Department of Transportation v. First Interstate Commercial Mortgage Co.

881 P.2d 473, 18 Brief Times Rptr. 1397, 1994 Colo. App. LEXIS 238, 1994 WL 420216
CourtColorado Court of Appeals
DecidedAugust 11, 1994
DocketNo. 93CA1475
StatusPublished

This text of 881 P.2d 473 (Department of Transportation v. First Interstate Commercial Mortgage Co.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of Transportation v. First Interstate Commercial Mortgage Co., 881 P.2d 473, 18 Brief Times Rptr. 1397, 1994 Colo. App. LEXIS 238, 1994 WL 420216 (Colo. Ct. App. 1994).

Opinion

[474]*474Opinion by

Judge DAVIDSON.

In this condemnation proceeding, respondent, First Interstate Commercial Mortgage Co. (First Interstate), appeals from the judgment of the trial court in favor of petitioner, Colorado Department of Transportation (the Department). We affirm.

At the time of the trial court proceedings, First Interstate owned a parcel of real property in Denver situated at the northeast corner of the intersection of Sheridan Boulevard and Hampden Avenue that was in use as a shopping center known as Bear Valley Mall.

Prior to the early 1960s, Hampden Avenue extended east as far as Sheridan Boulevard. In 1960, First Interstate’s predecessors in interest settled a condemnation action between it and the Department in connection with the eastward development of Hampden Avenue as a freeway.

The Department wished to maintain limited freeway access. First Interstate’s predecessors in interest wished to have direct access to the extended Hampden Avenue. Ultimately, First Interstate’s predecessors in interest deeded to the Department all rights of access to Hampden Avenue with an exception for one 20-foot-wide opening. This deed of access rights was recorded.

This opening was then used as an access ramp from westbound Hampden Avenue into the parking area of Bear Valley Mall. Other access to Bear Valley Mall exists along the northern side of the property onto Dartmouth Avenue and along the western side of the property onto Sheridan Boulevard.

In June 1992, pursuant to a re-design of the Hampden Avenue/Sheridan Boulevard interchange, the Department filed a petition in condemnation to acquire a temporary easement for construction purposes over certain Bear Valley mall land and to eliminate the access point excepted from the access rights deeded to the Department in 1960.

Prior to trial on the merits, the Department filed a motion in limine to prevent First Interstate from presenting evidence as to any diminution in value of the Bear Valley Mall property resulting from the elimination of the access point. After argument by both parties, the trial court ruled that any contractual right to the access point contained in the settlement between the Department and First Interstate’s predecessors in interest did not run with the land. Therefore, it concluded that, under current law, First Interstate was not entitled to be compensated for the elimination of that access because ingress and egress to the property was not substantially impaired. The trial court further found that, even if the right of access ran with the land, the Department had allowed access for a sufficient amount of time to have fully performed under the settlement agreement and could now eliminate the access.

Because both parties agreed that, if First Interstate could not present evidence as to damage to the value of the Bear Valley Mall property, no issues remained for resolution, the trial court entered a final judgment in favor of the Department.

I.

First Interstate argues that the trial court erred in determining that any contractual right to the access point did not create a property interest or covenant running with the land. We disagree.

First Interstate’s predecessors in interest deeded their Hampden Avenue access rights to the Department but specifically excepted a right to one 20-foot access point. An exception totally excludes from the grant a specific portion of the estate or interest transferred and does not create a new, lesser than fee estate or interest. Lincoln Savings & Loan Ass’n v. State, 768 P.2d 733 (Colo.App.1988). Therefore, under the 1960 deed to the Department, an access point was excepted and retained by First Interstate’s predecessors in interest.

Arguably, under the law as in effect at that time, First Interstate’s predecessors in interest were entitled to compensation for the access rights they deeded to the Department as part of the settlement agreement. At the time of the 1960 deed, the law in Colorado was unclear as to whether a property owner who lost an access point to abutting streets or highways through condemnation could be [475]*475compensated if the loss of the access point did not substantially impair ingress and egress to the property. See Boxberger v. State Highway Commission, 126 Colo. 526, 533, 251 P.2d 920, 924 (1952) (“The [condemnation] statute provides for the purchase and condemnation of any right of access appertaining to any land abutting on a state highway or on a portion of a state highway where such right of access is disturbed or destroyed. ...”); see also Minnequa Lumber Co. v. City & County of Denver, 67 Colo. 472, 186 P. 539 (1919).

First Interstate concedes that the law concerning compensation for loss of access has since been clarified to require compensation for loss of access only if ingress and egress is substantially impaired. See State Department of Highways v. Interstate-Denver West, 791 P.2d 1119 (Colo.1990). First Interstate argues, however, that because the exception for the access point was bargained-for compensation under the settlement agreement, the right to have it remain open is a property right or covenant, running with the land, in the nature of an easement. In order to condemn the access point, it contends, the Department must compensate it for the disturbance and destruction of the access point as prescribed by Boxberger v. State Highway Commission, supra, the controlling authority at the time of the settlement. We do not agree.

“The general rule ... is that the right to compensation for the value of land taken is a personal right which belongs to the owner at the time of the taking.” Upper Eagle Valley Sanitation District v. Carnie, 634 P.2d 1008, 1009 (Colo.App.1981); see also Rogers v. Lower Clear Creek Ditch Co., 63 Colo. 216, 165 P. 248 (1917). Under the law of condemnation, then, payment for a com-pensable substantial loss of access is personal to the owner. Majestic Heights Co. v. Board of County Commissioners, 173 Colo. 178, 476 P.2d 745 (1970); Gifford v. City of Colorado Springs, 815 P.2d 1008 (Colo.App.1991).

Thus, even if we assume, arguendo, that First Interstate’s predecessors in interest obtained a valid contractual right to have the access point remain open as part of their settlement agreement with the Department, that right was merely personal and did not transfer to First Interstate when it accepted a deed to the property in lieu of foreclosure. See Rogers v. Lower Clear Creek Ditch Co., supra; Enke v. City of Greeley, 31 Colo.App. 337, 504 P.2d 1112

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Related

Troiano v. Colorado Department of Highways
463 P.2d 448 (Supreme Court of Colorado, 1969)
Enke v. City of Greeley
504 P.2d 1112 (Colorado Court of Appeals, 1972)
Boxberger v. State Highway Commission
251 P.2d 920 (Supreme Court of Colorado, 1952)
Radinsky v. City and County of Denver
410 P.2d 644 (Supreme Court of Colorado, 1966)
Lincoln Savings & Loan Ass'n v. State
768 P.2d 733 (Colorado Court of Appeals, 1988)
Gifford v. City of Colorado Springs
815 P.2d 1008 (Colorado Court of Appeals, 1991)
Brown v. McDavid
676 P.2d 714 (Colorado Court of Appeals, 1983)
Shaklee v. Board of County Com'rs of Weld County
491 P.2d 1366 (Supreme Court of Colorado, 1971)
Upper Eagle Valley Sanitation District v. Carnie
634 P.2d 1008 (Colorado Court of Appeals, 1981)
People Ex Rel. Dep't of Pub. Works v. Di Tomaso
248 Cal. App. 2d 741 (California Court of Appeal, 1967)
Majestic Heights Co. v. Board of County Commissioners
476 P.2d 745 (Supreme Court of Colorado, 1970)
State Department of Highways, Division of Highways v. Davis
626 P.2d 661 (Supreme Court of Colorado, 1981)
Rogers v. Lower Clear Creek Ditch Co.
63 Colo. 216 (Supreme Court of Colorado, 1917)
Minnequa Lumber Co. v. City & County of Denver
67 Colo. 472 (Supreme Court of Colorado, 1919)

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Bluebook (online)
881 P.2d 473, 18 Brief Times Rptr. 1397, 1994 Colo. App. LEXIS 238, 1994 WL 420216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-transportation-v-first-interstate-commercial-mortgage-co-coloctapp-1994.