Board of Regents of University of Tex. Sys. v. Puett

519 S.W.2d 667, 1975 Tex. App. LEXIS 2431
CourtCourt of Appeals of Texas
DecidedFebruary 26, 1975
Docket12122
StatusPublished
Cited by25 cases

This text of 519 S.W.2d 667 (Board of Regents of University of Tex. Sys. v. Puett) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Regents of University of Tex. Sys. v. Puett, 519 S.W.2d 667, 1975 Tex. App. LEXIS 2431 (Tex. Ct. App. 1975).

Opinion

O’QUINN, Justice.

The Board of Regents of the University of Texas brought this action in eminent domain to condemn a town tract on Wichita Street in Austin, owned by Nelson Puett, Jr., immediately north of the main campus.

Puett filed his objections to the award of the special commissioners in the county court at law, where Joe Lundell later filed an intervention claiming that on the date of taking he was the owner of a valid leasehold interest in the property.

Upon hearing, the trial court entered judgment for Puett, based upon the jury’s finding that the market value of the property was $173,000, or $9.25 per square foot, and instructed a verdict for Lundell in the sum of $3,692.45.

The Board of Regents has appealed and asserts error as to both awards by the trial court. The Board brings thirty-seven points of error, in the main directed to admission of testimony offered by Puett to show comparable sales; to the trial court’s refusal to permit examination of Puett and an expert witness regarding an earlier sale to Puett of property in the same block in which the condemned lot is located; and to refusal of the court to permit examination of Puett concerning the option price under which he acquired the subject property. The Board also claims error in permitting Lundell to intervene, after not being a party to the administrative proceedings before the special commissioners.

We will sustain points under which error is claimed because testimony relating to a prior sale to Puett of nearby property was excluded and points directed to the intervention of Lundell. We will reverse the judgment of the trial court and remand the cause for new trial in conformity with this opinion.

The parties are agreed that the date of taking was September 19, 1969, and that at that time the highest and best use of the property was for some type of housing for students, such as a dormitory, or for a fraternity or sorority house. On the date of taking the property was being used as an unpaved parking lot.

*669 Both the condemnor and the landowner introduced evidence of value through the testimony of expert witnesses. The expert witness in behalf of the Board testified that in his opinion the Puett property was worth $121,680, or $6.50 per square foot. The witness’ opinion was based on comparable free market sales with prices ranging from $2.56 to $6.91 per square foot.

Two witnesses, qualified as experts, testified in behalf of Puett. One witness testified that the fair market value of the property was $196,560 or $10.50 per square foot. His opinion was based on two groups of sales, one group of four sales on San Antonio Street, east of the main campus, which for convenience is referred to as The Castilian sales, and the other group being four sales south of the campus, near the Dobie Center. Puett’s second witness based his opinion on the same sales used by the first witness, as stated in testimony given out of the hearing of the jury, and on his general knowledge of the area, as he testified before the jury.

Under points twenty-five and twenty-six the Board claims error of the trial court in not permitting the Board on cross examination of an expert witness for Puett and on cross examination of Puett to make inquiry concerning a sale in August of 1966 by Robert L. Hunter and others to Puett of property located at 2612 Wichita Street, removed by only one lot from the subject property.

When he acquired the property in 1966 Puett paid $27,500, or $4.40 per square foot. At the time of purchase an old house, then rented as a rooming house to four or five male students, was on the lot and the house contained some of the furniture which was included in the sale. Puett bought the property with the thought of tearing down the improvements later, acquiring adjoining land, and constructing a housing project designed for occupancy by girls attending the University. Use of the improvements as a rooming house continued about one year and thereafter the house and lot were acquired by the University.

When the Board sought to question the witness and Puett on cross examination, objection was made on the grounds (1) that the property was improved, unlike the tract under condemnation, and (2) all property in that area was under threat of condemnation. The trial court ruled that questioning based on that sale would not be permitted.

At the time Puett purchased the property he was unaware of any threat of condemnation in that area and had no reason to believe the property would be the subject of condemnation any time in the foreseeable future. The record does not disclose whether the sellers knew of any threat of condemnation. There was no showing that a threat of condemnation affected the sale price of the tract Puett bought in 1966.

The Board contends that it was proper on cross examination to question the expert witness, and Puett himself, regarding the 1966 sale to Puett to test the credibility of the witnesses or to lay a predicate for impeachment. We sustain this contention.

Puett’s first expert witness testified that property located within one block of the perimeter of the University campus sold for a premium and that, by reason of this situation, only sales within this favored outer periphery could be used as a guide to determine the market value of the property being taken in condemnation, which also lay within this premium band. In keeping with his testimony, the expert for Puett testified to sales in the area of The Castili-an, within one block west of the campus, and in the neighborhood of the Dobie Center, within one block south of the campus, on the theory that such sales were of property comparable to the property taken.

The Board contends that the sales in the neighborhood of the Dobie Center and in *670 the area of The Castilian, with values ranging as high as $11.77 per square foot, “were the result of forced purchases, more favorable zoning, proximity to high pedestrian and vehicular count areas,” and did not result by reason of being within one block of the campus.

The Board sought by cross examination of Puett and his expert witness to show the fallacy of the “magic ring” theory, since both the property taken and the property bought by Puett in 1966 were within one block of the campus on the north side, yet the purchase in 1966, only three years prior to the date of taking, was at a rate of only $4.40 per square foot, or a total price of $27,500, including land and improvements.

The record shows that the trial court excluded the questioning of the witnesses concerning the 1966 purchase because that property was improved, whereas the land taken was unimproved. Denied the right to cross examine the witnesses, the Board argues it was unable to demonstrate to the jury that the expert and the landowner were in the inconsistent position of saying that, even within the premium periphery of the campus, an unimproved tract was worth $10.50 per square foot, more per square foot than an improved tract located in the same block which the landowner, three years earlier, had bought for $4.40 per square foot.

In this situation we are not dealing with the rule that prices paid for improved lots and the values assigned in recent sales are not admissible to show value of unimproved property being taken because such sales do not meet the test of similarity.

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Bluebook (online)
519 S.W.2d 667, 1975 Tex. App. LEXIS 2431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-regents-of-university-of-tex-sys-v-puett-texapp-1975.