maher, 560 F.2d 1105, 1108 (2d Cir.1977). The agreement, as incorporated in the district court order, provides that Rockland will “acquire title to the subject property.” See J.App. at 29. When no limiting language is included in the conveyance document, “title” is understood to mean a fee interest, not an easement. 2 G. Thompson, Law of Real Property § 319 (1980); see generally Hallock v. New York, 32 N.Y.2d at 605, 347 N.Y.S.2d at 64, 300 N.E.2d at 432 (“We note in particular that the statute, under which the State would carry out the Authority’s determination as to what real property is reasonably necessary for the project, explicitly authorized the acquisition of ‘interests in such property less than full title, such as easements’ ”) (citing Highway Law, § 30, subd. 2) (emphasis added). When a prospective purchaser seeks to acquire an easement, New York courts require that party to identify with specificity the location and intended use for the estate. See Clark v. Devoe, 124 N.Y. 120, 125-26, 26 N.E. 275, 276 (1891); see also Raymond v. New York, 208 Misc. 43, 46, 143 N.Y.S.2d 354, 358 (Ct.C1.1955), rev’d on other grounds, 4 A.D.2d 62,162 N.Y.S.2d 838 (4th Dep’t 1957), aff’d, 4 N.Y.2d 961, 175 N.Y.S.2d 829, 151 N.E.2d 624 (1958).

Here, Rockland never identified in the settlement agreement the type of estate that it expected to “take” from Kohl except to note that it would “acquire title.” Because, in the absence of limiting language, “title” is commonly undérstood to mean a fee interest, Rockland cannot now be heard to complain when it failed to specify its intent to condemn a lesser estate. Moreover, Rockland’s conduct during the settlement negotiations belies its assertion that at the time the agreement was executed it intended only to condemn an easement in the Kohl property. See Raymond v. New York, 208 Misc. at 46-47, 143 N.Y.S.2d at 358 (where there is uncertainty in the description of the property to be taken by eminent domain, the “court will look at the circumstances existing when the proceedings commenced,” the “subject matter of the documents involved,” and the “intention should be determined from the various instruments in connection with acts of parties”). On January 25, 1980, in one of the early communications leading to the settlement, counsel for Rockland informed Kohl that it “will acquire in fee [the Kohl parcel].” See J.App. at 111. While the negotiations were in progress, the County legislature authorized Rockland to “acquire title.” See J.App. at 107-09. Finally, and most persuasive, Rockland’s special counsel advised the County attorney in a letter dated July 16,1981, that: “As we discussed on the telephone, I would like the County to consider taking a step which I believe could result in a potential substantial saving. I would like the County to consider changing the nature of the taking from fee to permanent easement.” See J.App. at 133 (emphasis added). This letter, written after the settlement agreement was executed in May 1981, completely discredits Rockland’s position here.

*904The record reveals that at the time the agreement was executed, the County fully intended to acquire Kohl’s entire legal interest in the disputed acreage. After agreeing to “take” this property interest by eminent domain, the County apparently decided that it could accomplish its public purpose more economically by condemning only an easement. But Rockland had previously entered into a valid settlement agreement and it is bound by the terms of that agreement.

Affirmed.

. In his first decision Judge Gagliardi found that the settlement agreement obligated Rock-land to acquire from Kohl a fee simple absolute interest in the disputed parcel. It was later brought to the attention of the court that several easements encumbered the acreage in question and hence it would be impossible for Rock-land to take a fee simple absolute from Kohl. The court duly noted this fact and ordered Rockland to acquire Kohl’s total interest subject to outstanding encumbrances. See J.App. at 168, 169.

. We reject Rockland’s argument that a public hearing should be held to ascertain the appropriate estate necessary for public use. Section 206 of the E.D.P.L. provides that:

The condemnor shall be exempt from compliance with the provisions of this article when:
(A) pursuant to other state, federal, or local law or regulation it considers and sub*903mits factors similar to those enumerated in subdivision (B) of section two hundred four [i.e. public use, environmental effects, etc.], to a state, federal or local governmental agency, board or commission before proceeding with the acquisition and obtains a license, a permit, a certificate of public convenience or necessity or other similar approval from such agency, board, or commission____
N.Y.E.D.P.L. § 206 (McKinney 1979). Rock-land presented its plan of acquisition to the County legislature in April 1981. The legislature considered Rockland’s request and approved the “taking” of “title” to the Kohl property. No hearings are necessary. Aswad v. City School District of Binghamton, 74 A.D.2d 972, 972-73, 425 N.Y.S.2d 896, 898 (3d Dep’t 1980).