United States v. J. Cyril Johnson and Ray T. Lindsay

The United States appeals from a judgment entered upon a jury’s verdict fixing just compensation in a condemnation case. Taken in the condemnation action was the appellees’ interest in a 505 unit housing project known as Rafael Village, constructed upon 107 acres of land adjacent to Hamilton Air Force Base in Marin County, California, together with certain personal property. Also condemned by the government were two contracts, one with North Marin County Water District under which the cost of extending water service to the project was paid by the owners of the project, and was to be recovered by the owners at the rate of 25% of the revenue collected by the Water District from water sold at the project; the other was a sewage service agreement between the owners of the project and Hamilton Air Force Base for the disposal of the project’s sewage through treatment facilities located on the Air Force Base.

At the time of the taking, the property was owned in fee by Rafael Village, Inc., a corporation formed by the appellees Johnson and Lindsay, subject to a note and deed of trust, which will hereafter be referred to as a mortgage. During the course of the proceedings in the court…