District of Columbia v. R. P. Andrews Paper Co. Same v. Saks & Co. Same v. Lisner

Background

Three related cases involved business owners whose buildings include vaults under sidewalks. The District assessed a rental charge on those vaults under a federal appropriation law passed on September 1, 1916, which authorized the Commissioners to assess rent for space under sidewalks and streets used in connection with business. Two of the permits for these vaults were issued before that law. The permits and the District’s building regulations described vault occupancy as an accommodation, revocable, and subject to removal when needed for public use. The businesses refused to pay and a lower appeals court limited the law to post‑act constructions.

Reasoning

The central question was whether the earlier permits gave the businesses a permanent property right that would block the District from charging rent. The Court examined the permits, the Building Regulations, and the written acceptances and found they created mere licenses, not vested property. The permits stated occupancy was an accommodation, were revocable, and required surrender or removal when the District needed the space. Because grants of rights in streets are strictly construed and nothing unequivocal was given, the Court held the 1916 law applies to these vaults and reversed the Court of Appeals, affirming judgments for the District.

Real world impact

The decision confirms the District may assess and collect rent on sidewalk vaults used by businesses even when permits predate the law, so affected businesses may owe new charges. It treats typical vault permissions as revocable licenses unless an explicit permanent grant appears. Businesses relying on such vaults should review their permits and expect assessments; these cases are resolved in the District’s favor.