Michigan Wis. Pipe Line Co. v. Sugarland Develop. Corp.

221 So. 2d 593, 1969 La. App. LEXIS 5331
CourtLouisiana Court of Appeal
DecidedApril 8, 1969
Docket2651
StatusPublished
Cited by15 cases

This text of 221 So. 2d 593 (Michigan Wis. Pipe Line Co. v. Sugarland Develop. Corp.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michigan Wis. Pipe Line Co. v. Sugarland Develop. Corp., 221 So. 2d 593, 1969 La. App. LEXIS 5331 (La. Ct. App. 1969).

Opinion

221 So.2d 593 (1969)

MICHIGAN WISCONSIN PIPE LINE CO., Plaintiff and Appellee,
v.
SUGARLAND DEVELOPMENT CORPORATION, Defendant and Appellant.

No. 2651.

Court of Appeal of Louisiana, Third Circuit.

April 8, 1969.
Rehearing Denied May 7, 1969.

*594 J. Burton Willis, St. Martinville, for defendant-appellant.

Shotwell, Brown & Sperry, by E. C. Stout, Monroe, and Earl H. Willis, St. Martinville, for plaintiff-appellee.

En Banc.

TATE, Judge.

The plaintiff is constructing a high-pressure natural gas transmission pipeline. This new line is to be constructed 25 feet west of an existing line of the plaintiff company's. By the present proceedings, the company sues to expropriate a permanent servitude for an additional pipeline right of way 30 feet in width (5 feet of which overlapped the previous line's servitude).

The defendant landowner (Sugarland) appeals from judgment granting the servitude and fixing the compensation due for it. The chief issue of this appeal concerns whether severance damages to the remainder of the tract will be caused by the construction of this second pipeline.

Consolidated with the present suit for trial and appeal was a proceeding to expropriate a similar servitude upon the Angelle tract across the highway. We will discuss all issues of both appeals in this opinion, rendering only a separate decree in the companion suit. See Michigan Wisconsin Pipe Line Company v. Angelle, La. App., 221 So.2d 598 (rendered by us this date).

The subject property is situated near Cecilia, in a thickly settled area of St. Martin Parish. All five appraisers agreed that the highest and best use of the property is for rural homesites and potential subdivision use, with its frontage on the blacktop highway especially valuable.

The landowners' appraisers produced comparable sales showing a value for homesite purposes of $3,000 to $3,500 or more per acre. The condemnor's appraisers, while agreeing the front land might be more valuable, thought the overall value about $1,000 per acre. However, even these latter appraisers used as comparables lots sold from the rear of the Sugarland tract at an acreage valuation in excess of $3,500.

The principal difference between the plaintiffs' and the defendants' appraisers is that the former base their opinion on comparable sales of 20 to 40 acre tracts rather than on sales of less than an acre. On the other hand, the defendants' appraisers were more impressed with sales of tracts of less than an acre for rural residential purposes.

The defendants' approach is applicable to the instant cases. The plaintiff is expropriating tracts of less than one acre in an area where property is ideally suited for rural homesites. To apply per-acre value of 20 to 40 acre tracts simply because *595 these defendants own a tract of 20 to 40 acres is to ignore the fact that plaintiff is taking approximately a half-acre from one defendant and a quarter-acre from the other of land with highest and best use being for rural residential purposes. Sales of tracts of this size in an area where property is suitable for homesites are more in point.

In arriving at a valuation of the acreage granted for the servitude, the trial court awarded Angelle $750 for his .285 acres taken, which amounts to $2,630 per acre. Sugarland was awarded $750 for its .544 acres taken, which amounts to only $1,400 per acre, chiefly because the eastern end of Sugarland's servitude ran into the less valuable deep interior of the tract.

The amounts so awarded for the servitudes were close to the worths estimated by at least three of the appraisers (with, however, Sugarland's servitude being valued at $1,000 by its appraisers). No substantial contention is made as to error in these awards.

Severance Damages

However, the trial court disallowed any severance damages. In so doing, we think our trial brother fell into error.

The trial court apparently accepted the testimony of the expropriator's experts that pipelines did not cause depreciation in market value of residential property traversed by them. These experts' views seem to have resulted from a study by them of market value effects of an 8-inch consumer line in Lafayette.

The present expropriation, however, is for a 30-inch high-pressure (1,000 pounds per square inch) transmission pipeline, including a 30-foot wide right of way area alleged to have been necessary for maintaining and operating it. The landowners' experts testified that the presence of this additional pipeline depreciated further the property immediately adjacent to it, just as the first pipeline had previously done so to a lesser degree. These real estate experts were actually experienced in handling sales of land in St. Martin Parish. Based upon such experience in actually selling land in the vicinity, they felt that each high-pressure pipeline depreciated the value of nearby land by 30%.

The record reflects the landowners' attempt to prove the cause of this depreciation as being the danger of explosion of the high-pressure pipeline, as well as the restriction of land-use by this lengthy strip running diagonally across land having subdivision or homesite use as its destination. The landowner also unsuccessfully attempted to have the lower court take judicial notice of government reports (the Federal Trade Commission, a message of the President of the United States, etc.) indicating the danger of these high-pressure pipelines and that, for instance, 30-inch pipelines are six times as dangerous as 20-inch ones.

In the light of these appraisers' testimony, we think it is reasonable to conclude that land burdened with a high-pressure gas pipeline is less desirable for residential purposes than is land not so burdened, and that land burdened with two high-pressure pipelines is less desirable than land burdened with only one. In the latter case, there is twice as much danger of explosion and possibly twice as much use of the nearly doubled surface area servitude obtained by the company as being necessary for maintenance and operation of the line. In each instance, because the properties are less desirable than before it burdened with one pipeline or additionally burdened with a second, the market (number of prospective buyers) is reduced, and so the price must be lowered to compensate for this unattractive additional hazard on or near the land.

As we stated in Texas Gas Transmission Corporation v. Hebert, La.App. 3d Cir., 207 So.2d 368, 371: "This type of severance damage, though extremely difficult of proof to any exactitude, has been almost universally *596 recognized by our courts. See Texas Pipeline Co. v. National Gasoline Co. (1943), 203 La. 787, 14 So.2d 636; Broussard, supra [Texas Gas Transmission Corp. v. Broussard, La.App. 3 Cir., 1967, 196 So.2d 620]; Texas Pipeline Co. v. Langlinais, La.App. 3 Cir., 1964, 168 So.2d 377; Texas Gas Transmission Corp. v. Young, La.App. 3 Cir., 1967, 198 So.2d 453."

On evidence very similar to that in the present record (involving, in fact, land in the immediate neighborhood of the subject property), this court recently amended a trial court award in order to add the severance damages caused by the second pipeline. Michigan Wisconsin Pipe Line Co. v. Bonin, La.App. 3d Cir., 217 So.2d 741, certiorari denied; Michigan Wisconsin Pipe Line Co. v. Angelle, La.App. 3d Cir., 217 So.2d 748, certiorari denied.

Under similar circumstances, severance damages caused by a second pipeline have consistently been awarded. Florida Gas Transmission v. Woodside, La.App.

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221 So. 2d 593, 1969 La. App. LEXIS 5331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michigan-wis-pipe-line-co-v-sugarland-develop-corp-lactapp-1969.