Land Clearance for Redevelopment Authority v. Opal Henderson

358 S.W.3d 145, 2011 Mo. App. LEXIS 1586, 2011 WL 5926149
CourtMissouri Court of Appeals
DecidedNovember 29, 2011
DocketED 95617
StatusPublished
Cited by1 cases

This text of 358 S.W.3d 145 (Land Clearance for Redevelopment Authority v. Opal Henderson) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Land Clearance for Redevelopment Authority v. Opal Henderson, 358 S.W.3d 145, 2011 Mo. App. LEXIS 1586, 2011 WL 5926149 (Mo. Ct. App. 2011).

Opinion

GARY M. GAERTNER, JR., Judge.

Introduction

Appellant Land Clearance for Redevelopment Authority of the City of St. Louis (LCRA) appeals the jury’s award of $1,009,000 to Respondent Opal Henderson, after a trial of exceptions regarding the taking of Ms. Henderson’s salvage yard. We affirm. 1

Background

Ms. Henderson was the owner and operator of Henderson Salvage Yard, located near the intersection of Interstates 55 and 44 in downtown St. Louis, for 61 years. When the business was established, there were no zoning regulations in place. The current City of St. Louis regulations would require Ms. Henderson to obtain a conditional use permit to operate a salvage yard on her property, but because her business was in operation befoz'ehand, she was “grandfather protected” and was able to continue operating her salvage yard without zoning restrictions, as a legal nonconforming use.

In 2006, LCRA condemned her property and took it in its entirety, in order to put the property to commercial use, including a restaurant/bar and potential retail development. 2 A commissioners’ hearing to determine the value of her property took place in 2008, and the commissioners determined just compensation to be $388,500. Henderson filed exceptions to this award, and a jury trial took place in April 2010.

At trial, Ms. Henderson offered expert testimony from Mark Leverenz, a certified public accountant and certified business valuation analyst. Mr. Leverenz used the capitalization of income method to determine the value of Henderson Salvage Yard, from the standpoint of its ability to generate income from that location. After analyzing the financial data of the business and making various adjustments due to the marketability of the business, Mr. Lever-enz concluded that the value of Henderson Salvage Yard as of the date of the taking was $1,029,000.

Ms. Henderson also testified at trial, saying she believed her property was worth $2,000,000. She testified that she could not operate her salvage yard business elsewhere in the city, because she would not be able to obtain a conditional use permit. She also testified that relocation would hurt her business.

LRCA offered the testimony of its assistant secretary, Mr. Dale Ruthsatz, who stated that the LCRA had offered Ms. Henderson other properties where she could relocate. He also described the process through which Ms. Henderson could apply for a conditional use permit. He *149 stated that LCRA did not take into account Ms. Henderson’s legal nonconforming use of the property when LCRA determined to acquire the property.

LCRA also offered the testimony of an expert real estate appraiser, Mr. Thomas McReynolds. He testified that the highest and best use of the property would be to construct a small commercial building on the premises. Mr. McReynolds compared sales of three lots in the area, and from those he valued Ms. Henderson’s property at approximately $230,600. Mr. McReynolds said he assumed in making his valuation that there was no environmental contamination of the property. He also testified that he did not assign value to Ms. Henderson’s legal nonconforming use, because he considered the property worth more if used another way.

Mr. Stewart Ryckman, an environmental remediation expert, testified that Ms. Henderson’s property did in fact have environmental contamination, which would cost $361,000 to clean up. He also testified he had previously given an estimate of the cleanup cost to LCRA, which at the time was $446,500.

At the close of the evidence, Ms. Henderson offered as rebuttal evidence a statement that the LCRA had taken the position on February 11, 2008, that the value of Ms. Henderson’s property was $562,500, and the clean-up costs were $446,500.

The jury awarded Ms. Henderson $1,009,000 as just compensation for the taking of her property, and the court entered judgment for Ms. Henderson in that amount. This appeal followed.

LCRA raises four points on appeal. First, LCRA argues that the trial court improperly allowed the jury to consider the testimony of Ms. Henderson’s expert, Mr. Leverenz, because his opinion as to the value of the property was based on the capitalization of income method and he was not qualified to testify as he was a business appraiser. In points II and III, LCRA challenges the constitutionality of Missouri Approved Instruction (MAI) 9.01, revised 2008, as given at trial. Finally, LCRA argues the trial court erred in allowing Ms. Henderson to introduce a document prepared for the commissioners’ hearing which contained a prior valuation of the property by LCRA.

Standard of Review

Regarding Points I and IV, the admission or exclusion of evidence is a matter of the trial court’s discretion. State ex rel. Mo. Highway Transp. Comm’n v. Kuhlmann, 830 S.W.2d 569, 571 (Mo.App. E.D.1992). We will not reverse the trial court’s decisions in this regard absent substantial or glaring injustice. State ex rel. State Highway Comm’n v. Texaco, Inc., 502 S.W.2d 284, 289 (Mo.1973). “An appellate court will not ordinarily disturb a judgment for damages based on conflicting evidence in a condemnation proceeding where the amount awarded is the subject of conflicting evidence and is within the limits of the proof.” State ex rel. State Highway Comm’n v. Ellis, 382 S.W.2d 225, 236-37 (Mo.App.1964).

As it relates to Points II and III, we review the issue of instructional error de novo. Klotz v. St. Anthony’s Medical Center, 311 S.W.3d 752, 766 (Mo. banc 2010). In order for us to reverse, LCRA must show that the disputed instruction “misdirected, mislead, or confused the jury,” and prejudice resulted. Sorrell v. Norfolk S. Railway Co., 249 S.W.3d 207, 209 (Mo. banc 2008).

Discussion

Point I

LCRA argues that the trial court erred in admitting the testimony of Mr. Lever- *150 onz for two reasons. First, it argues that Ms. Henderson failed to show her business was inextricably linked to the land taken, thus it was inappropriate to introduce evidence of the value of her land based on capitalization of income from her business. Second, LGRA argues in any event that Mr. Leverenz was not qualified to testify as to the value of Ms. Henderson’s property-

Appropriateness of Capitalization of Income Method,

In condemnation cases, a landowner is entitled to just compensation for the property taken, equal to the fair market value of the property at the time of the taking. City of St. Louis v. Union Quarry & Constr. Co., 394 S.W.2d 300, 305. Historically, “fair market value” has been what a reasonable willing buyer would give and a reasonable willing seller would take, when at the same time neither is compelled to enter the transaction.

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358 S.W.3d 145, 2011 Mo. App. LEXIS 1586, 2011 WL 5926149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/land-clearance-for-redevelopment-authority-v-opal-henderson-moctapp-2011.