City & County of Honolulu v. International Air Service Co.

628 P.2d 192, 63 Haw. 322, 1981 Haw. LEXIS 112
CourtHawaii Supreme Court
DecidedApril 29, 1981
DocketNO. 6428
StatusPublished
Cited by15 cases

This text of 628 P.2d 192 (City & County of Honolulu v. International Air Service Co.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City & County of Honolulu v. International Air Service Co., 628 P.2d 192, 63 Haw. 322, 1981 Haw. LEXIS 112 (haw 1981).

Opinion

*324 OPINION OF THE COURT BY

NAKAMURA, J.

Defendant-appellant International Air Service Company, Ltd. (hereafter IASCO) appeals from ajudgment awarding it $3,450,000 as just compensation, on the verdict of a jury, in an eminent domain proceeding for the acquisition of approximately 12.6 acres of leeward Oahu beachfront land brought by Plaintiff-appellee City and County of Honolulu (hereafter the City). Seeking a new trial, IASCO asserts errors in evidentiary rulings and jury instructions. But we conclude from a review of the record and applicable precedent that the trial court committed no, reversible error and affirm the judgment.

I.

A.

In 1965 and 1966 the City acquired, for park purposes, thirteen acres of a forty-three acre tract of beachfront real estate situated at Lualualei, Waianae, between Farrington Highway and the ocean, which was then held by Bonded Investment Company, Ltd. (hereafter Bonded). Bonded subsequently subdivided the remaining thirty acres into forty-seven lots and in 1968 sold nineteen of them, fifteen of which were sold under an agreement of sale, to IASCO, who purchased the land for possible development. The subdivided parcels were all zoned partly for apartment use and partly for residential use, the portions of each lot nearer the highway being designated for apartment use and the remainder of each being designated for residential use. Roughly two-thirds of the land purchased by IASCO was in an A-l apartment zone.

Pursuant to resolutions adopted by the City Council in 1969, the City was authorized to acquire the fifteen lots that were subject to the *325 agreement of sale between IASCO and Bonded, along with adjoining and nearby parcels held by other owners, for an extension of Maili Beach Park. While the City succeeded in negotiating purchases with most of the other owners, it failed to do so with IASCO. Meanwhile, IASCO actively sought other buyers for its property, and in January of 1974 agreed to sell all of the fifteen parcels to another developer. This agreement, however, was made subject to cancellation if the property became subject to condemnation proceedings within two months. 1

Shortly thereafter, on February 6,1974, the City commenced an eminent domain suit to acquire the fifteen lots for the authorized park extension. The property it sought to acquire consisted of 549,434 square feet of land (approximately 12.6 acres) with an ocean frontage of 1,246 feet and a highway frontage of approximately 1,200 feet. 2

B.

The sole issue at trial was just compensation. Each party’s presentation of evidence consisted largely of testimony elicited from its expert on land valuation. Both appraisers purportedly relied on the “market data” approach, a method which measures value by comparison to sales of similar property. 3 But as is often the case, there *326 was a significant disparity in the estimates of “fair market value.” 4 And as is usually the situation, the taker’s expert submitted the lower valuation of $6.28 per square foot and the owner’s expert arrived at a higher valuation of $10.00. The jury’s verdict, which IASCO maintains was inadequate, closely approximated the value placed on the property by the City’s expert.

IASCO contends the trial court erred by:

1. Admitting evidence related to prior transactions between the City and other owners although a foundation for the admission of such evidence was not established;
2. Admitting evidence of transactions not disclosed by the City before trial although the non-disclosure violated a pre-trial order;
3. Not allowing IASCO’s president to state his opinion on the value of the condemned land;
4. Permitting the City’s expert to use the aborted 1974 agreement of sale covering the condemned property as a “comparable sale” but not allowing IASCO to demonstrate an alleged “depressing” effect of the condemnation on the agreed price;
5. Unduly limiting the testimony of IASCO’s expert with regard to evidence purportedly supporting his valuation; and
6. Improperly instructing the jury in several respects.

The trial court’s erroneous rulings in the foregoing regard, IASCO argues, were primarily responsible for the jury’s failure to return a verdict reflecting the “fair market value” of the property taken.

II.

“[T]he general aim of proceedings in eminent domain is to arrive at an amount of just compensation which as nearly as possible approximates the value which a free market would attach to the taken property.” City & County v. Market Place, Ltd., 55 Haw. 226, 242, 517 P.2d 7, 19 (1973). Value, according to a well-respected *327 treatise, “is always a matter of opinion.” 5 Nichols’, The Law of Eminent Domain § 18.1, at 18-5 (3d ed. 1979). Our adoption of liberal standards on the admissibility of an expert’s opinion on value and evidence purportedly supporting an expert’s opinion on value in condemnation trials is consonant with the foregoing observation. State v. Kunimoto, 62 Haw. 502, 507-08, 617 P.2d 93, 98 (1980); State v. Dillingham Corp., 60 Haw. 393, 411, 591 P.2d 1049, 1060 (1979). See also State v. Martin, 54 Haw. 167, 170, 504 P.2d 1223, 1225 (1973); Honolulu Redevelopment Agency v. Pun Gun, 49 Haw. 640, 647, 426 P.2d 324, 328 (1967); City & County v. Bishop Trust Co., 48 Haw. 444, 463, 404 P.2d 373, 385 (1965). On more than one occasion we also have said “any evidence which will aid the jury in fixing the fair market value of the property should be considered by them.” State v. Kunimoto, supra, 62 Haw. at 507, 617 P.2d at 97; State v. Dillingham Corp., supra, 60 Haw. at 406-07, 591 P.2d at 1057; State v. Martin, supra, 54 Haw. at 170, 504 P.2d at 1226; Honolulu Redevelopment Agency v. Pun Gun, supra, 49 Haw. at 649, 426 P.2d at 329; Territory v. Adelmeyer, 45 Haw. 144, 147, 363 P.2d 979, 982 (1961).

We nevertheless recognize “prospective buyers of property in normal conditions would consider all

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Bluebook (online)
628 P.2d 192, 63 Haw. 322, 1981 Haw. LEXIS 112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-county-of-honolulu-v-international-air-service-co-haw-1981.