United States v. Pewee Coal Co.

Background

A coal mine operator, Pewee Coal Company, says the United States took and ran its mine from May 1 to October 12, 1943, to stop a nation‑wide miners’ strike. The Court of Claims found there was a taking, calculated total operating losses of $36,128.96, but awarded $2,241.26 as the portion caused by Government operation. Pewee did not seek further review, and the Government appealed two questions to this Court.

Reasoning

The central question was whether the Government’s actions amounted to an actual taking that required payment, and whether the record supported the $2,241.26 award. The Court relied on the President’s Executive Order and the Secretary’s formal Order for Taking, plus public acts (flags, placards, government agents) to conclude the seizure was real. Citing earlier decisions treating seized mines as governmental facilities, the Court held the United States became the operator and, absent an agreement to the contrary, must bear operating profits and losses. Because Pewee did not seek compensation for the value of continued business use, the Court upheld the award limited to losses found to result from Government operation, notably higher wage payments tied to a War Labor Board decision.

Real world impact

The ruling makes clear that when the Government formally seizes and runs a private business for public purposes, it can be required to pay owner losses caused by that control. The decision depends on the particular facts and whether owners agreed to assume losses, so outcomes may vary case by case.

Dissents or concurrances

A concurring opinion agreed on the taking but urged narrower liability, linking compensation to losses caused by Government acts. A dissent would deny recovery, saying the owner did not prove actual pecuniary loss.