Parish of St. Charles v. Rh Creager, Inc.

975 So. 2d 742, 2008 WL 330430
CourtLouisiana Court of Appeal
DecidedFebruary 6, 2008
Docket07-CA-676
StatusPublished
Cited by3 cases

This text of 975 So. 2d 742 (Parish of St. Charles v. Rh Creager, Inc.) 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
Parish of St. Charles v. Rh Creager, Inc., 975 So. 2d 742, 2008 WL 330430 (La. Ct. App. 2008).

Opinion

975 So.2d 742 (2008)

PARISH OF ST. CHARLES
v.
R.H. CREAGER, INC. and David B. McDonald Corporation.

No. 07-CA-676.

Court of Appeal of Louisiana, Fifth Circuit.

February 6, 2008.
Rehearing Denied March 10, 2008.

*743 Gregory A. Miller, Attorney at Law, Norco, Louisiana, for Defendants/Appellants.

Don Paul Landry, Attorney at Law, Luling, Louisiana, for Plaintiff/Appellee.

Panel composed of Judges MARION F. EDWARDS, SUSAN M. CHEHARDY, and WALTER J. ROTHSCHILD.

MARION F. EDWARDS, Judge.

At issue in this appeal is the amount of damages awarded by the trial court in an expropriation matter. In July of 1990, the plaintiff/appellee, the Parish of St. Charles ("St. Charles Parish"), filed a petition for expropriation of land that constituted a portion of Parcel A-2, owned by defendants/appellants, R.H. Creager, Inc. ("Creager")[1] and Dianne and David McDonald ("McDonalds"). St. Charles Parish required the property for drainage improvement *744 purposes. In September of 1990, the parties entered into a stipulation that confirmed ownership of the property and the immediate need for the expropriation. In conjunction with that stipulation, the parties entered into a consent judgment that was signed on September 28, 1990. The judgment granted full ownership of the property to St. Charles Parish subject to a reservation of mineral rights in accordance with LSA-R.S. 31:149. The consent judgment also reserved the defendants' rights to compensation, attorney's fees, costs, and legal interest resulting from the expropriation.

On September 5, 1991, Creager and the McDonalds filed an answer and reconventional demand in which they asserted that the expropriation of their land devalued the remainder of their property by making it less desirable for commercial or industrial purposes. Creager and the McDonalds asserted that Parcel A-2 is located behind Dianne Place Subdivision and is bounded on the south by the Illinois Central Railroad, on the north by Louisiana and Arkansas Railroad, (now Kansas City Southern Railroad), on the east by land owned by a third party, and on the west by property owned by St. Charles Parish. The only legal access to the property before the expropriation was at its southerly boundary through a private crossing and servitude of access across the Illinois Central Gulf Railroad from the end of Janet Drive. Since the portion of the land expropriated by the parish included this crossing, the pleading sought damages for the expropriated land as well as severance damages for diminishment of value of surrounding land.

The parties conducted a lengthy discovery and, on February 22, 2005, Creager and the McDonalds filed a motion for summary judgment seeking $477,360 in severance damages based on the petition filed. The matter was heard on May 26, 2005. On September 13, 2005, the court rendered a judgment that declared that the judgment of September 28, 1990 constituted a taking by expropriation and that the judgment did not provide Creager and the McDonalds with a servitude or right of passage over the property. The judgment also declared that Creager and the McDonalds do not have legal access to the remainder of Parcel A-2 as a result of the taking by expropriation. The issue of damages was referred to the merits of the trial.

On November 30, 2006, the parties entered into a joint stipulation of fact. The stipulation by the parties included the following:

1.) 16,410.18 square feet of Parcel A-2 was expropriated.
2.) The remaining portion of Parcel A-2 contains 37.9223 acres.
3.) Experts for both sides agree that the fair market value of Parcel A-2 immediately prior to the taking was $12,000.00 per acre.
4.) The amount of compensation due to defendants for the 16,410.18 square feet expropriated is $4,520.00.
5.) As a result of the taking, the defendants do not currently have legal access from the remainder of Parcel A-2 to a public road.
6.) Defendants have a right to seek legal access to the remainder of Parcel A-2.

The parties also made a joint offer of exhibits which included the comprehensive appraisals of experts for both sides and maps of the area.

After a trial on the merits, the trial court rendered judgment in favor of Creager and the McDonalds for $56,883.45. All parties have appealed that judgment.

*745 FACTS

At trial, J. Bradley Oubre ("Mr. Oubre") testified as an expert real estate appraiser. He testified that, in 1990, the value assigned to the property was $12,000 per acre. Mr. Oubre explained that many appraisals were done at that time by the Department of Transportation and Development for construction of Interstate 310, and the range for property in that area was $9,000 to $12,000. Thus, the $12,000 figure was in line with other numerous expropriations. Additionally, Mr. Oubre had recently brokered a deal for land at $12,000 per acre just north of the track at issue herein.

Mr. Oubre explained that the Creager/McDonald track had a private crossing over a railroad track for access. That crossing was part of the parcel taken in the expropriation, leaving the remainder of the parcel landlocked. He estimated the severance damage about $1,500 to $2,000 per acre or about $58,000 total.

In calculating the severance damages, Mr. Oubre recanted his original estimation that the land was valued at $12,000 per acre before the sale. He stated that "after reviewing the thing and realizing the $12,000 an acre was not anywhere close to reality, as far as value, then I ended up with a value in — at the very most of $2,000.00." Mr. Oubre continued his testimony regarding the valuation of the property over a defense objection based on the stipulation of the property value. Mr. Oubre estimated the value of the remaining landlocked property at $500 per acre.

Mr. Oubre also testified that the property could be used for a subdivision at a cost of $35,694 after considering the fill and improvements necessary. But, he also stated that high cost would render the plan for a subdivision economically unfeasible. Mr. Oubre also testified that permits would be necessary to subdivide the land into individual lots. Such a procedure would be lengthy and permits could be denied if the area was zoned as wetlands.

Mr. McDonald testified that, in the 1970's, his company, Dianne Properties, and other parties purchased Parcel A-2 and the adjoining Parcel A-1. The only access to both parcels was by a dedicated servitude at the end of Janet Drive across the private railroad crossing. Originally he planned to build a subdivision with the property. In the 1980's, some of the parties involved in the development of the project had financial problems and the two parcels were divided and he kept Parcel A-2.

Because of the downturn of the economy in the 1980's, only a portion of the subdivision was actually developed. Mr. McDonald considered other uses for the land such as aquaculture.

Mr. McDonald stated that, in 1989, the St. Charles Parish requested a portion of Parcel A-2 for the purpose of installing a drainage pump. Because selling the parish the land it wanted would leave the remainder of the property landlocked, Mr. McDonald was not inclined to sell the property. His request for accommodation to grant ingress and egress was declined by the parish and an expropriation action was filed. Mr. McDonald acknowledged signing the consent judgment reserving his right to collect severance damages.

Dr. Rodolfo Aguilar ("Dr.

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Bluebook (online)
975 So. 2d 742, 2008 WL 330430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parish-of-st-charles-v-rh-creager-inc-lactapp-2008.