Harrington v. Vermont Agency of Transportation

2009 VT 25, 971 A.2d 658, 185 Vt. 617, 2009 Vt. LEXIS 133
CourtSupreme Court of Vermont
DecidedMarch 4, 2009
DocketNo. 08-322
StatusPublished

This text of 2009 VT 25 (Harrington v. Vermont Agency of Transportation) is published on Counsel Stack Legal Research, covering Supreme Court of Vermont primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harrington v. Vermont Agency of Transportation, 2009 VT 25, 971 A.2d 658, 185 Vt. 617, 2009 Vt. LEXIS 133 (Vt. 2009).

Opinion

¶ 1. Plaintiffs, the owners of a parcel of land in Bennington, appeal from a jury verdict awarding them [618]*618$4,095 in compensation for the State’s taking of a strip of their property by eminent domain to widen a highway. Plaintiffs contend that the trial court erred in excluding evidence relating to nearby land sales to the condemning authority, the Vermont Agency of Transportation (VTrans). We affirm.

¶ 2. The pertinent facts are undisputed and may be briefly recounted. Plaintiffs own a parcel of land on Route 9 in Bennington. Defendant VTrans is reconstructing this section of Route 9 in connection with a highway interchange project related to the “Bennington Bypass.” A portion of plaintiffs’ front yard was necessary for the project and was taken by eminent domain. See 19 V.S.A. §§ 501-510 (establishing procedures for taking of private property for state highway projects). Pursuant to 19 V.S.A. §§ 511 and 512, the Transportation Board held a hearing and awarded plaintiffs $4,095 in compensation for the taking. Plaintiffs then appealed that award to the superior court. Id. § 513.

¶ 3. The only question presented on appeal arises from the superior court’s decision to bar evidence of a transaction involving another property fronting on Route 9. Before trial, VTrans moved to exclude evidence of, among other things, “any opinion of value of the property acquired based upon any other land acquisitions of [VTrans].” Plaintiffs opposed the motion, stating that plaintiffs intended to introduce such evidence “merely as a statement of fact, and not to argue from it as a determinant of value for that parcel or even the plaintiffs’ parcel.” Thus, plaintiffs contended, they “should not be prevented from introducing evidence of awards made to ... other landowners in the vicinity of the plaintiffs’ subject parcel.”

¶ 4. The trial court granted the VTrans motion, concluding that evidence of the prices paid by VTrans to other property owners for their condemned land was inadmissible because such prices were not the result of arm’s-length transactions. Specifically, the court noted, such transactions were not truly voluntary, because at least one of the parties was under compulsion to undertake the sale. The court concluded its discussion by noting that evidence of sales would be admissible only if, at a minimum, the sale was of “land of similar character located in the same vicinity and at a reasonably near point in time” and was a “voluntary, arms-length transaction.”

¶ 5. Just before trial, and after the motion decision issued, plaintiffs’ counsel informed the judge and VTrans in chambers that he intended to offer into evidence two deeds involved in VTrans’ purchase of a residential home along Route 9. In two transactions, VTrans had purchased a residential property (“the Niles property”) for $209,600 plus relocation assistance, reserved to itself a strip of land for the bypass project, and then reconveyed the remaining land to another party for $111,111.11. The court deferred ruling on the admissibility of the Niles documents until they were proffered at trial.

V 6. At that time, plaintiffs’ counsel conceded that the court had correctly ruled, in granting the motion in limine, that evidence of payments made in other condemnation cases is inadmissible, but contended that the Niles transactions were arm’s-length and voluntary. Further, counsel argued, “the $209,000 would be a comparable because it’s right down the road.” During the colloquy concerning this evidence, plaintiffs’ counsel noted, without prompting from opposing counsel or the judge, that the owners of the Niles property “were threatened with the same thing my clients are threatened with, a strip piece taken.” The court inquired whether the property would have been condemned if the sale had not “worked out,” and plaintiffs’ counsel responded that “an order of taking” had already been filed.

[619]*619¶ 7. Plaintiffs’ counsel then argued that the sale was voluntary because the entire property was sold, while only the strip fronting on Route 9 was subject to condemnation. In response, VTrans’ counsel stated, without opposition, that the Niles property would, after the strip was taken, have no access to Route 9. The court agreed with VTrans and excluded the evidence, noting that “[t]he owners were still, obviously aware that there was a condemnation order, and that if they did nothing, this strip was going to be taken.” In light of the uncertain factual underpinnings of the Niles transfers — uncertainties that plaintiffs had proffered no evidence to clarify — the court concluded that the evidence, though relevant, should be excluded because of a high probability of juror confusion and undue prejudice. See V.R.E. 403. The jury, like the Transportation Board before it, awarded plaintiffs $4,095, and plaintiffs filed this appeal.

¶ 8. We review the trial court’s decision to exclude the evidence of the Niles transactions under a deferential standard, and will reverse only if the trial court abused its discretion. State v. Derouchie, 153 Vt. 29, 34, 568 A.2d 416, 418 (1989). The party claiming error in such a discretionary ruling “must show that the court’s discretion was either totally withheld or exercised on grounds clearly untenable or unreasonable.” State v. Parker, 149 Vt. 393, 401, 545 A.2d 512, 517 (1988) (quotation omitted). This burden is “a heavy one.” Id.

¶ 9. Under this standard, we find no basis to reverse. Plaintiffs concede, and we agree, that only arm’s-length transactions are relevant to the determination of fair market value for the condemned strip of land at issue here. The only question remaining, then, is whether a transaction between VTrans and landowners who faced the certain prospect of their land being cut off from access to Route 9 by condemnation was between a willing buyer and a willing seller. None of our prior cases directly controls the answer to that question. Among other courts, the majority view is that sales under threat of condemnation are not arms-length and are therefore not admissible. See, e.g., In re Condemnation of Land for Controlled Access Highway Purposes, 548 P.2d 756, 764 (Kan. 1976) (“Such a transaction is not an arm’s-length sale between parties since the threat of condemnation affects the price required to be paid.”); Brown v. Miss. Transp. Comm’n, 98-CA-00455-SCT (¶ 29), 749 So. 2d 948 (Miss. 1999) (“Because they are more in the nature of a compromise and are not, therefore, fair indicators of market value, sales to an agency with condemning authority are not admissible in evidence . . . .”); State Dep’t of Highways v. DeTienne, 707 P.2d 534, 538 (Mont. 1985) (same).

¶ 10. The rule in the eases just cited has been the position of the vast majority of courts for, at a minimum, nearly a century. See 2 P. Nichols, The Law of Eminent Domain § 456, at 1201 (1st ed. 1917) (“If a sale is made to [an entity] about to institute condemnation proceedings if it cannot acquire the land by purchase at a satisfactory price, the price paid is not a fair test of market value . . . .”; citing cases).

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Related

State Ex Rel. Department of Highways v. DeTienne
707 P.2d 534 (Montana Supreme Court, 1985)
Rostine v. City of Hutchinson
548 P.2d 756 (Supreme Court of Kansas, 1976)
Hannan v. United States
131 F.2d 441 (D.C. Circuit, 1942)
State v. Parker
545 A.2d 512 (Supreme Court of Vermont, 1988)
Brown v. Mississippi Transp. Com'n
749 So. 2d 948 (Mississippi Supreme Court, 1999)
State v. Derouchie
568 A.2d 416 (Supreme Court of Vermont, 1989)
Mooney v. City of Overland Park
153 P.3d 1252 (Supreme Court of Kansas, 2007)
Eames v. Southern New Hampshire Hydro-Electric Corp.
159 A. 128 (Supreme Court of New Hampshire, 1932)
O'Malley v. Commonwealth
65 N.E. 30 (Massachusetts Supreme Judicial Court, 1902)
Appeal of Lakeshore Estates
543 A.2d 412 (Supreme Court of New Hampshire, 1988)

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Bluebook (online)
2009 VT 25, 971 A.2d 658, 185 Vt. 617, 2009 Vt. LEXIS 133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harrington-v-vermont-agency-of-transportation-vt-2009.