Majority
Headnote
1. Appeal—Final Judgment—Review op Inteelocutoby Orders.This action was brought to restrain the defendants from maintaining a nuisance upon Union Square, a public park in the city of New York, in front of a building leased by the plaintiff, and occupied by him as a hotel. The action came on for trial at a Special Term, where the complaint was dismissed. Upon an appeal to this court the judgment was reversed, and a new trial ordered ( 67 App. Div. 25 , 73 N. Y. Supp. 417 ), whereupon the defendants appealed from the order granting a new trial to the Court of Appeals, with the stipulation that, if the said order were affirmed, judgment absolute should be entered against them. Upon this appeal this order was affirmed ( 171 N. Y. 470 , 64 N. E. 181 ), and the remittitur from the Court of Appeals “did order and adjudge that the order of the Appellate Division of the Supreme Court, appealed from herein, be, and the same isj affirmed, and judgment absolute ordered for the plaintiff on the stipulation, with costs.” Upon this remittitur being returned to the Supreme Court, an order or interlocutory judgment was entered that the judgment of the Court of Appeals “be, and the same is hereby, made the judgment of this court; that the erection, maintenance, and operation of the structures, machinery, and appurtenances and material, hereinafter and in the complaint herein specified and referred to, are unauthorized and a nuisance, and that the plaintiff have judgment for the damages which he has suffered thereby”; and that the defendants be restrained and enjoined from using the thoroughfare on Seventeenth street for the purposes specified in the complaint in this action; • and a referee was appointed to take proof of the damages suffered by the plaintiff in consequence of the erection and maintenance of the nuisances and obstructions above referred to, and that upon the coming in of the referee’s report, and confirmation thereof, final judgment be entered thereon for such damages in favor of the plaintiff against the defendants.
The defendants in the notice of appeal from the final judgment ask
These interlocutory orders are before the court for review upon the appeal from the final judgment, under section 1316 of the Code of Civil Procedure, where, as provided by section 1301, the appellant specifies the interlocutory judgment or intermediate order to be reviewed. After final judgment, however, the interlocutory judgment or intermediate order can only be reviewed on an appeal from the final judgment. The interlocutory judgment and the interlocutory orders upon which that final judgment is based are all merged in the-final judgment, and no right to review an interlocutory judgment or intermediate order upon which the final judgment was based survives the entry of the final judgment, except so far as a review of the interlocutory judgment or intermediate order is allowed on the appeal from the final judgment. We think, therefore, that the appeal from the interlocutory judgment and intermediate orders should be dismissed. The quéstion presented, however, by the appellants, is-before us on the review of the order overruling the exceptions taken by the defendants to the report of the referee, the defendants having specified that order in their notice of appeal as an intermediate order which they seek to review upon the appeal from the final judgment;- and the question before us is as to whether the referee applied the correct rule of the damages to which the plaintiff is entitled.
The plaintiff is the lessee of a hotel known as the “Everett House,”
The action being to enjoin the continuance of a nuisance, where- the-plaintiff, in addition to the injunctive relief, asks to recover the damages sustained by the nuisance, the same rules which would be applied where a plaintiff had sued at law for the damages caused by the nuisance are applicable; and, while the general- rule as to damages to which a person sustaining injury in consequence of the maintenance ■of a nuisance is entitled seems to be well settled, its application has led to some confusion. The rule adopted by the learned referee, and upon which he bases the plaintiff’s right to recover for his loss of profits in the business of keeping the hotel, is stated by him as- follows:
“On the question of law raised, by the defendants with regard to the ■ measure of damages or rule of liability to which the defendants are to be held, I am of opinion that, while the general rule—at least, the rule applicable in very many cases—is that a party injured by a nuisance is entitled to recover the diminution of rental value or usable value of the premises affected, yet that it is not inconsistent with that rule that where, by the direct operation of the nuisance, rents or profits have been lost, and the proof is that such loss or damage is reasonably certain, and such profits so lost are not speculative, but directly attributable to the nuisance, and to no other cause, such loss of rents and profits may be recovered as items of damage, and are in fact, in such case, to be treated as the diminution of rental value referred to in the rule.”
And it is the correctness of this rule as to the measure of damages which has been caused by a nuisance or a trespass that is challenged upon this appeal by the defendants.
Where an owner of real property which is rented has suffered from a nuisance maintained by the owner or occupant of adjoining property, and has thereby lost a tenant or the* opportunity of renting his property,, to award him as damages the rental value of the property*
The premises in question were leased by the plaintiff for the sole purpose of carrying on the hotel business; his profits being the
It seems to me that the confusion that has arisen in determining the measure of damages in actions of this kind is caused by the misapplication of the terms used in discussing the question. I quite agree with the learned counsel for the defendants that profits, as such, are not recoverable in an action of this character; that the damages to be recovered must bear a relation to the usable value of the premises injured to the person in possession and entitled to the use thereof, as distinguished from a mere loss of profits of a business which are independent of the real property injured by the wrong. But when a court is called upon to determine the extent of an injury which has been sustained by the occupant of real-property, caused by the wrongful act of another, the use to which the property is put by its occupant, and the injury that the wrongful act has caused to that use, are the material questions to be determined; and where the'court can see that direct injury, which can be measured, has been caused to the occupant’s use of the property by the wrongful act complained of, 1 can see no reason why the occupant is not entitled to an award which will include the loss that has been occasioned to him in the use of the property, caused by the wrongful act.
“They [damages] may be so uncertain, contingent, and imaginary as to be incapable of adequate proof; and then they cannot be recovered, because they cannot be proved. But when it is certain that damages have been caused by a breach of contract, and the only uncertainty is as to their amount, there can rarely be good reason for refusing, on account of such uncertainty, any damages whatever for the breach. A person violating his contract should not be permitted entirely to escape liability because the amount of the damages which he has caused is uncertain. It is not true that loss of profits cannot be allowed as damages for a breach of contract. Losses sustained and gains prevented are proper elements of damage.”
This being the rule, the question for the learned referee to determine—it having been adjudged that the defendants’ act was wrongful, and that the plaintiff was entitled to recover the damages that he had sustained thereby—was what damage to the usable value of the prop
In Schile v. Brokhahus, 80 N. Y. 614 , it is said:
“Loss o.f profits consequent upon a tort, as well as a breach of contract, are allowed, provided they are such as might naturally be expected to follow from the wrongful act, and are certain both in their nature and in respect to the cause from which they proceed. * * * The fact of the extent of business done previously was competent to be shown. If a business is entirely broken up, the amount previously done is ordinarily pertinent upon the question of the amount which might subsequently be done, and the same is true of a partial interruption of business.”
In Snow v. Pulitzer, 142 N. Y. 263 , 36 N. E. 1059 , which was an action of trespass, Judge Earl says:
“The trial judge held that, if the plaintiff was entitled to recover at all, he was entitled to recover the damages which were the natural consequences of the destruction of the building occupied by him, and his eviction therefrom. He had made some expenditures in fitting up the store for his business, and the judge charged the jury that they could take these expenditures info consideration. There was also damage to, and depreciation. of, the stock of confectionery he had on hand; and the judge charged the jury that they could take that into consideration. He also charged the jury that, in estimating the plaintiff’s damages, they could consider the profits he could have made in his business if he had been permitted to carry it on to the end of his lease. The charge of the judge as to these various items of damage seems to have been carefully limited and explained, and the only exception to which our attention is called, bearing on the damages, is the final exception in the case to the charge ‘in respect to the measure of damages.’ * * * But the principal item of recovery was on account of the prospective profits in the plaintiff’s business during the remainder of the term of his lease, and that they were proper to be considered in estimating his damages in a case like this, where he was evicted and his business broken up by the trespass and wrong of the defendant, was decided in Schile v. Brokhahus, 80 N. Y. 614 .”
“The question presented for solution is whether, if it is sought to ascertain the fee value or the rental or usable value of the plaintiff’s farm, what line of proof is admissible to accomplish that result. * ® * We have here a growing and profitable business at the time the defendant entered upon the plaintiff’s farm as a trespasser, which we may assume, for the purposes of this discussion, has been greatly damaged, if not practically destroyed. In order to furnish a foundation of fact upon which a trial judge, a jury, or an expert could base a judgment as to the fee, rental, or usable value of the property before and after the trespass, and the damages resulting "therefrom, it would seem that the only reasonable way would be to prove the nature, character, and extent of the business that had been thus interrupted by defendant’s trespass, and the fact which would fix the diminished value qf the farm as a result of such interruption.”
The plaintiff’s wife was sworn as a witness, and was asked questions to prove the gross sales and expenses of the farm from 1883 to date. The court said, “I decline to permit you to do it.” The plaintiff’s counsel then asked, “For any purpose?” to which the court replied, “Yes, for any purpose,” to which the plaintiff excepted. Evidence was also rejected as to gross income, net income, expenses, prices, fertilizer, manure, and help in various years before and after the trespass, sought to be proved in various ways. In ordering a new trial, the court said that:
“The rule may be briefly stated to the effect that the plaintiff should be allowed to prove all the facts in regard to the manner of conducting business on his farm, before and after the trespass, calculated to give the court or jury a correct general idea of the condition of the farm and its productive value. With these proofs in the record, supplemented by such evidence as the defendant might offer, a substantial basis of fact would be furnished, upon which the court, jury, or expert might rest an opinion as to the fair and reasonable amount of damages suffered by the plaintiff, considering the effect of the trespass on the fee, rental, or usable value of the property.”
The case now under consideration falls within the cases of Schile v. Brokhahus and Snow v. Pulitzer; and while I think it is misleading to say that profits, as such, are recoverable, the principle which allows a recovery for profits is that where a person in possession of real property uses the real property to conduct his business, and where that business is seriously injured by a wrong, the measure of damage is the diminution in the usable value of the property to the person in possession, and that where the business there conducted has relation to, and is dependent upon, the use of the property, the loss of business directly occasioned by the trespass is the damage to the usable value of the property which was sustained by its occupant, and for which the wrongdoer is responsible. So that upon this finding of the learned referee that the injury sustained by the plaintiff was in a diversion from his hotel of the guests, from whom he would have received as rent of apartments the sum of $54,000, and from whom he
The defendants also challenge the proof upon which the referee has based his findings, and claim that it is not sufficient to justify his conclusion. We think the evidence is sufficient to sustain a finding that, but for this nuisance maintained by the defendants, the plaintiff’s receipts from rents of the premises would have been at least that stated by the referee. , Where it is material to prove the injury to a business by the wrongful act complained of, the amount of business before the wrongful act was committed is competent evidence upon the. question as to what diminution was caused by the act complained of. Schile v. Brokhahus, supra; St. John v. The Mayor, 6 Duer, 315 , cited with approval in Jutte v. Hughes, 67 N. Y. 267 . And the uniformity of the amount received from month to month for room rent prior to the time this nuisance was established, with the depreciation during its continuance, and the fact that after it was abated receipts from room rent were largely increased, is convincing evidence that the wrong complained of caused the depreciation. That the excavation of the subway on Fourth avenue had a much less serious effect upon the plaintiff’s premises than the nuisance on Seventeenth street is shown by the fact that the depreciation commenced immediately after the erection of the nuisance, which was some time before the excavation reached the plaintiff’s property, and the further consideration that the frontage on Seventeenth street opposite this nuisance maintained by the defendants was of much greater extent ■than upon Fourth avenue in front of the excavation, and also that the excavation was below the surface, and could not have had the effect upon the building that was caused by the structure on Seventeenth street.
The allowance for what are called profits from the guests who were kept away from the hotel by this wrong complained of is not as certain as the diminution in the rent of rooms. That some loss was caused to the restaurant business is certain, and I think there is evidence to sustain the referee as to the amount. It is based upon the experience of the plaintiff in his business for years, showing the average amount paid by those who were guests of his hotel for refreshments furnished, and the amount that it cost the plaintiff to furnish the refreshments, and the balance is the amount lost to the plaintiff in consequence of the diminution in the number of guests. It is said that this is an unsatisfactory method of arriving at the amount of money that his guests would have spent in the hotel; but it is apparent that each guest that came there would have spent something in addition to his room rent, and, when damage for a wrongful act is proved, the fact that it is difficult to prove the exact amount of damage will not release the wrongdoer from responsibility. In Mark v. Hudson River Bridge Co., 105 N. Y. 28 , 39, 8 N. E. 246 , the court say:
“The testimony clearly showed some substantial damages, to which the • plaintiffs were unquestionably entitled, if the issues as to negligence were - decided in their favor; and a failure to distinguish as to all the items, be
tween damages of that character and those to which the plaintiffs were not entitled, could not be visited on the plaintiff, under the circumstances, by •confining their recovery to mere nominal damages.”
What the law requires is the best and most certain .proof that it is possible to supply, and such proof we have in this case. It is not suggested that there is any other proof available that the plaintiff did not furnish. The evidence is substantially undisputed that during the years that, this nuisance was maintained this plaintiff sustained serious damage. His business was seriously interfered with; his receipts declined to much less than half what they had been before; his obligation to pay rent continued; and it having been adjudged that the defendants were wrongdoers, and illegally caused this damage, they should not escape liability because, from the nature of the injury that they caused, it is difficult to arrive at an exact computation of the amount of damage.
There are exceptions to evidence scattered through this record, but none of them, I think, are of sufficient importance to justify us in setting aside the report of the referee. He most carefully considered the question, and, after a careful examination of all the testimony, I am satisfied that the result reached by him does no injustice to the defendants.
It follows that the appeals from the intermediate orders should be dismissed, and the judgment affirmed, with costs. All concur.
Cases cited
- Bates v. Holbrook 67 App. Div. 25 at 73 p. 674
- Wakeman v. Wheeler & Wilson Manufacturing Co. 101 N. Y. 205 p. 679
- Schile v. Brokhahus 80 N. Y. 614 p. 680
- Snow v. Pulitzer 142 N. Y. 263 p. 680
- Reisert v. City of New York 174 N. Y. 196 p. 680
- Jutte v. Hughes 67 N. Y. 267 p. 682