CONSTITUTIONAL LAW-EMINENT DOMAIN-ELEMENTS OF FAIR VALUE

Respondent bought the tug MacArthur from the Coast Guard in March, 1942. Exclusive of his own labor, his outlay for purchase and repair of the tug totaled $8,574.78. In October, 1942, the War Shipping Administration, acting under the Merchant Marine Act of 1936, requisitioned the tug and awarded compensation of $9,000. Respondent contested the award, and the Court of Claims found that the fair market value at the time of taking was $15,500.

This determination was made without deduction for enhancement of value due to the government's need of vessels, or previous taking of vessels of similar type. The Court of Claims found that immediately prior to the time of requisition, there was no reasonable prospect that the MacArthur would be requisitioned and that respondent therefore should be paid the fair market value as determined. On certiorari, held, reversed, Justice Frankfurter dissenting in an opinion concurred in by Justices Jackson and Burton, and Chief Justice Vinson dissenting without opinion. The just compensation requirement of the Fifth Amendment need not include allowance for any enhancement of value resulting from the government's extraordinary or special demand for the property.

United States v. Cors, 337 U.S. 325, 69 S.Ct. 1086 (1949).