Pearsall v. Richmond Redevelopment & Housing Authority

242 S.E.2d 228, 218 Va. 892, 1978 Va. LEXIS 244
CourtSupreme Court of Virginia
DecidedMarch 3, 1978
DocketRecord 761445
StatusPublished
Cited by5 cases

This text of 242 S.E.2d 228 (Pearsall v. Richmond Redevelopment & Housing Authority) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pearsall v. Richmond Redevelopment & Housing Authority, 242 S.E.2d 228, 218 Va. 892, 1978 Va. LEXIS 244 (Va. 1978).

Opinion

Compton, J.,

delivered the opinion of the Court.

In this eminent domain proceeding instituted under Virginia’s Housing Authorities Law (hereinafter the Act), Code §§ 36-1 to -55.6, we consider a question of evidence and the problem of so-called “condemnation blight”, a condition which often stems from urban renewal projects.

This action was filed on December 23, 1975 by appellee Richmond Redevelopment and Housing Authority, a political subdivision of the Commonwealth, Code § 36-4, against appellant John W. Pearsall and others to acquire approximately 70 parcels of real estate in the City of Richmond needed for slum clearance and eventual redevelopment. The property, located in an area known as “Fulton Bottom”, is at the eastern boundary of the city and lies near the north bank of the James River. The trial commenced on May 11, 1976 and after taking a view and hearing testimony during four days, the commissioners, with one dissent, reported that Pearsall should be awarded $172,000 as compensation for the land taken, $300 as damages to the *894 residue of the property not taken, and $19,850 as damages pursuant to § 36-27 of the Act. In an order entered Jqly 2,1976, the trial court overruled exceptions filed by both the Authority and Pearsall and confirmed the report of the majority of the commissioners. To this order vesting title to the property in the Authority, we granted the condemnee a writ of error limited to the consideration of the questions which we shall discuss infra. The Authority assigned cross-error.

“Condemnation blight” has been used “to denote the debilitating effect upon value of a threatened, imminent or potential condemnation.” 4 Nichols, The Law of Eminent Domain § 12.3151[5] at 12-475 (rev. 3d ed. 1977) (hereinafter Nichols). This principle has evolved in other jurisdictions from the quest to fulfill the constitutional guarantees that private property shall not be taken or damaged for public uses, without just compensation. See U.S. Const amend. V; Va. Const, art. I, §§ 6, 11. In a routine condemnation proceeding, of course, the just compensation to be awarded is determined as of the time of the taking. White v. State Highway Comm'r, 201 Va. 885, 887, 114 S.E.2d 614, 616 (1960). But certain affirmative acts of a condemning authority preliminary to the filing of the eminent domain proceeding have spawned litigation in other jurisdictions to determine whether a “taking” in the constitutional sense has occurred in advance of the actual transfer of title to the property. The passage of time between initiation of project planning and actual land acquisition is at the core of the problem. Notice of a contemplated taking becomes common knowledge in the neighborhood to be affected, tenants depart the area, and owners refuse to improve and maintain their property. ■In some cases demolition takes place on adjacent land, garbage and refuse collection becomes sporadic, and police protection diminishes. It has been contended that such factors have a depressing influence upon the value of the affected properties thus preventing, at the time of the de jure taking, a proper determination of the landowner’s “just compensation.” See Kanner, Condemnation Blight: Just How Just is Just Compensation!, 48 Notre Dame Law. 765, 767-69 (1973).

The courts, in some cases, have categorized the condemnor’s conduct as a “de facto taking” and have awarded compensation “as of the date the condemnor substantially interfered with the owner’s enjoyment of his property, irrespective of when title was *895 formally acquired by the condemnor by appropriate proceedings.” Nichols at 12-475. The effect of this conclusion is to move the date of acquisition backward in time to reflect the actual taking which preceded the legal taking. Id. Under another approach, which involves the condemnation blight principle, “the date of taking is left unchanged but the condemnee is compensated for the loss in value traceable to grossly premature disclosure of the condemnation (or other serious value-depressing actions of the condemnor), prior to the actual taking of the property.” Id. The distinction between the two approaches is not merely theoretical. Both the award alone and the award as increased by the interest allowance are directly related to the time of the taking; to decide that the taking was complete at an earlier date would, of course, require that interest run from that date. In a case involving substantial sums of money, such a consideration becomes a matter of major importance. City of Buffalo v. J. W. Clement Co., 28 N.Y.2d 241, 254-55, 269 N.E.2d 895, 903, 321 N.Y.S.2d 345, 356-57 (1971).

The preceding is but introductory to consideration of § 36-27 of the Act. Generally, that section gives a housing authority in Virginia the right to acquire by condemnation any real property which may be necessary for the purposes of such authority under the Act. It also provides that the authority may exercise the power of eminent domain in the manner provided in Code 25-46.1 to -46.36, the Virginia General Condemnation Act. In 1958, the General Assembly amended § 36-27 and incorporated the condemnation blight concept by adding a provision not found in the general condemnation statutes. The amendment authorizes allowance of additional compensation as “damages” to property owners whose land is taken under the Housing Authorities Law. Insofar as pertinent here, that part of the statute added in 1958 provides:

“The court in which condemnation proceedings are pending may hear evidence and determine whether there has been unreasonable delay in the institution of the proceedings after public announcement by the condemnor of a project which necessitates acquisition lay the condemnor of a designated land area consisting of or including the land sought to be condemned. If the court determines that such unreasonable delay has occurred, it shall instruct the commissioners in such proceedings to allow any damages proved to their satisfaction *896 by the landowner or landowners to have been sustained to his or their land during and because of such delay, in addition to and separately from the fair market value thereof, but such damages shall not exceed the actual diminution if any in fair market value of the land in substantially the same physical condition over the period of the delay.” Acts 1958, ch. 518.

As we turn to the chronology of this controversy, it is important to note that in the midst of the trial, over the strenuous objection of the condemnee, the trial court read to the commissioners Instruction 10, which provided:

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Bluebook (online)
242 S.E.2d 228, 218 Va. 892, 1978 Va. LEXIS 244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pearsall-v-richmond-redevelopment-housing-authority-va-1978.