Big Rivers Electric Corp. v. Barnes

147 S.W.3d 753, 2004 Ky. App. LEXIS 85, 2004 WL 690488
CourtCourt of Appeals of Kentucky
DecidedApril 2, 2004
Docket2002-CA-001164-MR
StatusPublished
Cited by2 cases

This text of 147 S.W.3d 753 (Big Rivers Electric Corp. v. Barnes) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Big Rivers Electric Corp. v. Barnes, 147 S.W.3d 753, 2004 Ky. App. LEXIS 85, 2004 WL 690488 (Ky. Ct. App. 2004).

Opinion

OPINION

SCHRODER, Judge.

The Big Rivers Electric Corporation (Big Rivers) appeals a jury award of damages for the acquisition of an electric transmission line easement, and for damages awarded for a temporary trespass where the after-built survey disclosed an unauthorized tower and lines strung outside the easement. The jury’s award of damages for the taking properly considered the coal reserves. However, the repeated injection of the third-party offer to purchase was so prejudicial as to warrant a mistrial. On retrial, the missing owners of the mineral estate must be addressed. We also disagree with allowing the jury to award separate trespass damages where the condemnation suit was amended to include the land taken through inverse condemnation. We therefore affirm in part, reverse in part, and remand.

Lyman P. Barnes and Joyce M. Barnes (the Barneses) purchased a 218-acre farm along the Green River in Ohio County (adjacent to Muhlenburg County) in 1955 (and eventually purchased nine-sixteenths of the mineral estate). Big Rivers sought an easement 100 feet wide and 8,213.67 feet long across the farm for the erection of three electrical towers and the stringing of wires to pass through the farm (next to and parallel to a similar KU easement). Big Rivers’s easement contained 7.275 acres.

After receiving an interlocutory ruling of their right to condemn, Big Rivers proceeded to build the towers and string the electrical lines. A survey made after the improvements were made revealed a fourth tower had been erected (originally designated for adjacent property), and some guy wires were erected outside the original easement area. Big Rivers was granted leave to amend its condemnation petition to include the additional structure *756 and the additional area. The interlocutory judgment was amended accordingly. A jury trial was held to determine the trespass damages for the taking and damages for the 26 months between the time the fourth structure was built and the entry of the amended interlocutory judgment. The jury awarded $67,000.00 for the taking of the (amended) easement and $138,000.00 for the 26-month trespass.

On appeal, Big Rivers argues that it was error to allow the Barneses to recover damages for the temporary trespass. We agree. Even though Big Rivers took the land before it was allowed or authorized by the interlocutory judgment, Witbeck v. Big Rivers Rural Electric Cooperative Corp., Ky., 412 S.W.2d 265 (1967), overruled on other grounds by Commonwealth, Dept. of Highways v. Stephens Estate, Ky., 502 S.W.2d 71, 73 (1973), holds the exclusive remedy of the landowner is:

[t]hat where an entity possessing the power of eminent domain prematurely enters upon the premises of the eon-demnee, the exclusive remedy of the landowners is based on Kentucky Constitution, Section 242, which provides that “just compensation for property taken” shall be made. This remedy is frequently referred to as “reverse condemnation.” The measure of damages is the same as in condemnation cases.

Witbeck, 412 S.W.2d at 269 (citations omitted). The Barneses try to distinguish Wit-beck from the case sub judice on the fact that in Witbeck, the entry was only two or three days early whereas in this case the entry was 26 months earlier. We see no such distinction and the Barneses cite no authority for a different legal result. The fact important to us is that the land was eventually taken through condemnation, and not merely temporarily trespassed upon as in an off right-of-way case. 1

Because the Barneses are entitled to a single award based on the diminution in market value, it is necessary to reverse and remand the award for trespass ($138,-000.00). Also, Big Rivers’s arguments concerning the temporary trespass (B, C, and D) become moot and there is no further need to discuss temporary trespass damages.

The remaining issues have to do with the jury verdict of $67,000.00 for the taking. KRS 416.660(1) sets the standard for damages in condemnation cases as “the difference between the fair market value of the entire tract ... immediately before the taking and the fair market value of the remainder thereof immediately after the taking....” From Commonwealth, Dept. of Highways v. Tyree, Ky., 365 S.W.2d 472, 477 (1963), we learn that “[t]he proper measure of damages, where part of a tract of land is taken by condemnation, is the difference in the fair market value of the tract before and after the taking.” Where the land contains minerals, “the quality and quantity of the minerals may be properly considered as affecting the market value of the land but they cannot be valued separately.” Gulf Interstate Gas Co. v. Garvin, Ky., 368 S.W.2d 309, 311 (1963). Big Rivers refers to this as “price tagging”. See Commonwealth, Dept. of Highways v. Mann, Ky., 387 S.W.2d 848, 850 (1965), which held the testimony of the difference in market value should be stricken where a witness arrives at an “after” value by itemizing various damage factors and subtracting the total from the “before” figure. (Price tagging formula.) Price tagging, figuring “the worth of the coal and timber in determining the values of the land” was disapproved and the expert’s testimony stricken in Common *757 wealth, Dept. of Highways v. Davis, Ky., 400 S.W.2d 515, 516 (1966). See also, Commonwealth, Dept. of Highways v. Creason, Ky., 402 S.W.2d 426, 427 (1966), on the disapproval of price tagging of trees, springs, barns, etc. See also, Witbeck, Ky., 412 S.W.2d at 268.

On appeal, Big Rivers argues that the court erred in allowing a witness, Mr. Pritchett, to testify to before and after values because his values: were based upon the value of the minerals in place (coal seams); ignored sales of similar property; and used an income approach that valued only the mineral estate and price tagged it. Big Rivers is partially correct. Tyree recognized that property values are not susceptible to exact measurements so expert opinions may be used. Tyree made a distinction between the opinion evidence and specific determinable facts relied on to formulate an opinion as to the difference in the market value before the taking and after the taking. For example, in the case sub judice, the amount of coal reserves is a determinable fact whereas the feasibility of mining said coal is an opinion. The difficulty in condemnation cases is “to distinguish clearly between competency

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Bluebook (online)
147 S.W.3d 753, 2004 Ky. App. LEXIS 85, 2004 WL 690488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/big-rivers-electric-corp-v-barnes-kyctapp-2004.