Board of Supervisors of Louisiana State University & Agricultural & Mechanical College v. 1732 Canal Street, L.L.C.

133 So. 3d 109, 2013 La.App. 4 Cir. 0976, 2014 WL 606312, 2014 La. App. LEXIS 113
CourtLouisiana Court of Appeal
DecidedJanuary 15, 2014
DocketNo. 2013-CA-0976
StatusPublished
Cited by14 cases

This text of 133 So. 3d 109 (Board of Supervisors of Louisiana State University & Agricultural & Mechanical College v. 1732 Canal Street, L.L.C.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Supervisors of Louisiana State University & Agricultural & Mechanical College v. 1732 Canal Street, L.L.C., 133 So. 3d 109, 2013 La.App. 4 Cir. 0976, 2014 WL 606312, 2014 La. App. LEXIS 113 (La. Ct. App. 2014).

Opinion

ROSEMARY LEDET, Judge.

I,This is the second appeal in this expropriation case. The plaintiff — the expropriating authority — is the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College (the “Board”). The defendant — the property owner — is 1732 Canal Street, L.L.C. (“1732 Canal”). In the first appeal, the Board challenged the jury’s award of $9,566,640.00 to 1732 Canal as the total compensation due for the expropriated property; this court affirmed. Board of Sup’rs of Louisiana State University and Agr. and Mechanical College v. 1732 Canal Street, L.L.C, 12-1370 (La.App. 4 Cir. 6/19/13), — So.3d-, 2013 WL 3078512 (“7732 Canal I”).

In the instant appeal, the Board challenges the post-trial award to 1732 Canal of expert fees and costs; the Board does not challenge the post-trial award of attorneys’ fees in the amount of 18% of the additional just compensation plus interest. Answering the appeal, 1732 Canal seeks an increase in attorneys’ fees.1 For the reasons that follow, we affirm the awards of expert fees and costs; and we |2remand to the trial court for a determination of the additional award of attorneys’ fees owed for post-judgment work on appeal.

I.

On October 18, 2010, the Board filed a petition for expropriation against 1732 Canal in its capacity as owner of the property located at 1732 Canal Street in New Orleans, Louisiana (the “Property”). The purpose of the expropriation was to facilitate the construction of the new University Medical Center (also known as the Academic Medical Center). According to the petition, the improvements on the Proper[113]*113ty included a commercial building — a 17-floor, 618,000 square feet building with an attached 250-car parking garage. When it was built in 1952, the building was one of the largest apartment buildings in the South, having 1,036 apartment units on the upper floors, and meeting rooms and retail space on the lower floors. At the time of the trial, the Board was planning to implode the building.

Contemporaneous with the filing of the expropriation petition, the Board deposited $4,500,000.00 into the registry of the court as just compensation due to 1732 Canal to compensate it to the full extent of its loss. In response, 1732 Canal filed an answer and a reconventional demand, alleging that the Board had “not deposited the just and fair compensation due defendant.”

In its petition, the Board requested a jury trial. From April 30, 2012, to May 3, 2012, a four-day jury trial was held. As a result of stipulations,2 the sole issue |,.¡presented to the jury was the amount of just compensation due to 1732 Canal. At trial, eight witnesses testified — four on the Board’s behalf and four on 1732 Canal’s behalf. 1732 Canal’s four witnesses (all experts) were as follows: (1) Heyward M. Cantrell, of Cantrell Real Estate, Inc., who was qualified as an expert in the area of real estate appraising; (2) Jimmie Thorns, Jr., of Thorns Consulting, who was qualified as an expert real estate appraiser; (3) John C. Williams, of John C. Williams Architects, L.L.C., who was qualified as an expert in the areas of architecture, availability of tax credits, and adaptive reuse; and (4) James Blazek, Jr., of Leaaf Environmental, L.L.C., who was qualified as an expert in asbestos, mold, lead identification, abatement, and management.

The testimony of 1732 Canal’s two appraisers is summarized in this court’s opinion in 1732 Canal I as follows:

Defendant expert Heyward Cantrell testified that the highest and best use of the property was for adaptive re-use and that the building was suitable for multi-use, including apartments, senior living or assisted facilities, medical student housing, and other residential or medical related purposes. Based on a comparable sales analysis for the land, Mr. Cantrell asserted that, based on a land value of $45.00 per square foot, the land value of the property was $3,690,000.00. Mr. Cantrell valued the improvements on the property using the cost approach, beginning with the replacement costs for the shell of the building by John Williams (the defendant’s expert in the area of architecture, availability of tax credits, and adaptive re-use), applying standard indirect costs and depreciation analysis, as well as cleaning costs estimated by Mr. Williams and asbestos remediation costs [estimated by James Blazek, Jr.3], [114]*114resulting in a depreciated improvement valued of $18,060,000.00. Thus, after adding the value of the land to the improvements, Ms. Cantrell opined that the October 2010 market value of the property and improvements was $21,750,000.00.
| ¿Defendant expert Jimmie Thorns testified that the highest and best use of the property was for future development of office, condo, retail, or commercial mixed use developments but conceded that, as the building was extremely well constructed, it was of the type adaptively re-used “all the time in New Orleans.” Using comparable vacant land sales prices ranging from $46.95 to $98.83 per square foot and giving greater weight to the price per square foot of a property two blocks from the defendant property in this case, Mr. Thorns estimated that the defendant land value was (based on $58.00 per square foot) $4,737,000.00. He used a separate comparative sales analysis of similar properties acquired for adaptive re-use purposes to determine that the total improvement value was $16,703,000.00, thus resulting in a total just compensation due the landowner of $21,460,000.00. However, Mr. Thorns acknowledged that he failed to include into his calculations any value for the approximately 100,000 square feet of parking garage.

1732 Canal Street I, 12-1370 at pp. 7-8, — So.3d at-.

The jury returned a verdict of $9,566,640.00 as the total compensation due for the expropriated property. On May 10, 2012, the trial court entered judgment in accord with the jury’s verdict. Subtracting the amount deposited ($4,500,-000.00) from the jury’s verdict ($9,566,-640.00), the trial court awarded 1732 Canal an additional sum of $5,066,640.00. In its judgment, the trial court also awarded “any attorney’s fees, expert fees, and costs to be fixed upon hearing of the post-trial motion to be filed promptly by 1732 Canal Street, L.L.C.”4

On May 25, 2012, 1732 Canal filed a Motion for Award of Attorneys’ Fees, Expert Fees, and Costs (the “Motion”). In the Motion, 1732 Canal requested attorneys’ fees in the full amount it paid under a contingency fee contract of 33 1/3% of the additional just compensation, and costs and expert fees in the actual | r,amount it incurred. It also requested a special setting, noting the probable need to present evidence. Although the Motion was set for hearing on August 2, 2012, the parties jointly agreed, due to a scheduling conflict, to submit the Motion on the briefs. The trial court allowed the parties to submit supplemental memoranda.

In support of the Motion, 1732 Canal attached five affidavits — one from its lead counsel, Randall Smith, and one from each of its four testifying expert witnesses. In his affidavit, Mr. Smith attested that 1732 Canal incurred a total of $391,998.00 taxable expert fees and costs in prosecuting its claims to judgment by jury verdict. Mr. Smith also attested that 1732 Canal’s attorneys “anticipate incurring significant [115]*115additional fee hours during the post-trial process and any appellate process.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bd. of Supervisors of La. State Univ. v. Gerson
260 So. 3d 634 (Louisiana Court of Appeal, 2018)
Fie, LLC v. New Jax Condo Ass'n, Inc.
241 So. 3d 372 (Louisiana Court of Appeal, 2018)
Gardiner Farms, LLC v. Advanced Agric., Inc.
258 So. 3d 769 (Louisiana Court of Appeal, 2017)
Two Canal Street Investors, Inc. v. New Orleans Building Corp.
202 So. 3d 1003 (Louisiana Court of Appeal, 2016)
Board of Supervisors v. Dixie Brewing Co.
200 So. 3d 977 (Louisiana Court of Appeal, 2016)
Bayou Fleet, Inc. v. Bollinger Shipyards, Inc.
197 So. 3d 797 (Louisiana Court of Appeal, 2016)
FRAZIER VS. DRAKE
2015 NV 64 (Nevada Supreme Court, 2015)
Frazier v. Drake
Court of Appeals of Nevada, 2015
Frazier v. Drake
2015 NV 64 (Nevada Supreme Court, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
133 So. 3d 109, 2013 La.App. 4 Cir. 0976, 2014 WL 606312, 2014 La. App. LEXIS 113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-supervisors-of-louisiana-state-university-agricultural-lactapp-2014.