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Almota Farmers Elevator & Warehouse Co. v. United States

United States Supreme Court
409 U.S. 470 (1973)


Almota Farmers Elevator & Warehouse Company (Almota) (defendant) conducted grain-elevator operations on land adjacent to the tracks of the Oregon-Washington Railroad & Navigation Company (the railroad). Almota occupied the land under a series of successive leases from the railroad. Almota made a number of improvements to the land, such as erecting grain-elevator facilities. The United States government (plaintiff) initiated an eminent-domain proceeding to acquire the land Almota was leasing. At that time, there were seven and one-half years remaining on Almota’s lease. Almota argued that the valuation of the improvements should take into account the possibility that the lease might have been renewed. The district court ruled in favor of Almota. The court of appeals reversed, finding that a tenant’s expectancy in a lease renewal was not a compensable legal interest and could not be included in the valuation of improvements. Almota appealed to the United States Supreme Court.

Rule of Law


Holding and Reasoning (Stewart, J.)

Dissent (Rehnquist, J.)

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