Holiday Inns, Inc. v. State

931 S.W.2d 614, 1996 WL 350509
CourtCourt of Appeals of Texas
DecidedJune 26, 1996
Docket07-95-0032-CV
StatusPublished
Cited by19 cases

This text of 931 S.W.2d 614 (Holiday Inns, Inc. v. State) 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
Holiday Inns, Inc. v. State, 931 S.W.2d 614, 1996 WL 350509 (Tex. Ct. App. 1996).

Opinion

REYNOLDS, Chief Justice.

Aggrieved by the judgment the trial court rendered upon the jury’s findings in a condemnation proceeding instituted by the State of Texas, Holiday Inns, Inc. presents eleven points of error by which it challenges assorted pretrial and evidential rulings by the trial court, the sufficiency of the evidence to support the jury’s findings, and the propriety of the charge of the court. We will overrule the points and affirm.

In June of 1973, the City of Lubbock passed an ordinance precluding land located in the City and fronting U.S. Highway 87 to a depth of 160 feet from being used for improvements. This “set back,” according to the State’s appraiser, was for the benefit of the Texas Highway Department to accommodate a future highway. The property involved in this litigation fronts the highway and was re-zoned to permit its use by Holiday Inns for the construction of a hotel, which commenced in July of 1984.

To construct Interstate 27 through the City, which essentially expanded and improved U.S. Highway 87, the State filed, on 3 March 1986, its petition to acquire by condemnation 58,138.52 square feet (the land taken) of the 186,656 square feet of land owned by Holiday Inns on U.S. Highway 87 in Lubbock County. Thereafter, the trial court appointed three disinterested freeholders of Lubbock County as special commissioners, who, following a hearing at which both parties appeared in person or by their attorneys, rendered an award in favor of Holiday Inns in the amount of $750,000. Both parties duly filed their objections and exceptions to that award, and the case was set for trial.

Prior to the commencement of the trial, Holiday Inns stipulated that the State had the right to recover and condemn its property, and that the only issue to be tried was that of the compensation owed it by the State. The State deposited into the registry of the trial court the amount of the special commissioners award on 29 July 1986, thereby establishing the date of the taking, and the parties proceeded to trial.

Upon hearing the stipulations of the parties, the evidence and arguments of counsel, the jury, in reply to Question No. 1, found the market value of the land taken to be $224,465. Responding to Question No. 2, ■which inquired, “what do you find is the amount of damages attributable to Defendant’s remaining 128,517 square feet of land and improvements thereon (the remainder),” the jury answered $366,951.23.

In accordance with the jury findings, the trial court rendered judgment in favor of Holiday Inns in the amount of $591,416.23, and decreed that the State recover the difference between that amount and the amount awarded by the special commissioners, which had been deposited into the court’s registry. Additionally, the trial court directed Holiday Inns to relinquish to the State its fee simple title in the land taken. Following the trial court’s denial of its motions to disregard the jury findings, for judgment n.o.v., and for a new trial, Holiday Inns duly perfected its appeal.

By its first three points of error, Holiday Inns contends (1) the real estate appraiser, Lewis Murfee, presented by the State as an expert witness, improperly calculated damages to the remainder, thus his testimony should have been stricken. It follows, Holiday Inns continues, (2-3) that without Murfee’s testimony, “there exists no evidence to support the jury’s answer to Question No. 2” regarding damages to the remainder, or alternatively, the jury’s answer was against the great weight and preponderance of the evidence.

Elaborating upon its challenge to Murfee’s calculation of remainder damages, Holiday Inns asserts (A) “The State’s Appraiser Equated the ‘Costs to Cure’ with Damage to the Remainder (the remainder damages), Rather than Considering Such Costs to Cure as a Factor Affecting Market Value”; and (B) “The Amount Paid by the STATE OF TEXAS for the Part Taken Cannot Be Used to *618 Offset Damages to the Remainder.” With respect to both assertions, we note at the outset that a landowner whose property has been partially taken must be compensated not only for the value of the part taken, but also for any damages to the remainder caused by the severance. State v. Oak Hill Joint Venture, 815 S.W.2d 827, 830 (Tex.App.—Austin 1991, no writ); 1 Madison Ray-bum, Rayburn on Condemnation § 16.34 (1994). The proper measure of damages for taking only part of a tract was first announced in State v. Carpenter, 126 Tex. 604, 89 S.W.2d 194 (1936) as the market value of the land actually appropriated and the difference, if any, in the market value of the remainder immediately before and immediately after the taking. Id. 89 S.W.2d at 197; Taub v. City of Deer Park, 882 S.W.2d 824, 827 (Tex.1994), cert. denied, — U.S. -, 115 S.Ct. 904, 130 L.Ed.2d 787 (1995).

With respect to his calculations, Murfee initially explained that he utilized all three of the traditional approaches to value, see Religious of Sacred Heart of Texas v. City of Houston, 836 S.W.2d 606, 616 (Tex.1992), to derive a range of values from which he chose, in light of the facts and circumstances of the ease, the most reliable fair market value for Holiday Inns’s property. Then, upon further direct examination by the State’s counsel, the questions and Murfee’s answers were as follows:

Q So what is the market value of your remaining property before the taking, Mr. Murfee?
A Market value of the remainder immediately before the taking is $3,026,664.
Q All right. And what is your opinion of the market value of the remainder after the taking?
A $2,880,664 is the market value of the remainder after the taking.
Q So if you subtract the value of the remainder after from the value of the remainder before, what figure do you come up with, please, sir?
A $146,000 is the net damage.

Adding to that amount the value of the part taken, which he had previously testified was $206,709, Murfee calculated the total compensation owed Holiday Inns to be $352,709.

Later, Murfee referred to his appraisal report and, during further examination, the questions and answers were recorded as:

Q You’ve appraised the whole property?
A Yes, sir.
Q You’ve appraised the remaining property, have you not? I’m talking about the remainder.
A Yes, sir.
Q And I want to refer to page 60 of your appraisal, please, sir.
A Okay.
Q And how many subsequent pages in the appraisal, please, sir, deals with the appraisal of the remainder after the taking?
A Virtually all of them, sir. Through page 79 — through page 80.
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Q What value did you find for the remainder after the taking, please, sir?

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Bluebook (online)
931 S.W.2d 614, 1996 WL 350509, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holiday-inns-inc-v-state-texapp-1996.