American Tel. & Tel. Co. v. EAST AND REALTY CO.

66 So. 2d 327, 223 La. 532, 1953 La. LEXIS 1329
Supreme Court of Louisiana·Decided June 1, 1953·No. 40758·Published·Cited by 9 cases

Opinion

FOURNET, Chief Justice.

This expropriation suit, instituted by the American Telephone and Telegraph Company to acquire a right-of-way and servitude covering a strip of land over various contiguous tracts owned by the defendants, East End Realty Co., Inc., Realty Holding Company, Inc., and R. E. E. de Montluzin Co., Inc. (real estate development corporations), the said strip measuring 16% feet in width and somewhat less than 10 miles in length and lying along the public highway formed in part by U. S. Highway 90 and in part by the' Chef Menteur Highway, for the purpose of constructing, maintaining- and operating its communication system (in this instance, the coaxial cable), resulted in. judgment in the district court for plaintiff, as prayed, conditioned upon payment of compensation to the defendants of 2%0 per square foot for each square foot of• area comprised in the right-of-way (a total' of 784,864 sq. ft.), or the sum of $19,621.60. Devolutive appeals from that judgment were perfected by both plaintiff and defendants. Pursuant to stipulation of counsel in which the defendants agreed not to appeal suspensively, the full amount of the award was deposited in the Registry of Court and fhe issue on appeal was restricted to the quantum of the award.

The plaintiff’s contentions, in sum-, mary, are that the placing of the cable in such close proximity to the concrete pavement is merely the use of the highway right-of-way for communication purposes, one .of its intended uses, and does not constitute the imposition of an additional use or servitude, so that no compensation is due; in the alternative, should the Court decide that such use is an additional servitude, they seek to have the award reduced on the ground that it is excessive and unreasonable.

On the other hand, the defendants claim that the award of the lower court is inadequate, contending that (1) they are entitled to the fair market value of the property, which they fix at 200 per square foot — to be applied to a total area of 1,-022,701 square feet (resulting in an award of $204,540.20), instead of 784,864 square feet, because of the possibility that the edge of plaintiff’s right-of-way, in its location with respect to the outer edge of the concrete pavement, leaves a 5 foot “lost” strip' between the highway pavement and the plaintiff’s servitude; (2) they should recover for damages to the abutting property, which amount should be assessed by the Court..

The plaintiff’s contention that it owes nothing for the use of the property because, o.f its location along the highway, and that it has done all that is required of it under the laws of this State by obtaining a certificate. of convenience and necessity from the Director of State Highways, is clearly without merit. .The authorities .re-”. *537 lied on, being pronouncements of courts of some of the other States, controlled by their statutory law or by rules of real property tenure foreign to our legal system, are not pertinent here. Even if it be conceded that a right-of-way had been previously granted to the Louisiana Highway Commission as to the entire length of the road (which is disputed as to a part), under the provisions of the LSA-Civil Code “he who has the servitude has no right of ownership in the part, but only the right of using it”, and “the soil of public roads belongs to the owner of the land on which they are made”. Article 658. The Constitution of Louisiana guarantees that “private property shall not be taken or damaged except for public purposes and after just and adequate compensation is paid.” Art. 1, § 2.

We think that the plaintiff, by instituting these proceedings, demonstrated that it had little faith in the phase of its argument asserting that no compensation is due. While counsel have not abandoned their position in this respect, the sum and substance of their serious argument is that the only questions to be decided are whether the award should be increased, decreased, or maintained.

The law is well settled that the amount due for private property expropriated for public purposes is its market value when taken, that is, the fair value between one who wants to purchase and one who wants to sell, under'ordinary and usual circumstances, plus ány damage caused by such taking, which includes damage to abutting property. La.Const.,1 Art. 1, § 2; supra; see Louisiana Highway Commission v. Israel, 205 La. 669, 17 So.2d 914, and numerous cases cited therein.

We are in accord with the trial judge’s views, expressed in his written opinion, that the record is barren of any evidence as to the market value for the right expropriated, with the exception of plaintiff’s evidence that it customarily pays $1 per rod for similar servitudes, and two Right-of-Way Agreements executed between two of the three defendants herein and the New Orleans Public Service, Inc., over the same contiguous tracts comprising the area on which the plaintiff’s servitude lies. One of these, confected in 1942, covers a strip of unencumbered land conforming to the shore line of Lake Pontchartrain, having a width of 120 feet and extending approximately 7 miles in length, for the construction, maintenance and operation of a 110 KV (overhead) Transmission Line, the consideration being $15,000 — which is said, upon computation, to represent a price of 4/10^ per square foot. The other, dated 1943, for a similar purpose but covering a different route, applies to a strip 80 feet in width, extending eastward, then southward, over defendants’ property, for a recited consideration of $12,075 — which is said, upon calculation, to represent a pay *539 ment of 2f, per square foot. Both documents contain the clause that “Grantors, their successors and assigns, do hereby surrender and waive all claims for damages arising from the construction, maintenance and operation of said 110 KV Transmission Line except for negligence as herein provided.”

There is, additionally, testimony offered by Mr. de Montluzin, the President of all three defendant corporations, who estimated the value at 20‡ per square foot, but this is an arbitrary figure, -based on no facts. He also claims that the presence of the cable constitutes a hazard and will materially increase the costs of laying necessary utilities, such as water, gas and sewer mains, when the property is subdivided and developed — though no proof was offered in support.

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American Tel. & Tel. Co. v. EAST AND REALTY CO., 66 So. 2d 327, 223 La. 532, 1953 La. LEXIS 1329 (La. 1953).

66 So. 2d 327 (American Tel. & Tel. Co. v. EAST AND REALTY CO.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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