Davidson County Board of Education v. First American National Bank

301 S.W.2d 905, 202 Tenn. 9, 6 McCanless 9, 1957 Tenn. LEXIS 356
CourtTennessee Supreme Court
DecidedApril 1, 1957
StatusPublished
Cited by33 cases

This text of 301 S.W.2d 905 (Davidson County Board of Education v. First American National Bank) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davidson County Board of Education v. First American National Bank, 301 S.W.2d 905, 202 Tenn. 9, 6 McCanless 9, 1957 Tenn. LEXIS 356 (Tenn. 1957).

Opinions

Mr. Justice BurNett

delivered the opinion of the Court.

This is a condemnation case in which the Board of Education sought to condemn 16.55 acres of a 52.5 acre [12]*12tract of land for the purpose of erecting a school building in Davidson County.

The jury of view fixed the value for the property taken at $32,387 and allowed $8,097 as incidental damages. On appeal to the Circuit Court that court trying the case with a jury rendered a verdict in favor of the property owner for $35,000 for the actual land taken, and found that the incidental damages were offset and balanced by the incidental benefits. On appeal to the Court of Appeals that Court reversed holding that the trial court erred in excluding a plat which was offered by the property owner and too, that there was no evidence to support the verdict of the jury that there were any incidental benefits which offset the incidental damages. Petition for certiorari was seasonably filed, granted, briefs filed and arguments heard here and we now have the matter for determination.

There are two assignments of error, both of which largely hinge around the first assignment which is to the effect that the Court of Appeals erred in concluding that the trial court erred in sustaining the County’s objection to the introduction of a plat on behalf of the property owners. The second assignment is to the holding of the Court of Appeals wherein that Court held that there was no evidence to support the verdict of the jury as to incidental benefits.

Prior to the taking of this property by the Board of Education for school purposes the land consisted of 52.5 acres. It had not been plotted or subdivided into building lots with roads, etc., through it prior to the time that it was taken. The plat that was objected to (objection was sustained in the trial court) was prepared by an [13]*13engineer witness in the lawsuit and was prepared for the admitted purpose of illustration and persuasion in connection with these condemnation proceedings. All the witnesses on behalf of the land owner who were experts on subdivisions, the sale of land, geared their testimony to this plat and to the conception that this subdivision which was not in existence prior to the taking of this property by the school, was subdivided into lots. The offering of this plat and the evidence in connection therewith was based on the proposition that the plat and the evidence in connection therewith was attempting to tie this tract of land down to a particular subdivision and one that was not in existence but was imaginary and was created only for the purpose of this condemnation proceeding. It was on this theory that the trial judge sustained the objection of the County to the introduction of the plat. Thus it is that we reach the important question in this lawsuit.

In Tennessee the “fair market value” rule as to the value of property being condemned holds. Alloway v. City of Nashville, 88 Tenn. 510, 13 S.W. 123, 124, 8 L.R.A. 123. The meaning of this evaluation rule as stated to the jury by the trial judge was as;

“fair, cash market value of a piece of property is that value which might be derived if a party is willing to sell but does not have to sell, a piece of property, and a party who is willing to buy, but he does not have to, he is not forced to buy the property.”

This is a correct statement of the rule.

The trial judge then went on to say to the jury that: “in considering what is the fair market value of the [14]*14property, on the date in question, you will take into consideration the capabilities of the property and its uses and those to which it may he best suited and adapted and every other element of value which has been proved by a preponderance of all the evidence to exist as of the date of taking.”

The jury was then correctly instructed as to what are incidental damages and what are incidental benefits and then told,

“that you may set oft incidental benefits, if any you find, against any incidental damages, if any you find, and vice versa. Or to put it in another way, you can pit benefits against damages or damages against benefits.”

And then they were told that they could not offset either the benefits or damages against the actual value of the property. On such a correct charge which is almost the verbatim language of this Court in the Alloway case, supra, the jury arrived at the conclusions set out in the first paragraph hereof.

We have no case on the direct point here involved in this State. In a recent work on the question, Orgel On Valuation Under Eminent Domain, 1953, the author very succinctly and ably reasons the questions here involved. In Volume 1, Sec. 28, page 138, commenting on how we should arrive at the fair market value he says:

“It is obvious that the use to which the farmer is now putting the land does not alone determine its market value. It is equally obvious that the value cannot be found by a summation of the values for each separate use, since some of these uses are mutually [15]*15exclusive. And it is no less obvions to anyone familiar with tbe nature of capital value, that the prospective uses must be fully discounted both for futurity and for the risk that they may not materialize.”

In this State we have adopted the view that “value in view of all available uses” (Alloway v. City of Nashville, supra) is the proper phrase to use in valuation as against phrase “value for the best use” as is used by the minority of the States. We are bound by the majority view, that is that we consider the “value in view of all available uses”. It is well said that we use this phrase to warn the jury against awarding the “value for a particular use”. In Conness v. Commonwealth, 184 Mass. 541, 69 N.E. 341, that Court said:

“The sum to be awarded for real estate taken is the fair market value of the property, having reference to all the uses to which it is adapted. Its value for any special purpose is not the test, although it may be considered, with a view of ascertaining what the property is worth in the market for any use for which it would bring the most.”

The author of Orgel On Valuation, supra, in Section 30, on page 146 makes this very pertinent statement:

“The courts are unanimous in admitting testimony on the adaptability of property for this use and for that, save for the familiar restrictions against the consideration of highly ‘remote and speculative’ contingencies. But it has been held in most cases that a witness may not himself translate the adaptability into a statement of its money value. A properly qualified witness may express an opinion that the property has [16]*16a ‘fair market value’ of $10,000, and lie may explain, both on direct and on cross examination, the particular qualities of the property -which lead him to conclude that it is worth this amount. But he is not ordinarily permitted to testify that the property ‘has a value of $10,000 for building lot purposes’ or ‘for the best use ’. ’ ’

When we read the Alloway case, where the proper question is stated on page 515 of 88 Tenn., on page 123 of 13 S.W., as to what a witness should be asked as to the value of property we find that the above summary fits our holding.

As is said further on page 149 of the same work last above quoted from:

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Bluebook (online)
301 S.W.2d 905, 202 Tenn. 9, 6 McCanless 9, 1957 Tenn. LEXIS 356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davidson-county-board-of-education-v-first-american-national-bank-tenn-1957.