City of Phoenix v. Garretson

302 P.3d 640, 232 Ariz. 115, 660 Ariz. Adv. Rep. 9, 2013 WL 1972752, 2013 Ariz. App. LEXIS 92
CourtCourt of Appeals of Arizona
DecidedMay 7, 2013
DocketNo. 1 CA-CV 10-0620
StatusPublished
Cited by1 cases

This text of 302 P.3d 640 (City of Phoenix v. Garretson) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Phoenix v. Garretson, 302 P.3d 640, 232 Ariz. 115, 660 Ariz. Adv. Rep. 9, 2013 WL 1972752, 2013 Ariz. App. LEXIS 92 (Ark. Ct. App. 2013).

Opinion

OPINION

BROWN, Judge.

¶ 1 John Garretson, as Trustee of the Emery E. Oldaker Trust and individually (collectively “Garretson”), appeals the trial court’s decision that as a matter of law Garretson suffered no compensable damages for loss of access under the Arizona Constitution stemming from the City of Phoenix’s (“the City”) construction of a light rail project adjacent to his property. Because Garretson has shown the existence of genuine issues of matei’ial fact relating to whether the City’s actions materially impaired his right of access and thereby diminished the value of his property, we vacate the court’s ruling and remand for further proceedings.1

BACKGROUND

¶ 2 Garretson owns a parcel of real property (“the Property”) in downtown Phoenix, consisting of roughly 36,000 square feet and currently used as a commercial parking lot. The Property abuts Jefferson Street (“Jefferson”) to the north, 1st Street to the east, and Madison Street to the south.

¶ 3 In February 2005, the City offered to purchase a temporary construction easement (“TCE”) on 492 square feet of the Property for use in constructing the Central/East Valley Light Rail (“the Project”). Garretson later agreed the City could use the Property during construction of the Project and that compensation would be determined through a condemnation proceeding if the parties could not agree on the amount to be paid.

¶ 4 As part of the Project, the City placed rail tracks on the south side of Jefferson between the one-way eastbound traffic lanes and the Property. Upon completion of the Project, the City constructed a concrete barrier along the south side of the light rail tracks, which permanently blocked two driveways on the Property that had allowed access to Jefferson. Garretson, however, still retained access to the Property from Madison Street.2

¶ 5 Shortly after completing the Project, the City filed a complaint in eminent domain to determine the just compensation to be paid to Garretson for “taking of the [TCE] and property rights necessary for the stated public purpose.” In his answer, Garretson claimed the right to be compensated for the loss of the Property’s access to Jefferson.3 The City moved for partial summary judgment, seeking a ruling that Garretson was not entitled to compensation for loss of access to Jefferson. The City argued it had [117]*117exercised its authority to control access to roadways as part of its police power and any damage to the Property was therefore non-compensable. Alternatively, the City argued that because Garretson retained access to the Property through other routes, his access had not been substantially impaired in a manner justifying compensation.

¶ 6 Garretson countered that he was entitled to present a jury with evidence of “severance damages” for his loss of access to Jefferson, even though the Property had other means of access.4 Specifically, Garretson argued he was entitled to seek damages because the Project had destroyed his access to Jefferson, relying in part on an appraisal of the Property indicating a decrease in value of approximately $1.9 million as a result of that loss of access. Thus, Garretson argued issues of fact remained as to the extent of damages, requiring determination by a jury.

¶ 7 In granting the City’s motion, the trial court framed the issue as “whether the light rail transit line with its attendant traffic controls ‘substantially interfered’ with Garret-son’s access.” Citing City of Phoenix v. Wade, 5 Ariz.App. 505, 509, 428 P.2d 450, 454 (1967), the trial court explained that a property owner may not receive compensation for loss of access if the owner retains “free and convenient access” to the property and its improvements. The court then concluded that because Garretson had alternative access to the Property, he was not entitled to “severance damages.”

¶ 8 Based on the trial court’s rulings, the parties entered into a stipulated judgment against the City in the amount of $7,134, “as and for full settlement for the [TCE] over the Subject Property and other damages, if any, arising from this action.” The judgment provided that Garretson reserved the right to appeal, which he did in a timely fashion. We have jurisdiction pursuant to Arizona Revised Statutes (“A.R.S.”) section 12-2101(A)(1)(2013).5

DISCUSSION

¶ 9 Summary judgment should be granted “if the moving party shows that there is no genuine dispute as to any material fact and the moving party is entitled to judgment as a matter of law.” Ariz. R. Civ. P. 56(a).6 In reviewing a motion for summary judgment, we determine de novo whether any genuine issue of material fact exists and whether the trial court properly applied the law. Ochser v. Funk, 228 Ariz. 365, 369, ¶ 11, 266 P.3d 1061, 1065 (2011). We view the facts and the inferences to be drawn from those facts in the light most favorable to the party against whom judgment was entered. Id.

¶ 10 Garretson argues that because the City “destroyed” his access rights to Jefferson, he is entitled to compensation under the Arizona Constitution as a matter of law.7 The City counters that construction of [118]*118the barrier adjacent to the Property was a valid exercise of its police power and therefore no compensation is warranted. Alternatively, the City asserts that because Garret-son continues to have “non-circuitous” access to other streets, as a matter of law there has been no substantial impairment and thus no constitutional right to damages. We disagree, at least in part, with both parties’ assertions. Instead, we hold that when the government eliminates a property owner’s established access to an abutting street and the owner retains access from another street, the owner is not necessarily foreclosed from obtaining compensation for damages to the property under the Arizona Constitution. To support such a claim, the owner must prove access to the abutting street has either been destroyed or substantially impaired and such destruction or impairment has reduced the value of the property. See State ex rel. Morrison v. Thelberg, 87 Ariz. 318, 325, 350 P.2d 988, 992 (1960).

¶ 11 Municipalities in Arizona have broad authority to exercise the power of eminent domain under AR.S. § 12-1111 (2013), subject to Article 2, Section 17 of the Arizona Constitution, which provides that “[n]o private property shall be taken or damaged for public or private use without just compensation^.]” See City of Yuma v. Lattie, 117 Ariz. 280, 283, 572 P.2d 108, 111 (App. 1977). Thus, a city or town has extensive authority to take actions necessary to establish an adequate transportation system within its boundaries. Id. If a municipality fails to institute an eminent domain action and private property is taken or damaged for public use, “the right to bring an inverse eminent domain action vests in the property owner.” Id.

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Related

City of Phoenix v. John E. Garretson
322 P.3d 149 (Arizona Supreme Court, 2014)

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Bluebook (online)
302 P.3d 640, 232 Ariz. 115, 660 Ariz. Adv. Rep. 9, 2013 WL 1972752, 2013 Ariz. App. LEXIS 92, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-phoenix-v-garretson-arizctapp-2013.