STATE, DEPT. OF TRANS. & DEVELOPMENT v. Jacob

491 So. 2d 138
CourtLouisiana Court of Appeal
DecidedJune 25, 1986
Docket85-807
StatusPublished
Cited by31 cases

This text of 491 So. 2d 138 (STATE, DEPT. OF TRANS. & DEVELOPMENT v. Jacob) 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. & DEVELOPMENT v. Jacob, 491 So. 2d 138 (La. Ct. App. 1986).

Opinion

491 So.2d 138 (1986)

STATE of Louisiana, DEPARTMENT OF TRANSPORTATION & DEVELOPMENT, Plaintiff-Appellant,
v.
Lawrence J. JACOB and Olite P. Jacob, Defendants-Appellees.

No. 85-807.

Court of Appeal of Louisiana, Third Circuit.

June 25, 1986.
Rehearing Denied July 25, 1986.

*139 Bertrand and Soileau, Ronald J. Bertrand, Rayne, and Bernie Malone, Baton Rouge, for plaintiff-appellant.

Roy and Hattan, Candice Hattan, LaFayette, for defendants-appellees.

Before GUIDRY, DOUCET and MANSOUR,[*] JJ.

GUIDRY, Judge.

The State of Louisiana, through the Department of Transportation and Development (DOTD), filed this expropriation suit under Louisiana's "quick taking" statute, La.R.S. 48:441 et seq., against Lawrence J. Jacob and his wife, Olite P. Jacob, to acquire certain highway frontage property necessary for widening North University and Cameron streets in conjunction with the construction of an underpass on University Street in the city of Lafayette, Louisiana. The Jacobs challenged the State's estimate of value of the land taken and severance damages and sought attorney's and expert witness fees and costs.

DOTD deposited into the Registry of the Court the sum of $316,215 as its estimate of just compensation for the property taken. After a four day jury trial, the Jacobs were awarded a total of $590,077 as compensation for the property taken, plus attorney's fees and fees for the Jacobs' experts. The total award to the Jacobs was divided as follows: (1) $183,746 as compensation for the value of the property taken; (2) $355,331 as compensation for the severance damages suffered by the Jacobs; (3) $51,000 for economic loss caused by the taking; (4) $68,440.50 for attorney's fees;[1]*140 and, (5) a total of $14,514.97 for experts' fees. Defendant appeals.

On appeal, DOTD sets forth the following assignments of error: (1) the jury erred in awarding $51,000 for economic loss in addition to severance damages; (2) the trial judge erred in awarding expert witness fees in an excess amount; and, (3) the trial judge erred in its award of attorney's fees. The Jacobs answered DOTD's appeal, setting forth four specific assignments of error.

THE JACOBS' PROPERTY

The Jacobs' property consists of a lot located at the corner of Cameron and North University streets (otherwise known as the Four Corners), upon which is situated "Jacob's Restaurant", which has been operating on that site for approximately 50 years. Jacob's Restaurant developed a very favorable reputation over the years and is patronized by many area residents, civic organizations and local clubs. The restaurant has banquet and reception facilities as well as a general dining area.

The Jacobs' property consists of approximately 80,000 square feet, of which 11,380 square feet comprises the restaurant. The main entrance to Jacob's Restaurant faces the northwest corner of the intersection of North University and Cameron streets. Extending from the entrance of the restaurant was an 804 square foot porte cochere, which enabled patrons of the restaurant to be dropped at the entrance, sheltering them from the elements. There was a large parking lot directly to the north of the restaurant as well as available parking spaces on the Jacobs' property adjacent to Cameron and North University streets.

In 1984, DOTD expropriated approximately 10,000 square feet of the Jacobs' property, comprising that portion of their land bordering North University and Cameron streets, for the purpose of widening said streets (from four lanes to five), and for the erection of an underpass just north of the Jacobs' property. As a result of the expropriation, the Jacobs were compelled to remove the porte cochere and to give up the parking spaces located adjacent to North University and Cameron streets. The Jacobs thereby lost a total of 33 parking spaces in addition to the porte cochere. The right of way was thereafter located from 11 to 12 feet away from the main entrance of Jacob's Restaurant.

At trial, the parties stipulated to the value of the land expropriated as being $183,746. The jury thereafter awarded the Jacobs $355,331 in severance damages and $51,000 for economic losses. Additionally, the trial court awarded attorney's fees in the amount of $68,440.50 and reimbursement of a portion of the expert witness fees expended by defendants. DOTD does not question the jury's award of severance damages.

ECONOMIC LOSS

DOTD contends on appeal that the jury erred in awarding the Jacobs $51,000 as compensation for economic loss over and above the award for severance damages. DOTD urges that the record does not support such award since the Jacobs were not operating Jacob's Restaurant at the time of the expropriation, but rather same was being operated by their sons, Billy and Glenn Jacob.

Under the Louisiana Constitution of 1974, Article I, Section 4 and the Supreme Court case of State of Louisiana, through the Department of Highways v. Constant, 369 So.2d 699 (La.1979), a landowner whose property is expropriated shall be compensated to the full extent of his loss, including any business or economic loss sustained by the property owner.

The burden of proof on the property owner in an expropriation case is to establish his claims by a reasonable preponderance of the evidence; speculation, conjecture, mere possibility and even unsupported probability are not sufficient to support a judgment. State of Louisiana, through the Department of Highways v. *141 Levy, 242 La. 259, 136 So.2d 35 (1961); State of Louisiana, Department of Transportation and Development v. Estate of Clark, 432 So.2d 405 (La.App. 1st Cir.1983).

The evidence in the instant case reveals that Lawrence and Olite Jacob operated Jacob's Restaurant for approximately 50 years, establishing an enviable reputation and a sizeable clientele over the years. However, several years prior to the trial of this matter, the Jacob's turned over the management and operation of the restaurant to their two sons, Billy and Glenn. From that time on, Mr. and Mrs. Jacob no longer participated in the revenues generated from the restaurant business, although they did continue to work at the restaurant. They were compensated for their continued services with a salary of $45 per week each plus all of their meals. In addition to the salaries paid to the Jacobs, their sons paid the taxes, insurance and maintenance on the restaurant facility as well as provided the Jacobs with a car. They also paid the Jacobs $2,000 per year for rent. Presumably, in awarding an economic loss of $51,000 to the Jacobs, the jury determined that the Jacobs would lose all or some part of these economic benefits as a result of the expropriation.

The record reveals that at the time of trial Jacob's Restaurant was still in operation. Billy Jacob testified that he and his brother had no intention of closing the restaurant unless they determined it was absolutely necessary. Although no rent had been paid to Mr. and Mrs. Jacob on the lease for the year preceding the trial, the Jacob sons renewed their lease for another year just prior to the trial. No explanation was given as to why the rent had not been paid for the previous year.

The Jacobs' experts consisted of a civil engineer, an architect, a building contractor and a real estate appraiser. It was the general consensus among these experts that because of the highway construction and the strip of land expropriated immediately adjacent to the restaurant, it would not be profitable for Jacob's Restaurant to continue to operate at the present site.

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Bluebook (online)
491 So. 2d 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-dept-of-trans-development-v-jacob-lactapp-1986.