City of Baton Rouge v. TERRACE LAND COMPANY, INC.

962 So. 2d 1233, 2006 La.App. 1 Cir. 2107, 2007 La. App. LEXIS 1741, 2007 WL 2702923
CourtLouisiana Court of Appeal
DecidedSeptember 14, 2007
Docket2006 CA 2107
StatusPublished

This text of 962 So. 2d 1233 (City of Baton Rouge v. TERRACE LAND COMPANY, INC.) 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
City of Baton Rouge v. TERRACE LAND COMPANY, INC., 962 So. 2d 1233, 2006 La.App. 1 Cir. 2107, 2007 La. App. LEXIS 1741, 2007 WL 2702923 (La. Ct. App. 2007).

Opinion

CITY OF BATON ROUGE AND PARISH OF EAST BATON ROUGE
v.
TERRACE LAND COMPANY, INC./TERRACE LAND COMPANY, LLC

No. 2006 CA 2107.

Court of Appeal of Louisiana, First Circuit.

September 14, 2007.
NOT DESIGNATED FOR PUBLICATION

E. WADE SHOWS, LEO J. D'AUBIN, GWENDOLYN K. BROWN, LARRY D. BOOK, Baton Rouge, LA, Attorneys for Plaintiff-Appellant City of Baton Rouge and Parish of East Baton Rouge.

CHRISTY R. BERGERON, MARGUERITE K. KINGSMILL, RANDALL A. SMITH , L. TIFFANY DAVIS, New Orleans, LA, Attorneys for Defendant-Appellee Terrace Land Co., Inc./Terrace Land Co., LLC.

Before: CARTER, C.J., PETTIGREW, and WELCH, JJ.

WELCH, J.

Plaintiff, the City of Baton Rouge/Parish of East Baton Rouge (City/Parish), appeals a judgment awarding defendants, Terrace Land Company Inc./Terrace Land Company, LLC (Terrace Land) additional just compensation in this expropriation proceeding. We affirm.

BACKGROUND

The City/Parish undertook a public works project to construct a service road for Interstate 10 between Bluebonnet Boulevard and Siegen Lane in Baton Rouge, Louisiana, known as the "Picardy Avenue Interchange." In 2002, the City/Parish notified Terrace Land that it intended to acquire a portion of a 16-acre tract of land fronting Interstate 10 owned by Terrace Land. The property, located one-fourth a mile from Siegen lane, is comprised of seven lots in the Audubon Terrace subdivision and a vacant tract of land adjacent to the subdivision totaling 2.88 acres. At the time, the property was zoned A-1 residential for single-family residential use.

In 2002, the City/Parish hired Michael Defelice, a real estate appraiser, to determine the value of the Terrace Land property. He submitted a valuation to the City/Parish on May 9, 2002, in which he determined that the highest and best use of the property was residential. In determining the value of the Terrace Land property, Mr. Defelice used sales of four vacant tracts that had been zoned A-1 residential in the area, all of which occurred in 1999. Mr. Defelice valued the subdivision lots at $270,000.00 and the bulk acreage tract at $188,700.00, thus totaling $458,700.00.

Terrace Land disagreed with the valuation. On March 10, 2003, the City/Parish initiated this expropriation proceeding to acquire the Terrace Land property by depositing $458,700.00 into the registry of the court and obtaining an ex parte order of expropriation. Terrace Land contested the taking of its property and filed a motion to dismiss the expropriation proceeding, which was denied by the trial court. Thereafter, Terrace Land withdrew the $458,700.00 deposited by the City/Parish into the registry of the court.

Prior to trial, the parties stipulated that Terrace Land accepted the valuator of $270,000.00 as just compensation for the expropriated portions of Lots 130 and 137 of Audubon Terrace subdivision, and no issues relating to those lots would be presented to the jury. Thereafter, a five-day jury trial was held to determine the issue of just compensation for the taking of the bulk acreage tract and whether the taking affected the value of the remaining portion of the 16-acre tract.

At trial, Terrace Land sought to establish that the property had a higher valuation than that offered by the City/Parish's appraiser. In so doing, it offered testimony showing that the highest and best use of the property was as a small planned unit development or "S.P.U.D," a development designed for low-density single-story commercial offices in a neighborhood setting. Terrace Land also attempted to demonstrate there was a reasonable probability a zone change could be obtained to achieve that use. Terrace Land's appraiser, Tom Cook, considered sales of other properties in the area from 2002 to the early part of 2003, some of which had been sold for S.P.U.D. type developments. He valued the two-acre tract at $597,556.08. He also opined that the value of the property remaining after the taking would be diminished by $704,887.92, setting the total compensation owed by the City/Parish for the land taken and damages to the remainder at $1,302,444.00.

At the conclusion of Terrace Land's case, the City/Parish moved for a directed verdict, arguing there was no evidence demonstrating there was a reasonable probability that the property could be rezoned; therefore, there was nothing to support the basis of Mr. Cook's appraisal. It also asserted that the jury should be precluded from considering Mr. Cook's testimony because Mr. Cook made some across-the-board adjustments when setting a valuation based on other sales and urged that such across-the-board adjustments were not approved by the standards of real estate practice.

The trial court denied the motion. Specifically, the court found that there was evidence upon which reasonable persons could conclude there was a reasonable probability that a zoning change could be achieved through the testimony of Mr. Cook and two real estate experts testifying for Terrace Land. Regarding Mr. Cook's appraisal, the court stressed that while Mr. Cook acknowledged that he did not strictly follow the standards set forth for appraisers in making adjustments, there was no legal requirement that there be a complete adherence to industry standards in order for an appraiser to testify. The fact that Mr. Cook used different methods in appraising the property, the court observed, was an issue going to the weight of Mr. Cook's testimony.

Thereafter, the City/Parish put on the testimony in support of its claim that there was no reasonable probability the property could have been rezoned to support a S.P.U.D. development. The City/Parish's planning director attested that his office, the Planning and Zoning staff, would have recommended denying any attempt to rezone the Terrace Land property. The City/Parish also offered the testimony of the president of a homeowner's association comprised of members in two subdivisions located near the Terrace Land property, who stated that the members would oppose any rezoning efforts. Lastly, Mr. Defelice testified regarding his appraisal methods, and opined that obtaining rezoning to effect a S.P.U.D. development on the subject property was not reasonably probable based on his awareness that the staff of the Planning Commission would have opposed such a use of the property.

Following the conclusion of the five-day jury trial, the jury awarded Terrace Land the sum of $597,556.08 as compensation for the property taken, in accordance with Mr. Cook's valuation of the property. The jury declined, however, to award any severance damages. The trial court entered judgment in favor of Terrace Land for additional compensation in the amount of $408,856.00 (representing the stipulation of the parties that the subdivided lots were valued at $270,000.00 and the jury's finding that the vacant acreage had a value of $597,556.00, less the $458,700.00 deposit withdrawn from the registry by Terrace Land).

The City/Parish filed a motion for a Judgment Notwithstanding the Verdict (JNOV), urging that there was insufficient evidence to support Mr. Cook's opinion as to the valuation of the property based on a reasonable probability of obtaining rezoning. Further, the City/Parish argued the jury verdict was inconsistent because it awarded Terrace Land the higher value of the expropriated property offered by Mr. Cook but rejected his testimony regarding severance damages to the remaining tract. In denying the motion, the trial court observed that this trial basically involved a "battle of [the] experts," who expressed differences of opinions regarding the highest and best use of the property, with the jury obviously accepting the testimony of Terrace Land's experts.

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Bluebook (online)
962 So. 2d 1233, 2006 La.App. 1 Cir. 2107, 2007 La. App. LEXIS 1741, 2007 WL 2702923, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-baton-rouge-v-terrace-land-company-inc-lactapp-2007.