State, Dept. of Highways v. New Orleans Term. Co.

319 So. 2d 568, 1975 La. App. LEXIS 3544
CourtLouisiana Court of Appeal
DecidedJune 16, 1975
Docket6591
StatusPublished
Cited by4 cases

This text of 319 So. 2d 568 (State, Dept. of Highways v. New Orleans Term. Co.) 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, Dept. of Highways v. New Orleans Term. Co., 319 So. 2d 568, 1975 La. App. LEXIS 3544 (La. Ct. App. 1975).

Opinion

319 So.2d 568 (1975)

STATE of Louisiana, Through the DEPARTMENT OF HIGHWAYS
v.
NEW ORLEANS TERMINAL COMPANY.

No. 6591.

Court of Appeal of Louisiana, Fourth Circuit.

June 16, 1975.
Rehearing Denied October 9, 1975.

*570 Johnie E. Branch, Jr., D. Ross Banister, William W. Irwin, Jr., Jerry F. Davis and Alva J. Jones, Baton Rouge, for plaintiffappellee.

Monroe & Lemann, Malcolm L. Monroe, Benj. R. Slater, Jr., Walter J. Suthon, III, and Herman C. Hoffmann, Jr., New Orleans, for defendant-appellant.

Before SAMUEL, GULOTTA and SCHOTT, JJ.

SAMUEL, Judge.

Acting under the provisions of LSA-R. S. 48:441-460, the Department of Highways instituted this suit expropriating for highway purposes certain property belonging to the defendant New Orleans Terminal Company. At the time suit was filed the Department deposited $59,518.50 in the Registry of Court as its estimate of just compensation for the property. Nothing was deposited for severance damages. Appellant answered, contesting the value of the land taken and averring its true value, including severance damages, was $235,000.

After trial there was judgment placing the value of the expropriated land at $92,138.90 and rejecting the claim for severance damages. Defendant has appealed.

The property expropriated consists of five parcels of land. With the exception of Parcel 8-15 (zoned RD-2, two family residential), which runs along St. Bernard Avenue, all of the property taken lies within the defendant's railroad right of way which traverses City Park in an east-west direction between Bayou St. John and Marconi Drive in the City of New Orleans and is zoned P-Park (dedicated park and recreational). Prior to the taking, the right of way measured 100 feet in width, the major portion of which contained defendant's two main line tracks and the embankment on which they are constructed. A strip measuring approximately 30 feet in width was taken from the northern side of the tracks. Parcel 4-3, measuring 2,900 feet in length and containing 70,784 square feet, and Parcel 8-15, a triangular plot containing 682 square feet, were acquired in full ownership. In addition, a permanent drainage servitude was acquired over Parcel 4-3-D-1 (1,360 square feet) and temporary (3 year) construction servitudes were acquired over Parcels 4-3-C-1 (900 square feet) and 4-3-C-2 (1,313 square feet). The taking of Parcel 4-3 reduced the right of way from 100 feet to 70 feet and would prevent the railroad from constructing a third, or siding, track (also known as a spur track) in that area. The communications system, consisting of wires strung between poles, remained intact following the taking, but three of the poles encroached over the expropriated right of way. There are no buildings or other improvements situated wholly or partially on the property. The expropriation was made subject to the reservation in perpetuity in favor of defendant of all oil, gas or other mineral rights or royalties therefrom in accordance with LSA-R.S. 9:5860. The purpose of the taking was in connection with the construction of State Highway Route 1-610, known as the New Orleans By-Pass, *571 a part of the Interstate System of Highways.

The appellant contends, in accordance with the testimony of its experts: (1) the compensation for the property taken should be increased; and (2) severance damages should be allowed. Each litigant produced two expert appraisers; Omer F. Kuebel and John M. Parker, III testified on behalf of the defendant, and Charles L. O'Brien and Lennis X. Lamulle testified on behalf of the plaintiff.

Mr. Kuebel testified: The highest and best use of the property was for industrial purposes. He felt this type of appraisal was unusually difficult because a railroad ordinarily does not sell its right of way. He considered nine industrial sales, giving most weight to four sales covering spots on both the north and south sides of the railroad right of way east of Bayou St. John because of their closeness to the expropriated property. Relying on the economic principle of substitution (i. e., the value of the property tends to be set by the cost of acquiring an equally desirable substitute property), he was of the opinion that if used for industrial purposes the land, other than Parcel 8-15, would range in value between $1.70 and $1.80 per square foot. Thus, he arrived at a fair market value of $1.75 per square foot for that property. He appraised Parcel 8-15 at $2.45 per square foot. He appraised the permanent servitude over Parcel 4-3-D-1 at 90% of full ownership and the temporary servitudes over Parcels 4-3-C-1 and 4-3-C-2 at 8% per year for three years as a rental value. His total estimate of the value of all the land taken was $128,607.24.

Mr. Kuebel was of the further opinion that severance damages were due for the cost of relocating communications lines and also for the loss of utility of the remainder of the tract by the taking of 30 feet of the original 100 foot strip because the amount of land expropriated would prevent the future construction of a third, or spur track. Thus, the value of the remainder would drop $0.10 per square foot. He concluded the total valuation of the expropriated property, including severance damages, was $191,414.05.

The testimony of Mr. Parker, defendant's other expert, was generally in accord with that of Mr. Kuebel, although there was a variance in the square foot evaluation, in the appraisal of the permanent servitude (Mr. Kuebel gave that servitude 90% of the value of the parcel and Mr. Parker gave full value) and in the appraisements of the temporary servitudes which Mr. Parker set at 10%, as opposed to Mr. Kuebel's 8%, per year for three years. While Mr. Parker concurred that the highest and best use was for industrial purposes, based on six industrial comparables, he valued all parcels at $1.90 per square foot. He concluded the value of the property (exclusive of severance damages) was $139,629.

Mr. Parker also was of the opinion that the remaining portion of the property after the taking suffered an overall loss of 10% and consequently he allowed $72,079 for this portion, and $23,000 severance damages for the cost of removing signal lines in the communications system, making a total overall valuation of $234,708.

Mr. O'Brien, a Department appraiser, testified: The highest and best use of the property was its continued use as a railroad right of way considered as if vacant and valued as part of the adjoining acreage. He considered the problem in the light of how much the railroad would have to pay for the land if they were going through City Park under their expropriation authority. Since the surrounding property was residential, its replacement was valued as residential property. He estimated the value of the property at $35,000 per acre. Translating this to $0.803 per square foot and subtracting the allowances for servitudes (he used the full value of Parcel 4-3-D-1, over which there is the permanent servitude, and 10% per year, or a total of 30%, of the value of *572 Parcels 4-3-C-1 and 4-3-C-2 for the temporary servitudes over those parcels), his total valuation of the property taken was $59,056.

Mr. O'Brien found no severance damages due because the land had no utility other than its legal nonconforming use as a railroad right of way. The taking in no place touched any of the ballast, crossties, signal poles or anything else that would contributed to the utility of the property as a railroad right of way.

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Bluebook (online)
319 So. 2d 568, 1975 La. App. LEXIS 3544, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-dept-of-highways-v-new-orleans-term-co-lactapp-1975.