Masheter v. Hoffman

298 N.E.2d 142, 34 Ohio St. 2d 213, 63 Ohio Op. 2d 357, 1973 Ohio LEXIS 370
CourtOhio Supreme Court
DecidedJune 13, 1973
DocketNo. 70-538
StatusPublished
Cited by15 cases

This text of 298 N.E.2d 142 (Masheter v. Hoffman) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Masheter v. Hoffman, 298 N.E.2d 142, 34 Ohio St. 2d 213, 63 Ohio Op. 2d 357, 1973 Ohio LEXIS 370 (Ohio 1973).

Opinions

CoRRigax, J.

Appellants propose but one proposition. of law for this court to consider:

“In condemnation proceedings * * * evidence of sales prices of other comparable real property is admissible on direct examination of one’s own real estate expert as substantive proof of the value of the property under condemnation, where the conditions with respect to the other lands and the sales thereof are similar to those involved in the property under condemnation.”

Appellee does not dispute that contention, but argues that appellants failed to meet their burden of proof, by a [216]*216preponderance of the evidence, that the similar properties are in fact comparable. Appellee argues further that the determination of whether similar properties are comparable, and the admissibility of evidence for the purpose of proving value, is within the sound discretion of the trial court, and that the trial court properly excluded such testimony.

Appellee’s argument is without merit. There is no indication in the record that the trial court, in the exercise of its discretion, determined that appellants had failed to meet their burden of proving the comparability of the similar property, The court’s ruling on appellee’s objections states only that the law of Ohio does not permit testimony on direct examination as to sales prices of comparable property.

The sole question before this court is, therefore, whether the law of Ohio excludes, on direct examination, the testimony of one’s own expert witness as to the sales prices of comparable real property as substantive evidence of the value of the land to be appropriated.

There has been a great deal of litigation on this issue in other jurisdictions, and two prevalent views have emerged. The majority view, or Massachusetts rule, states generally that the evidence is admissible if the conditions surrounding the two pieces of real property are similar and if the sale of the other real property was neither too remote in point of time nor of such character as to indicate that it did not represent the true value of the property. Annotation, 85 A. L. R. 2d 110, 114.

The minority, or Pennsylvania rule, holds generally that evidence of comparable sales prices of other land in the vicinity of the land in controversy is inadmissible as evidence of the substantive value of the land. 85 A. L. R. 2d 173. The jurisdictions adhering to the Pennsylvania rule, however, usually allow exceptions. Most courts permit the introduction of such evidence on cross-examination to show the competency of the expert to testify as to the value of the land in question; others, including Ohio, per[217]*217mit evidence of the general selling prices of lands in the vicinity as opposed to particular sales. Cleveland Terminal & Valley Rd. Co. v. Gorsuch (1905), 8 C. C. (N. S.) 297.

The rationale for the Pennsylvania rule is based upon the fear that the introduction of the sales prices of comparable property would lead to collateral issues as numerous as the sales. Walnut Street Federal Sav. & Loan Assn. v. Bernstein (1959), 394 Pa. 353, 147 A. 2d 359.

The leading case in support of the Pennsylvania rule is East Pennsylvania Rd. v. Hiester (1861), 40 Pa. 53, wherein the court explained that the admission of evidence of sales prices of comparable property:

“ * * * did not pretend to fix the market value of the land, but assumed to ascertain it by the special, and, it may be, exceptional cases named. This will not do, for if allowed, each special instance adduced on the one side must be permitted to be assailed, and its merits investigated on the other; and thus would there be as many branching issues as instances, which, if numerous, would prolong the contest interminably. But even this is not the most serious objection. Such testimony does not disclose the public and general estimate which, in such cases, we have seen is a test of value. It would be as liable to be the result of fancy, caprice, or folly, as of sound judgment, in regard to the intrinsic worth of the subject matter of it; and, consequently, would prove nothing on the point to be investigated. The fact as to what one man may have sold or received for his property, is certainly a collateral fact to an issue, involving what another should receive, and, if in no way connected with it, proves nothing. It is, therefore, irrelevant, improper, and dangerous. * * *”

The court also stated that evidence of “market value, or more properly, the selling price of land in the neighborhood,” was not objectionable for the purpose of proving the value of the land in question.

A number of jurisdictions have reversed prior positions upholding the Pennsylvania rule, most notably Iowa and California. Redfield v. Iowa State Hwy. Comm. (1959), [218]*218251 Iowa 332, 99 N. W. 2d 413; County of Los Angeles v. Faus (1957), 48 Cal. 2d 672, 312 P. 2d 680. See, also, annotation, 85 A. L. R. 2d 110.

The inconsistency and faulty logic of the Pennsylvania rule is best expressed by Judge Ashbnrn in his concurring opinion in County of Los Angeles v. Faus (Cal. App. 1956), 304 P. 2d 257, 269, wherein the California Court of Appeals reluctantly excluded1 evidence of sales prices of comparable property on the basis of a prior decision of the California Supreme Court.

The concurring opinion, criticizing the Pennsylvania rule as adopted in California, states, at page 269:

“Everyone recognizes that the first thing a prospective buyer of any kind of property wants to know is what other people have paid for like property in the recent past. If interested in a listed stock or bond he goes to New York or American or Los Angeles Stock Exchange quotations and takes note of prices paid on sales, as well as bid and ask prices. If the stock is not listed he goes to the over-the-counter market quotations. If it is wheat or hogs or cotton or other commodities which interest him he goes through much the same procedure to learn what others have paid recently for like property. If a sale has been made of the same real or personal property which is under examination at a trial, evidence of that sale is admissible upon its value. * * * But when the valuation of realty is the problem, court and jury are suddenly cut off from informative sources and forced to rely (theoretically) upon opinions based principally upon undisclosed prices of other sales. The excuse for the rule is avoidance of collateral issues.

The effect of that rule upon the jury, as explained by Judge Ashburn, is that:

“The jury, having the case submitted to it upon the least.enlightening evidence, is in for a real surprise when the instructions are given. Ever since adoption of the rule ■excluding other sales on .direct, it has been stated repeatedly that such sales, though the prices are given on cross-[219]*219examination, are not evidence of value, are to be considered only upon the imputation of lack of information or trustworthiness of the witness. The jurors are so instructed.

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Bluebook (online)
298 N.E.2d 142, 34 Ohio St. 2d 213, 63 Ohio Op. 2d 357, 1973 Ohio LEXIS 370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/masheter-v-hoffman-ohio-1973.