Board of Supervisors of Louisiana State University v. Boudreaux's Tire & Auto Repair, L.L.C.

133 So. 3d 1262, 2013 La.App. 4 Cir. 0444, 2014 WL 888899, 2014 La. App. Unpub. LEXIS 130
CourtLouisiana Court of Appeal
DecidedMarch 5, 2014
DocketNo. 2013-CA-0444
StatusPublished
Cited by9 cases

This text of 133 So. 3d 1262 (Board of Supervisors of Louisiana State University v. Boudreaux's Tire & Auto Repair, 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.

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Board of Supervisors of Louisiana State University v. Boudreaux's Tire & Auto Repair, L.L.C., 133 So. 3d 1262, 2013 La.App. 4 Cir. 0444, 2014 WL 888899, 2014 La. App. Unpub. LEXIS 130 (La. Ct. App. 2014).

Opinion

SANDRA CABRINA JENKINS, Judge.

Appellant, the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College (the Board), appeals from two separate judgments of the Orleans Parish Civil District Court. Both appeals relate to the same expropriation action. The first appeal concerns the $293,242.00 judgment of the trial court, effectively awarding Appellee/Respondent, Boudreaux’s Tire & Auto Repair, L.L.C., (Boudreaux’s) $978,600.00 in just compensation for expropriated property (“the subject property”). In connection with that appeal, the Board argues that the trial court erred by excluding all evidence of the subject property’s 2004 purchase price. Boudreaux’s filed an answer praying for attorney fees in connection with that appeal.

The Board separately appeals the trial court judgment awarding attorney fees, costs, and expenses to Boudreaux’s.

For the reasons discussed below, we affirm the judgment of the trial court as to the exclusion of evidence of the purchase price. We remand for the limited purpose of fixing costs on appeal and insuring that only work performed on issues tried below were compensated by the trial court.

BACKGROUND FACTS AND PROCEDURE

This case involves the expropriation of the subject property, located at 2301-2309 Tulane Avenue, New Orleans, Louisiana. Testimony at trial indicated Boudreaux’s owners acquired the property in 2004 and [1266]*1266began to operate their 20,400 square foot automotive repair service and tire shop from that location. Boudreaux’s substantially renovated the property’s preexisting structure, replacing the building’s roof, adding 15 bay doors, and expanding the building’s office and reception space.

On August 26, 2010, the Board filed its Petition for Expropriation of the land (and improvements) at 2301-2309 Tulane Avenue, stating that the property was necessary for the construction of a new United States Department of Veterans Affairs Medical Center.1 Along with its petition, the Board deposited $685,358.00 in just compensation into the court registry and identified Boudreaux’s as the owner of the subject property. Boudreaux’s filed an Answer and Reconventional Demand alleging that the Board had not furnished just compensation.

Following extensive stipulations and pre-trial motions, the parties began a three-day jury trial on November 13, 2012. The trial focused exclusively on the issue of just compensation due to Boudreaux’s under La. Const. art. I, § 4(B)(5).2 Testimony consisted of the opinions of three expert appraisers3 and one expert architect, as well as lay testimony of Allen Boudreaux, one of the business’s owners.

On November 15, 2012, the jury returned a verdict of $978,600.00 in just compensation due to Boudreaux’s. Noting that the Board has already deposited $685,358.00 into the court registry, the trial court entered judgment awarding Bou-dreaux’s the balance of the jury’s award ($292,242.00) plus 5 percent annual interest. The Board timely appealed this judgment and Boudreaux’s answered the appeal, seeking reasonable attorney fees in connection with this appeal.

Following judgment on the question of just compensation, Boudreaux’s moved for the trial court to award attorney fees and costs (including expert fees) consistent with La. R.S. 19:8(A)(3).4 After lengthy briefing and an evidentiary hearing, on January 16, 2013, the trial court rendered judgment on fees and costs, awarding Boudreaux’s $109,021.73 in attorney fees, $31,275.00 in expert witness fees, and costs [1267]*1267of $11,758.77. The Board filed a second timely devolutive appeal from this judgment.

DISCUSSION

As mentioned above, the Board has appealed from both the judgment on compensation and the judgment on fees. We address each of those appeals — and the relevant assignments of error — in turn.

I: The Judgment on Compensation

“Property owners in expropriation cases are entitled to receive compensation for the full extent of their loss as provided under the Louisiana Constitution of 1974.” Orleans Parish Sch. Bd. v. State, Div. of Admin., 12-1312, p. 4 (La.App. 4 Cir. 2/27/13) — So.Sd -, 2013 WL 772520, writ denied, 13-0683 (La.5/3/13), 113 So.3d 216. Article I § 4 of the Louisiana Constitution of 1974 provides that the full extent of an owner’s loss “shall include, but not be limited to, the appraised value of the property and all costs of relocation, inconvenience, and any other damages actually incurred because of the expropriation.” Such loss is generally assessed in terms of a property’s fair market value. See Orleans Parish Sch. Bd., 12-1312, p. 4, — So.3d -.

A property’s fair market value is determined in light of its highest and best use and is calculated by one of three methods: the market/sales approach; the cost approach; and/or the income approach. Id. at p. 5, — So.3d at - (citing Exxon Pipeline Co. v. Hill, 00-2535, p. 8 (La.5/15/01), 788 So.2d 1154, 1160). The market/sales approach establishes a property’s value in reference to “the prices paid in actual market transactions, i.e., comparable sales.” Exxon Pipeline Co., 00-2535, p. 13 (La.5/15/01), 788 So.2d at 1162. The Louisiana Supreme Court has noted that “in most cases,” the market/sales approach is “likely to produce more accurate results” than its competing approaches. Id., 00-2535, p. 13, 788 So.2d at 1163. The parties’ expert appraisers exclusively relied on this approach when valuing the property in this case.

A: The trial court did not abuse its discretion in excluding evidence of the subject property’s 2004 purchase price.5

The Board contends that the trial court abused its discretion when it granted Boudreaux’s Motion in Limine to exclude evidence regarding the 2004 purchase price Boudreaux’s paid for the subject property (shown by an Act of Cash Sale).6 The Board’s contention lacks merit.

[1268]*1268A trial court’s evidentiary rulings are reviewed for an abuse of discretion. See Brooks v. Reimonenq, 10-0296, p. 4 (La.App. 4 Cir. 7/21/10), 44 So.3d 824, 827 (citing Stewart v. Ice, 07-0871, p. 7 (La.App. 4 Cir. 4/9/08), 982 So.2d 928, 933). Of course, “[a] district court by definition abuses its discretion when it makes an error of law.” State v. Lee, 11-0398, p. 6 (La.App. 4 Cir. 1/30/12), 83 So.3d 1191, 1196 (quoting Koon v. United States, 518 U.S. 81, 100, 116 S.Ct. 2035, 135 L.Ed.2d 392 (1996)).

Boudreaux’s purchased the subject property in 2004 for $275,000.00. In support of its argument that the 2004 purchase price was relevant evidence and should have been admitted into evidence, the Board cites State, Department of Highways v. Addison, 136 So.2d 545 (La.Ct.App.1961). Addison involves the State’s appeal from a putatively excessive compensation award on grounds that trial court erroneously permitted the expropriate to introduce evidence of the purchase price paid for the expropriated property. Id. at 546-47.

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133 So. 3d 1262, 2013 La.App. 4 Cir. 0444, 2014 WL 888899, 2014 La. App. Unpub. LEXIS 130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-supervisors-of-louisiana-state-university-v-boudreauxs-tire-lactapp-2014.