Illinois State Toll Highway Authority v. American National Bank & Trust Co.

606 N.E.2d 147, 236 Ill. App. 3d 696, 179 Ill. Dec. 315, 1992 Ill. App. LEXIS 1721
CourtAppellate Court of Illinois
DecidedOctober 23, 1992
Docket2-92-0020
StatusPublished
Cited by4 cases

This text of 606 N.E.2d 147 (Illinois State Toll Highway Authority v. American National Bank & Trust Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Illinois State Toll Highway Authority v. American National Bank & Trust Co., 606 N.E.2d 147, 236 Ill. App. 3d 696, 179 Ill. Dec. 315, 1992 Ill. App. LEXIS 1721 (Ill. Ct. App. 1992).

Opinion

JUSTICE GEIGER

delivered the opinion of the court:

The plaintiff, the Illinois State Toll Highway Authority (the Authority), appeals from a consolidated eminent domain proceeding wherein a jury awarded the defendant trustees, American National Bank and Trust Company of Chicago and the Bank of Ravenswood, $603,571 for the taking of their property and $176,673 in damages. On appeal, the Authority argues that (1) the court erred in excluding evidence of the purchase price paid by the defendants; (2) the court erred in excluding evidence of special benefits which accrued to the remainder of the property; (3) the defendants waived any claim for interest at a rate greater than provided by statute; and (4) the verdict was against the manifest weight of the evidence.

The defendants are the trustees for the property at issue, a 3.35-acre tract located within a subdivided block (Block 38) in an unincorporated section of Du Page County. The property consists of 21 lots and was assembled by the defendants in four separate transactions. The property is situated west of and adjoining the main line of the North-South Toll Road where it intersects with Roosevelt Road. The property is vacant, and it is not serviced with sewer or water. The trusts, administered by the defendants, contain 21 of the 22 lots in Block 38; each lot is about a quarter acre in size.

On April 22, 1987, the Authority filed a complaint for condemnation of a three-lot portion of the defendants’ property. The Authority exercised its right of eminent domain over this property for the specific purpose of constructing compensatory wetlands; those wetlands were required by the United States Army Corps of Engineers because the construction of the North-South Toll Road eliminated some preexisting wetlands. On September 23, 1987, the trial court held a “quick-take” hearing and preliminarily determined that just compensation for the taking of the subject property was $51,300. The preliminary award was deposited with the Du Page County treasurer and was withdrawn by the defendants. On October 8, 1987, the court entered an order which vested title to the property in the Authority.

Needing additional land for the construction of compensatory wetlands, the Authority filed, on December 23, 1987, a complaint for condemnation of nine of the defendants’ remaining lots. That complaint was considered together with a complaint addressing a single additional lot. Again, pursuant to a “quick-take” hearing, an award was deposited with the treasurer of $125,000, and the court entered an order vesting title to the property in the Authority.

On April 21, 1988, the trial court entered an order consolidating these takings of 13 of the defendants’ 21 lots. A four-day jury trial concerning the takings commenced on April 8, 1991. The court first considered the parties’ motions in limine. Among these were the defendants’ motion to bar all evidence regarding the purchase price they paid for the subject property. Also, the defendants moved the court to bar all evidence concerning special benefits which might inure to the defendants as a result of the taking. The court granted these motions.

On April 11, 1991, at the conclusion of the trial, the jury returned a verdict that just compensation for the taking of the subject property was $603,571 and that damage to the remainder of the property was $176,673, a total of $780,244 exclusive of interest.

On May 21, 1991, the Authority filed a motion for summary judgment concerning the interest rate on the final compensation award. The court denied the Authority’s motion and continued the matter for later determination.

On September 6, 1991, the court entered judgment on the jury verdict. It also established interest rates on the portion of just compensation exceeding the amounts awarded in the respective “quick-take” proceedings. It awarded 8.7% on $59,908.59, beginning September 23, 1987, on the first taking. It also awarded 9.0% on the sum of $367,362.41, beginning February 10, 1988, on the second taking. The court further awarded 6% interest on damages to the remainder, calculated from December 1, 1987.

On October 4, 1991, the Authority filed a post-trial motion for a new trial. It argued that it was denied a fair trial because the court barred evidence on both the defendants’ purchase price of the subject property and the special benefits which inured to the defendants as a result of the taking. The Authority also argued that the interest rates established by the court were inconsistent with the mandate of the Code of Civil Procedure (Ill. Rev. Stat. 1991, ch. 110, par. 7 — 108(1)). On December 9, 1991, the trial court entered an order denying the Authority’s post-trial motion. The Authority timely appealed that decision.

On appeal, the Authority first argues that the court erred in barring evidence of the defendants’ purchase price of the subject property.. The Authority notes that the defendants purchased the property two years before the 1987 taking and paid about $1 per square foot. The Authority asserts that the court abused its discretion in barring this evidence. In reaching its finding concerning the admissibility of the purchase price, the court relied, in part, on the opinion of two appraisers who agreed that the purchase price was not a reliable factor in this case.

Generally, the price paid by the owner is a factor to be considered in setting the value of land taken as long as (1) the sale is recent; (2) the defendant purchased the property in a voluntary transaction; and (3) no changes in market conditions or marked fluctuations in the values of property have occurred since the sale. (Illinois State Toll Highway Authority v. Grand Mandarin Restaurant, Inc. (1989), 189 Ill. App. 3d 355, 362.) However, the trial court has discretion as to the admissibility of evidence relating to the purchase price of the property. (Department of Transportation v. Prombo (1978), 63 Ill. App. 3d 407, 413.) A substantial increase in recent property valuation alone may be sufficient to exclude evidence of the prior purchase price, particularly where the appraisal witnesses testify to a rapid increase in value. Prombo, 63 Ill. App. 3d at 413.

In arguing against admission of this evidence, the defendants do not challenge, under this analysis, that their purchase of the property in question was recent. The defendants do, however, allege that the value of the property after its assemblage into one large parcel far exceeds the value of the individual lots. They based their claim on the “assemblage,” the greater utility and economic use of larger land parcels. They also allege that their purchase was not entirely voluntary and that there is a difference in the real estate market at the time of the prior sale and the real estate market upon the taking by the Authority.

In this case, all four appraisers who testified agreed that the property’s purchase price did not reflect its fair-market value as of the date of the taking. The Authority’s own appraisers testified that the purchase price of the small individual lots did not reflect the value of the assembled 3.35-acre parcel. Thomas Collins, an appraiser for the Authority, stated that it would be erroneous to rely on the sales price of the subject property, given the dramatic increase in values, where many small properties are assembled together.

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Related

Department of Transportation v. La Salle National Bank
623 N.E.2d 390 (Appellate Court of Illinois, 1993)
Department of Transportation v. Kennels
255 Ill. App. 3d 43 (Appellate Court of Illinois, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
606 N.E.2d 147, 236 Ill. App. 3d 696, 179 Ill. Dec. 315, 1992 Ill. App. LEXIS 1721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-state-toll-highway-authority-v-american-national-bank-trust-co-illappct-1992.