Enbridge G & P (East Texas) L.P. v. Ben Samford and Wife Bette Ann Samford, Cecil Jackson and Wife Michelle Jackson and Sammy Monk

470 S.W.3d 848, 2015 Tex. App. LEXIS 8062, 2015 WL 4594508
Court of Appeals of Texas·Decided July 31, 2015·No. NO. 12-13-00307-CV·Published·Cited by 4 cases

Opinion

OPINION

BILL BASS, Justice

This is a condemnation case involving three tracts of land with separate ownership. Enbridge G & P (East Texas) L.P. appeals an award of damages in favor of the landowner condemnees, Ben Samford and wife, Bette Ann Samford; Cecil Jackson and wife, Michele Jackson; and Sammy Monk. In six issues, Enbridge complains of charge error and the failure of the trial court to exclude inadmissible damage testimony. We reverse and remand.

Background

Enbridge brought three separate actions seeking to condemn a fifty foot gas pipe *853 line easement and a twenty-five foot temporary easement across the three tracts owned by the landowners. Enbridge objected to the commissioners’ awards in all three cases. The trial court then consolidated the three actions.

The only contested issues were the value of the parts taken and the reduction in value of the remainders because of the taking. All three tracts were rural mixed pasture or woodland. The landowners and Enbridge each called one appraisal witness who gave their opinion of the value of the part taken and damages to the remainder based on comparable sales of similar property. Both Jake Lyon for the landowners and Ronnie Harris for Enbridge testified that the “highest and best use” of all three tracts was rural residential or agriculture.

Jake Lyon valued the Samford and Jackson tracts at the time of the taking at $2,200.00 per acre. He estimated the value of the Monk tract at $2,000.00 per acre. In his opinion, the value of the part taken for the permanent easement was diminished by ninety percent; and the part taken for the temporary easement by fifty percent. He testified that the value of the remainder of the tracts was reduced by $400.00 per acre.

Ronnie Harris testified that he valued the Samford and Jackson tracts at $3,500.00 per acre and the Monk tract at $3,600.00 per acre. He agreed with Lyon that the taking reduced the value of the part taken for the permanent easement by ninety percent and the part taken for the temporary easement by fifty percent. However, based on his comparable sales data, Harris found no damage to the remainders of any of the subject properties.

The landowners also called Wesley Hoyt to testify to “what a gas pipeline is worth.” Hoyt was a lawyer and the County Attorney of San Augustine County. Enbridge moved to exclude Hoyt’s report and testimony before trial contending that he was unqualified to give an opinion on market values. Enbridge also maintained that the per rod methodology he employed was unacceptable, irrelevant, and unreliable. The trial court overruled Enbridge’s motion. Enbridge unsuccessfully reiterated its objections at trial.

Hoyt testified that he based his opinion on the numerous occasions he had negotiated sales of pipeline easements “before it got into litigation,” and his conversations with hundreds of landowners. He rejected the traditional market value approach because “that standard manner of valuation is not true, and not accurate, because that’s not what actually happens out here in the real world in the industry.”

Hoyt testified that, based on his general knowledge, the going pi;ice paid in the industry was $850.00 per rod. Hoyt indicated that $850.00 per rod included the value of the easement taken, the temporary easement, damage to the remainder, and “everything that goes on with these easements.” Hoyt brought no comparable sales of pipeline easements or other data to support his opinion.

The trial court also overruled En-bridge’s objections to the testimony of Lynwood Smelser. Smelser testified about the cost to permanently repair damage caused to the creek banks in the permanent easement areas of the Samford and Monk tracts caused by the pipeline construction. Smelser stated that to repair the damage to prevent erosion would require that the creek banks be rip-rapped over filter fabric and the disturbed area hydro-mulched with erosion seed blend and fertilizer. He stated that the cost for *854 these repairs was $380.00 per foot for 23i feet or a total of $87,700.00 on the Samford easement. He estimated that similar repairs on the 181 feet of creek bank in the Monk easement would cost $68,700.00. Smelser was also asked to estimate the cost of bringing in enough fill dirt to construct a two - foot pad for four chicken brooder houses- that Jackson said he wanted to build on his tract. In Smelser’s opinion, the pipeline complicated getting, the dirt required on the Jackson property. To build the pad, he said, would require the purchase of 10,785 cubic yards of fill at $8.00 per cubic yard or- a total of $86,286.00. However, Smelser did not testify to before and after market values, and he cannot be considered a valuation witness.

The testimony of the value witnesses can best be shown and compared by the charts below. :

Samford 94.32 acres (3.023 acre permanent easement; 2.528 acre temporary easement)

Witness Value per acre Value part taken Value Temporary Easement Remainder Damages Total Compensation

Lyon $2,200.00 5,9867.00 90% reduction 2,781.00 50% reduction 38,840.00 $45,407.00

Harris $3,500.00 9,522.00 90% reduction 4,424.00 50% reduction ■ 0 • $13,946.00

Hoyt n/a $850/rod x 159.02 rods n/a $135,677.00

Jackson 63.5359 acres (.847 acre permanent easement; .475 acre temporary easement)

Witness Value per acre Value part taken Value Temporary Easement Remainder Damages Total Compensation

Lyon $2,200.00 1,677.00 90% reduction 523.00 . 50% reduction 25,708.00 $27,908.00

Harris $3,500.00 2,668.00 90% reduction 417.00 25% reduction $3,085.00

Hoyt n/a $850/rod. 44.713 rods n/a $38,006.00

Monk 34.31 acres (.858 acre permanent easement; .558 acre temporary easement)

*855 Witness Value per acre Value part taken Value Temporary Easement Remainder Damages Total Compensation

Lyon $2,000.00 1,544.00 90% reduction 558.00 , 50% reduction 12,823.00 400/a $14,925.00

Harris $3,600.00 2,780.00. 90% reduction 1,004.00 50% reduction $3,784.00

Hoyt n/a $850/rod x x 45.303 rods n/a $38,508.00

The charge given required the jury to answer two questions:

Question No. 1
What was the market value of the pipeline easement condemned on each of the tracts named below?
Question No. 2
What was the damage, if any, to the remainder of the tract named below as a result of the taking of the pipeline easement?

Enbridge objected to Question No. 1 and urged the court to ask the jury to determine “the difference'in fair market value of the permanent easement immediately before the taking and immediately after the taking.” The court overruled Enbridge’s objection and denied its requested submission.

The jury’s verdict is reproduced below showing the jury’s notations thereon.

Question No. 1

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Enbridge G & P (East Texas) L.P. v. Ben Samford and Wife Bette Ann Samford, Cecil Jackson and Wife Michelle Jackson and Sammy Monk, 470 S.W.3d 848, 2015 Tex. App. LEXIS 8062, 2015 WL 4594508 (Tex. Ct. App. 2015).

470 S.W.3d 848 (Enbridge G & P (East Texas) L.P. v. Ben Samford and Wife Bette Ann Samford, Cecil Jackson and Wife Michelle Jackson and Sammy Monk) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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