In re Chittenden Solid Waste District

2012 VT 10, 44 A.3d 753, 191 Vt. 593, 2012 Vt. LEXIS 10
CourtSupreme Court of Vermont
DecidedFebruary 7, 2012
DocketNo. 11-072
StatusPublished
Cited by1 cases

This text of 2012 VT 10 (In re Chittenden Solid Waste District) 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
In re Chittenden Solid Waste District, 2012 VT 10, 44 A.3d 753, 191 Vt. 593, 2012 Vt. LEXIS 10 (Vt. 2012).

Opinion

111. This condemnation ease was filed in July 1992, making it very, very old. We are currently reviewing this matter for the fourth time, asked to determine whether the superior court abused its discretion when it declined to find that there had been a material increase in the value of a sand pit owned by Hinesburg Sand & Gravel Company (HS&G) between 2000 and 2009. We conclude that the superior court did not abuse its discretion, and we affirm the court’s denial of HS&G’s motion to amend the final judgment.

¶ 2. The complete factual and procedural history of this case was recited in In re Chittenden Solid Waste District, 2007 VT 28, 182 Vt. 38, 928 A.2d 1183 (CSWD III). To address the claims currently before the Court, we need provide only a brief review of the facts. The Chittenden Solid Waste District filed a petition pursuant to 24 V.S.A. § 2299a to condemn HS&G’s sand pit for use as a landfill. This Court affirmed the trial court’s finding of necessity for the taking, Chittenden Solid Waste Dist. v. Hinesburg Sand & Gravel Co., 169 Vt. 153, 154, 730 A.2d 614, 615 (1999) (CSWD II), and the case progressed to a trial on damages in 2003. At trial, the court instructed the jury that it should find fair market value for the sand pit as of January 1, 2000. This arbitrarily chosen date had previously been agreed upon by both parties. At the time of trial, the parties knew that CSWD would not actually enter the land until at least 2007, so HS&G could continue operating the sand pit until at least that time. The jury awarded $4 million for the property and $4.8 million for the value of the business loss. In 2005, the court granted the District’s motion for judgment as a matter of law, striking the award for business loss. The court ruled that HS&G was collaterally estopped from raising issues concerning the quality and quantity of sand, that the business loss incurred was not to “business on the property” as required by law, and that “valuing the property as a landfill and then obtaining compensation for business loss associated with its use as a sand pit would constitute double recovery.” CSWD III, 2007 VT 28, ¶ 10. The court entered a final judgment awarding HS&G $4 million in damages.

¶ 3. HS&G appealed the final judgment award, and, in 2007, this Court affirmed in [594]*594CSWD III, 2007 VT 28, ¶ 35. One of HS&G’s arguments on appeal in CSWD III was that it was entitled to an updated valuation of the land, because the valuation date — January 1, 2000 — was four years old at the time of trial, and seven years old at the time of the appeal. It argued that the failure to update the property’s valuation to the actual time payment was tendered was unconstitutional. The Court noted that HS&G never objected to the January 1, 2000 valuation date, and there was no record before it as to whether HS&G suffered any injury from this valuation date. We therefore rejected HS&G’s argument. However, the issue raised prompted us to adopt a procedure to ensure that the landowner receives “just compensation for the value of the condemned land at the time of the taking!’ CSWD III, 2007 VT 28, ¶ 32 (emphasis added) (citing United States n Reynolds, 397 U.S. 14, 16 (1970)). We recognized that in cases such as this, if there is a significant time lapse between the valuation date and the actual date of taking, “the court-determined valuation may no longer suffice as just compensation.” Id. Some procedure would therefore be needed to “updatfe] the compensation award to reflect fair market value at the time of the taking.” Id.

¶ 4. We reviewed the procedure used in federal condemnation cases as established by Kirby Forest Industries, Inc. v. United States, 467 U.S. 1, 18-19 (1984):

[Federal] Rule [of Civil Procedure] 60(b) empowers a federal court, upon motion of a party, to withdraw or amend a final order for “any . . . reason justifying relief from the operation of the judgment.” This provision seems to us expansive enough to encompass a motion, by the owner of condemned land, to amend a condemnation award. The evidence adduced in consideration of such a motion would be very limited. The parties would not be permitted to question the adjudicated value of the tract as of the date of its original valuation; they would be limited to the presentation of evidence and arguments on the issue of how the market value of the property altered between that date and the date on which the judgment was paid by the Government. So focused, the consideration of such a motion would be expeditious and relatively inexpensive for the parties involved.

Recognizing that Federal Rule 60 is substantially identical to its Vermont cousin, but that in Vermont, compensation is determined by a jury (not by the court as in a federal case), we adopted the Kirby Forest procedure by creating a two-step process:

In the first [step], the property owner must demonstrate to the [trial] court that grounds exist to grant relief from judgment under [Vermont] Rule [of Civil Procedure] 60(b)(6): that is, that there has been a material change in the value of the property between the date of the valuation and the date of the tender of compensation. Assuming that the court finds grounds for relief, the narrow question of the increase in value can be submitted to the jury.

CSWD III, 2007 VT 28, ¶ 33. This procedure is at the heart of the issue currently before the Court.

¶ 5. CSWD finally took the property by tendering payment to HS&G in February 2009. HS&G then moved to amend the final order in December 2009, arguing that there was a material change in the value of its property between January [595]*5952000 and February 2009. The trial court noted that HS&G’s Rule 60(b) motion was less than two pages long, and unsupported by any affidavit or evidence. The court stated that it would normally deny such an unsupported motion, but given the “history of the case” (that is, its lengthy and litigious nature), the court gave HS&G ten days to provide evidentiary support for its motion. Based on the filing, it would then determine whether an evidentiary hearing was warranted.

¶ 6. To meet its burden of showing a material change in value under the procedure set forth in CSWD III, HS&G next submitted an affidavit from Richard Sterner, a solid-waste facility appraiser. Sterner analyzed the property from the perspective of its income value as a landfill and concluded that it was worth $15,803,354 as of February 2009. Sterner’s analysis did not include what the property’s income value as a landfill would have been on January 1, 2000. CSWD argued in response that Sterner’s method of valuation was entirely different from the methods used by the experts at the compensation trial — where both sides used a sales comparison approach — so the comparison of values would be of no use to the court. At trial, both parties’ experts testified that the income approach is not a valid methodology for valuing landfills. HS&G’s own expert at trial explicitly rejected the income approach because properties like the subject that are vacant land “do not usually generate a defined income stream.”

¶ 7.

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2013 VT 10 (Supreme Court of Vermont, 2013)

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Bluebook (online)
2012 VT 10, 44 A.3d 753, 191 Vt. 593, 2012 Vt. LEXIS 10, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-chittenden-solid-waste-district-vt-2012.