R. Miller & M.L. Miller v. The Borough of Indian Lake

CourtCommonwealth Court of Pennsylvania
DecidedNovember 16, 2021
Docket1269 C.D. 2020
StatusUnpublished

This text of R. Miller & M.L. Miller v. The Borough of Indian Lake (R. Miller & M.L. Miller v. The Borough of Indian Lake) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R. Miller & M.L. Miller v. The Borough of Indian Lake, (Pa. Ct. App. 2021).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Richard Miller and Mary Lou Miller, : : Appellants : : v. : No. 1269 C.D. 2020 : Submitted: October 18, 2021 The Borough of Indian Lake :

BEFORE: HONORABLE PATRICIA A. McCULLOUGH, Judge HONORABLE MICHAEL H. WOJCIK, Judge HONORABLE CHRISTINE FIZZANO CANNON, Judge

OPINION NOT REPORTED

MEMORANDUM OPINION BY JUDGE WOJCIK FILED: November 16, 2021

Appellants Richard Miller and Mary Lou Miller (Millers) appeal from the judgment entered by the Court of Common Pleas of Somerset County (trial court) on a unanimous jury verdict in favor of the Borough of Indian Lake (Borough) and against the Millers. The Millers assert that the trial court erred and/or abused its discretion by admitting the testimony of the Borough’s valuation expert over the Millers’ objections and by refusing to charge the jury with the Millers’ proposed instruction. Upon review, we affirm.

I. Background This case arises out of a dam remediation project undertaken by the Borough at the direction of the Pennsylvania Department of Environmental Protection (DEP). DEP required that the Borough make improvements to Indian Lake’s dam to control the probable maximum precipitation event of approximately 30 inches of rainfall over a 12-hour period or 27 inches of rainfall over a 6-hour period. In order to comply with DEP’s requirements, the Borough opted to raise the breast of the dam and to expand the existing flowage easement from 2,290 feet to 2,295.5 feet. To expand the flowage easement to the 2,295.5-foot mark, the Borough needed the agreement from 500 lakefront property owners within Indian Lake Resort, including the Millers. The Millers’ lakefront property (Property), which has 100 feet of lake frontage and a house that sits at an elevation of 2,290 feet above sea level with a 1.5- inch slab just above the 2,290-foot level, was among the properties affected. The Millers would not voluntarily agree to the flowage easement expansion. As a result, the Borough was required to obtain the additional 5.5-foot flowage easement from the Millers by way of partial condemnation. On May 21, 2013, pursuant to its powers under the Eminent Domain Code,1 the Borough Code,2 and Borough No. 165 (Ordinance),3 the Borough filed a Declaration of Taking (Declaration)4 in the trial court to expand the Property’s existing flowage easement to an elevation of 2,295.5 feet. Reproduced Record (R.R.) at 306a-08a. The Millers filed a Petition for a Board of Viewers (Board), which was appointed. Following a hearing, the Board issued its report and awarded no damages. The Millers appealed the Board’s award to the trial court seeking just compensation for the taking.

1 26 Pa. C.S. §§101-1106.

2 8 Pa. C.S. §§101-3501.

3 The Ordinance was enacted on March 27, 2013.

4 Reproduced Record (R.R.) at 295a-97a. 2 The matter proceeded to a jury trial. The Borough presented the testimony of Robert Hagerich, Jr. (Appraiser), a licensed real estate broker in Pennsylvania, as its valuation expert to testify regarding the before and after fair market value of the Millers’ Property based on comparable properties. The Millers initially sought to preclude his testimony as not competent by filing a motion in limine, and then later moved to strike his testimony during the proceedings. R.R. at 107a, 446a. The Millers objected for various reasons, including his inexperience performing flowage easement appraisals, his methodology, choice of comparable properties, and reliance on a weather report, and the fact that Appraiser did not provide a market value or any other valuation analysis after the taking. The trial court partially granted the motion in limine by precluding Appraiser from testifying regarding one property that was used in his analysis, but otherwise the trial court denied the Millers’ motions and allowed Appraiser to testify. R.R. at 284a, 451a, 557a. Appraiser testified that he employed the comparable sales approach by using recent sales of nearby comparable properties to provide the basis for his valuation opinion. Appraiser described how each property was similar to the subject Property, and how each was different, and he made adjustments in accordance with basic tenets of professional appraisal practice. Appraiser concluded that the value of the Millers’ Property prior to the taking was $390,000.00. Appraiser then considered the impact of the flowage easement on the post-taking value of the Property. With the understanding that the only time that the expanded flowage easement would impact the Property would be in a weather event producing 30 inches of rainfall in a 12-hour period or 27 inches of rain over a 6-hour period,

3 Appraiser relied upon the report of weather expert Stephen M. Wistar (Wistar)5 of AccuWeather on the likelihood of such significant rain (Wistar Report), which he attached to his appraisal. Original Record (O.R.), Board of Viewer Proceeding, 9/27/17, Borough Exhibit Nos. 8 and 9. According to the Wistar Report, the probability of a triggering maximum precipitation event occurring at Indian Lake is “infinitesimally small” -- .0004% or once every 250,000 years. Id.; O.R., Notes of Testimony (N.T.), 9/15/20, at 208; see R.R. at 503a. Appraiser also considered the fact that the Millers are “entitled to the full use and enjoyment of the site,” and that there are no building restrictions within the expanded flowage easement. R.R. at 503a. Appraiser described the unique characteristics of a flowage easement and how it is not a physical taking in the usual sense of a regular sewage easement. R.R. at 503a. Because the use of the flowage easement was so unlikely, Appraiser testified that a willing and informed buyer would not consider it a factor in arriving at the price. He, therefore, concluded that the pre- and post-value of the Property were the same -- $390,000.00. R.R. at 503a-04a. The Millers also sought to have the trial court instruct the jury regarding partial takings and the effect of a condemnation on the value of the remaining property, by informing the jury that the Millers only had a single opportunity to obtain compensation and that the Borough could make full use of the easement.6

5 The Borough also presented the testimony of Wistar.

6 More particularly, the Millers’ proposed instruction, which was based on Section 22.60 of the Pennsylvania Suggested Standard Civil Jury Instructions, Pa. SSJI (Civ.) 22.60 (2020), provided:

6. Partial Taking – Effect Of Condemnation On Value Of Remaining Property

(Footnote continued on next page…) 4 The trial court elected to use the model jury instruction relating to partial takings rather than the Millers’ adaptation of it. Following a two-day jury trial, the jury entered a verdict in favor of the Borough upon finding that the Millers’ Property did not diminish in value as a result of the Borough’s taking. R.R. at 8a. As a result, the jury awarded the Millers zero damages for the partial condemnation of the Property. Thereafter, the Millers filed a post-trial motion raising the same issues regarding Appraiser’s testimony previously raised in their prior motions and requesting a new trial. R.R. at 366a. By order dated December 1, 2020, the trial court denied the Millers’ post-trial motion. On December 3, 2020, the trial court then entered judgment on the jury verdict. The Millers filed a timely appeal in this

In this case, the Borough . . . took from the Millers a 5.5[- ]foot flowage easement. That means that the Borough has a right since the taking, to flow water up to the new elevation which is now raised from 2,290 [feet] to 2,295.5 feet. The Millers are asking you to award them compensation for their loss. In considering their loss, you must not limit your consideration to the current intended use by the Borough.

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R. Miller & M.L. Miller v. The Borough of Indian Lake, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-miller-ml-miller-v-the-borough-of-indian-lake-pacommwct-2021.