In re Condemnation by the Commonwealth

394 A.2d 657, 38 Pa. Commw. 535, 1978 Pa. Commw. LEXIS 1441
Commonwealth Court of Pennsylvania·Decided November 21, 1978·No. Appeal, No. 1000 C.D. 1977·Published·Cited by 17 cases

Opinions

Opinion by

Judge DiSalle,

Presently before this Court is the appeal of Hawk Sales Company (Lessee) from an order of the Court of Common Pleas of Snyder County which confirmed both a board of view’s award of damages to Marjorie Fetter Sassaman (Landowner) and the board’s denial of damages to Lessee for the taking of a portion of Landowner’s property. Lessee contends that it is entitled to share in the award of general damages to Landowner and to receive further damages occasioned by the dislocation of its business enterprise.

On July 27, 1973, the Department of Transportation (PennDOT) filed a declaration of taking for land [538] which, the Lessee had leased from Landowner. Lessee filed a petition for appointment of a board of view. The board of view conducted two separate hearings: the first dealt with whether the Lessee was entitled to business dislocation damages within the meaning of Section 601-A(b)(3) of the Eminent Domain Code (Code),1 and whether the limitation on such damages was constitutional; the second hearing dealt with whether PennDOT should be assessed general damages for condemnation of the subject property pursuant to Section 407 of the Code, 26 P.S. §1-407, and, if so, whether the Lessee is entitled to some portion thereof as provided by Section 507 of the Code, 26 P.S. §1-507.

As to the first hearing, the board of view found in its report dated November 25, 1974, that Lessee was not eligible for business dislocation damages since it had several other related commercial establishments in the area which were not subject to condemnation. Having found Lessee ineligible for such damages, the board did not consider the constitutional challenge to the limitation of damages. With respect to the second hearing, the board of view filed a report on March 24, 1976, in which it assessed substantial damages against PennDOT for the Landowner’s benefit but refused to apportion such damages between Landowner and Lessee. The board of view reasoned that a specific provision of the lease automatically terminated the Lessee’s leasehold interest at the time of the taking and that Lessee, therefore, had no compensable interest. PennDOT and Lessee appealed these decisions to the court of common pleas.

The court of common pleas confirmed the board’s determinations. The court found that the Lessee was [539] ineligible for business dislocation damages since-it did not meet tbe requirements of Section 601-A(b) (3).2 Tbe relevant findings of fact indicate that Lessee owned at least three other commercial establishments within close proximity to the condemned property and that none of these properties had been condemned. With regard to the question of general damages, the court found that a specific lease provision terminated Lessee’s leasehold interest at the time of the taking.3 Hence, Lessee had no leasehold interest upon which to base a claim for damages.

On appeal to this Court, Lessee contends that it is entitled to business dislocation damages despite the fact that it has more than one business location. Further, Lessee challenges the constitutionality of Section 601-A(b)(3). Lessee argues that the Section creates an invidious classification and accords the different classes of businesses created thereby unequal treatment in violation of the equal protection clause of the United States Constitution. The Lessee also contends that the limitation on damages set forth therein vio[540] lates due process since it precludes payment of just compensation. With regard to general damages, Lessee contends that it is entitled to share in the award of general damages since the lease provision in question did not terminate the leasehold interest at the time of the taking and since Lessee did not waive its right to share in the award of general damages.

We note initially that our review of lower court decisions in eminent domain cases is limited to a determination of whether the court abused its discretion or committed an error of law. Pidstawski v. South Whitehall Township, 33 Pa. Commonwealth Ct. 162, 380 A.2d 1322 (1977). Further, it is also clear that a party attempting to show an abuse of discretion bears a heavy burden. Pidstawslci, supra.

After reviewing the record, we believe that the lower court did not abuse its discretion or commit any error of law in confirming the denial of business dislocation damages to Lessee under Section 601-A(b) (3) of the Code. It is clear that to recover under this Section, a business must not “be a part of a commercial enterprise having at least one other establishment not being acquired by the acquiring agency, which is engaged in the same or similar business.” Section 601-A(b) (3) (ii). It is clear that the Lessee is such an enterprise. In its appeal from the board of view’s November 25, 1974 determination in this regard, Lessee argued that it was entitled to such damages “even though it [Lessee] is a multi-state enterprise and has an establishment which is not being acquired by the acquiring agency which is engaged in the same or similar business in other market areas.” We are hard pressed to understand how this admission can be reconciled with the clear and precise proviso of Section 601-A(b)(3)(ii). The court below did not err in applying the relevant law and, given Lessee’s admission, [541] did not abuse its discretion in denying business dislocation damages.

Turning to tbe constitutional challenges to Section 601-A(b)(3), since Lessee was properly adjudged in-, eligible for damages under this section, we need not reach the question of whether the limitation on such damages is valid. As to the equal protection question raised by Lessee, it is apparent that this contention was not raised before, or discussed by, either the board of view or the court of common pleas.4 This Court has consistently held that matters not properly raised in, or considered by, the court below cannot be considered on appeal, even though such matters involve constitutional questions. Richland Township v. Hellerman, 30 Pa. Commonwealth Ct. 438, 373 A.2d 1367 (1977). Therefore, this Court will not address the equal protection argument raised by Lessee.

The final question remaining is whether Lessee is entitled to share in the award of general damages assessed against PennDOT for the Landowner’s benefit. Consideration of this more complex question requires further background discussion.5

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In re Condemnation by the Commonwealth, 394 A.2d 657, 38 Pa. Commw. 535, 1978 Pa. Commw. LEXIS 1441 (Pa. Ct. App. 1978).

394 A.2d 657 (In re Condemnation by the Commonwealth) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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