City of Ashland v. Hoffarth

733 P.2d 925, 84 Or. App. 265
CourtCourt of Appeals of Oregon
DecidedMarch 11, 1987
Docket80-4372-J-2; CA A35913
StatusPublished
Cited by15 cases

This text of 733 P.2d 925 (City of Ashland v. Hoffarth) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Ashland v. Hoffarth, 733 P.2d 925, 84 Or. App. 265 (Or. Ct. App. 1987).

Opinion

*267 YOUNG, J.

In this eminent domain action, plaintiff (the city) sought to acquire certain interests in defendant’s property and to obtain a determination of just compensation for those interests. By a counterclaim, defendant asserted a right to compensation for a 20-foot-wide strip of land that he had previously dedicated to the city. The jury awarded more for the condemned property than the city had offered and granted defendant compensation for the 20-foot strip. The court then awarded defendant attorney fees on the condemnation claim and the counterclaim. The city appeals. We affirm the judgment on the condemnation claim but reverse as to the counterclaim and the award of attorney fees on that claim.

In 1981, the city commenced condemnation proceedings to acquire six easements and two narrow strips of land along Hersey Street in Ashland. It alleged that the property interests were worth $20,000. Defendant’s second amended answer alleged that just compensation for those interests was $48,227.50. The counterclaim asserted that defendant was also entitled to compensation for the 20-foot strip that he had dedicated to the city in 1977, together with his reasonable attorney fees under ORS 20.085, which provides for reasonable attorney fees in inverse condemnation actions.

The jury awarded $35,225 as just compensation for the condemned property and an additional $6,840 on the counterclaim. The trial court, over plaintiffs objections, held that the counterclaim amounted to a proceeding in inverse condemnation and awarded defendant reasonable attorney fees on the counterclaim. The city appeals from the judgment and the fees awarded.

We first address the city’s arguments relating to the condemnation claim. It argues that the trial court erred in overruling its objections to questions concerning defendant’s plan to subdivide the condemned property. That argument is without merit. Just compensation for land taken is the fair market value of the land for its highest and best use. Highway Comm. v. Superbilt Mfg. Co., 204 Or 393, 412, 281 P2d 707 (1955). Market value may be proved “by evidence of the use to which the land has been, and might reasonably be, adapted, including subdivision.” State Highway Com. v. Stumbo et al, 222 Or 62, 66, 352 P2d 477 (1960); see also Highway Com. v. *268 Assembly of God et al, 230 Or 167, 176, 368 P2d 937 (1962).

The rule permitting evidence of the land’s availability for subdivision is a limited one:

“ ‘Evidence of the value of the property for any use to which it is reasonably adapted, is, as already stated, admissible, but such evidence must be limited to a bare statement why the property is adapted for a particular purpose and to testimony of its value for such purpose. As bearing upon these issues the owner may offer a plan showing a possible scheme of development for the purpose for which it is most available, but he cannot go further and describe in detail to the jury a speculative enterprise for which in his opinion or that of some expert the land might be used, and base his estimate of value upon the profits which he would expect to derive from the enterprise.’ ” State Highway Com’n v. Deal et al, 191 Or 661, 669, 223 P2d 242 (1951), quoting 2 Nichols on Eminent Domain, § 445 (2nd ed). (Emphasis supplied.)

Defendant’s plan to subdivide the property was admissible to show that the land was suitable for that use. The questions asked only if such future plans existed; the expert did not base his estimate of the land’s value on the profits which defendant would derive from the development. The trial court did not err in overruling the city’s objections to the questions. Cf. State Dept. of Transportation v. Jeans, 80 Or App 582, 723 P2d 344, rev den 302 Or 342 (1986) (evidence of possible joint development venture too speculative to be admissible).

The city next contends that the trial court erred in denying its motion to strike certain valuation testimony by defendant’s expert. The city failed to preserve that claim of error. A party must move to strike testimony as soon as the ground for the motion is disclosed. McEwen v. Ortho Pharmaceutical, 270 Or 375, 421, 528 P2d 522 (1974). Here, the ground for objection was disclosed at the latest on cross-examination of the expert. The city did not move to strike the testimony until after redirect examination. It was not error to deny the motion.

Finally, the city argues that the trial court erred in failing to instruct the jury that

“in valuing property that is capable or reasonably adaptable for subdividing, you are not to determine the number of lots into which the property is capable of being subdivided and *269 multiply that number by the selling price per lot in order to determine the value of the whole parcel.”

See State Highway Comm. v. Deal et al, supra. It is not error to refuse to give an instruction, however correct, on an abstract principle of law if the principle bears no relationship to the issues raised by the pleadings and proof. R. J. Frank Realty, Inc. v. Heuvel, 284 Or 301, 307, 586 P2d 1123 (1978). The Deal principle is irrelevant when, as here, there was no evidence of the selling price per lot.

We turn to the city’s assignments of error concerning defendant’s counterclaim. Defendant alleged that in June, 1977, he submitted a preliminary plat for the Grizzly Industrial Park Subdivision to the city and that the city agreed to approve the subdivision on the condition that he dedicate to the city a 20-foot-wide strip of land bordering Hersey Street for street purposes. He also alleged that, at that time, the city knew that condemnation proceedings were contemplated and that the City Administrator told him that there was a requirement that the city pay for “real property dedicated to the [city] within the five years prior to condemnation proceedings involving said property.”

Although the administrator did not indicate the source of the requirement, he allegedly indicated that payment would come from federal funds. Defendant alleged that he would not have dedicated the strip to the city had he known that he would not be reimbursed for it and that, as a result of the city’s representation, the city obtained possession of the 20-foot strip without providing just compensation. The city assigns error to the denial of its motion to dismiss the counterclaim for failure to state a claim. We hold that the counterclaim did not state a claim in inverse condemnation. Because defendant abandoned the contractual and unjust enrichment claims which he asserted in earlier pleadings, we need not determine whether he could have stated a claim under those theories.

In Suess Builders v. City of Beaverton, 294 Or 254, 656 P2d 306 (1982), the court described inverse condemnation:

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Bluebook (online)
733 P.2d 925, 84 Or. App. 265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-ashland-v-hoffarth-orctapp-1987.