Commonwealth, Department of Highways v. Melwood Development, Inc.

487 S.W.2d 684, 1972 Ky. LEXIS 71
CourtCourt of Appeals of Kentucky
DecidedDecember 1, 1972
StatusPublished
Cited by2 cases

This text of 487 S.W.2d 684 (Commonwealth, Department of Highways v. Melwood Development, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth, Department of Highways v. Melwood Development, Inc., 487 S.W.2d 684, 1972 Ky. LEXIS 71 (Ky. Ct. App. 1972).

Opinion

CULLEN, Commissioner.

The Commonwealth of Kentucky, Department of Highways, condemned for highway purposes 20.36 acres out of a 41.-84-acre parcel of land lying within the city limits of Henderson, Kentucky, and owned by Melwood Development, Inc. The major portion of the acreage taken was for the construction of an interchange connecting U.S. Highway No. 41 and Kentucky Highway No. 54 with a new super-highway to be known as Pennyrile Parkway. The other portion taken was for an access road for an adjacent subdivision which was being landlocked by the construction of the new parkway.

The verdict and judgment fixed the damages for the taking at $302,500. On this appeal by the Department of Highways from that judgment the primary contention is that the damages are excessive.

The 41.84-acre parcel originally was part of a 57-acre tract owned by one Cooper. In 1952 or 1953 a plat of that tract was prepared, laying off streets and dividing the area into residential lots. The plat was approved by FHA but was never recorded in the office of the county court clerk for conveyance purposes. In 1955, the predecessor of Melwood Development obtained from Cooper an option to buy the 57-acre tract, in parcels, over a period of years, at a price of $2,000 per acre. That option was exercised, initially in part by Melwood’s predecessor and eventually from time to time by Melwood, between 1956 [686]*686and 1966, and in the latter year Melwood completed acquisition of title to the entire tract. In the meantime, in 1959, active subdivision development was begun, following the design of the 1953 plat. At the northern end of the tract, four blocks, containing 53 lots, were dedicated by a recorded plat. Sewers and water lines also were run into the tract, from the southwest corner, and extended along the lines of the platted streets in the northern portion of the tract. Subsequently, 39 of the lots that were platted in 1959, constituting some 16 acres, were sold, and that area is not involved in the condemnation suit. Also in 1962, a one-half acre parcel near the northeast corner of the tract was sold to an adjoining owner for commercial use. Fourteen of the lots platted in 1959 remained unsold at the time of the condemnation, and were part of the 41.84-acre parcel from which the condemned land was taken. In 1966, three additional blocks, containing 25 lots, adjoining the previously platted blocks and conforming to the design of the 1953 plat were dedicated by recorded plat.

The result was that when the condemnation was instituted in 1966, there were, in the 41.84-acre parcel, 39 lots dedicated by formal plat. In addition, according to the design of the 1953 FHA plat, there were 91 potential lots. Eight of the dedicated lots were fully developed, on paved streets with water and sewer facilities. Another 17 of those lots were fully developed also, except that the street on which they fronted had not been paved. The lines of the streets called for in the 1953 plat had been followed, in the undedicated area, in running the sewer and water lines into the dedicated area. The dedicated area embraced around 12 acres of the 41.84-acre parcel.

In the area where the Melwood tract was located, U.S. Highway No. 41 runs north and south. On the east side of that highway the land abutting the highway consists of a number of parcels under separate ownerships, devoted to commercial uses, and having a depth of around 90 feet. The west line of the Melwood tract, which was the back or east line of those commercial parcels, ran parallel with U.S. Highway No. 41 for 1100 to 1200 feet. The Melwood tract was roughly square in shape.

At the north end of the Melwood tract there was a platted street entering into U. S. Highway No. 41. The Melwood corporation also owned rights for two other entrances to that highway at points where streets were laid out in the 1953 FHA plat. In addition, there was an entrance from one of the dedicated streets in the Mel-wood tract to Kentucky Highway No. 54 on the east of the tract.

The witnesses for the landowners placed the “before” value of the Melwood tract at approximately $400,000, and the “after” value at from $40,000 to $68,000, making their average of damages around $346,000. The jury fixed the “before” value at $390,000 and the “after” value at $87,500, making the damages $302,500. The “after” value was within the range of the testimony because the witnesses for the Department of Highways placed the “after” value as high as $94,500.

As we view the case, the controlling question as concerns excessiveness of the damages is whether the evidence supports the jury’s finding of such a substantial diminution in value of the tract by reason of the condemnation. In our opinion, as will be developed hereinafter, the evidence fully sustained the finding of the “before” value; the question is whether the evidence sustained the finding of such a low “after” value. In other words, did the evidence establish that the portion of the tract that remained after the taking did not have substantially the same value factors that it had before the taking ?

The evidence for the landowner was that approximately 10 acres in the eastern and southern parts of the Melwood tract were best usable for commercial purposes, had a market for such use, and although only a [687]*687little more than two of the acres was zoned for commercial use it was probable that an application to rezone the remaining 8 acres for commercial use would be granted. Testimony as to allegedly comparable sales of land for commercial use would indicate a value as high as $18,000 to $20,000 per acre. This would suggest a value of from $180,000 to $200,000 for the 10 acres of commercial land in the Melwood tract. The testimony was that the highest and best use of the remaining 30 acres of the Melwood tract was for residential lots. The witnesses for the landowners in effect valued those 30 acres at $200,000 to $220,000, in doing which they gave recognition to the fact that some of the land was not yet dedicated, some was dedicated but not yet fully developed, and some was fully or almost fully developed. We can find no basis for discounting the probative value of that testimony. Thus, the jury’s finding of a “before” value of $390,000 had support in the evidence.

The factors that the landowner’s witnesses gave in reaching their “after” values were as hereinafter stated. First, the remaining tract had no commercial value. Second, the ramps for the interchange, rising to 20 feet in height, on the land condemned, will adversely affect the value of the adjacent land for residential use. Third, the taking will cut off some of the existing and planned streets of the subdivision, requiring the redesign of the plat, the relocation of existing streets, and the acquisition of new entrances to the highways. This in turn may require the relocating of sewers and water mains laid under the existing and planned streets. Fourth, the tract after the condemnation will not have sufficient access to the highway system, without the acquisition of new entrances, to meet subdivision regulations, and therefore was deprived of reasonable access for the purposes to which the land was being devoted. Fifth, the construction of the ramps will adversely affect the drainage of the tract. Sixth, in the construction of the access road for the adjacent property, over the right of way condemned for that purpose, the grade will be raised some two feet above the level of the adjoining platted lots, thus depreciating their value.

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Bluebook (online)
487 S.W.2d 684, 1972 Ky. LEXIS 71, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-department-of-highways-v-melwood-development-inc-kyctapp-1972.