Mississippi River Bridge Authority v. Gwin

138 So. 2d 175, 1962 La. App. LEXIS 1629
CourtLouisiana Court of Appeal
DecidedFebruary 5, 1962
DocketNo. 132
StatusPublished
Cited by5 cases

This text of 138 So. 2d 175 (Mississippi River Bridge Authority v. Gwin) 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
Mississippi River Bridge Authority v. Gwin, 138 So. 2d 175, 1962 La. App. LEXIS 1629 (La. Ct. App. 1962).

Opinion

REGAN, Judge.

Plaintiff, the Mississippi River Bridge Authority, instituted this expropriation proceeding against the defendants, Oscar M. Gwin, Jr., Mr. and Mrs. John Groth and Mr. and Mrs. Leighton Morse, owners in indivisión of two tracts of land fronting on Dryades Street in the City of New Orleans, a portion of which plaintiff needed for the purpose of widening Dryades Street. Plaintiff requested that the court assign a reasonable value to that portion of each tract it wished to acquire.

Defendants answered and asserted that the land to be expropriated was valued at $47,000. They then prayed for recovery of expert realtors’ and attorney’s fees, which they were required to incur to prosecute this litigation since the plaintiff had made no offer to purchase for a reasonable value before the institution of this suit. Defendants argue that to deny this recovery would, in effect, deprive them of their property without due process of law, contrary to the mandate of LSA-Article 1, Section 2 of the Louisiana Constitution of 1921,1

From a judgment awarding defendants $34,000 for the portions of both tracts expropriated, and experts’ fees for two realtors of $200 each and for a contractor of $100, they have prosecuted this appeal.

The primary question which this appeal has posed for our consideration is whether the quantum awarded to defendants by the trial court is just and adequate compensation for the portions of land expropriated. For the purpose of clarity, we shall review the evidence affecting each tract separately.

The first, designated by municipal number 223 Dryades Street, contains in its entirety 2,363 square feet and the portion taken was 639 square feet from the front of the property. There was located thereon a single story brick building covered by a built-up roof, heavy duty flooring, fire doors and plastered walls. Prior to the expropriation this property rented for $350 per month, or $385 per month including utilities. The expropriation has necessitated removing the old front from the building and the replacement cost thereof has been estimated at $3,500.

In order to establish what plaintiff contended was the fair market value of the portion taken, it called upon the services of F. Poche Waguespack, a real estate expert. He assigned a value of $38.81 per square foot to this tract and based his valuation on his estimate of what the land would sell for on the open market were it put to its best possible use as a revenue producer. Waguespack was of the opinion that the land’s greatest value would be realized were it used as a parking lot, and concluded that the building thereon, rather than being an asset to the land was in fact detrimental.

For the 639 feet taken, Waguespack assigned a total value of $24,800, which figure was obtained by multiplying $38.81 by 639 which produced a monetary result of $24,-799.59, or rounded off, $24,800.

[177]*177The realtor further explained two other methods used by realtors to assign a market value to real estate, namely, the comparable sales method and the rental capitalization method, and his reasons for rejecting both in this case. It was his opinion that there were no comparable sales in the area upon which a true comparison could be made; however, he asserted that the closest comparison could be made with sales in the 200 block of South Rampart Street and these averaged between $18 and $20 per square foot. He also was of the opinion that the same figure would be reached by capitalization of the rental of defendants’ property. For this reason, he used the method most favorable to the defendants, namely, assigning a value based on assuming the land was being put to its best possible use. Since he used this method which gave the land alone double the value without the building, he concluded that the defendants were not entitled to further compensation for replacing the front of their building.

To rebut the foregoing conclusion, the defendants requested the appearance of Omar F. Kuebel, an expert realtor, to testify and he based his valuation on the market data approach, which consists of studying comparable sales and leases in the immediate area. He offered several illustrations of what he considered comparable sales or leases; however, these properties fronted University Place (the extension of Dryades Street from Common to Canal Streets). Since these properties are located about one block removed from Canal Street, they are valued at double the amount of properties situated in the next block, which is where defendants’ site is located. This was the consensus of opinion of all the real estate experts who appeared at the trial hereof. Some of the other comparable sales within recent years discussed by Kuebel are as follows:

200 S. Rampart Street — $69.29 per sq. ft.
201 S. Rampart — $71.10 per sq. ft.
204-10 S. Rampart Street — $39.34 per sq. ft.
228 S. Rampart Street $18.88 per sq. ft.

It will be noted that the first two properties listed are corner locations while the second two were sales resulting from auctions, which Kuebel reasoned caused them to sell at an unusually low price. Based on com-parables, Kuebel stated that the defendants’ property was valued at $40 per sq. ft. foi both the land and the building. For the land area taken, the fair price would be $25,500. In addition, Kuebel asserted that it would cost between $3,500 and $5,000 to replace the front of the defendants’ building. He therefore concluded that the expropriated property at 223 Dryades Street possessed a fair market value of $29,000.

Defendants’ second real estate expert, Norman deReyna, testified that he would assign a value of $40.80 per square foot to both the land and building expropriated. He used comparables to arrive at this conclusion. Defendants’ neighboring property on the Gravier Street side had recently sold for $37.93 per square foot, while the neighboring property on the Common Street side, closer to Canal, had sold for $48.35 per sq. ft. All experts agreed that the closer property in this area is to Canal Street, the greater is its value. DeReyna also collaborated with a building expert and concluded as a result thereof that it would cost defendants $5,000 to replace the front of their building.

The following table summarizes the experts’ valuations :

Expert Sq. Ft. Value Cost of Replacing Front Total

Waguespack $38.81 -0- $24,800

Kuebel 40.00 3,500.00 29,000

DeReyna 40.80 5,000.00 31,071.20

[178]*178At this point it is pertinent to observe that the defendants also requested the appearance of a building expert, Lucien Haase, who testified that the cost of replacing the front of the building in 223 Dryades would range between $4,500 and $5,000. Kuebel’s estimate of $3,500 was predicated upon the use of cheaper materials to replace the front. This expert also pointed out that the improvements had recently been remodeled. His testimony stands uncontradicted in the record.

In evaluating the foregoing evidence, the trial judge rejected the opinions of the defendants’ experts on the theory that the sales and leases cited were not true com-parables.

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Bluebook (online)
138 So. 2d 175, 1962 La. App. LEXIS 1629, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mississippi-river-bridge-authority-v-gwin-lactapp-1962.