Commonwealth Transportation Commissioner v. Hurley

24 Va. Cir. 19, 1991 Va. Cir. LEXIS 210
CourtLoudoun County Circuit Court
DecidedJanuary 9, 1991
DocketCase No. (Law) 10633
StatusPublished

This text of 24 Va. Cir. 19 (Commonwealth Transportation Commissioner v. Hurley) is published on Counsel Stack Legal Research, covering Loudoun County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth Transportation Commissioner v. Hurley, 24 Va. Cir. 19, 1991 Va. Cir. LEXIS 210 (Va. Super. Ct. 1991).

Opinion

By JUDGE THOMAS D. HORNE

This cause came to be heard on the exceptions to the Commissioners’ Report filed by the petitioner. The Commissioner challenges the Report based upon the following reasons: flawed assumptions on the part of respondents’ experts whose testimony was erroneously relied upon by the Commissioners; the failure of the Commissioners to consider, in their valuation of the permanent easement, the fact that the land underlying the easement could be utilized in computation of the floor area ration for the tract; the award of damages by the Commissioners which would have considered the respondents’ planner’s testimony as to the direct commercial access from Route 7 to the property; the award of damages by the Commissioners which would have failed to consider uncontroverted testimony relating to a required dedication of a portion of the property as a prerequisite to commercial development; and the failure of the Commissioners to consider any enhancement in value brought about by improved access to the property.

[20]*20In their Report, the Commissioners unanimously determined that the respondents were entitled to recover $135,000.00 for the easement taken and $125,000 in damages to the residence, beyond the enhancement in the value to such residue. The award of the Commissioners is entitled to great weight and should not be disturbed unless shown by clear proof to have been based upon erroneous principles of law or of an amount so grossly inadequate or excessive as to show prejudice or corruption on their part. Section 25-46.21, Code of Virginia, as amended; State Highway and Transportation Commissioner v. Carter, 216 Va. 639, 641 (1976).

In fixing their award, the Commissioners, in addition to the view of the property, considered the testimony of various experts, including the appraisers called by petitioner and respondents. Petitioner’s expert, Thomas E. Reed, testified that the value of the easement was $90,349.00. This represented 24,093 square feet taken multiplied by 75% of $5.00 per square foot (the fee value of the land taken). He concluded that the easement should be appraised at a percentage of the fee value based upon the future benefit to the landowners in using the underlying land in any FAR (floor area ratio) calculations. He appraised the 5,811 square foot drainage easement at 50% of $5.00 per square foot or $14,528.06. For the temporary easement, Mr. Reed stated a value of $5,828.00. This represented 15% of $.50 per square foot times 7,771 square feet (the area of the easement). Thus, the total easement value was calculated by petitioner’s expert to be $110,705.00. He found no damage to the residue. His finding that there was no damage to the residue is summarized in his statement that:

I think that the easement whether it can be eventually vacated or whether it can’t is nebulous, and I do not think it causes any damage to the residue of the property.

(Transcript of September 14, 1990, p. 30).

Respondents’ expert appraiser, David C. LeRoy, valued the permanent easement taken (24,093 square feet) at $5.00 per square foot or a total of $120,465.00; the permanent drainage easement (5811 square feet) at 50% of $5.00 per [21]*21square foot or $14,527.50; and the temporary construction easement (7,771 square feet) at $1,000.00. Thus, Mr. LeRoy gave a total value for the land taken at $135,992.50. He valued the damage to the residue of $129,045.00.

The Court finds that the award in this case is based upon erroneous principles of law and must be set aside. Mr. LeRoy conceded that his calculation did not include consideration of a setback line of 300 feet. Thus, the following questions and answers may be found in his testimony.

Q. (Mr. Wakefield) If this property were to be developed for PD/OP, what is the setback required from 7?
A. (Mr. LeRoy) To my knowledge, there is nothing hard and fast in the Zoning Ordinance about a setback.
Q. (Mr. Wakefield) If you found out that there was a hard and fast rule that said that the setback was 300 feet, how would that change your testimony as to damage?
A. (Mr. LeRoy) I certainly doubt if a 300-foot setback exists.
Q. (Mr. Wakefield) Please answer the question. How would it change your testimony?
A. (Mr. LeRoy) Well, I would have to recalculate it. I don’t know at this point.
Q. (Mr. Wakefield) Completely change it, lessen it?
A. (Mr. LeRoy) I think it’s hypothetical. I’d have to revaluate it.

(Transcript, pp. 88-89).

The fallacy of Mr. LeRoy’s damage calculations is poignantly demonstrated in this last observation of Mr. LeRoy’s and in Mr. Reed’s comments upon the nebulous nature [22]*22of the development scenarios that would form the basis of any of respondents’ damage calculations. In a determination of damages in a condemnation proceeding, the Commissioners are not to consider prospective, speculative, or possible values based upon future expenditures and improvements. Richmond & P. R. Co. v. Seaboard & C. Co., 103 Va. 399, 407 (1905). In order for the Commissioners to have accepted the damage calculation of Mr. LeRoy, they must also have accepted the existence of a 35-foot setback. In any event, to the extent that the determination of value is dependent upon a determination by a government agency upon a future rezoning application or a noncompensable exercise of the police powers, such a valuation is based upon speculation and conjecture. State Hwy. & Transportation Commissioner v. Lanier Farm, 233 Va. 506 (1987).

Accordingly, the Court will sustain the first exception to the Report of the Commissioners, set aside the award, and direct the new Commissioners be summoned for a new hearing in this case. As new Commissioners shall be appointed to hear this case, counsel shall forthwith furnish names of all proposed Commissioners to the Court, as well as their open dates for trial. The Court does not believe that a reduction in an award is appropriate to the case. For the reason heretofore noted, the Court will sustain the exceptions number 3 and 4. The Court will overrule exceptions 2 and 5 as it cannot conclude as to such findings that they do not bear a reasonable relationship to the evidence, including the view of the property. Highway Commissioner v. Carter, 216 Va. 639 (1976).

March 22, 1991

This case came before the Court upon Landowner’s motion for the Court to reconsider its decision reflected in its letter opinion of January 9, 1991. No order has been entered at this time reflecting said opinion. But for the petitioner’s failure to timely renew his objection to the testimony of Mr. LeRoy, the Court sees no reason to modify any part of its earlier decision. As the Court has previously stated the basis for excluding the testimony of the landowner’s appraisal, it will not be repeated. Accordingly, the Court finds that its earlier opinion regarding the speculative and conjecturál nature of Mr. LeRoy’s [23]*23testimony is correct and, but for the failure of the Commissioner to timely note an objection thereto, would command a setting aside of the award of the Commissioners.

However, those objections noted during the testimony of Mr. Drenning (Tr.

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Related

Jimenez v. Commonwealth
402 S.E.2d 678 (Supreme Court of Virginia, 1991)
State Highway & Transportation Commissioner v. Carter
222 S.E.2d 776 (Supreme Court of Virginia, 1976)
State Highway & Transportation Commissioner v. Lanier Farm, Inc.
357 S.E.2d 531 (Supreme Court of Virginia, 1987)
State v. Friend
130 S.E. 102 (West Virginia Supreme Court, 1925)
Hargreaves v. Kimberly
26 W. Va. 787 (West Virginia Supreme Court, 1885)
Waldron v. Waldron
80 S.E. 811 (West Virginia Supreme Court, 1913)

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Bluebook (online)
24 Va. Cir. 19, 1991 Va. Cir. LEXIS 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-transportation-commissioner-v-hurley-vaccloudoun-1991.