Moore v. United States

61 Fed. Cl. 73, 2004 U.S. Claims LEXIS 151, 2004 WL 1416006
CourtUnited States Court of Federal Claims
DecidedJune 18, 2004
DocketNo. 93-134L
StatusPublished
Cited by7 cases

This text of 61 Fed. Cl. 73 (Moore v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Moore v. United States, 61 Fed. Cl. 73, 2004 U.S. Claims LEXIS 151, 2004 WL 1416006 (uscfc 2004).

Opinion

OPINION

BRUGGINK, Judge.

This is a class action in which the plaintiff class members seek compensation for the imposition of an easement for recreational trail use on their land. The court previously ruled that the government did in fact take such an easement for public use without compensation. Glosemeyer v. United States, 45 Fed.Cl. 771 (2000) (including the consolidated case of Moore v. United States, No. 93-134L). Following a valuation trial as to 13 representative parcels, we determined just compensation for those parcels. Moore v. United States, 54 Fed.Cl. 747 (2002). Thereafter, the parties negotiated the amount of compensation due for the vast majority of the remaining claims. On August 15, 2003, the parties filed a partial stipulation on the amount of just compensation and interest as to certain class members and a joint motion for judgment pursuant to RCFC 54(b). The parties agreed on the amount of compensation due for 280 of the remaining 298 claims.1 We subsequently dismissed seven of the remaining eleven claims on defendant’s motion. Moore v. United States, 58 Fed.Cl. 134 (2003). The parties were able to resolve the amount of just compensation as to eight of the remaining eleven unaddressed claims. On February 17 and 18, 2004 we held trial in St. Louis, Missouri as to the valuation of the final three claims: 6, 69, and 107.

DISCUSSION

The date of taking is June 25, 1987, when the MKT Railroad transferred its right-of-way to the State of Missouri Department of Natural Resources. See Glosemeyer, 45 Fed. Cl. at 775-76. Accordingly, damages are determined as of that date.

During trial, the parties presented their calculations of the value of the property taken through competing expert witnesses. Both experts used a “before and after” methodology to determine compensation. This requires “a determination of the fair market value of the entire affected parcel as if the easement did not exist and then another determination in light of the taking.” Moore, 54 Fed.Cl. at 749. The figure resulting from a proper application of a before and after analysis includes the value of the part actually taken, together with any severance damages affecting the value of the remaining parcel. Id.; Washington Metro. Area Transit Auth. v. United States, 54 Fed.Cl. 20, 27 (2002).

Both experts first sought to produce a value estimate based on the fair market value of the parcels “before” the taking — ie., the value of a particular parcel as if the new trail easement had not been imposed. The experts then produced a second “after” value approximating the fair market value of the parcels after the imposition of the easement. For purposes of their appraisal reports, both parties treated the new easement as if it took a fee interest in the property. For both experts, the difference in the before and after values produced a damages figure. The parties agree that the after value figure should reflect the value of the actual area taken by the easement as well as any severance damages, if appropriate under the circumstances. Plaintiffs claim severance damages in all three instances; defendant disputes severance damages.

[75]*75 I. Claim No. 6

Claim No. 6 is brought by Susan J. (Stock) Bandy and John H. Stock, her brother. The Stock property is located in St. Charles County, Missouri. The Stocks inherited the property upon the death of their mother, Alice H. Stock, in 1998. Their claim consists of two long narrow tracts. Parcel B extends for approximately 1475 feet along the railroad right-of-way. Adjacent Parcel D extends another 275 feet along the right-of-way. Both tracts are approximately 120 feet wide, not including the easement area. The parties agree that the claimants own one-half of the 60 foot easement formerly occupied by the railroad, a thirty foot wide strip. The area covered by the Stock easement is thus 1750 feet long and 30 feet wide.2

The entire Stock property is located in a flood plain and roughly parallels the, old railroad bed and the adjacent highway, South River Road. It is zoned by the county as “flood plain” land. The tract was separated from South River Road by the railroad right-of-way. Even after abandonment of the railroad track, however, the Stocks do not directly abut South River Road, because title to the other half of the right-of-way remains with other owners. Before the taking, four small rental homes were located on the property. In the past, plaintiffs accessed the property by driving over the former railroad right-of-way and along the railbed to get to each home. The four residences on the parcel were each rented for $100 per month. The houses were destroyed by flood in 1993, after the taking.

Mr. Kevin Nunnink, the government’s expert, utilized a cost approach, a sales comparison approach, and an income capitalization approach in appraising the fair market value of Claim No. 6. In his report, Nunnink described the three different valuation techniques as follows:

The cost approach assumes that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility. This approach is particularly applicable when the improvements being appraised are relatively new and represent the highest and best use of the land, or when the property has unique or specialized improvements for which there is little or no sales data from comparable properties. The land value for the subject property is developed as part of the cost approach.
The sales comparison approach assumes than an informed purchaser would pay no more for a property than the cost of acquiring another existing property with the same utility. This approach is especially appropriate when an active market provides sufficient rehable data that can be verified from authoritative sources. The sales comparison approach is less reliable in an inactive market, or when estimating the value of properties for which no real comparable sales data is available. It is also questionable when sales data cannot be verified with principals to the transaction.
The income capitalization approach reflects the market’s perception of a relationship between a property’s potential income and its market value, a relationship expressed as a capitalization rate. This approach converts the anticipated benefits (dollar income or amenities) to be derived from the ownership of property into a value indication through capitalization. This approach is widely applied when appraising income-producing properties.

Def s Trial Ex. 2, at 30.

Both experts acknowledged that the sales comparison approach is the preferred methodology for improved properties. Nunnink therefore attempted to locate comparable sales in the St. Charles area of large tracts improved with residences. From this he generated a “before” value, as explained below. Because the parcel actually taken, however, is vacant land, for his “after” value, he had to determine a specific per acre value using a comparable sales approach for vacant land, as explained below. This comparable sales approach to the vacant land he then also used as the starting point for the income capitalization and replacement cost ap[76]*76proaches which both add an estimated value of the improvements to the vacant land value. All three alternative approaches thus employ an estimated vacant land value from a comparison sales analysis of vacant parcels.

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Cite This Page — Counsel Stack

Bluebook (online)
61 Fed. Cl. 73, 2004 U.S. Claims LEXIS 151, 2004 WL 1416006, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-united-states-uscfc-2004.