Housing Authority of Shreveport v. Harkey

8 So. 2d 528, 200 La. 526, 1942 La. LEXIS 1218
CourtSupreme Court of Louisiana
DecidedApril 27, 1942
DocketNo. 36530.
StatusPublished
Cited by7 cases

This text of 8 So. 2d 528 (Housing Authority of Shreveport v. Harkey) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Housing Authority of Shreveport v. Harkey, 8 So. 2d 528, 200 La. 526, 1942 La. LEXIS 1218 (La. 1942).

Opinion

ODOM, Justice.

The Board of Commissioners of the Housing Authority of the City of Shreveport selected and designated a site for a slum-clearance project and other purposes, known as Project La. 2-1, the site selected *530 consisting of certain lots or parcels of land located within the boundaries of Cleveland, Looney, and Weinstock Subdivisions of Shreveport. Certain property owned by the defendant forms an integral and essential part of the site of the building project. The Housing Authority offered to purchase the property and to pay therefor $2,800, which it alleged was a fair value.

The defendant refused the offer but agreed to sell the property for $5,000. The Housing Authority refused to pay $5,000 and brought this expropriation proceeding. The jury fixed the value of the property at $3,750. There was judgment ordering the property transferred to the Housing Authority upon its paying to the defendant, Mrs. Barbara G. Harkey, the sum of $3,-750, and ordering plaintiff to pay all costs of the suit. From this judgment Mrs. Harkey appealed. The Housing Authority is satisfied with the award.

It is conceded by defendant that the Housing Authority is clothed with the right and power to expropriate the property. Thus the only question now involved is whether the award of the jury is adequate.

The property involved consists of five contiguous lots in the Weinstock Subdivision of the city. Each of the lots measures 40 x 126.25 feet. The lots taken together form one plat, which plat has a frontage of 200 feet on Weinstock Street, which is not paved, and runs back to an alley. The plat as a whole is at the corner of Weinstock Street and Western Avenue, which latter is paved. The only improvements on the property are two small, old, frame houses in bad repair, which, according to the testimony of the witnesses called both by plaintiff and by defendant, are worth approximately $500.

The property involved is situated in a section of the City of Shreveport which is inhabited exclusively by Negroes. Each of the witnesses called definitely classified it as Negro residential property. Some of them testified that the property might be used for other purposes, such as for cheap stores, a funeral home, a Negro church, a filling station on the corner, or as a site for a factory. But their testimony that the plat of ground as a whole might be used for such purposes is purely speculative. In. estimating the value of land to be expropriated, the remote possibility that it will at some time be sought for a particular purpose which would increase its value cannot be considered. Louisiana Ry. & Navigation Co. v. Sarpy, 125 La. 388, 51 So. 433; Louisiana Highway Commission v. Guidry, 176 La. 389, 146 So. 1.

It was shown by a decided preponderance of the testimony that the plat, of ground involved is desirable, in fact choice, Negro residential property. Some of the witnesses were of the opinion that there was no other property in Shreveport quite so desirable for that purpose.

The valuation placed upon the property by each of the witnesses merely reflected his personal opinion. The reason probably was that-the property is vacant, or practically so, and was not, at the time of the trial, producing any substantial revenue, nor had it produced any revenue theretofore. The testimony shows that the defendant acquired the property by inherit *532 anee about 45 years ago, and that, while she possessed ample funds with which to improve it, yet she had never done so, and through all the years it had remained vacant except for the two small, dilapidated houses, which are of inconsiderable value. Whether she was receiving any revenue at all from the two small houses is not disclosed by the record.

While it is shown that the Housing Authority had acquired approximately 80 per cent of all the property situated within the site selected for its building project, which site included hundreds of individual parcels of ground adjacent or in close proximity to the plat of ground here involved, yet neither side produced any testimony to show the values agreed upon by other property owners and the Housing Authority. Whether there had been any demand for like property in that vicinity or whether there had been any sales of such property prior to the date on which the Housing Authority selected this site for its slum-clearance project is not shown by the record. Neither side attempted to show what the market value of such property was before the Housing Authority proposed its project. There was therefore no basis for comparison, so that the experts called by the respective sides had no criterion which they could use as a basis for fixing values. As we have said, each witness merely stated his personal opinion as to the value of the property.

The estimates of the value of the property vary widely. Plaintiff called as its witnesses to value the property Mr. Teat and Mr. Dunn, both engaged in the real estate business in Shreveport. Mr. Teat said he thought the plat of ground was worth $2,300 and that the two small houses thereon were worth $450. His total valuation was $2,750. Mr. Dunn said the ground itself was worth $2,400 and the houses $400, or a total value of $2,800. These witnesses estimated the value of each lot separately and as a unit. Each of them placed a value of $600 on Lot 30, which is the corner lot. Each of the other lots was valued by Mr. Teat at $425 and by Mr. Dunn at $450.

The owner of the property advanced the theory that the land to be expropriated should be considered as one plat of ground and not as five separate lots, and that the fact that the lots are adjacent and, taken together, form one plat greatly enhances its value. This was the view expressed by each of defendant’s four witnesses. The reason for this view, as expressed by the witnesses, is that, since defendant owned each of the lots, she could use the entire plat as a unit and could build a number of Negro tenant houses close together, some facing on Weinstock Street and others on Western Avenue, and thereby utilize all the space; whereas to use each lot as a unit would result in the loss of a great deal of space. Furthermore, defendant’s witnesses testified that a number of small tenant houses grouped together in one block are more valuable than a like number of houses not so grouped together. In other words, it was their theory that, because the five lots were grouped into one plat or unit, the value of the unit was considerably more than the aggregate value of the five lots if each were considered as a separate building lot.

*534 Defendant called four witnesses to testify as to the value of the property. Mr. Roos, who owns a great many Negro rental houses in Shreveport, placed a valuation of $6,000 on the land and $500 on the houses— a total valuation of $6,500. Mr. Leary, an investment broker, valued the land at $5,-000 and the houses at $400—a total of $5,-400. Mr. Flournoy, who owns a number of houses which he rents to Negro tenants, said the land was worth $5,500 and the improvements $500—a total of $6,000. Mr. Stoer, a prominent Shreveport realtor, who has managed defendant’s properties for 15 years, valued the land at $5,000 and the houses at $600—a total valuation of $5,-600.

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Bluebook (online)
8 So. 2d 528, 200 La. 526, 1942 La. LEXIS 1218, Counsel Stack Legal Research, https://law.counselstack.com/opinion/housing-authority-of-shreveport-v-harkey-la-1942.