Gray v. South Carolina Department of Highways & Public Transportation

427 S.E.2d 899, 311 S.C. 144, 1992 S.C. App. LEXIS 157
CourtCourt of Appeals of South Carolina
DecidedOctober 5, 1992
Docket1874
StatusPublished
Cited by20 cases

This text of 427 S.E.2d 899 (Gray v. South Carolina Department of Highways & Public Transportation) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gray v. South Carolina Department of Highways & Public Transportation, 427 S.E.2d 899, 311 S.C. 144, 1992 S.C. App. LEXIS 157 (S.C. Ct. App. 1992).

Opinions

Cureton, Judge:

This inverse condemnation case arose when the South Carolina Department of Highways and Public Transportation closed the intersection of Grand Street and U.S. Highway 17 [146]*146by-pass in Mt. Pleasant, South Carolina, in 1989. The jury awarded Rick Gray damages of $162,000 for the taking of his property. The Department appeals. We affirm in part, reverse in part and remand.

FACTS

From 1978 to 1989 Gray operated a prosperous service station on the west side of Grand Street where it intersected with U.S. 17 by-pass near Mt. Pleasant. Gray occupied the property under a renewable sublease from Gulf Oil Company (now British Petroleum Company), which was due to expire on December 31, 1989. Gulfs lease ran until December 31, 1998. In August, 1989, the Department closed the intersection, denying Gray and his customers access to Grand Street as it ran in a southwesterly direction.

Before November, 1956, Grand Street (then Mathis Ferry Road) ran in a northerly and southerly direction. In November, 1956, the South Carolina Department of Highways and Public Transportation condemned the necessary property for the right-of-way of U.S. 17 by-pass. The right-of-way for the by-pass ran in an easterly and westerly direction. After November, 1956, U.S. 17 Mt. Pleasant by-pass was constructed over Grand Street. The intersection remained open and Gray’s service station was built around 1978 on the west side of Grand Street where it intersected with U.S. 17 bypass.

When the Grand Street intersection was closed in 1989, new intersections to the east and west of Grand Street were opened. In doing this, a new configuration of roads was opened, resulting in Grand Street being severed and that part to the north of the by-pass becoming a spur ending in a cul-desac where Gray’s service station was located.

ISSUES

The issues raised by the Department in this appeal are (1) whether there has been a taking of Gray’s property for which he is entitled to compensation and (2) whether there is any evidence to support the jury’s award of damages in the amount of $162,000.

[147]*147DISCUSSION

I.

A.

With respect to the issue of taking, the Department first argues its motion for directed verdict should have

been granted because it had the right to eliminate the intersection in the exercise of its police powers. Our Supreme Court has held that a governmental body may, pursuant to its police powers, regulate the use of property to prevent serious public harm. See, Richards v. City of Columbia, 227 S.C. 538, 88 S.E. (2d) 683 (1955). Although there was evidence that the closing of the intersection was for safety reasons and the closing had reduced the number of accidents at the area, the evidence is less compelling that the modifications were needed to prevent serious public harm. Most road improvements like the one in question have safety as a purpose. Any suggestion that most takings of property are not compensable merely because they have safety as a purpose would be untenable. See, Houston v. Town of West Greenville, 126 S.C. 484, 120 S.E. 236 (1923) (the exercise of a municipality’s police powers will not be allowed to violate Article 1, § 17 of the State Constitution which provides that private property shall not be taken for public use without just compensation). The issue was properly presented to the jury.

B.

The Department next argues that, pursuant to S.C. Code Ann. § 57-5-1010 et seq., when the right-of-way for U.S. 17 by-pass was acquired in he 1956 condemnation proceeding, the then owners were compensated for the denial of access to Mathis Ferry Road as it ran in a southerly direction across and over U.S. 17 by-pass.

The records before us establish that the intersection of Mathis Ferry Road and the U.S. 17 by-pass around Mt. Pleasant was not closed upon the implementation of the plans existing in 1956. In 1956 the Highway Department, when preparing to condemn property for a controlled-access road, prepared a detailed “Plan and Profile of the Proposed Road.” This Plan and Profile was required by statute to be filed with the Highway Department and to be made available to all owners [148]*148of land on whom a Notice of Condemnation was served. The Notice of Condemnation in this case incorporated Plan No. 10.439 which identified the property to be condemned for the right-of-way for U.S. 17 by-pass around Mt. Pleasant, South Carolina. Plan No. 10.439 contains 81 sheets of detailed plans. Sheet No. 24 of Plan 10.439 is a drawing showing that U.S. 17 by-pass around Mt. Pleasant would intersect with and cross Grand Street and the intersection would remain open. The plan envisioned additional paving to facilitate its use as an intersection. In other words, the 1956 condemnation was based on Department plans that showed the intersection remaining open. The continuation of the intersection and its benefits to a landowner situated in one of its busy quadrants must necessarily have been considered in establishing value. The Department is bound by its 1956 plans regarding what property rights were then taken as well as what benefits were then bestowed upon the then owner of the subject property.

Although S.C. Code Ann. §§ 57-5-1010 through 57-5-1040 (1976) give the Department authority to regulate and prohibit access to controlled-access facilities and to eliminate and control the creation of intersections, they do not provide that the Department may regulate and prohibit access and eliminate and control the creation of intersections without the payment of compensation if the action of the Department effects a taking of property.

In South Carolina Highway Department v. Allison, 246 S.C. 389, 143 S.E. (2d) 800 (1965), the Supreme Court held that an abutting landowner was entitled to compensation for the loss of access to an existing highway when a controlled-access facility was constructed on top of it. The Court stated that an abutting-property owner has a right of access over an existing road adjacent to his property as an appurtenance thereto. Consequently, an obstruction that materially injures or deprives the abutting-property owner of access for ingress or egress to and from his property is a “taking” of the property for which recovery may be had.

After the 1956 condemnation in this case, the then owners of the subject property still had a right of access to U.S. 17 bypass and that part of Mathis Ferry Road running to the south of the subject property. Gray enjoyed the same right of access under his sublease of the property, starting in 1978. The prop[149]*149erty was denied this access when the intersection was closed in 1989. There was, therefore, a “taking” at that time for which Gray was entitled, under authority of Allison, to compensation.

C.

Finally, the Department argues the elements of an inverse condemnation are not present in this case because there has been no physical entry upon Gray’s property. According to the Department, Gray’s real complaint is that he has lost business because the diversion of traffic makes the subject site unsuitable for a service station. The Department contends Gray has no right to be compensated for lost business.

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Bluebook (online)
427 S.E.2d 899, 311 S.C. 144, 1992 S.C. App. LEXIS 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gray-v-south-carolina-department-of-highways-public-transportation-scctapp-1992.