Louisiana Resources Co. v. Noel

499 So. 2d 1016, 1986 La. App. LEXIS 7843
Louisiana Court of Appeal·Decided October 8, 1986·No. 85-955·Published·Cited by 13 cases

Opinion

499 So.2d 1016 (1986)

LOUISIANA RESOURCES COMPANY, Plaintiff-Appellant,
v.
Olton NOEL, et ux., Defendants-Appellees.

No. 85-955.

Court of Appeal of Louisiana, Third Circuit.

October 8, 1986.

*1017 Michael R. Mangham and Elizabeth Jane Hastines, Lafayette, Charles Sonnier, Abbeville, for plaintiff-appellant.

Silas B. Cooper, Jr., Abbeville, for defendants-appellees.

Before DOMENGEAUX, GUIDRY and YELVERTON, JJ.

YELVERTON, Judge.

Louisiana Resources Company (LRC), plaintiff in these two consolidated expropriation suits, appeals complaining of the amounts awarded the defendant-landowners as just compensation and attorney's fees. The defendant-landowners, Lawrence and Olton Noel and their wives, answered the appeal. For the reasons set forth below, we amend the judgments of the trial court to reduce the award of just compensation and attorney's fees. A separate judgment is being rendered this date in the consolidated case, Louisiana Resources Co. v. Lawrence Noel, 499 So.2d 1024 (La.App. 3rd Cir.1986).

The current proceedings stem from LRC's acquisition of a natural gas pipeline right-of-way across tracts of private property in Vermilion Parish, Louisiana. This case concerns the right-of-way acquired across two 113 acre tracts of land; the first owned by Olton Noel and his wife and the second owned by Lawrence Noel and his wife. On January 6, 1983, the parties entered into a consent judgment entitling LRC to expropriate the rights-of-way. Thus, the only questions litigated were those of just compensation for the right-of-way and past or future damages.

At the time of trial on the merits the plaintiff had already finished the construction of the pipeline across the Noels' property. Both properties are located outside the corporate limits of Abbeville and were being used for raising cattle at the time of *1018 expropriation. Both properties were bisected by a previously-existing pipeline servitude running east-west. The present pipeline constructed by plaintiff lies parallel and adjacent to the existing pipeline. The rights-of-way acquired by plaintiff consist of a 30-foot permanent right-of-way and a 60-foot temporary right-of-way for the installation of the pipeline. The permanent right-of-way across Lawrence Noel's tract covered 1.65 acres, while the temporary right-of-way covered 3.44 acres. The permanent right-of-way across Olton Noel's property covered 1.35 acres and the temporary right-of-way 2.69 acres. Both properties were well-drained, flat, and cleared. The Lawrence Noel tract fronted a parish road for 2520 feet, while the Olton Noel tract fronted a parish road on the north by 1951 feet and another road on the south by the same distance.

At trial, the plaintiff's experts presented testimony that the highest and best use of the two tracts was agriculture and that the expropriation resulted in no severance damages. The defendants' expert testified that the highest and best use was for rural homesites and that severance damage had been suffered. The jury, evidently accepting the testimony of the defendants' expert, awarded the defendant-landowners compensation for the permanent and temporary rights-of-way, severance damages, and damages due to construction. The trial court, finding additional errors in the jury verdicts, granted an additur in favor of Lawrence Noel and a remittitur against Olton Noel.

Lawrence Noel and his wife were awarded $47,755.61 in damages and compensation and $11,000 in attorney's fees. The award included:

1) $9,960 for the permanent right-of-way;

2) $3,006 for the temporary right-of-way;

3) $24,840 in severance damages;

4) $6,289.50 in contested special damages; and

5) $3,660.11 in stipulated damages.

Olton Noel and his wife were awarded $38,748.40 in damages and compensation and $9,000 in attorney's fees. That award included:

1) $8,100 for the permanent right-of-way;

2) $2,430 for the temporary right-of-way;

3) $20,187 in severance damages;

4) $5,772.56 in contested special damages; and

5) $2,258.84 in stipulated damages.

The plaintiff argues that the trial court erred in the following findings:

1) The determination that the highest and best use of the two properties was for rural residential purposes;

2) The award of severance damages;

3) The award of certain special damages;

4) The failure to grant LRC's exception of prematurity as to the defendants' claim for certain damages; and

5) The award of attorney's fees.

The plaintiff also raised other issues on appeal arguing that the trial court erred in failing to declare a mistrial or to admonish the jury after opposing counsel's alleged inflammatory and prejudicial closing argument, and that the trial court erred in allowing inadmissible evidence to be presented to the jury. We have reviewed these latter assignments of error and have determined that any error was harmless and not determinative of the outcome of this case. Therefore, we will address only the first five of plaintiff's assignments.

PLAINTIFF'S APPEAL

VALUE OF THE PROPERTY

The amount of damages owed to the defendant-landowners depends upon the highest and best use of the property. The jury accepted the testimony of the owners' expert and evidently determined the highest and best use of both entire tracts was residential or rural homesite development. That determination was clearly wrong.

*1019 Highest and best use is the most favorable employment to which the property is adaptable and may reasonably be put in the not too distant future. See Faustina Pipe Line Co. v. Bernard, 458 So.2d 981 (La.App. 3rd Cir.1984). If potential future use of the property is shown to be within the reasonably near future, then the landowners are entitled to compensation on the basis of such use even though the property is not being so utilized at the time of taking. State Dept. of Highways v. Rapier, 246 La. 150, 164 So.2d 280 (1964). Market demand is an important factor in determining potential use. Louisiana Resources Co. v. Langlinais, 383 So.2d 1356 (La.App. 3rd Cir.1980), and Faustina Pipe Line Co. v. Bernard, supra. Other important factors include economic development in the area, specific plans of businesses and individuals, including action already taken to develop the land for that use, and the use to which the property is being put at the time of the taking. See Southwestern Electric Power Co. v. Scurlock, 485 So.2d 72 (La.App. 2nd Cir.1986), and Town of Rayville v. Thomason, 404 So.2d 1290 (La. App. 2nd Cir.1981).

In the present case the two tracts had been used for agriculture for many years before the taking. The record is clear that the landowners had no intention to develop or sell the property as rural homesites or residential lots.

The owners' expert testified it was his opinion that the highest and best use of all the property was for rural homesites. His opinion was influenced by the amount of frontage on highways, as well as the availability of natural gas, electricity and nearby schools. He considered comparables of one to two acre lots in determining that the value of the property was $6,000 an acre. Due to the size of the tracts in question and the depth of the property he felt these tracts should be divided into six acre lots. He also opined that the permanent right-of-way would cause a 100 percent loss of the property taken.

This same expert testified that there was a market for rural homesites in the area. However, he o

Free access — add to your briefcase to read the full text and ask questions with AI

Louisiana Resources Co. v. Noel, 499 So. 2d 1016, 1986 La. App. LEXIS 7843 (La. Ct. App. 1986).

499 So. 2d 1016 (Louisiana Resources Co. v. Noel) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Smith v. State Department of Transportation & Development
872 So. 2d 594 (Louisiana Court of Appeal, 2004)
Smith v. STATE, DEP. OF TRANS. & DEVELOP.
872 So. 2d 594 (Louisiana Court of Appeal, 2004)
Town of Walker v. Stafford
833 So. 2d 349 (Louisiana Court of Appeal, 2002)
Natchitoches Parish Port Commission v. Deblieux & Kelley, Inc.
760 So. 2d 393 (Louisiana Court of Appeal, 2000)
West Jefferson Levee D. v. Coast Quality
640 So. 2d 1258 (Supreme Court of Louisiana, 1994)
Trans Louisiana Gas Co. v. Heard
629 So. 2d 500 (Louisiana Court of Appeal, 1993)
City of New Orleans v. Condon
600 So. 2d 78 (Louisiana Court of Appeal, 1992)
Mathis v. City of DeRidder
599 So. 2d 378 (Louisiana Court of Appeal, 1992)
West Jefferson Levee Dist. v. Mayronne
595 So. 2d 672 (Louisiana Court of Appeal, 1992)
STATE, DOTD v. Fakouri
541 So. 2d 291 (Louisiana Court of Appeal, 1989)
Mini Togs Products, Inc. v. Wallace
513 So. 2d 867 (Louisiana Court of Appeal, 1987)
State, Dept. of Trans. & Dev. v. Boagni
509 So. 2d 471 (Louisiana Court of Appeal, 1987)
Louisiana Resources Co. v. Noel
499 So. 2d 1024 (Louisiana Court of Appeal, 1986)