City of San Diego v. D.R. Horton San Diego Holding Co.

24 Cal. Rptr. 3d 338, 126 Cal. App. 4th 668, 2005 Daily Journal DAR 1556, 2005 Cal. App. LEXIS 193
CourtCalifornia Court of Appeal
DecidedFebruary 7, 2005
DocketD043425
StatusPublished
Cited by112 cases

This text of 24 Cal. Rptr. 3d 338 (City of San Diego v. D.R. Horton San Diego Holding Co.) is published on Counsel Stack Legal Research, covering California 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 San Diego v. D.R. Horton San Diego Holding Co., 24 Cal. Rptr. 3d 338, 126 Cal. App. 4th 668, 2005 Daily Journal DAR 1556, 2005 Cal. App. LEXIS 193 (Cal. Ct. App. 2005).

Opinion

*673 Opinion

O’ROURKE, J.

In this eminent domain action, the City of San Diego (City) sought to acquire approximately 12.69 acres of property from a larger parcel owned by D.R. Horton San Diego Holding Company, Inc. (Horton) for a particular segment of the State Route 56 freeway project. In a special verdict, the jury determined that the fair market value of the property taken was $5,589,200, that severance damages to the remainder parcel before consideration of the project’s benefits was $5,324,000, and that the project benefits were $5,443,800. Based on these figures, the jury determined there were no net severance damages and the total compensation to be awarded Horton was $5,589,200. On Horton’s motion for new trial, the trial court concluded the jury’s determination of the value of the property taken in its special verdict was based on a valuation of $445,000 per net developable acre, and its award of severance damages was based on a figure derived from a value of $850,000 per net developable acre. The court granted the motion on the ground the jury’s findings as to these components were internally inconsistent and thus against the law.

City contends the court erred in granting a new trial because each of the jury’s separate valuation findings, including its finding as to severance damages before consideration of benefits, was within the range of values provided by the parties’ expert appraisers and therefore the verdict was not against the law. It further argues a reasonable interpretation of the record demonstrates substantial evidence supporting the jury’s findings as to the value of the property taken and severance damages before consideration of project benefits. Alternatively, City argues the jury’s finding, if found to be inconsistent, was invited by the jury instructions and special verdict form, and also is harmless error. Finally, City argues the jury’s verdict must stand as a matter of public policy because to rule otherwise would divest juries in eminent domain actions of their broad discretion in determining the appropriate amount of just compensation.

We conclude the jury implicitly made inconsistent findings of fact in its special verdict, rendering the verdict against the law. We reject City’s other contentions and accordingly, affirm the trial court’s order.

*674 FACTUAL AND PROCEDURAL BACKGROUND

City filed the present eminent domain action to acquire approximately 12.69 acres of a larger 39.38-gross-acre parcel of land for a certain segment—Unit 2 of the middle segment—of State Route 56 (SR-56). 1 Horton owned the approximately 39-acre parcel (the larger parcel), which was to be bisected diagonally by SR-56, leaving two isolated remnant parcels to the north and south (collectively the remainder).

At trial, the ultimate issue of just compensation for the 12.69 acres to be taken by City turned upon the development potential of the larger parcel absent the SR-56 Unit 2 project (hereafter the freeway project). Both parties agreed that there was a reasonable probability of a zone change, but they differed as to the extent of the allowable development that would be approved. City’s expert real estate appraiser, Stephen Roach, opined that without the freeway (the “before” condition), the highest and best use of the subject property was for development at one residential unit per two gross acres. Based on that use, Roach valued the part taken at $4,925,000. He arrived at this conclusion by using a market data/sales comparison analysis, which resulted in his conclusion that the fair market value of the larger parcel was $400,000 per net acre. Roach applied that value to the 37.09 net developable acres he found within the larger parcel to arrive at a total value of $14,836,000 for the larger parcel, and applied the same value to the 12.31 net acres of the part taken. As to the value of the remainder with the freeway project in place (the “after” condition), Roach concluded there were no net severance damages because the benefits from the freeway project amounted to $5,443,800, thereby exceeding the severance damages. 2

Horton’s expert witnesses testified that the highest and best use of the larger parcel in the before condition was the same suburban residential density (low-to-medium residential) as had been actually approved on the remainder with the freeway project. In accordance with this conclusion, *675 Horton’s expert real estate appraiser, Michael Waldron, testified that the fair market value of the property taken by City’s condemnation was $10,676,000. He reached this result by using a sales comparison approach to determine that with that level of density, the fair market value of the larger parcel in the before condition would be about $850,000 per net acre, or approximately $31 million. Applying this same value, Waldron calculated the value of the property taken at $10,676,000, and then with subtraction, determined the value of the remainder property to be $20,324,000. Relying again on his sales comparison approach to determine that the fair market value of the remainder property in the after condition was $15 million (or $747,757 per acre), he testified that severance damages amounted to $5,324,000. Waldron bolstered his conclusion by using a different method of calculating severance damages by totaling increased costs, impacts, and inefficiencies stemming from SR-56 Unit 2 as different components, 3 resulting in severance damages in the range of $5.4 million. Waldron further concluded that there were no project benefits, and therefore nothing to offset his conclusion as to severance damages. Thus, he ultimately opined that the total just compensation to Horton was $16 million.

Both parties submitted their own version of a special verdict form; the trial court used City’s form without objection by Horton’s counsel. Thereafter, the jury were instructed they were to separately determine: (1) the fair market value of the 12.69 acres of property taken as of the stipulated November 16, 2001 date of valuation; (2) the severance damages sustained as a result of City’s taking and/or the construction and use of the project in the manner proposed by City; and (3) the benefits, if any, the project conferred on the remainder parcel. They were further instructed: “You must determine the fair market value of the subject property and the severance damages, if any, and benefits, if any, only from the opinion of the witnesses who have testified. You may not find that the market value of the property being acquired by the plaintiff and the severance damages, if any, of the benefits, if any, to be less than or more than that testified to by any witness, [¶] While expert witnesses may express opinions on the issue of value, those opinions are worth no more than the reasons and factual data upon which they are based.”

After closing arguments, the court explained the verdict form to the jury. In part, it said: “In this case, the special verdict form consists of two pages. On *676 the form are a series of questions. For example, Question No. 1 asks you to determine the fair market value of the part taken as of the November 16, 2001 date of value.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Debreu v. The TCW Group CA2/7
California Court of Appeal, 2025
Dalo v. Hay CA4/1
California Court of Appeal, 2025
People v. Rivers CA3
California Court of Appeal, 2025
Wilcox v. Molina Healthcare CA2/4
California Court of Appeal, 2025
T&C Properties v. St. James Property Co. CA1/2
California Court of Appeal, 2025
Bond v. Lilly CA4/1
California Court of Appeal, 2024
People v. Jauregui CA5
California Court of Appeal, 2024
Varga v. Twitch Interactive CA1/1
California Court of Appeal, 2024
Moir v. Ventura Locksmiths CA2/6
California Court of Appeal, 2024
Stanton v. Marques CA2/7
California Court of Appeal, 2024
Catwalk to Sidewalk, Inc. v. Hurt-Watson CA2/1
California Court of Appeal, 2023
Marriage of Knight CA4/1
California Court of Appeal, 2023
Marriage of Critzer CA6
California Court of Appeal, 2023
Bank v. Jean-Baptiste CA4/1
California Court of Appeal, 2022
Rodriguez v. Parivar, Inc.
California Court of Appeal, 2022
Morehead v. Granados CA4/3
California Court of Appeal, 2021

Cite This Page — Counsel Stack

Bluebook (online)
24 Cal. Rptr. 3d 338, 126 Cal. App. 4th 668, 2005 Daily Journal DAR 1556, 2005 Cal. App. LEXIS 193, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-san-diego-v-dr-horton-san-diego-holding-co-calctapp-2005.