Lenawee County v. Wagley

836 N.W.2d 193, 301 Mich. App. 134
CourtMichigan Court of Appeals
DecidedMay 21, 2013
DocketDocket No. 311255
StatusPublished
Cited by99 cases

This text of 836 N.W.2d 193 (Lenawee County v. Wagley) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lenawee County v. Wagley, 836 N.W.2d 193, 301 Mich. App. 134 (Mich. Ct. App. 2013).

Opinions

GLEICHER, J.

In this condemnation dispute, a jury awarded defendants, David Wagley, Barbara Wagley, Bank of Lenawee, and Pavillion Mortgage, $470,000 as just compensation for an avigation easement over the Wagleys’ residential property, plus interest, costs, and fees.1 Plaintiff, Lenawee County, appeals as of right, raising numerous challenges to evidentiary rulings, the jury instructions, and the trial court’s posttrial supplementary damages award. We affirm the trial court’s evidentiary and instructional rulings. We also affirm the court’s award of statutory interest on the just [141]*141compensation award. We reverse, however, the trial court’s order enhancing the damages award in the event the county decides to take the entirety of the Wagleys’ property because this would require retroactive application of a statute creating substantive rights. We remand for correction of the judgment accordingly.

I. UNDERLYING FACTS AND PROCEEDINGS

This case arises from the county’s decision to expand and modify the Lenawee County Airport. The project began in approximately 1994 and evolved over several years. The 2003 revisions increased the length of Runway 23 from 4,000 to 5,000 feet and shifted the runway’s location. The additional length permitted larger corporate aircraft to regularly operate at the airport and generally enhanced aviation safety.

David and Barbara Wagley own a four-bedroom home on a 1.3-acre lot abutting the airport. Bank of Lenawee and Pavillion Mortgage each have an interest in the property as well.2 The Wagleys purchased the home in 2001, before Runway 23 was lengthened. The new runway is actually 532 feet farther from the Wagleys’ property than the prior runway. But due to the runway lengthening, a larger area on the ground and in the air must remain free of obstructions.

Federal Aviation Authority (FAA) standards mandate the creation of a runway protection zone (RPZ) “begin[ning] 200 feet beyond the end of the area useable for takeoff or landing,” maintained to “enhance the protection of people and property on the ground.”3 Pursuant [142]*142to the 2003 airport layout plan, the FAA determined that the Wagleys’ home was within the RPZ. Although the parties disputed whether the home had always been within the RPZ, the county did not seek an avigation easement until 2005, when it filed this condemnation action under the Uniform Condemnation Procedures Act (UCPA), MCL 213.51 et seq. With its complaint, the county filed a declaration of taking estimating the just compensation due the Wagleys as $47,500.

The avigation easement described in the declaration of taking permits the county “to keep the airspace above [certain] heights . .. clear and free” of obstructions including fences, trees, and buildings. The easement also governs activities on the land, prohibiting “any ground structures, natural growth, storage of equipment, vehicles or aircraft, flammable material storage facilities, or activities which encourage the congregation of people in the [RPZ] ... .” Attendant to the easement, the county prohibited the creation of “electrical interference with radio communication between” the airport and aircraft and activities “mak[ing] it difficult for fliers to distinguish between airport lights and others” or resulting in glare in fliers’ eyes or “otherwise . .. endangering] the landing, taking-off or maneuvering of aircraftU” Further, the easement forecloses on the encumbered land “the construction of new residences ... or places of public assembly, such as churches, schools, office buildings, shopping centers, and stadiums.”

Two interlocutory appeals brought the parties to this Court before trial commenced. In the first, the county challenged the trial court’s summary ruling that FAA regulations precluded residential uses within RPZs, resulting in a total taking of the Wagleys’ property as a matter of law. This Court reversed, holding that an [143]*143avigation easement approved by the FAA is an “acceptable alternative” to complete acquisition of the property. Lenawee Co v Wagley, unpublished opinion per curiam of the Court of Appeals, issued March 22, 2007 (Docket Nos. 268819, 268820, 268821, 268822, and 268823) (Wagley I), p 5. Documentary information submitted by the county satisfied this Court that the FAA had approved the avigation easement. Id. at 6. Thus, “the trial court erred in determining that a total taking was required under FAA regulations ‘as a matter of law.’ ” Id. Nevertheless, this Court observed that “[a] condemning agency is required to pay just compensation for the whole parcel of property if acquiring only a portion of it would destroy the practical value or utility of the remainder.” Id. at 7, citing MCL 213.54(1) and M Civ JI 90.18. We specifically reserved for a jury’s determination whether the Wagleys “suffered a total taking — that is, whether the practical value or utility of the remainder of the parcels was destroyed — is a disputed question of fact....” Id. at 8.

Extensive discovery ensued. In October 2008, the parties stipulated to the entry of an order reciting, “neither party shall illicit [sic] testimony from the [FAA] or the Michigan Department of Transportation Bureau of Aeronautics [DTBA].” After this order entered, the parties vigorously disagreed about the role FAA publications would play at the trial, leading to their return to this Court. See Lenawee Co v Wagley, unpublished opinion per curiam of the Court of Appeals, issued December 20, 2011 (Docket Nos. 302533, 302534, 302535, 302537, and 302538) (Wagley II).

Wagley II concerned the county’s objection to the trial court’s exclusion of four evidentiary items: an unsigned letter to United States Senator Carl Levin authored by FAA representative Christopher Blum; an affidavit ex[144]*144ecuted by FAA manager Irene Porter addressing FAA regulations, policies, and procedures; a study conducted by Daniel E McMillen regarding the effect of avigation easements around Chicago’s O’Hare Airport; and portions of an appraisal that analyzed the effect of avigation easements at the Grand Haven Airport in Michigan. Id. at 8. The county further contended that the trial court should have excluded an appraisal prepared by David E. Burgoyne, the Wagleys’ expert witness, setting forth an evaluation “predicated on the assumption that residential occupancy... was prohibited after the taking due to [the] location in the RPZ.” Id. at 9.4

This Court held that the trial court had erred by denying the county’s motion to exclude the portion of Burgoyne’s appraisal “predicated on the assumption that FAA regulations prohibit residential use,” id. at 10, and affirmed the other evidentiary decisions. With respect to the Burgoyne appraisal, this Court emphasized that “ [i]t is entirely improper, under the law of the case doctrine, to allow the jury to hear testimony regarding an appraisal predicated on purported FAA regulations that prohibit residency in the RPZ.” Id. at 12. We held that the parties’ stipulation precluding the elicitation of testimony from the FAA or the DTBA governed the remaining evidentiary issues and affirmed the trial court’s in limine rulings. Id. at 13.

Trial began on June 4, 2012, and ended two days later.

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Bluebook (online)
836 N.W.2d 193, 301 Mich. App. 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lenawee-county-v-wagley-michctapp-2013.