Harris County Flood Control District v. H. Ben Taub, Kitchco Realty, LTD., Metco Realty, LTD., and Texan Land and Cattle II, LTD

502 S.W.3d 320, 2016 Tex. App. LEXIS 9326, 2016 WL 4479584
CourtCourt of Appeals of Texas
DecidedAugust 25, 2016
DocketNO. 14-15-00077-CV
StatusPublished
Cited by3 cases

This text of 502 S.W.3d 320 (Harris County Flood Control District v. H. Ben Taub, Kitchco Realty, LTD., Metco Realty, LTD., and Texan Land and Cattle II, LTD) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris County Flood Control District v. H. Ben Taub, Kitchco Realty, LTD., Metco Realty, LTD., and Texan Land and Cattle II, LTD, 502 S.W.3d 320, 2016 Tex. App. LEXIS 9326, 2016 WL 4479584 (Tex. Ct. App. 2016).

Opinion

OPINION

Tracy Christopher, Justice

In this condemnation case, Harris County Flood Control District (“the District”) appeals the judgment rendered on the jury’s finding valuing the subject property at $11,636,238.00 on the date of the taking. According to the District, the trial court abused its discretion in admitting comparable-sales evidence of five other property transactions and in rendering judgment on the jury’s verdict, which tracked expert testimony relying on some or all of those transactions. We conclude that the trial court abused its discretion in admitting evidence of an option contract and of a sale to a school district having the power to condemn property. Because other comparable-sales evidence supported the expert testimony and the verdict, we conclude that these errors were harmless, and we affirm the trial court’s judgment.

I. Background

H. Ben Taub and three entities associated with the Taub family owned a heavily wooded tract of about 99 acres in Deer Park, Harris County, Texas. 1 A drainage easement divided the property into a northern section of about 42 acres and a southern section of about 56 acres. 2 The District condemned the 42-acre tract, and the special commissioners determined that the property’s value was $9 million. The District paid this amount into the registry of the court on July 28, 2010, thus establishing that as the date of the taking. The District’s appeal to the county civil court at law was by trial de novo.

The District contends that the trial court erred in admitting comparable-sales evidence of five real-estate transactions. Taub was a party to three of those transactions, and the remaining transactions were sales of two properties, each of which served as the site for a hotel. We describe the transactions below.

A. The Frantz Contract

In September 2007, Taub executed an agreement to sell both his 42-acre lot and his 56-acre lot to John E. Frantz. 3 They agreed that Frantz would pay $3.00 per square foot for the property conveyed. 4 They also agreed that Frantz would have *325 until the end of the year to investigate the property, and that if he terminated the contract in writing before the end of that period, then his $50,000.00 earnest-money payment would be refunded. The contract stated that the sale was to close on January 30, 2008.

In early December 2007, Frantz went to Deer Park’s office of public works to investigate the utilities available to the site. After he left, Deer Park’s city manager called and invited him to a meeting on December 11, 2007. Deer Park’s mayor, its city manager, two or three people from the District, Frantz, and Frantz’s son attended. The group told the Frantzes that the District wanted to acquire part of Taub’s property as a site for a detention pond. There is conflicting evidence about whether the District told Frantz at that time that it wanted the 42-acre section.

On December 17, 2007, Frantz and Taub amended their contract; we refer to the first amended contract as the “Frantz contract.” In the amendment, Frantz and Taub agreed that Frantz would pay $3.00 per square foot for the 56-acre tract and $6.00 per square foot for the. 42-acre tract. They also pushed back the property-investigation deadline and the closing date by two months. The contract was amended seven more times to extend deadlines while the parties waited to see whether the District would condemn the 42-acre section of the property, but the price remained the same.

B.The Kinder Morgan Contract

During this time, Taub executed an option agreement with Kinder Morgan Texas Pipeline, LLC (“the Kinder Morgan contract”). Kinder Morgan owned the property that separated the 42-acre tract from East Boulevard in Deer Park. Taub sought a 60-foot-wide strip of land to provide access from East Boulevard to the 42-acre tract. Under the terms of that contract, Taub paid $53,280.00 for a one-year option to buy the strip of land for $532,800.00— the equivalent of $6.44 per square foot— and the option was renewable for one year at the same price. Kinder Morgan agreed that if Taub exercised the option, then all of the money he paid for the option would be applied to the sale. The original contract was executed in December 2008, and although Taub renewed the option, he did not ultimately buy the land.

C. The School Sale

Also during this time, Taub negotiated to sell the 56-acre section of the property to Deer Park Independent School District for $4.50 per square foot (“the School sale”). To allow that sale to go through, Frantz and Taub agreed to terminate their sales contract. The School sale agreement was executed in March 2010 and closed the same month.

D. The Hotel Sales

The jury also heard evidence about two properties sold for development as hotels. The site of the future Candlewood Suites hotel was approximately 2.2 acres and sold for $7.42 per square foot. The site of the La Quinta hotel was about the same size, arid was sold for $5.00 per square foot.

E. The Expert Testimony

Taub retairied three experts to testify regarding the property’s market value, but called only two of them—Mark Sikes and Wayne Baer—to testify at trial. Both experts used the comparable-sales method, ■with Sikes relying on ten and Baer relying on eight transactions. Sikes and Baer each relied on the Frantz contract, the Kinder Morgan contract, the School sale, and the Candlewood Suites sale; neither of them relied on the La Quinta sale as a comparable sale. Sikes and Baer instead described *326 the La Quinta sale as a sale on which the School’s consultant relied in determining the purchase price for the 56 acres that were the subject of the School sale.

Sikes opined that, after determining whether each of the properties he used as a comparable sale was superior or inferior to the subject property and adjusting the sales accordingly, the subject property’s market value on the date of the taking was $6.25 per square foot, for a total of $11,636,238.00, Baer opined that the subject property’s market value was $6.00 per square foot, for a total of $11,170,000.00. The District’s expert Alan Dominy used nine comparable sales ranging from $1.34 to $3.67 per square foot, and opined that the market value of the 42-acre tract was $2,580,506.00.

Although Taub did not call his third expert Clinton Bogart as a witness at trial, the District did. The District elicited Bogart’s testimony that he used the La Quin-ta sale as a comparable sale when calculating the value of the 42-acre tract, but Bogart did not testify to his opinion of the subject property’s value.

F. The Verdict

The trial court instructed the jury on the meanings of “market value” and on the project-influence rule. In answer to the only question asked, the jury found that the property’s market value on the date of the taking was $11,636,238.00, that is, the amount to which Sikes testified.

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Cite This Page — Counsel Stack

Bluebook (online)
502 S.W.3d 320, 2016 Tex. App. LEXIS 9326, 2016 WL 4479584, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-county-flood-control-district-v-h-ben-taub-kitchco-realty-ltd-texapp-2016.