State, Dept. of Trans. & Dev. v. Sonnier

503 So. 2d 1144
CourtLouisiana Court of Appeal
DecidedMarch 4, 1987
Docket86-301
StatusPublished
Cited by7 cases

This text of 503 So. 2d 1144 (State, Dept. of Trans. & Dev. v. Sonnier) 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 Trans. & Dev. v. Sonnier, 503 So. 2d 1144 (La. Ct. App. 1987).

Opinion

503 So.2d 1144 (1987)

STATE of Louisiana, DEPARTMENT OF TRANSPORTATION & DEVELOPMENT, Plaintiff-Appellant,
v.
Eldon SONNIER, et ux., Defendants-Appellees.

No. 86-301.

Court of Appeal of Louisiana, Third Circuit.

March 4, 1987.
Rehearing Denied March 27, 1987.
Writ Denied May 29, 1987.

*1145 Frederick J. Fuselier, Baton Rouge, for plaintiff-appellant.

Veil D. Devillier and Darryl Hebert, Eunice, for defendants-appellees.

Before GUIDRY, LABORDE and YELVERTON, JJ.

LABORDE, Judge.

This expropriation suit was instituted by the State of Louisiana, through the Department of Transportation and Development, against defendants, Doris Elaine Sonnier, and her husband, Eldon Sonnier, under the quick taking statute, LSA-R.S. 48:441-460. Defendants' property consisted of a homesite on .775 of an acre fronting the Basile-Eunice Highway (La.-U.S. 190). Improvements to the highway required a taking of the fronting 208 feet by 82 feet in depth or .392 of an acre. The taking left undisturbed the defendants' constructions which consisted of a wood frame house, a dog kennel, and a small shed. In effect, the taking moved defendants closer to the roadway: where defendants' house had been 138 feet from the road, it is now 70 feet from the edge of the pavement; where defendants' house had been 100 feet from the right-of-way, it is now 17.9 feet away.

The State deposited $51,504.00 into the registry of the district court. Defendants felt this amount was insufficient and reconvened for additional damages of $34,899.66, i.e., $86,403.66 total damages minus the $51,504.00 previously deposited. The trial court, after hearing from both parties' experts, ruled in favor of defendants in the amount of $74,385.00, less the amount previously deposited ($51,504.00) so as to award $22,881.00, plus attorney fees of 25% of the difference ($5,720.25), plus legal interest on the difference from the date of the taking (September 9, 1984), plus expert fees of $4,500.00. The State appeals this judgment asserting that the trial court erred in selecting one appraisal method ("replacement") over another ("before and after"). For reasons expressed below, we amend and affirm as amended.

Article 1, section 4 of the Louisiana State Constitution of 1974 mandates that owners of expropriated property be compensated to the full extent of their losses.[1] This declared right is repeated in the statutory formula to measure compensation in LSA-R.S. 48:453.[2] In compensating *1146 the landowners to the full extent of their loss, the owners must be placed in as good a position pecuniarily as they enjoyed prior to the taking. State, Department of Highways v. Bitterwolf, 415 So.2d 196, 201 (La.1982); State, Department of Highways v. Constant, 369 So.2d 699, 702 (La.1979); State, Department of Transportation & Development v. Townsend, 473 So.2d 99, 104 (La.App.3d Cir.1985); State, Department of Transportation and Development v. Boyce Gin Cooperative, Inc., 397 So.2d 1087, 1092 (La.App.3d Cir. 1981); State, Department of Highways v. Champagne, 356 So.2d 1136, 1140 (La. App.3d Cir.1978). The duty of the State, through the courts where necessary, to justly and fully compensate landowners is no easy task considering the necessarily peculiar attributes of each part and parcel of land. As in other areas of remedy where damages are not susceptible to scientific measurement, the trial court is given wide latitude and great discretion in ascertaining the precise amount due to an injured property owner. The trial court's factual determination should not be disturbed on appeal absent manifest error. State, Department of Transportation and Development v. Henry, 468 So.2d 1262, 1266 (La.App.3d Cir.1985); State, Department of Development of Transportation v. Van Willet, 389 So.2d 1346, 1350 (La. App.3d Cir.1980).

In the past, hesitancy existed regarding full compensation to landowners because it was feared that public projects would be stymied as a result of increased costs. It was thought that the individual's loss would be balanced by the public's (including the individual's) gain. As a result, "just" compensation had been the rule in Louisiana prior to the 1974 Constitution. Our Constitution now mandates "full" compensation to expropriatees. The exact method of measurement was left to the courts and the ingenuity of the litigants through their experts.

In response to the perception of inadequate expropriation awards, the notion of "fair market value" was developed by the courts to more justly compensate expropriatees. NOTE, EXPROPRIATION: COMPENSATING THE LANDOWNER TO THE FULL EXTENT OF HIS LOSS, 40 La.L.Rev. 817, 818-19 (1980). Market value is generally defined as that price most likely to be agreed upon after free and open negotiations between a willing seller and a willing buyer. The "comparable sales method" is the preferred manner to compute the market value. By this method, appraisers analyze recent sales prices of similar properties and adjusts them in an effort to estimate the value of the subject property. Id. at 819. When no comparable sales data are available by which to estimate the value of an improvement, the "replacement cost method" is used by Louisiana courts. This method estimates the replacement cost of a functionally similar improvement, less the estimated depreciation representing not accounting theory, but the actual decline in value caused by physical deterioration and functional and economic obsolescence. Id. at 820. Since 1889, Louisiana courts have compensated for severance damages according to a "before and after" test. The measure of damage is the diminution in the value of the remaining property caused by the taking. Bitterwolf, 415 So.2d at 200; McMahon v. St. Louis A & T. R.R., 41 La.Ann. 827, *1147 829-30, 6 So. 640, 641 (1889); M. Dakin & M. Klein, Eminent Domain in Louisiana pp. 70-73 (1970, Supp.1978); Tate, Legal Criteria of Damages and Benefits—The Measurement of Taking—Caused Damages to Untaken Property, 31 La.L.Rev. 431, 433 (1971).

Although not faced with a particularly new problem, the bellwether case of Constant, 369 So.2d at 702, announced definitively that the replacement cost method may be used even when the award would exceed the market value of the property, comprising the entire tract, prior to the taking. We find it particularly significant, however, that the Constant court voluntarily set perameters for the proper usage of the replacement cost method:

"We do not, by these rulings, announce any general principle that replacement cost is always the most appropriate measure of awarding a landowner compensation for the taking of a physical asset used in his business, nor that the depreciation of the former asset should never be considered.
Generally, we assume, the landowners may be compensated fully by other approaches than by awarding them the replacement cost of the improvement taken, especially where (unlike the present instance) the property is not shown to be both unique in nature and location and also indispensable to the conduct of the landowners' business operations on the site from which a part is taken. Likewise, in the usual situation the depreciated value of the asset taken will have some lessening effect on the award to the landowner, since he may be fully compensated by the actual pecuniary value of the asset taken.

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503 So. 2d 1144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-dept-of-trans-dev-v-sonnier-lactapp-1987.