State Department of Transportation & Development v. Dornier

503 So. 2d 71, 1987 La. App. LEXIS 8719
CourtLouisiana Court of Appeal
DecidedFebruary 9, 1987
DocketNos. 86 CA 500-86 CA 502
StatusPublished
Cited by1 cases

This text of 503 So. 2d 71 (State Department of Transportation & Development v. Dornier) 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 Transportation & Development v. Dornier, 503 So. 2d 71, 1987 La. App. LEXIS 8719 (La. Ct. App. 1987).

Opinion

GOTHARD, Judge.

This is an expropriation case. The state appeals the valuation of the expropriated land, and the landowners have answered the appeal, seeking additional attorney’s fees. We affirm.

Four parcels of land on the East Bank of St. James Parish were expropriated for a highway in three proceedings brought in 1977 by the State of Louisiana, Department of Transportation and Development under the “quick taking statute,” LSA-R.S. 48:441-460. The cases were consolidated for trial and on April 28, 1986 the court rendered judgment accepting the landowners’ appraiser’s value of $5,500 per acre for each parcel of land taken as against the state’s appraisal of $3,800 per acre. This appeal followed.

The three proceedings are as follows: No. 86-CA-500 (No. 12,542, 23rd J.D.C.), filed April 18,1977, for expropriation of the interest of Benjamin Dornier in Parcel 12-3, comprising 3.43 acres of a tract of 91.43 acres; No. 86-CA-501 (No. 12,632, 23rd J.D.C.), filed July 25, 1977, for expropriation of the interest of Lillian, Jules, James, Benjamin, and Claude Dornier in Parcel 12-1, comprising 9.87 acres from a tract of 678.87 acres, and Parcel 13-3, comprising 2.31 acres of a tract of 74.38 acres; and No. 86-CA-502 (No. 12,692, 23rd J.D.C.), filed September 6, 1977, for expropriation of the interest of Dennis Ory, Thelma Pitts, and Lillian, Jules, James, and Benjamin Dornier in Parcel 12-2, comprising 3.38 acres of a tract of 74.38 acres. Parcels 12-1, 12-2, and 12-3 are contiguous. Parcel 13-3 is close to the others but separated by a tract owned by another party. The court rendered separate judgments in each suit, fixing a dollar value for each taking based on a compensation value of $5,500 per acre less the amount deposited by the Department, plus interest from date of taking, attorney’s fees of $1,740, $550 expert’s fee, and costs.

The issues before us are whether the trial judge was in error in accepting the value proposed by the landowners’ expert witness and whether the judge abused his discretion in making his award of attorney’s fees. No severance damages are claimed.

We first consider the controversy over value. As stated by this court in Hospital Service Dist. No. 1 v. Guillot, 482 So.2d 765 (La.App. 5th Cir.1986), at 769:

The proper measure of compensation due a landowner is the market value of the property at the time expropriated based upon its prospective highest and best use, where that use is removed from the realm of speculation or guesswork, even though the landowner may have no plan to sell the property or so utilize it at the time of the expropriation. Pointe Coupee Elec. Mem. Corp. v. Mounger, supra [447 So.2d 1104 (La.App. 1st Cir. 1984)]....

Market value is the price that informed and willing buyers and sellers would agree to under usual and ordinary circumstances. Southwestern Elec. Power v. Scurlock, 485 So.2d 72 (La.App. 2nd Cir.1986); Southwestern Electric Power Company v. Conger, 307 So.2d 380 (La.App. 2nd Cir. 1975). As the valuation of property is a factual determination, the manifest error rule applies. Hospital Service Dist. No. 1 v. Guillot, supra.

The parties agreed that the highest and best use of the property was for industrial purposes, although it was presently under cultivation of sugar cane. Both experts, John LeJeune for the owners and L.J. Roy for the Department, used the market data approach in arriving at a value. That approach uses comparable real estate sales to form an estimate of the market value. Whether the property in a particular sale is indeed comparable to the “subject property” is usually based on the closeness in time and circumstances of the sale [73]*73plus location, size, and physical characteristics, proximity and location being considered absolutely essential. Dakin and Klein, Eminent Domain in Louisiana (The Bobbs-Merrill Co., Inc., 1970) section 5, in Dept. of Transp. v. C. Schexnayder, Inc., 485 So.2d 939 (La.App. 1st Cir.1986).

In his reasons for judgment the trial judge pointed out that LeJeune, the landowners’ expert, was entirely familiar with the area in which the land was located, the Cantrell Reach, a heavily industrialized area of river frontage, and knew the trend of land values and demand. Roy, the Department’s expert, was unfamiliar with the area, depended on materials furnished by the Department, and spent little time in his research, visiting the sites and checking courthouse records but not interviewing buyers or sellers of land in the area. The judge deemed Lejeune’s value to be more accurate because he made adjustments for differences between the land in comparable sales and the expropriated land in size, location, access to utilities, topography, zoning, demand, and time. Roy’s adjustments were for differences in time alone.

The record reveals that, while both men are experienced appraisers, LeJeune had been qualified in St. James Parish courts ten or twelve times before and had worked in the parish since 1962, both for condemning authorities and for landowners. Roy had never testified as an expert in St. James and admitted that he had done little appraisal in the parish. He was called in on the case on March 13, 1986, just two weeks before the hearing. The Department’s position is that Roy’s value has a sound basis in fact and reasoning, while LeJeune tended to “shoot from the hip.” Familiarity of the appraiser with an area has been given great weight; however, the trial judge is not bound to accept the experts’ values. State Department of Highways v. De Jean, 322 So.2d 265 (La. App. 2nd Cir.1975); Redevelopment Agency v. Garrett, 479 So.2d 985 (La.App. 3rd Cir.1985).

The Department evaluated the ten com-parables relied upon by LeJeune. Seven of the ten comparables were located outside the Cantrell Reach, the deep-water area which the landowners asserted made their land so valuable. Five of the seven were outside St. James Parish. Four of the ten tracts were considerably larger than the total acreage of the subject parent tracts, 919.06 acres. The dates of sales were from March 3, 1973 through April 8, 1978. The lowest price was $2,275 per acre, the highest $4,733. The only sale deemed comparable by the Department was one listed as “Jacob to Hydrocarbon” for $3,000 per acre, sold on December 18, 1974. The Jacob property was in the immediate vicinity of the subject land, of comparable size to the largest of the four tracts, although shallower; however, it did not have access to high-voltage lines and the front of the northwest corner was swamp and useless for development.

Mr. Roy chose five sales as comparables, including Jacob to Hydrocarbon. All are located in St. James Parish and four lie within the Cantrell Reach. The dates of sales are August 5, 1974 through October 13, 1976. The price per acre ranged from $2,614 per acre for the earliest sale to $3,584 per acre for the most recent. Roy testified that he applied a time adjustment of 1% per month, yielding a range of $3,477 to $3,975 per acre. To arrive at the percentage of increase he compared the two most recent sales where he found an increase of about 10% per year, and then calculated the increase from the first to the last sale, 16% per year. He then picked 12% as a figure in the middle and applied 1% per month increase to each sale up to the time of first taking of the subject lands.

The appellees argue that a simple time adjustment is inaccurate and that Lejeune’s knowledge of the real estate market in St.

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Bluebook (online)
503 So. 2d 71, 1987 La. App. LEXIS 8719, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-department-of-transportation-development-v-dornier-lactapp-1987.