Columbia Gulf Transmission Co. v. Fontenot

187 So. 2d 455, 1966 La. App. LEXIS 5196
CourtLouisiana Court of Appeal
DecidedJune 2, 1966
Docket1674
StatusPublished
Cited by18 cases

This text of 187 So. 2d 455 (Columbia Gulf Transmission Co. v. Fontenot) 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
Columbia Gulf Transmission Co. v. Fontenot, 187 So. 2d 455, 1966 La. App. LEXIS 5196 (La. Ct. App. 1966).

Opinion

187 So.2d 455 (1966)

COLUMBIA GULF TRANSMISSION COMPANY, Plaintiff and Appellant,
v.
Percy J. FONTENOT, Defendant and Appellee.

No. 1674.

Court of Appeal of Louisiana, Third Circuit.

June 2, 1966.
Rehearings Denied June 29, 1966.

*456 Edwards & Edwards, by William C. Broadhurst, Crowley, for plaintiff-appellant.

Fusilier, Pucheu & Soileau, by J. William Pucheu, Joseph E. Coreil, Fruge & Foret, by Jack C. Fruge, Ville Platte, for defendant-appellee.

Before CULPEPPER, TATE and HOOD, JJ.

CULPEPPER, Judge.

This is an expropriation case in which plaintiff seeks a right of way, plus certain temporary working areas, for the construction of a gas transmission pipeline across defendant's property. The principal issues relate to the value of the servitude taken and the severance damages to the remainder of defendant's property. From a judgment awarding defendant $19,225, plus interest, etc., plaintiff appealed. Defendant answered the appeal, seeking an increase in the award.

The general facts show that plaintiff seeks a permanent servitude, 30 feet in width and containing 7.5 acres, plus 2 temporary work areas on either side of the right of way containing 11.3 acres. The total property affected is 18.8 acres. The pipeline to be constructed is 30 inches in diameter and will be used for the transmission of natural gas. It will run parallel to, and about 50 feet from, an existing pipeline constructed in 1953.

Defendant's property contains 3,000 acres in a rural area. About 1,000 acres is flat open land, 150 acres is partially cleared, 850 acres is hill land and 900 acres is in 4 lakes. The principal use of the property is for rice farming, the 1,000 acres of flat land being devoted to this purpose. Defendant also has about 350 head of cattle. In addition to his farming activities, defendant is utilizing the property as a recreational area. He has a duck hunting club of 40 members who pay $100 each per season; a boat rental service of 23 boats; a fish bait stand; 8 rental cabins; camp sites, 12 of which he presently leases at $50 a year; a fish hatchery; and a crayfish pond.

The right of way will cross 2 "prongs" of one of the lakes. Approximately 3 acres, *457 of the 18.8 acres affected, will be in this lake, and the remainder will cross the hill land. None of the rice land will be affected, nor will any buildings or permanent improvements.

With this general description of defendant's property and the servitude being taken in mind, let us first set forth the award by the trial judge which was itemized as follows:

1) Loss of timber (sawlogs, pulpwood and smaller trees on
   the permanent servitude and work areas) .................           $ 500.00
2) Restoration of lands (plowing, discing and leveling the affected
   area) ............................................                  $ 375.00
3) Erosion prevention (terraces and seeding slopes left in the
   denuded area)  .........................................            2,000.00
4) Land taken (the value of the permanent servitude and temporary
   work areas expropriated) ..........................                    1,850.00
5) Cost to move mud from lake (the cost of deepening by 5
   feet the 3 acres in the lake, to prevent excessive growth of
   marine vegetation) ......................................             14,500.00
                                                                         _________
                                                Total ............... $19,225.00

We will first discuss the value of the permanent servitude and temporary work areas expropriated. Plaintiff introduced the testimony of 2 expert real estate agents and appraisers, Mr. Gilbert H. Vidrine and Mr. Marian Edwards, both of whom live, and have had considerable experience with land sales, in the area. Based on sales of comparable property in the area, and particularly the price paid by defendant himself within the last 5 years for the property at issue here, these 2 experts found the fee value of the 18.8 acres affected to be $100 per acre on the present market.

As opposed to the testimony of plaintiff's 2 expert land appraisers, the only expert testimony introduced by defendant was that of Mr. David E. Black. Actually, Mr. Black is an agricultural consultant, but, in this capacity, he advises clients on the cost of farm land. Mr. Black testified that because of the unique combination of rice farming, cattle grazing and recreational enterprises conducted by defendant, there were no sales of comparable property which could be used to establish the per acre value. Mr. Black used the "capitalization of income" method. He estimated the capital investment should earn 5% per year and capitalized this over a 20 year period; he contends the income from this property is $30,000 per year. Copies of defendant's income tax returns for the last 3 years show his earnings to be about $30,000 per year. But, there is some question as to whether all of this income was from the 3,000 acres in question, or whether part of it was from 3 other farms owned by defendant. Black concludes the property is worth "$1,200,000." or $400 per acre.

In his written opinion the trial judge points out that, even using Mr. Black's own capitalization of income method, his computations are in error. Even accepting $30,000 per year as the income from this property, and multiplying this by Mr. Black's capitalization figure of "20", would result in a total value of only $600,000. Dividing this by 3,000 would result in a per acre value of $200. This $200 per acre was the fee value found by the trial judge.

*458 There are forceful arguments against a finding of a fee value of $200 per acre. First of all, the 2 expert real estate agents and appraisers who testified for the plaintiff are entitled to more weight than the one expert introduced by defendant. Next the comparable sales method used by plaintiff's experts must be accepted in preference to the capitalization of income method used by Mr. Black. Our jurisprudence is well established that sales of comparable property in the area constitute the best evidence of value and that other methods, such as capitalization of income, are of lesser weight. State, Through Department of Highways v. Jones, La.App., 166 So.2d 538; State Through Department of Highways v. O'Neal, La.App., 150 So.2d 608.

Mr. Black's argument that we must use the average per acre value of the 3,000 acres as a whole, because the taking of this servitude will affect the entire property, is not supported by the law or the evidence. As a general rule, an expropriator must pay the actual market value of the portion expropriated, not the average per acre value of the whole parent tract. State Through Department of Highways v. LeDoux, 184 So.2d 604 (La.App. 3rd Cir. 1966). Furthermore, defendant does not contend that this servitude will affect the rice farming activities, which constitute the principal income producing feature of the property, or the cattle grazing, which is also a profitable use of the property. The only effect alleged as to the remainder of the property is that the denuding of the 18 acres will affect the squirrel hunting and the value of one acre of the land for camp sites and, as will be discussed in more detail hereinafter, the value of the lake for fishing. The evidence fails to support any of these contentions except as to the one acre suitable for camp sites. Thus the 18.8 acres affected are not such an essential part of the parent tract that their market value cannot be fixed separately.

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Bluebook (online)
187 So. 2d 455, 1966 La. App. LEXIS 5196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/columbia-gulf-transmission-co-v-fontenot-lactapp-1966.