City of Olathe v. Stott

861 P.2d 1287, 253 Kan. 687, 1993 Kan. LEXIS 150
CourtSupreme Court of Kansas
DecidedOctober 29, 1993
Docket68,355
StatusPublished
Cited by20 cases

This text of 861 P.2d 1287 (City of Olathe v. Stott) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Olathe v. Stott, 861 P.2d 1287, 253 Kan. 687, 1993 Kan. LEXIS 150 (kan 1993).

Opinion

*688 The opinion of the court was delivered by

Davis, J.:

The landowners appeal jury condemnation awards, claiming that the court erred by admitting evidence of petroleum contamination and, in the alternative, by not instructing the jury on their estoppel theory. The landowners also contend that the court erroneously excluded evidence and that the jury failed to follow the court’s instructions. Finding no reversible error, we affirm.

On March 28, 1990, the City of Olathe filed a petition for eminent domain, seeking to condemn eight tracts of land to enable expansion of the 119th Street and 1-35 interchange project. The City was dissatisfied with the awards on tract 5, owned by Marvin and Peggy Stott and David and Eileene Hendrix, and tract 6, owned by Arthur and Dejah Seute. The appraisers’ awards from which the City appealed were $341,000 for tract 5 and $1,180,000 for tract 6. On June 29, 1990, the City paid an amount equal to the original awards to the clerk of the court and appealed from those awards to the district court. The date of taking for purposes of property valuation was June 29, 1990.

The controversy centers upon leakage from underground gasoline and diesel fuel storage tanks. Both tracts had been operated as service stations for at least the last 25 years. On appeal to the district court, the City claimed that the appraisers had failed to consider evidence of petroleum contamination on tracts 5 and 6.

During the course of trial, appraisers for the City were allowed, over the landowners’ objections, to discuss the impact of petroleum contamination on the fair market value of the property. The landowners contend that no evidence of contamination should have been admitted because a specific act, the Kansas Storage Tank Act (Act), K.S.A. 65-34,100 et seq., preempts the moré general condemnation statutes, K.S.A. 26-501 et seq., and provides the only relief available in Kansas for contamination damage resulting from leakage of underground storage tanks.

The landowners contend that the City, through its agents, had information concerning the contamination long before the City filed its condemnation action. The landowners claim that the City should have been estopped from claiming any reduction in property value due to contamination because it did not timely disclose *689 the existence of the contamination to the landowners. Thus, the landowners contend that they were deprived of the opportunity to mitigate damages. In effect, the landowners argue that the City was silent when it had a duty to speak.

During the course of trial, the landowners sought to introduce testimony from Thomas Glinstra, the Olathe city attorney, who would have testified that the City had acquired, on previous occasions, property that was on the Environmental Protection Agency’s list of contaminated sites but did not investigate such contamination. The landowners proffered such testimony to impeach the credibility of city appraisers. The trial court ruled that this evidence was not admissible because it was not relevant.

Also, during the course of trial, on cross-examination, the landowners asked the consultant who studied the contamination problem for the City, Robert Sholar, if anyone had instructed him not to tell the landowners of the contamination. Upon objection by the City, the trial court instructed Robert Sholar not to answer because the trial, court did not believe the answer to the question was relevant. The landowners contend that the evidence was relevant to establish the City’s intent to mislead or deceive the landowners into doing nothing and that the. exclusion of this evidence was extremely prejudicial to their equitable estoppel theory. The landowners did not make a proffer of the excluded testimony.

After the trial concluded and the verdict had been read and accepted, the trial court inquired of the jury on the record about how it treated the existence of contamination in reaching its verdict. Briefly, the juror who responded indicated that the jury did consider the contamination and that it reduced the property value by 10% because of the contamination. The landowners contend that this was error.

Admissibility of Evidence of Contamination

One of the primary purposes in any eminent domain proceeding is to determine the fair market value of the property taken. Underground petroleum contamination necessarily affects the market value of real property. Evidence of such contamination is therefore admissible in an eminent domain action unless, as *690 the landowners contend, the Act provides the exclusive remedy for petroleum contamination.

The Act essentially establishes a regulatory scheme that imposes certain requirements on owners and operators of above-ground and underground tanks in which regulated substances (petroleum or “hazardous substances”) are stored. See generally K.S.A. 65-34,100 et seq. and especially 65-34,102(p), (u) (defining regulated substance and storage tank). The Act also authorizes the Kansas Department of Health and Environment' (KDHE) to promulgate rules and regulations regarding tank installation, maintenance, upgrading, removal, and cleanup. See generally K.S.A. 65-34,104 through 65-34,111. The Act provides for licensing of tank installers and contractors. K.S.A. 65-34,110, K.S.A. 65-34,111, K.S.A. 65-34,112.

The Act requires owners and operators to notify KDHE of the “tank’s existence, including age, size, type, location, associated equipment and uses.” K.S.A. 65-34,104(a). The Act also requires owners and operators to supply various information about underground storage tanks (USTs) that are still in ground, but were taken out of service between January 1, 1974, and May' 8, 1986. K.S.A. 65-34,104(b). The Act requires KDHE approval for the construction, installation, modification, or operation of a storage tank and allows KDHE to deny, suspend, or revoke such authorization if the owner or operator is not in compliance' with various provisions of the Act. K.S.A. 65-34,106(a), (c). The Act requires owners or operators of USTs to provide evidence of financial responsibility sufficient to pay for corrective action and to compensate third parties for cleanup, property damage, and bodily injury resulting from the release of a regulated substance from a UST. K.S.A.

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Bluebook (online)
861 P.2d 1287, 253 Kan. 687, 1993 Kan. LEXIS 150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-olathe-v-stott-kan-1993.