M & R Investment Co. v. State

744 P.2d 531, 103 Nev. 445, 1987 Nev. LEXIS 1849
CourtNevada Supreme Court
DecidedOctober 29, 1987
DocketNo. 16828
StatusPublished
Cited by8 cases

This text of 744 P.2d 531 (M & R Investment Co. v. State) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M & R Investment Co. v. State, 744 P.2d 531, 103 Nev. 445, 1987 Nev. LEXIS 1849 (Neb. 1987).

Opinions

[447]*447OPINION

By the Court,

Springer, J.:

This action, tried before a jury, was brought by the State of Nevada (State) seeking to condemn property owned by M & R Investment Company (M & R).

The State’s eminent domain action was intended to obtain approximately fourteen acres of M & R’s twenty-seven-acre parcel of property for the expansion of the 1-15 interchange at Flamingo Road in Las Vegas. The twenty-seven acres is situated on the west side of 1-15. The Dunes Hotel, also owned by M & R, is on the east side of 1-15 directly across from the property at issue. Contemporaneously with the filing of the complaint, the State filed a motion for immediate occupancy. The court granted that motion and required $2,393,800.00 to be deposited in court by the State (the value of the land as per the state appraisal).

M & R’s answer to the State’s complaint placed into issue the question of which property was to be considered the large parcel for purpose of valuating the parcel condemned and determining severance damages. M & R contended that the large parcel [448]*448should consist of the combined properties on both the west and east sides of 1-15. The State insisted that only the twenty-seven-acre parcel on the west side of 1-15, from which the condemned acreage was taken, should be considered the large parcel. The district court agreed with the State and ruled at a pre-trial hearing that the large parcel consisted of only the twenty-seven acres on the west side of 1-15.

After the district court’s ruling on the large parcel issue, M & R sought to include the possibility of joinder in its expert’s valuation of the parcel condemned. The trial court disallowed the use of the joinder theory by M & R’s real estate expert because it was substantially similar to the large parcel theory and constituted an attempt to avoid indirectly the court’s earlier ruling concerning the composition of the large parcel.

Ultimately, the jury returned a verdict placing the fair market value of the condemned fourteen acres at $2,040,000.00 and severance damages to the remainder of the west parcel at $180,000.00. M & R appeals the award.

Certain historical facts provide context and clarity to the issues before us. Originally, M & R owned a 188-acre parcel of land situated at the southwest corner of Flamingo Road and Las Vegas Boulevard. In 1965, the State successfully brought an eminent domain action for the purpose of building 1-15. As a result, approximately twenty-seven acres were isolated on the west side of the freeway; the balance remained where the Dunes Hotel and golf course are located on the east side of the freeway. M & R was paid $45,000.00 in severance damages at that time.

In 1980, M & R formulated two alternative plans to develop the parcel on the west side of the freeway in conjunction with its hotel, casino and golf course. The first plan was to move four or five holes of the golf course to the west side of the freeway, thus releasing property on the east side for condominium development. Later, M & R formulated a plan to connect the west parcel to the east parcel by a monorail in contemplation of using the west parcel as a park for recreational vehicles.

During the period in which these improvements were contemplated, the Dunes Hotel used the west parcel for overflow hotel parking. Cars were parked there during special events at the Dunes Hotel and Caesar’s Palace.

Later approval for the expansion of the interchange at 1-15 and Flamingo Road necessitated condemnation of approximately fourteen acres from the twenty-seven-acre parcel west of the freeway, thus resulting in the present action. M & R contends on appeal that the district court erred in ruling that the twenty-seven-acre parcel situated west of 1-15 was the large parcel for purposes of determining the value of the parcel taken and severance damages to the remainder. Alternatively, M & R contends that the [449]*449district court erred in ruling that the theory of joinder was not applicable. M & R argues that the issues should have gone to the jury for factual determinations. For reasons hereinafter specified, we conclude that the trial court so erred, and we reverse the judgment.

Large Parcel and Severance Damages

As noted above, M & R sought to have the condemned fourteen acres in the west parcel considered part of the large parcel consisting of those parcels on both the east and west sides of 1-15. The concept of large parcel is instrumental in determining both the value of the property condemned and whether severance damages are to be awarded in an eminent domain action. Historically, severance damages are awarded when a partial taking of a landowner’s property occurs. The owner recovers not only the value of the land actually taken, but also the amount by which the remaining parcel is diminished in value by virtue of the severance. See Andrews v. Kingsbury Gen. Improvement Dist. No. 2, 84 Nev. 88, 436 P.2d 813 (1968); NRS 37.110.' Severance damages will not be awarded for injury to separate and independent parcels owned by the condemnee. Sharp v. United States, 191 U.S. 341 (1903); State v. McDonald, 656 P.2d 1043 (Wash. 1983). The issue thus presented becomes one of identifying the remaining parcel that is injured when property is condemned. In other words, from which “large parcel” was the condemned property taken?

In order to show that a parcel condemned is part of a larger parcel, it is generally held that there must be unity of title, contiguity, and unity of use of the property. City of Los Angeles v. Wolfe, 491 P.2d 813, 815 (Cal. 1971). Ordinarily, physical contiguity must be shown but is not always necessary. 491 P.2d at 815. The parcels damaged need not be physically contiguous to [450]*450those taken so long as the evidence discloses an actual and existing2 unity of use and purpose and an existing, lawful and utilized access between the parcels. 491 P.2d 819; Cole Investment Co. v. United States, 258 F.2d 203 (9th Cir. 1958); Housing Authority of the City of Newark v. Norfolk Realty Co., 364 A.2d 1052 (N.J. 1976); Sauvageau v. Hjelle, 213 N.W.2d 381 (N.D. 1973) (unity of use evidenced by integrated use of non-contiguous parcels); State Road Commission v. Williams, 452 P.2d 548 (Utah 1969) (unity of use evidenced by non-contiguous parcels functioning as a single economic unit); 4A Nichols, The Law of Eminent Domain, § 14.26[1] at 14-678 (J. Sackman ed. 1985).

Under the prevailing rule, identification of the larger tract is an issue of fact to be decided by the trier of fact. United States v.

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Bluebook (online)
744 P.2d 531, 103 Nev. 445, 1987 Nev. LEXIS 1849, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-r-investment-co-v-state-nev-1987.