State, Dept. of Transp. & Dev. v. Exxon Corp.

430 So. 2d 1191, 1983 La. App. LEXIS 8188
CourtLouisiana Court of Appeal
DecidedApril 5, 1983
Docket82 CA 0578
StatusPublished
Cited by21 cases

This text of 430 So. 2d 1191 (State, Dept. of Transp. & Dev. v. Exxon Corp.) 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 Transp. & Dev. v. Exxon Corp., 430 So. 2d 1191, 1983 La. App. LEXIS 8188 (La. Ct. App. 1983).

Opinion

430 So.2d 1191 (1983)

STATE of Louisiana, DEPARTMENT OF TRANSPORTATION AND DEVELOPMENT
v.
EXXON CORPORATION.

No. 82 CA 0578.

Court of Appeal of Louisiana, First Circuit.

April 5, 1983.
Rehearing Denied May 20, 1983.

Harvey Lee Hall, Baton Rouge, for plaintiff-appellant State of La., Dept. of Transp. and Development.

*1192 Jerry F. Davis, Baton Rouge, for intervenor-appellant Jo Carolyn Langlois.

John M. Roper, New Orleans, for defendant-appellee Exxon Corp.

Before LOTTINGER, COLE and CARTER, JJ.

CARTER, Judge.

This is an expropriation proceeding in which both the intervenor, Jo Carolyn Langlois, and the plaintiff, State of Louisiana, Department of Transportation and Development (State), appeal the judgment of the trial court awarding Mrs. Langlois the sum of $8,482.73 as damages for business losses and attorney fees.

Prior to this expropriation, Exxon owned a gasoline service station situated at the intersection of Greenwell Springs Road and Joor Road in the city of Baton Rouge. The premises constituted a complete service station facility with a total of four access ways (two on Joor Road and two on Greenwell Springs road). In May, 1976, Mr. and Mrs. Langlois began operating the station under a lease and dealer sales agreement between Mr. Langlois and Exxon, and continued those operations until Mr. Langlois's death on June 7, 1977. On August 3, 1977, Mrs. Langlois executed a one year lease and dealer sales agreement with Exxon with the lease expiring on August 3, 1978. In 1978, Mrs. Langlois and Exxon executed a new lease and dealer sales agreement for the period August 3, 1978 through August 3, 1979, under the same terms and conditions as the previous contracts. Sometime during the middle of 1979, Exxon offered Mrs. Langlois a three year lease to begin on August 3, 1979, but Mrs. Langlois declined to enter into the lease since she had learned that the State of Louisiana had plans to reconstruct the intersection of Greenwell Springs Road and Joor Road. According to the proposed construction plans, two of the four access driveways to the service station would be permanently closed, and a high speed turning lane was planned for construction in front of the two remaining driveways. Although Exxon and Mrs. Langlois did not enter into the three year lease, Mrs. Langlois agreed to continue operation of the service station on the basis of a series of short term extensions of the existing contract varying between thirty and ninety days.

Construction work commenced in October or November of 1979 and was completed in May or June of 1980. Although Mrs. Langlois continued to operate the station for approximately eleven months after construction was completed, she finally closed the station April 30, 1981, at the termination of her last three month extension. Exxon then took over direct company management of the station, reduced gasoline prices considerably, but finally permanently closed the station in November of 1981.

On March 6, 1979, the State instituted this proceeding by filing a petition for expropriation pursuant to La.R.S. 48:441-460. Contemporaneous with the filing, the State deposited the sum of $49,871.00 into the Registry of the Nineteenth Judicial District Court, this amount representing the State's estimate of the compensation due for the property taken and severance damages occasioned thereby. On March 7, 1979, an order of expropriation was signed transferring the ownership of the expropriated property to the State. On August 27, 1980, Mrs. Langlois, with leave of court, filed a petition of intervention seeking compensation for her business losses suffered as a result of this expropriation.

The State and Exxon subsequently entered into a joint stipulation and a consent judgment was rendered whereby Exxon accepted the $49,871.00 deposited in the Registry of the court as just and full compensation for the property of Exxon actually taken and any severance damages which occurred to the remainder of Exxon's property as a result of the expropriation. The trial proceeded on Mrs. Langlois's petition of intervention, and judgment was subsequently rendered in favor of Mrs. Langlois for damages suffered from November 1979 through July of 1980 in the sum of $8,482.73, plus interest and 25% attorney fees.

*1193 SPECIFICATIONS OF ERROR

Appellant, Mrs. Langlois, contends that the trial court erred as follows:

(1) In disallowing profits lost subsequent to July 1980 as speculative, and
(2) In awarding insufficient damages.

Appellant, the State, contends that the trial court erred as follows:

(1) In awarding lost profits from November 1979, (approximate date construction began) through July 1980, (approximate date construction ended), and,
(2) In making an excessive award based on erroneous computations.

ISSUE

The issue before the court is the amount of compensation, if any, due Mrs. Langlois for business losses, if any, suffered as a result of the expropriation.

The basic issue raised by the State is whether Mrs. Langlois had sufficient interest to justify any award.

The State questions, first of all, whether a person with a leasehold interest is entitled to an award in an expropriation proceeding. Mrs. Langlois argues that the expropriation statutes do not limit the class of persons to whom compensation is due to include only owners of property.

Courts have long recognized a lessee's status under law to require compensation for expropriation of lease property. State, Department of Highways v. LeBlanc, 319 So.2d 817 (La.App. 1st Cir.1975); State Through Dept. of Highways v. Hayward, 338 So.2d 1171 (La.App. 2d Cir.1976).

Under the 1974 Louisiana Constitution, Art. 1, Sec. 4[1], an owner must be compensated to the full extent of his loss. The clear intent of the framers of the 1974 Constitution was to expand rights to compensation to include the rights not only of the property owners but also of other persons who have legal status to require compensation, such as lessees. We note and approve the following language relating to La. Const., Art. 1, Sec. 4 by Professor Hargrave in 35 La.L.Rev. 10, at p. 18:

"Reference to `payment to the owner or into court for his benefit' was not meant to restrict the class of persons who could claim compensation to `owners' in a technical property law sense. The purpose was to give citizens more rights,85 and the term, as stated by the author of the final compromise, `is intended to be used in its broadest sense, in other words, a leasehold interest in land is a property right as you and I well know, and there's been some trouble over that in the past.86 In fact, when one couples this intent with the requirement that compensation be to the full extent of one's loss, the purpose emerges of giving protection to a broader category of persons than was previously the case. It is also clear that by referring to property `taken or damaged' compensation must be given not only when ownership or a real right is taken, but also when property is damaged...." (Footnotes omitted)

The State's contention that a lessee has no status to entitle him to an award for *1194 loss of a business interest in an expropriation proceeding is without merit.

The State argues that in paragraph 12 of the last formal lease, Mrs. Langlois waived any rights to any part of an award Exxon may receive. That paragraph reads as follows:

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430 So. 2d 1191, 1983 La. App. LEXIS 8188, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-dept-of-transp-dev-v-exxon-corp-lactapp-1983.