Proctor v. Wolber, Unpublished Decision (5-24-2002)

CourtOhio Court of Appeals
DecidedMay 24, 2002
DocketCase No. 5-01-38.
StatusUnpublished

This text of Proctor v. Wolber, Unpublished Decision (5-24-2002) (Proctor v. Wolber, Unpublished Decision (5-24-2002)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Proctor v. Wolber, Unpublished Decision (5-24-2002), (Ohio Ct. App. 2002).

Opinion

OPINION
Plaintiff-Appellant, Gordon Proctor, Director of the Ohio Department of Transportation ("ODOT"), brings this appeal from a Hancock County Common Please Court judgment entered on a jury verdict in an appropriation proceeding initiated to acquire 20.703 acres of land from Defendant-Appellee, Paul Wolber, for relocation of U.S. Route 30 in Hancock County.

ODOT maintains that a party may not submit evidence of alternative property uses unless the party has a present intent to use the property for the identified purpose and has taken steps to develop the property toward that use prior to commencement of appropriation proceedings. We find, however, that property owners need not take steps to develop their property prior to appropriation or have a present intent to utilize the property for the use, so long as the necessary adaptability and demand have been established by competent evidence, which shows more than mere speculation or prediction. ODOT also argues that comparable sales must be used to establish valuation, asserting that the evidence Wolber submitted of recent residential splits from agricultural parcels in the region was speculative, misleading, and generally inadmissible. Because residential growth and development in the region would tend to establish the demand for and value of the appropriated acreage and the trial court was in the best position to ascertain the jury's ability to understand the evidence presented and apply it in an appropriate context, we do not find that the trial court abused its discretion in admitting the evidence. Therefore, we affirm the judgment of the trial court.

Procedural history and facts relevant to issues raised on appeal are as follows: Prior to the initiation of appropriation proceedings, Paul and David Wolber owned a 40.060-acre tract of land located in Van Buren Township, Hancock County, approximately one-half mile north of the Hancock-Hardin County line on the east side of Township Road 59. The property had been in the Wolber family for 99 years and had been dedicated to agricultural use.

On June 27, 2000, ODOT initiated appropriation proceedings in the Hancock County Common Pleas Court, seeking permanent acquisition of the northern 20.703 acres of the property. David Wolber transferred his interest to Paul Wolber (hereinafter "Wolber") prior to the date of trial.

The trial court conducted a jury view of the property on July 23, 2001, which was determined, per stipulation, to be the date of take. At trial, ODOT argued that Wolber should be awarded $51,150 for the acreage appropriated and $7,950 for damages to the residue. In contrast, Wolber requested $85,000 for the appropriated acreage and $36,000 for damages to the residue. After two days of testimony and evidence, the jury awarded Wolber $84,642 as compensation for the appropriated acreage and $15,944 as compensation for damages to the residue. The trial court entered judgment on the jury's verdict, and the instant appeal followed.

ODOT presents two assignments of error for our consideration.

Assignment of Error Number One:
The Trial Court Erred in Admitting Appellee's Evidence of Potential Lot-splits for the Purpose of Valuing Appellee's Property.

For its first assignment of error, ODOT sets forth several arguments challenging the admissibility of evidence presented for purposes of establishing the fair market value of the appropriated property.

In Ohio, the owner of land taken by appropriation is entitled to compensation for the land taken and for damages to the residue.1 The measure of damages for both is fair market value.2 The owner's compensation for the land taken is the difference between the value of the whole immediately before, and the value of the remainder immediately after, the taking.3 The difference between the value of the residue with the appropriated tract and its value without that portion is the measure of damage to the residue.4

A distinction is drawn between "compensation", the sum of money which will compensate the owner for his land taken, regardless of any benefit that may inure to his remaining land because of the proposed public use or improvement, and "damages", which is the payment made for any injury that may result to the remaining land, making allowance for any special benefit that may result to it because of the proposed public use or improvement.5 "Damages" to the residue are thus part of the landowner's compensation for the public use taking and are not consequential damages resulting from the public use of the improvement.6

The perspective from which value is to be viewed is that of an ordinarily prudent business person.7 To determine fair market value of an appropriated property, the highest and best use for the property must be considered and a value determined as if it were the price agreed upon at a voluntary sale by an owner willing to sell to a purchaser willing to buy the property at its highest and best use, neither under compulsion to do so.8 However, neither the potential use, demand for, nor the market value of that land can be based upon speculation or mere ability to subdivide, as land having potential for subdivision generally cannot be valued as if already divided and sold, or to be sold as lots without a present demand therefor.9 Accordingly, when the necessary adaptability and demand have been shown by competent evidence, the use of an agricultural parcel for residential subdivision or splitting off of residential lots may be considered by the jury as the property's highest and best use.10

As mentioned previously, the Wolber property is a 40.060 acre tract of land located in Hancock County approximately one-half mile north of the Hancock-Hardin County line. The parcel has approximately seven hundred feet of frontage on the east side of Township Road 59 and extends east therefrom to a depth of over one-half mile. In March of 2001, notice was received that the northern 20.459 acres of the parcel would be appropriated for relocation of U.S. Route 30.

Having witnessed significant residential development of agricultural land within the region and previously split five-acre residential lots from the road frontage of two other agricultural parcels he owned within five miles of the subject property, Wolber set about establishing that there was a present demand for residential splits from agricultural parcels and that the subject property could lawfully and practically be adapted for splits on the Township Road 59 frontage. With lots of five acres or more, applicable zoning regulations only required that lots have a depth at least three times greater than the length of the frontage. Wolber hired a surveyor to stake out lots and an appraiser to value the property with the residential splits, planning to submit evidence that his property could readily accommodate two five-acre lots on Township Road 59, each with a depth three times greater than the frontage.

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Bluebook (online)
Proctor v. Wolber, Unpublished Decision (5-24-2002), Counsel Stack Legal Research, https://law.counselstack.com/opinion/proctor-v-wolber-unpublished-decision-5-24-2002-ohioctapp-2002.