State, by Atty. Gen. v. Pioneer Mill Co.

637 P.2d 1131, 64 Haw. 168, 1981 Haw. LEXIS 155
CourtHawaii Supreme Court
DecidedDecember 18, 1981
DocketNO. 7532
StatusPublished
Cited by21 cases

This text of 637 P.2d 1131 (State, by Atty. Gen. v. Pioneer Mill Co.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State, by Atty. Gen. v. Pioneer Mill Co., 637 P.2d 1131, 64 Haw. 168, 1981 Haw. LEXIS 155 (haw 1981).

Opinion

*170 OPINION OF THE COURT BY

NAKAMURA, J.

The State of Hawaii appeals from a judgment awarding Defendant Pioneer Mill Co., Ltd. (hereafter Pioneer) $734,072.75, pur *171 suant to a jury verdict, in an eminent domain proceeding to acquire several parcels of land owned by Pioneer near Lahaina, Maui, for highway construction. 1 It asserts there were prejudicial errors in rulings on the admissibility of evidence and in the instructions given to the jury that resulted in an excessive and insupportable verdict. Pioneer cross-appeals, alleging the trial court erred in not awarding “post-judgment interest on blight of summons damages,” in disallowing the accrual of interest during periods when trial of the case was continued at its request, and in not assessing attorneys’ fees, costs, and expenses against the State. Finding no error, we affirm the judgment.

I.

The State’s suit for the acquisition of 3.966 acres of Pioneer’s land situated at Honokowai, approximately four miles west of Lahaina, to effect a realignment of Honoapiilani Highway was instituted in the Circuit Court of the Second Circuit on June 17, 1976. The subject land, consistent with its classification within the agricultural district under the State Land Use Law, was then in sugar cane cultivation. For county zoning purposes, however, it had been placed in a residential zone, more particularly in an R-3 zone. It was designated for yet another possible future use, since the Maui County General Plan stipulated an apartment or hotel use for the property.

The primary issue at trial was just compensation, the contemplated public use of the taken land not being disputed. Proof of relevant value offered by the parties consisted largely of testimony elicited from land appraisers, the State’s expert witness being Edward Burns and Pioneer’s principal expert being Edward Hustace. *172 But Pioneer also offered the views of others versed in land use and development to buttress Mr. Hustace’s testimony. Teney Takahashi, an officer of a property development company affiliated with the Amfac “conglomerate” of which Pioneer was a part, and Douglas Sodetani, a real estate broker who had served as Chairman of the Maui Planning Commission, were allowed to present their views on the probable future use designations of the subject property over the State’s strenuous objections. Mr. Takahashi was also permitted to give an opinion relative to value.

Foreseeing the development of the land for residential purposes as a reasonable probability, the State’s expert arrived at the conclusion that the market value of the land in question was $1.15 per square foot. Pioneer’s principal witness, however, concluded the free market would place a value on the land of $4.50 per square foot, as he envisioned a probable future use for hotel and apartment development. And in Mr. Takahashi’s opinion,- $6.00 per square foot was the price that would attach to the property in the market place. The jury verdict most closely approximated the views of Pioneer’s principal appraiser, as the jurors were of an opinion that $4.25 per square foot would be the fair market value of the land subject to condemnation.

II.

We turn first to the State’s appeal, where the questions for decision are:

1. Whether Pioneer’s expert should have been allowed to consider certain transactions as comparable sales in arriving at an opinion on the market value of the subject land;
2. Whether testimony and other evidence, including a Maui County General Plan map, related to the reasonable probability of a redesignation of the subject property for other than agricultural or residential use should have been admitted;
3. Whether testimony on potential uses of land adjacent to the subject property should have been admitted; and
4. Whether the trial court erred in accepting certain jury instructions proposed by Pioneer and rejecting certain instructions offered by the State.

*173 A.

“A condemnation trial. . . [is] an ordered search for value that a free market would attach to the taken property.” City & County v. International Air Service Co., 63 Haw. 322, 338, 628 P.2d 192, 204 (1981). But as value is primarily a matter of opinion, we have fostered liberal rules governing “the admissibility of an expert’s opinion on value and evidence purportedly supporting an expert’s opinion on value in condemnation trials.” City & County v. International Air Service Co., supra, 63 Haw. at 327, 628 P.2d at 197. We have said “[a]ny competent evidence of matter, not merely speculative, which would be considered by a prospective vendor or purchaser or which tend to enhance or appreciate the value of the property taken is admissible.” State v. Kunimoto, 62 Haw. 502, 507, 617 P.2d 93, 97 (1980). That which is “merely speculative” is excludable, of course, since it may be “unduly confusing to the jury.” City & County v. Market Place, Ltd., 55 Haw. 226, 242, 517 P.2d 7, 19 (1973). And we have been reluctant to disturb a trial judge’s assessment of what are indicia of speculative or “remote values, unless a clear abuse of the discretion vested in him is apparent.” City & County v. International Air Service Co., supra, 63 Haw. at 327, 628 P.2d at 197-98; State v. Kunimoto, supra, 62 Haw. at 506, 617 P.2d at 97. For we are convinced his vantage point usually provides a clearer view of “the thin line that often separates competent opinion and relevant values from mere speculation and ‘indicia of highly remote values’ than our more distant position.” City & County v. International Air Service Co., supra, 63 Haw. at 327, 628 P.2d at 197.

B.

The initial assertions of prejudicial error by the State are directed at the trial court’s condonation of Mr. Hustace’s selection of “comparables” to derive an estimate of market value. Particular objections are raised about the appraiser’s references to a transaction evidenced only by a DROA, 2 a land exchange between the *174 State and Pioneer, a subsequent sale by Pioneer of part of the land received in the exchange to the State, and a transaction involving land situated within the Napili Bay Civic Improvement District (NBCID). The State also objected to Mr. Hustace’s resort to summaries of transactions involving hotel and apartment properties in the course of his testimony. From a review of the record, however, we cannot say there was error in the trial judge’s rulings on the comparability of the transactions involved.

1.

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Bluebook (online)
637 P.2d 1131, 64 Haw. 168, 1981 Haw. LEXIS 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-by-atty-gen-v-pioneer-mill-co-haw-1981.