Oklahoma Railway Co. v. Severns Paving Co.

Background

In 1909 the landowners platted Linwood Place and dedicated a forty-foot strip along Linwood Boulevard to the streetcar company’s predecessor “with like effect as though deeded…in fee simple,” subject to police regulations and some paving and crossing duties. The city later extended its limits, tracks were laid in the strip, and in 1910 the city apportioned paving costs by benefit, assigning $12,046.16 to that central strip. The city council mistakenly assessed that amount against the streetcar company rather than the land, and a mandamus directed reassessment against the property, but a specific hearing on objections was not provided.

Reasoning

The state supreme court found the railway held fee simple title and held the land could be assessed for benefits, and it stated the company would be allowed to be heard when reassessment occurred. The federal opinion explains that the state court’s affirmation left doubt about whether the company would get a full, new hearing. The federal Court modified the judgment to ensure the company receives a definite, adequate opportunity to object to any reassessment, and it affirmed the judgment as modified. The Court also held that the original franchise terms requiring the company to pave in some circumstances do not prevent a fair municipal assessment.

Real world impact

The decision confirms that land owned in fee by a rail or streetcar company can be treated as benefited property for municipal paving assessments. At the same time, the municipality must provide a clear and adequate hearing before imposing reassessed costs. The ruling leaves in place the city’s ability to recover a fair share of improvement costs while protecting the company’s right to be heard.