Board of Transportation v. Terminal Warehouse Corp.

268 S.E.2d 180, 300 N.C. 700, 1980 N.C. LEXIS 1120
CourtSupreme Court of North Carolina
DecidedJuly 15, 1980
Docket57
StatusPublished
Cited by16 cases

This text of 268 S.E.2d 180 (Board of Transportation v. Terminal Warehouse Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Transportation v. Terminal Warehouse Corp., 268 S.E.2d 180, 300 N.C. 700, 1980 N.C. LEXIS 1120 (N.C. 1980).

Opinion

HUSKINS,'Justice.

Pursuant to its power of eminent domain, plaintiff initiated condemnation proceedings and took possession of a .16 acre strip of land from a 2.85 acre tract owned by defendant.

*703 The sole issue tried in this condemnation proceeding was the just compensation due defendant for the taking of its property for public use. The questions raised concern the elements of damages which should be considered in determining the amount of compensation to be paid the landowner.

Defendant’s property was taken pursuant to a project involving the relocation of U.S. Highway 74 and the construction of a portion of Interstate 40. Formerly, defendant’s property abutted on a roadway which was a part of U.S. 74, a major traffic artery. As a result of the project, this roadway was dead-ended and downgraded into a secondary road. Highway 74 was relocated to the west. Defendant must now travel approximately one mile by connector roads to reach relocated Highway 74. Defendant’s access to the roadway remains unchanged. Only the status of the roadway has changed.

Defendant contends the trial court erred in instructing the jury that defendant was not entitled to compensation for the decreased value of its land as a result of the dead-ending and reclassification of the roadway which abuts on its property.

Defendant concedes the enactment of valid traffic regulations which change traffic patterns and cause circuity of travel but do not foreclose reasonable access to the roadway from abutting property are proper exercises of the police power for which no compensation need be made. See Wofford v. Highway Commission, 263 N.C. 677, 140 S.E. 2d 376, cert. denied, 382 U.S. 822 (1965); Barnes v. Highway Commission, 257 N.C. 507, 126 S.E. 2d 732 (1962). Nor does defendant deny that the dead-ending and reclassification of the roadway on which its property abutted are valid traffic regulations for which no compensation is ordinarily required. Defendant does contend, however, that the above principles apply only where no land is taken in connection with a project to put the new traffic regulations into effect. If such a taking occurs, defendant argues, a landowner is entitled to be compensated for the decrease in value to his remaining land caused by the traffic regulations.

This contention was advanced and specifically rejected in Barnes v. Highway Commission, supra, 257 N.C. at 518. Non-compensable injuries to property values resulting from enactment of valid traffic regulations do not become compensable merely *704 because some property was coincidentally taken in connection with a project which put the regulations into effect. “The fact that [such] loss is coincident with an appropriation of land in no way changes the noncompensable character of the damage.” Richley v. Jones, 38 Ohio St. 2d 64, 310 N.E. 2d 236 (1974). The decrease in land values attributable to diminished traffic flow or circuity of travel is not appreciably enhanced by the additional fact that property has been appropriated. Fairness dictates that the burden of such noncompensable injury be equally absorbed by all similarly situated landowners without regard to whether the property of some has been appropriated. In the instant case, the evidence indicated that the property values of neighboring landowners whose property was not appropriated were equally affected by the relocation of U.S. 74. It would be manifestly unfair to deny compensation to these landowners and yet allow defendant compensation for the same injury on the basis of a coincidental appropriation of land by the Board of Transportation.

Accordingly, we hold that the trial court did not err in instructing the jury that defendant was not entitled to compensation for the decreased value of its land as a result of the dead-ending and reclassification of the roadway which abuts on its property.

The .16 acre strip of land taken in this proceeding was used to redirect the course of Gashes Creek. A concrete retaining wall was built on this strip which caused Gashes Creek to enter the strip from the south and then caused it to make a 90 degree turn eastward. Gashes Creek was relocated in order to accommodate new drainage patterns resulting from the dead-ending of former U.S. 74, which ran along the western boundary of defendant’s 2.85 acre tract and the construction of a portion of Interstate 40 and its connector roads.

Defendant’s evidence indicated that in times of heavy rain Gashes Creek overflowed the retaining wall built by plaintiff. This water flowed on defendant’s remaining land and hindered its use as a trucking terminal. Defendant’s evidence further indicated that the retaining wall could not handle the increased volume of runoff being discharged into it at greater velocities from the altered drainage basin created by Interstate 40 and its connectors.

*705 The second question presented for review is whether the trial court correctly instructed the jury on how it should consider evidence of damage to defendant’s remaining land caused by the diverted flood waters of Gashes Creek. The trial court instructed that such damages could be considered only if plaintiff had unreasonably interfered with the flow of surface waters. This instruction applies the rule of reasonable use with respect to surface water drainage adopted in Pendergrast v. Aiken, 293 N.C. 201, 236 S.E. 2d 787 (1977). Under this rule, a possessor of land incurs liability for interference with the flow of surface waters only when such interference is “unreasonable and causes substantial damage.” Id., 293 N.C. at 216.

Defendant contends the reasonable use rule adopted in Pendergrast concerns itself with the balancing of conflicting private interests in the use of water resources and should have no application in a condemnation proceeding, which involves a taking of private property for public use. We agree. For reasons which follow, we hold that the reasonable use doctrine, which governs the disposal of surface waters among private parties, has no application in condemnation proceedings.

Pendergrast v. Aiken, supra, was a dispute between private landowners in which it was alleged that defendants had improperly diverted surface waters onto plaintiffs property and caused them damage. The discussion in that case related exclusively to the rights and duties among private landowners with respect to surface water drainage. Specifically, the doctrine of reasonable use adopted in Pendergrast defines the extent to which a private landowner may interfere with the flow of surface water on the property of another. This doctrine presupposes that all private landowners must accept a reasonable amount of interference with the flow of surface water by other private landowners if a fair and economical allocation of water resources is to be achieved. The conclusion reached in Pendergrast is that a rule of reasonable use with respect to water rights is the best way to promote the orderly utilization of water resources by private landowners.

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Bluebook (online)
268 S.E.2d 180, 300 N.C. 700, 1980 N.C. LEXIS 1120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-transportation-v-terminal-warehouse-corp-nc-1980.