Porter v. Commonwealth

309 A.2d 709, 454 Pa. 461, 1973 Pa. LEXIS 784
CourtSupreme Court of Pennsylvania
DecidedOctober 3, 1973
Docket46, March T., 1973
StatusPublished
Cited by4 cases

This text of 309 A.2d 709 (Porter v. Commonwealth) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Porter v. Commonwealth, 309 A.2d 709, 454 Pa. 461, 1973 Pa. LEXIS 784 (Pa. 1973).

Opinions

Opinion by

Mr. Chief Justice Jones,

This appeal arises from an eminent domain action to determine the just compensation payable to Robert C. Sechan [appellant-condemnee], trading and doing business as Sechan Limestone, and to Francis H. Porter [464]*464and Katherine E. Porter, his wife [condemnees], for the taking of property located in Butler County. On March 11, 1963 the Commonwealth of Pa., Dept, of Highways [now Dept, of Transportation] condemned, for the construction of a limited access highway, approximately 11 acres of a 46 acre tract owned by the Porters. Five months before the condemnation, on October 13, 1962, appellant entered into a mineral lease with the Porters, giving him the right to remove and process all of the limestone, coal and clay under the Porter property for a term of 5 years—renewable for another five years if the Porters agreed. The lease required, among other things, that appellant pay the Porters $25.00 per month from the date of execution, $10,000 before entry on the land, $.05 per ton for all limestone removed and $.01 per ton for the right to haul across the Porter property. Appellant also owned leased mineral interests in four contiguous tracts owned by different persons and also condemned. On one of these adjacent tracts appellant operated a limestone processing plant. These five mineral interests—created by separate leases—were used by appellant in the integrated operations of mining, processing and marketing limestone. Appellant’s operation began in 1953.

Following condemnation, appellant joined in the Porters’ petition for view. A viewer’s hearing was held and their report was filed June 29, 1964. The viewers determined that the property had been damaged to the extent of $16,000 including compensation for delay in payment: $14,000 to the Porters and $2,000 to appellant. Appellant in his appeal from the viewer’s determination sought to consolidate, in the eminent domain proceeding which involved only the Porter property, the claims for damages to his interests in all of the five condemned properties. The lower court rejected this approach. In affirming the lower court’s decision we held that it was not a denial of due process to refuse to [465]*465consolidate appellant’s claims in one condemnation action since lie might attempt to prove in each view proceeding the value of his interest in the property by showing the value resulting from the integrated use. Porter v. Commonwealth, 419 Pa. 596, 216 A. 2d 646 (1966).

The case was subsequently tried before a jury in May, 1967 in the Common Pleas Court of Butler County to determine the total amount of damages resulting from the condemnation and to apportion that amount between the Porters as owners of the property and appellant as owner of the leased mineral interest. The conflicting testimony with respect to damages was as follows: the testimony of Mr. Porter and his two witnesses ranged between $67,000 to $143,000 as to his damages; appellant’s witness testified that appellant’s damages were $112,000; and the Commonwealth’s two witnesses ranged between $6,000 to $7,400 in damages for both interests combined. A verdict in favor of the condemnees was rendered in the amount of $34,000 without delay compensation: $27,000 to the Porters, and $7,000 to appellant. The trial court molded the verdict in favor of appellant by awarding delay compensation in the sum of $1,773.31. Motions for a new trial were filed by all parties but denied by the lower court. Appellant filed the only appeal to the Commonwealth Court.

The Commonwealth Court being equally divided (Manderino, J., absent) affirmed the lower court’s order in a per curiam opinion filed March 8, 1972. Judge Rogers filed an opinion in support of affirmance. Sechan Limestone v. Commonwealth, 4 Pa. Commonwealth Ct. 621, 288 A. 2d 553 (1972). We granted allocatur to review the lower court’s application of the “integrated use” doctrine, which was promulgated in Porter v. Commonwealth, 419 Pa. 596, 215 A. 2d 646 (1966). The doctrine was intended to insure just compensation to [466]*466persons who have integrated property interests in contiguous tracts of land by recognizing that there may be an increase in value as a result of the condemned property being used with other properties of similar utility in an assemblage.

Appellant makes four arguments that he feels compel our reversing the judgment of the lower court and granting a new trial. Initially he argues that the trial court erred in admitting the Commonwealth’s evidence on “comparable sales” because the sales were of eight general farm properties and a dairy farm, none of which was part of an assembled integrated limestone operation.

Although Section 705(2) of the Eminent Domain Code1 provides that a valuation expert may testify as to the sale price of comparable properties sold within a reasonable time before or after the condemnation, not all selling prices of allegedly comparable properties are admissible. In order to be admissible the trial court must decide whether the sale is “judicially comparable.” Commonwealth v. 108.3 Acres of Land, 431 Pa. 341, 244 A. 2d 124 (1968). Once this is determined, the sale price is admissible as evidence of market value as well as for credibility purposes. Comment of the Joint State Government Commission to Section 705(2) (i) of the Eminent Domain Code.

A careful reading of the record indicates that these sales were not judicially comparable. Even though some of these sales resulted in the properties becoming part of an integrated limestone operation they stood alone at the time of their sale. In comparison to the Porter tract not one of them was part of an assemblage of tracts, all of which were known to have substantial marketable limestone deposits and accessible, through [467]*467hauling rights, to a contiguous tract on which an operating limestone crushing plant was located. Thus, the value of the properties which were the subject of the Commonwealth’s comparable sales could not have been enhanced from being part of an integrated operation.

The Commonwealth contends that it is impossible to find a sufficient number of sales of property which were part of an integrated operation at the time of their sale to serve as a comparable guideline since an owner of an integrated operation would not sell one of his tracts unless it was no longer crucial to the operation. It concludes that its alleged comparable sales were the only rational approach to value in this case. We disagree. Even assuming that there are no comparable sales available, the market value might be established by the testimony of persons acquainted with the lands, and whose knowledge and experience qualifies them to form an intelligent judgment as to its proper valuation. See Glen Alden Coal Co. v. Commissioners, 345 Pa. 159, 27 A. 2d 237 (1942).

Some of these sales further lacked “judicial comparability” in that there was no proof of the presence, quantity or quality of limestone underneath the properties. When asked whether he knew if there was limestone underneath a particular property one of the Commonwealth’s valuation witnesses stated, “It’s generally known in this particular area there is limestone in this general area.” The same witness admitted that as to one of the other properties he did not know whether at the time of the sale the seller knew whether or not there was limestone under the property.

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Baldassari v. Baldassari
420 A.2d 556 (Superior Court of Pennsylvania, 1980)
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336 A.2d 249 (Supreme Court of Pennsylvania, 1975)
Porter v. Commonwealth
309 A.2d 709 (Supreme Court of Pennsylvania, 1973)

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Bluebook (online)
309 A.2d 709, 454 Pa. 461, 1973 Pa. LEXIS 784, Counsel Stack Legal Research, https://law.counselstack.com/opinion/porter-v-commonwealth-pa-1973.