City of Lake Ozark v. Campbell

745 S.W.2d 799, 1988 Mo. App. LEXIS 471, 1988 WL 11700
CourtMissouri Court of Appeals
DecidedFebruary 19, 1988
DocketNo. 14934
StatusPublished
Cited by5 cases

This text of 745 S.W.2d 799 (City of Lake Ozark v. Campbell) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Lake Ozark v. Campbell, 745 S.W.2d 799, 1988 Mo. App. LEXIS 471, 1988 WL 11700 (Mo. Ct. App. 1988).

Opinion

PREWITT, Presiding Judge.

The city of Lake Ozark condemned property owned by appellants to be used in constructing a sewage treatment facility and a right-of-way to service that facility. Forty-nine-and-one-tenth acres were taken. A jury assessed the damages due to the taking at $83,750 and judgment in accordance with the jury’s verdict was entered. Appellants’ motion for new trial was denied and this appeal followed.

Respondent presented evidence from two witnesses, one valuing the property taken as $62,750 and the other at $65,000. Appellants offered evidence from four witnesses whose testimony showed that appellants were damaged $325,000; between $325,000 and $330,000; $170,510; and $270,510.

Appellants have seven points relied on. Appellants’ seventh point is perhaps the most difficult to determine. It states that the trial court erred in excluding evidence regarding remainder damages sustained by Wood River Development Company. Appellants contend that Wood River Development Company is a corporation and they are the only shareholders. It owned property adjacent to that taken and appellants claim that damages to “this property was part of the measure of damage for the taking by the plaintiff-respondent”. Neither party cites any authority which discusses when or if damages to a tract can be recovered where it has different but related ownership from that of an adjoining tract taken in whole or part by eminent domain.

Generally, unity of use and ownership are necessary to recover damages to property not taken. See Kansas City v. Stith, 409 S.W.2d 193, 197 (Mo.1966); 27 Am.Jur.2d Eminent Domain §§ 315, 320 (1966); 29A C.J.S. Eminent Domain § 140 (1965). See also Annotation, Unity of ownership necessary to allowance of severance damages in eminent domain, 95 A.L.R.2d 887 (1964).

Stith, supra, indicates that tracts owned by an individual and by corporations in which he had an interest would not have unity of ownership. See 409 S.W.2d at 197. However, there the individual owned only 52 percent of the stock in one corporation claiming damages and 20 percent of another corporation making a similar claim. We find no other Missouri case discussing this problem.

The question of unity of ownership arose in City of Salem v. H.S.B., 302 Or. 648, 733 P.2d 890 (1987). There a partnership owned the condemned tract and a corporation an adjoining tract. Two of the partners of the partnership owned the corporation through other corporations. The court stated that the reported decisions were divided on whether land owned by a corporation could have “unity of ownership” with land owned by individuals who owned the stock of the corporation. 733 P.2d at 893. The court noted cases allowing recovery although ownership was “different”, quoting from Housing Authority of Newark v. Norfolk Realty Co., 71 N.J. 314, 364 A.2d 1052, 1057 (1976):

[T]he concept of eminent domain requires that the realities underlying corporate ownership of land be fairly recognized. Normal business considerations, including due regard for federal tax consequences, may indicate that a bifurcated ownership of the assets of a functionally integrated enterprise is more desirable than ownership by single entity. The law should not require businessmen to ignore otherwise sensible economic planning decisions in order to retain their right to full actual damages consequent upon a public taking.

H.S.B. also cited cases finding no unity of ownership in such a situation, and elect[801]*801ed to follow them. The opinion stated, 733 P.2d at 894:

Incorporation may hold many attractions —limited tax and other forms of liability not least among them — but it is, at bottom, the creation of a legal entity different from other entities. A corporation is not its incorporators or shareholders; it is not a partnership or joint venture; it is, rather, another and particular kind of creature, with its own rights and duties.

Although a reasonable argument can be made for appellants’ position, we agree with H.S.B. A corporation is a separate entity from its stockholders and they should not be able to choose when its form is disregarded and when it is not. Respondent is not liable for any damages to property owned by Wood River Development Company. This point is denied. The remaining points are discussed in the order listed in appellants’ brief.

Appellants contend in their first point that they are entitled to a new trial because the verdict “was against the weight of the evidence.” Whether a verdict is against the weight of the evidence is a determination solely for the trial court as this court does not weigh the evidence. Lawrence v. Windsor, 693 S.W.2d 853, 857 (Mo.App.1985). See also Rule 78.02; Wilson v. Missouri-Kansas-Texas Railroad Co., 595 S.W.2d 41, 46-47 (Mo.App.1980). Point one is denied.

Appellants’ second point states that the trial court erred in refusing to submit its instruction following MAI 31.05. The instruction offered stated:

“Your verdict must be for Defendants if you believe that Defendants have been damaged by either or both of the following:
1. The taking of the property.
2. The use which Plaintiff has the right to make of the property taken.”

Refusing to give the instruction could not have been erroneous. The instruction merely directs the jury to render a verdict for the appellants if it finds certain things and the jury did render a verdict for the appellants. Second, this instruction is improper where the condemning authority agrees, as respondent did here, that appellants suffered some damages. State ex rel. Kansas City Power & Light Co. v. Campbell, 433 S.W.2d 606, 610 (Mo.App.1968). The MAI 31.05 Notes on Use provide that this “instruction is to be used in condemnation cases where the condemning authority offers evidence that the property owner sustained no damage from the taking.” No such evidence was offered here. This point is denied.

Appellants’ third point states (omitting citations):

The trial court erred with regard to the testimony of witness Swope in that:
A. Said witness was allowed to state that he had acted as a commissioner in this action, violating the court’s order sustaining defendants’ Motion in Limine;
B. And, the court chilled effective cross-examination of said witness by limiting counsel to one question.

Appellants are correct that although a commissioner in a condemnation action is competent to testify, that he was a commissioner in the action should not be known to the jury. See State ex rel. State Highway Commission v. Wetterau Foods, 632 S.W.2d 88, 90 (Mo.App.1982).

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Bluebook (online)
745 S.W.2d 799, 1988 Mo. App. LEXIS 471, 1988 WL 11700, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-lake-ozark-v-campbell-moctapp-1988.