State, Department of Highways v. Spillman

276 So. 2d 905, 1973 La. App. LEXIS 6539
CourtLouisiana Court of Appeal
DecidedApril 3, 1973
Docket9271
StatusPublished
Cited by11 cases

This text of 276 So. 2d 905 (State, Department of Highways v. Spillman) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State, Department of Highways v. Spillman, 276 So. 2d 905, 1973 La. App. LEXIS 6539 (La. Ct. App. 1973).

Opinion

276 So.2d 905 (1973)

STATE of Louisiana, Through the DEPARTMENT OF HIGHWAYS
v.
Rubin SPILLMAN.

No. 9271.

Court of Appeal of Louisiana, First Circuit.

April 3, 1973.

*906 James W. Murray, Highway Dept., Baton Rouge, for appellant.

Paul Due', Nesom, Mellon, Cavanaugh & Due', Denham Springs, for appellee.

Before LANDRY, TUCKER and PICKETT, JJ.

LANDRY, Judge.

The Department of Highways (Department) takes this appeal from a judgment awarding defendant Spillman (Owner) compensation in the sum of $19,332.00, for land expropriated for highway purposes. The main issue is the value of the property taken. Incidentally the Department complains of the amount awarded Owner's appraisers as expert witness fees. We reduce the compensation awarded for property taken.

On May 12, 1969, the Department expropriated.634 acres of a 4.187 acre triangular shaped tract belonging to Owner and situated on the West side of Range Road in Denham Springs, Louisiana. Range Road is the principal north-south thoroughfare in Denham Springs. Parent tract fronts 604 feet on Range Road by a depth on its south side of 562 feet; its north line extends 29.02 feet westerly on the west line of Range Road from whence its rear line runs 811.35 feet to intersect its south line. The taking condemned 27,617 square feet, consisting of a strip 45 feet deep along the entire 604 foot frontage, leaving owner a frontage of 586.32 feet.

Subject property is situated approximately one-quarter to one-half mile from the down-ramp of Interstate Highway 12. It is conceded the best and highest use for subject tract is commercial. All of the experts agree that in the vicinity of subject *907 property the ideal commercial site consists of a plot 200 feet front by a depth of 200 feet.

Owner purchased the property in question from Robert H. Tate, Sr. and Jr., in two transactions dated January 24, and May 17, 1968, respectively, each for an undivided one-half interest and at a price of $16,000.00, or $8,000.00 per acre.

David G. Carlock, appearing for the Department, valued the property at $8,200.00 per acre, or $5,199.00 for the part taken. In so determining, he used as a comparable the sales of subject property to Owner. He next considered the sales of two adjoining parcels measuring 128 feet front each, and situated on the opposite side of Range Road from subject tract. These sales, dated July 19, 1968, involved 1.4 acre plots, which sold for $8,571.00 per acre, or 20¢ per square foot. Both sales were by Eddie O. Turner, Jr., the purchasers being William R. Powers, who bought the most southerly lot, and Roy W. Powers, who bought the adjoining property. In making his determination, Carlock examined approximately 90 transactions, but considered the mentioned sales most nearly comparable. To his knowledge, the highest price paid for a commercial location in the area was the sale of a lot by Harco, Incorporated to Humble Oil and Refining Company on March 2, 1967. This sale involved a corner plot measuring 200 feet on Range Road by a depth of 166 feet on Rushing Road. The price of $52,325.00 indicated a square foot value of $1.35. Carlock considered this transaction was not a true comparable because the location consisted of a prime service station site situated adjacent to the down-ramp of I-12, for which oil companies vied, and customarily paid prices considerably in excess of normal market value.

Carlock conceded knowledge of the sale of a tract fronting 200 feet on the east side of Range Road directly across from subject property on January 17, 1969. The property which belonged to Eddie O. Turner, Jr., had a depth of 470 feet. The property was divided into two parcels, each sold in a separate transaction by sales dated the same day and made to the same purchaser, L. A. Lard, Jr. It is conceded Lard intended to convert the tract into a bulk gasoline dealership location. In the first transaction, Lard acquired a parcel having a front of 50 feet on Range Avenue by a depth of 230 feet, at which point it widened to 200 feet and extended an additional 238 feet. The sale was for $21,500.00, or $16,000.00 an acre, the equivalent of 36¢ per square foot. In the second transaction, Lard acquired a parcel fronting 150 feet on Range Road by a depth of 230 feet. This transfer was for $24,000.00, or 70¢ per square foot. Mr. Carlock stated he gave little weight to these transfers because he considered them in effect as a single transaction, and also because the 150 × 230 foot lot contained a residence in the $20,000.00 class. Carlock was aware of but gave little credence to a sale from Thomas L. Sullivan to Robert S. Mellon, on November 6, 1967, of a tract fronting 398 feet on Range Road by a depth of 150 feet, for a price of $24,000.00, or $15,000.00 per acre. Later, Mellon sold a one-half interest therein to his partner for $12,000.00. Carlock did not consider this parcel a very good comparable because of the presence of improvements thereon. He also stated he was searching for unimproved lands to use as comparables because subject property was unimproved. He was unaware the improvements on the property acquired by Lard were to be demolished by the purchaser. He learned that the property was divided into two parcels for sale because the portion containing the residence was burdened with a mortgage.

John Allphin, Appraiser, testifying for the Department, examined approximately 25 transactions as possible comparables. In reaching his conclusion that subject property had a market value of $8,200.00 per acre, or $5,200.00 for the .634 acres taken, he relied on the same comparables used by Carlock. He reached his appraisal by adjusting *908 the value of subject property, based on its sale price to Owner, from $7,805.00 per acre to $8,200.00 an acre due to increased value resulting from certain clearing work done thereon. He used the two Turner to Powers sales even though they involved smaller lots. In his opinion, smaller commercial lots sometimes sold for at least as much and sometimes more than larger commercial locations. Allphin also considered the sale of a lot from Eddie O. Turner to O. T. Waldrop on December 7, 1967. The property measured 150 feet front on the east side of Range Road directly opposite subject tract, and abutted on the south the property sold by Turner to Roy W. Powers. This lot sold for a price of $9,639.00 per acre. Allphin conceded that he relied heavily upon the two sales to Owner which he believed to be arms length transactions. He so concluded because the price paid by Owner was within the $8,000.00 to $9,000.00 per acre paid for similar property in the immediate vicinity.

Mr. Allphin discounted the Harco to Humble sale and the two Turner to Lard sales for the same reasons noted by Carlock. He also stated his investigation showed the Turner property was divided into two parcels for sale to Lard because the portion containing the residence was burdened with a mortgage. As did Carlock, Allphin did not consider the Sullivan to Mellon sale because he found the property contained a residence which he believed to be worth about $10,000.00.

Mr. John LeJeune, appearing for Owner, valued subject property at 83.6¢ per square foot, or $23,088.00 for the portion taken. He used as a comparable the sale from Turner to Roy W. Powers at a square foot price of 19.6¢. He also used the two sales from Turner to Lard. LeJeune disregarded the sale of the 50 foot front lot from Turner to Lard because it involved an L-shaped parcel, and he preferred a comparable more nearly the same size and shape as subject tract.

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Bluebook (online)
276 So. 2d 905, 1973 La. App. LEXIS 6539, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-department-of-highways-v-spillman-lactapp-1973.