Estelle v. Iowa State Highway Commission

119 N.W.2d 900, 254 Iowa 1238, 1963 Iowa Sup. LEXIS 650
CourtSupreme Court of Iowa
DecidedFebruary 12, 1963
Docket50841
StatusPublished
Cited by6 cases

This text of 119 N.W.2d 900 (Estelle v. Iowa State Highway Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estelle v. Iowa State Highway Commission, 119 N.W.2d 900, 254 Iowa 1238, 1963 Iowa Sup. LEXIS 650 (iowa 1963).

Opinion

Peterson, J.

— This case involves the condemnation of a leasehold. In 1951 plaintiffs rented a tract of land, 100 by 150 feet, at or near the junction of Highways No. 218 and No. 1 in Iowa City. The land was rough and had about 15 trees upon it, but with no buildings. Plaintiffs at first built a small shed *1241 which they used for some time as a fruit and vegetable stand. In 1956 they converted the building into a drive-in root beer stand. They first rented under oral lease from year to year, and in 1957 they entered into a written lease with the owners, Mr. and Mrs. Wm. T. Goodwin, for a 10-year term, which ran from June 12, 1957, to June 12, 1967. Upon the making of this lease they started a restaurant business and extended their building to where its size became approximately 42 by 48 feet. They cleared and leveled the land, poured a concrete floor for the building, and made a parking place of rock and gravel as to the remainder of the lot.

In 1958 the Highway Commission commenced negotiations for acquiring plaintiffs’ leasehold. Same were not consummated, and on July 29,1960, the leasehold was condemned. The Sheriff’s jury awarded plaintiffs $11,000. From this award plaintiffs appealed. Upon trial of the appeal the District Court jury awarded plaintiffs $20,500. The Highway Commission appealed.

Appellant assigns 14 alleged errors. Many are inconsequential. Some are not prejudicial to defendant. ¥e can summarize those meriting our attention as follows:

1. The trial court erred in failing to instruct the jury as to the proper measure of damages.

2. Error was committed in ruling that personal property (the equipment in the restaurant) even if it can be adapted to other business, or to personal use, could be considered in fixing the value of the leasehold.

3. The court erred in admitting the evidence of some witnesses that they took into consideration the matter of a renewal of the lease in testifying as to value of leasehold, and in rejecting defendant’s requested instruction 3 as to such question.

4. It was error for the court to admit any evidence that plaintiffs had a compensable interest in the building, in that the tenant had only a restricted right of removal as to the building.

5. The court erred in not submitting appellant’s requested instruction that the jury should not give attention to costs, interest and attorney fees.

6. The verdict was excessive.

*1242 I.Plaintiffs started their business in the manner as heretofore stated. They expended substantial sums in developing the ground occupied by the restaurant, and in building and equipping the restaurant property.

The Fifty-eighth General Assembly in 1959 amended section 472.14, Code of Iowa, which pertains to the appraisement and report of commissioners, by adding to said section the following sentence as to personal property :

“In assessing the damages the owner or tenant will sustain, the commissioners shall consider and make allowance for personal property which is damaged or destroyed or reduced in value.”

The written lease between Mr. and Mrs. Goodwin and plaintiffs provided that they should pay $50 per month rental but that lessors were under no obligation to furnish anything except the land. From 1951 until 1958 plaintiffs improved the land by making the following improvements:

1. Removed the trees and excavated and leveled the balance of the lot.

2. Purchased and spread upon the part of the lot not used for the restaurant building many tons of rock in order to make it usable for parking cars.

3. Oiled the rock in order to make and keep it in condition for driving purposes.

4. Purchased all lumber and other material necessary for the building of a proper restaurant building.

5. Connected all utilities such as electricity, water and sewer to the building not only for general usage but also for their toasters, electric sign, and connection with the well they drilled.

6. Drilled a 55-foot well on the premises.

7. Installed a complete concrete' floor for the restaurant, and for walks adjoining the building.

8. Installed a gas furnace for the heating of the building.

9. Purchased and installed complete kitchen equipment and all the necessary fixtures, dishes and other utensils for the proper maintenance of a modem restaurant.

*1243 II. The primary question in this case pertains to measure of damages. It was necessary that this be carefully outlined in the trial court’s instructions, and that the trial court guard the record carefully to keep out immaterial and extraneous matters. It is our opinion the trial court meticulously and carefully accomplished this purpose.

The substance of instructions 6 and 10 as to the measure of damages is as follows: “* * * The measure of damages is the fair and reasonable market value of the unexpired term of the lease with the building, fixtures and other personal property located thereon, on July 29, 1960, immediately before the appropriation by defendant, less the rental reserved for the remainder of the lease and less the reasonable value of any personal property removed by plaintiffs after the condemnation.

“ * * * You may consider all the varied elements of value as described by the evidence, in regard to the location of the premises, the surroundings thereof, its accessibility, the use to which same has been put, its improvement, nature, character, type and general construction of the building and fixtures located thereon, the depreciation as to said building, fixtures and personal property, if any, since their construction or purchase * * * and any other material facts disclosed by the evidence. # # #

“Plaintiffs are not entitled to recover the cost of any specific item or the sum total of various specific items as such, and the matters above suggested and other facts and circumstances as shown .in the evidence should be considered by you only insofar as they may bear upon the fair and reasonable value of plaintiffs’ property at the time of its condemnation on July 29, 1960.”

Four witnesses testified on behalf of plaintiff as to the value of the property on the date of condemnation. Mr. Estelle testified as to such damages, after qualifying himself as to complete knowledge of all facts. He said plaintiffs’ damages were in the amount of $35,000.

The witness, Mr. Homer Berven, testified he lived in Iowa City and that he had been a licensed real-estate broker in the State of Iowa since 1946. He- had familiarized himself with property in Iowa City and vicinity, including leaseholds and *1244 real estate generally. He had made a special study of appraisal and had used what are known as the Stevens method and the Wenslick method, both of which are recognized by appraisal authorities.

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Related

Nidy & Company v. State
189 N.W.2d 583 (Supreme Court of Iowa, 1971)
Wilkes v. Iowa State Highway Commission
172 N.W.2d 790 (Supreme Court of Iowa, 1969)
Interstate Finance Corp. v. City of Iowa City
149 N.W.2d 308 (Supreme Court of Iowa, 1967)
Skaff v. City of Sioux City
120 N.W.2d 439 (Supreme Court of Iowa, 1963)

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Bluebook (online)
119 N.W.2d 900, 254 Iowa 1238, 1963 Iowa Sup. LEXIS 650, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estelle-v-iowa-state-highway-commission-iowa-1963.