LaSalle Pipeline, LP v. Donnell Lands, L.P.

336 S.W.3d 306, 2010 WL 5100763
CourtCourt of Appeals of Texas
DecidedFebruary 9, 2011
Docket04-10-00272-CV
StatusPublished
Cited by13 cases

This text of 336 S.W.3d 306 (LaSalle Pipeline, LP v. Donnell Lands, L.P.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LaSalle Pipeline, LP v. Donnell Lands, L.P., 336 S.W.3d 306, 2010 WL 5100763 (Tex. Ct. App. 2011).

Opinion

OPINION

Opinion by:

KAREN ANGELINI,' Justice.

This is an appeal from a judgment awarding damages in a condemnation case. The appellant, LaSalle Pipeline LP, filed an eminent domain action to acquire temporary workspace easements and permanent right-of-way easements on two tracts of land in McMullen County, Texas. The tracts are owned by Donnell Lands L.P., a family limited partnership and the appellee in this case. Special commissioners assessed damages against LaSalle in the amount of $226,055.00, and LaSalle deposited this amount into the registry of the court. Donnell Lands objected to the commissioners’ damage award. As a result, the issue of damages was tried to a jury.

The jury found Donnell Lands was entitled to damages in the total amount of $658,689.00. This amount included $19,206.00 for the temporary workspace easements, $84,583.00 for the permanent easements, and $604,950.00 for the diminution in value to the remainder of the tracts. The trial court denied LaSalle’s motion to disregard the jury’s findings and for judgment notwithstanding the verdict, and rendered judgment on the verdict. Béeause Donnell Lands had withdrawn the commissioner’s award from the ' registry of' the court, the judgment credited the total damage award in the amount of $226,055.00, and ordered LaSalle to pay Donnell Lands the balance of $432,634.00. LaSalle appealed the judgment.

LaSalle’s main complaint On appeal is that the damages awarded are not supported by legally or factually sufficient evidence. Specifically, LaSalle complains of the $19,206.00 awarded for the temporary workspace easements, and the $604,950.00 awarded for the diminution in value to the remainder. LaSalle does not complain about the $34,533.00 awarded for the permanent easements. LaSalle also argues the trial court erred in overruling its challenges for cause as to two venire members.

We conclude the evidence is legally and factually sufficient to support some, but not all, of the jury’s damage . award for the temporary workspace easements. We conclude the evidence is legally and factually sufficient to support the jury’s damage award for the diminution in value to the remainder. We also conclude the trial court did not. err in overruling LaSalle’s *310 challenges for cause. Accordingly, we modify the judgment to reduce the damages awarded for the temporary workspace easements, and affirm the judgment as modified.

The TRIAL Evidence

The trial evidence showed the pipeline at issue in this case is a natural gas pipeline. The pipeline is about sixteen inches in diameter and spans about 52 miles in all. Most, but not all, of the pipeline is underground. By the time of trial, the pipeline had already been installed. The pipeline crosses two tracts of land owned by Donnell Lands. The first tract is comprised of approximately 8,034 acres. As to the first tract, LaSalle acquired 15.95 acres of permanent easement, which extends about 4.4 miles. The second tract is comprised of about 46 acres. As to the second tract, LaSalle acquired .97 acres of permanent easement, which extends about 1,400 feet. Both tracts are used for recreation and agriculture.

Each party called two witnesses at trial. Donnell Lands called Philip McCormick, a real estate appraiser; and James Donnell Jr. LaSalle called Mike Freeman, the employee responsible for acquiring pipeline easements; and David Bethel, a real estate appraiser. Both parties offered exhibits, including documents and photographs, which were admitted into evidence.

McCormick testified he held an M.A.I. designation from the Appraisal Institute, which is the highest designation that can be achieved in the appraisal business. McCormick testified he had previously done appraisal work in McMullen County and other rural counties in Texas, and specialized in appraising farm and ranch land. McCormick described the appraisal business as “interpretive,” “an art more than a science.” McCormick explained that “the market itself is not [ ] black and white — it’s not accounting.” He then stated, the appraisal business “has to do with interpreting what buyers and sellers are doing in the market place.”

McCormick testified that he estimated the damages to the remainder of the two tracts owned by Donnell Lands. McCormick testified that, in his opinion, the existence of the pipeline and the permanent easements diminished the market value of the tracts. He based this opinion on comparable sales data from McMullen and Webb Counties. McCormick first looked at three comparable sales in McMullen County. The first sale was 2,283.9 acres at $1,900 per acre; the second sale was 4,742.67 acres at $1,700 per acre; the third sale was 3,102 acres at $1,525 an acre. All of the sales had occurred in the three years before the pipeline in this case was installed. Sale number one had no pipelines on it; sale number two had three pipelines on it; sale number three had two pipelines on it.

In addition, McCormick testified, he looked at two comparable sales in the adjoining county, Webb County. The first sale was 3,310 acres at $1,738 per acre and had no pipeline. The second sale was 4,655 acres at $1,375 per acre and had a pipeline. McCormick stated he spoke with Larry Martin, who was involved in both of the Webb County sales. According to McCormick, Martin told him that he sold the 3,310 acre tract for considerably more money because it did not have any pipeline easements on it; and that he paid less for the 4,655 acre tract because it had a major pipeline going through the middle of it. McCormick also testified that the land in Webb County had a lot of similarities to the land in McMullen County. Specifically, McCormick noted the Webb County land, like the McMullen County land, was native pasture land with similar brush and other similar characteristics. McCormick *311 also noted the Webb County land, like the McMullen County land, was used for recreational and agricultural purposes. The Webb County sales also had occurred within an appropriate time range, less than two years before the pipeline was installed in this case. McCormick then stated the comparable sales data reflected “a 20 percent diminution in value” “at least part of which in my opinion was attributable to the pipeline.”

LaSalle did not file a written motion to exclude McCormick’s testimony on the basis that it was unreliable; nor did LaSalle request a hearing outside the jury’s presence to test the reliability of McCormick’s testimony. Instead, LaSalle objected repeatedly to McCormick’s expert testimony in front of the jury. Before McCormick gave his opinion about the damages to the remainder of the tracts in this case, La-Salle’s counsel objected as follows: “[he][s]till lacks foundation to render opinion on damages to the remainder based on the analysis he’s done.” The trial court then ruled, “Sustained as to Tracts 1, 2 and, 3 [McMullen County sales]; overruled as to the Martin tracts [Webb County sales].” 1 Despite LaSalle’s objections to the foundation of McCormick’s expert testimony, the trial court allowed McCormick to testify about the diminution in value to the remainder of the tracts.

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Bluebook (online)
336 S.W.3d 306, 2010 WL 5100763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lasalle-pipeline-lp-v-donnell-lands-lp-texapp-2011.