Ark. State Highway Comm. v. Kennedy

350 S.W.2d 526, 234 Ark. 89, 1961 Ark. LEXIS 536
Supreme Court of Arkansas·Decided October 30, 1961·No. 5-2357·Published·Cited by 6 cases

Opinion

Jim Johnson, Associate Justice.

This is an eminent domain action. Appellant, Arkansas State Highway Commission, brought suit to acquire an easement across land owned by Mrs. S. E. (Eliza) Kennedy, appellee. This land was part of a larger tract of 2.6 acres upon which Mrs. Kennedy’s residence was located. Appellant deposited $650 as estimated just compensation.for the tract taken. Appellee claimed severance damages to the entire property. The jury returned a verdict in the amount of $2,500 for Mrs. Kennedy.

For reversal, appellant relies upon the following points:

1. The trial court committed reversible error in not striking all the testimony of O. E. Guinn.

2. The trial court committed reversible error in permitting the landowner’s attorney to tell the jury that they could in effect return a quotient verdict.

3. The trial court committed reversible error in not granting appellant’s motion for new trial based upon the ground that there was no substantial evidence to support the verdict of the jury.

STRIKING TESTIMONY

The testimony of O. E. Guinn which appellant complains of was obtained by it on cross examination and is as follows:

“A. Let me answer your question in this way. I had no previous knowledge of any land selling there and Mr. East came in my office and asked if I knew of any land being sold or had been sold there and I told him I did not, that Mr. Hinkle handled most of the land in that area, that I had no knowledge, that he could talk to Mr. -Pratt.. I didn’t arrive at any..figure while I was at Mr. Kennedy’s house. I did check into some land that had been taken by the Highway Department and that definitely did enter into my figure.
“Q. In other words, the figure that you got from checking what the Highway Department had paid for lands taken entered into your opinion as to market value of this property?
“A. No, sir. I would say the land of the property taken. I would definitely say yes.”

The trial court instructed the jury as follows:

“You are instructed to disregard that portion of the testimony of the witness O. E. Guinn which was based on settlement payment by the State Highway Commission on certain property owners in this vicinity. The Court has instructed you on the proper measure of damages; and insofar as damages are concerned, that is the rule you will follow in the determinations in this case.”

Notwithstanding the trial court’s instruction appellant argues that it was reversible error for the court to refuse to strike all of Mr. Guinn’s testimony. In support of its argument appellant cites Yonts v. Public Service Company of Arkansas, 179 Ark. 695, 17 S. W. 2d 886, wherein this Court said:

“It is next contended by appellant that the court erred in admitting testimony as to what other lands in the vicinity cost plaintiff. This testimony was not competent. This court and many others have held that it is proper to admit testimony as to the price at which other lands in the vicinity sold, together with testimony as to the similarity or dissimilarity of the lands, but that means sales in the ordinary course of business, and not sales to the service company who were seeking to condemn land for their dam and reservoir. Evidence showing what the company seeking to condemn has paid for other lands would probably be taken by the jury as indicating the market value, when, as a matter of fact, it does-not tend to show the market value of the land. A company condemning land might be willing to give more than it was worth and the owner of land might be willing to take less than it is worth, that is, less than its market value, rather than have a lawsuit. Moreover, when a company seeks to get land or condemn it for public uses, having the power to condemn, the land owner would probably come to some agreement with him rather than have a lawsuit, and this agreement would shoAV a compromise rather than the market value of the land.
“What the party condemning has paid for other property is incompetent. Such sales are not a fair criterion of the value, for the reason that they are in the nature of a compromise. They are affected by an element which does not enter into similar transactions made in the ordinary course of business. The one party may force a sale at such a price as may be fixed by the tribunal appointed by law. In most cases the same party must have the particular property, even if it costs more than its true value. The fear of one party or the other to take the risk of legal proceedings ordinarily results in the one party paying more or the other taking less than is considered to be the fair market value of the property. For these reasons, such sales do not seem to be competent evidence of the value in any case, whether in a proceeding by the same condemning party, or other cases.”

This Court has frequently said the jury is accorded great latitude in considering testimony relative to damages in such cases as here presented. Arkansas State Highway Commission v. Muswick Cigar & Beverage Co., 231 Ark. 265, 329 S. W. 2d 173; Arkansas State Highway Commission v. Speck, 230 Ark. 712, 324 S. W. 2d 796; City of Harrison v. Moss, 213 Ark. 721, 212 S. W. 2d 334; Arkansas State Highway Commission v. Jelks, 203 Ark. 878, 159 S. W. 2d 465. Even so, under the rule in the Yonts case, supra, we Avould have no choice but to reverse the instant case had appellant introduced evidence as to the figures of any evaluations by the State Highway Commission or the figures for which any land was acquired by it, but such is not the case here. As stated above, the answer by Mr. Guinn, of which complaint is made, was elicited on cross-examination; no figures were given but no doubt such figures would have been given if the cross-examiner had further pursued his line of questioning. The rule in the Yonts case, supra, is a prohibition against the introduction of certain testimony by the landowner and not a prohibition against the knowledge a witness may possess. Mr. Guinn said that he had checked the appraisals by the appellant in the area and this information was a part of his knowledge upon the subject of valuation; he candidly stated that such knowledge entered into his figure.' The record reveals that Mr. Guinn’s evaluation was the lowest introduced by appellee.

Mr. Guinn gave his opinion as to the value of the property before the taking, detailing the size of the tract, the location and square footage of the residence, the type of construction and the area and trees taken absolutely. He is in the real estate business at Newport, Jackson County, and has knowledge of market values in Jackson County. He was well qualified to give his opinion testimony as to the values before and after the taking. Therefore, we are impelled to the conclusion that the trial court committed no error in refusing to strike Mr. Guinn’s testimony.

QUOTIENT VERDICT

Appellant contends that the landowner’s attorney told the jury that they could in effect return a quotient verdict. The record in regard to this matter is as follows:

By Condemnor’s Attorney:

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Ark. State Highway Comm. v. Kennedy, 350 S.W.2d 526, 234 Ark. 89, 1961 Ark. LEXIS 536 (Ark. 1961).

350 S.W.2d 526 (Ark. State Highway Comm. v. Kennedy) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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