Damages Incident to a Breach of Maintenance Obligation by the Defense Plant Corporation

Reference is made to the letter of April 9, 1954, requesting a decision concerning the measure of damages incident to the reported breach of the maintenance obligation by the Defense Plant Corporation and its successor and assignee, the Reconstruction Finance Corporation, under a lease dated March 2, 1943, for certain land and improvement at the New York Municipal Airport. Specifically, it was requested to be advised whether, in determining the amount of the Government's liability for the aforesaid breach and the failure to return to return the premises in good condition, the value of the realty prior to the construction of the permanent improvements thereon should be used as a basis for determining the difference between the present appraised value and the value at the time of entry upon the premises or whether for such determination the computation should be based on the value of the property after completion of the improvements by the Government.