STATE, DEPT. OF TRANSP. & DEV. v. Schwegmann Westside Expressway, Inc.

669 So. 2d 1172, 1996 La. LEXIS 594, 1996 WL 92080
CourtSupreme Court of Louisiana
DecidedMarch 1, 1996
Docket95-C-1261
StatusPublished
Cited by15 cases

This text of 669 So. 2d 1172 (STATE, DEPT. OF TRANSP. & DEV. v. Schwegmann Westside Expressway, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana 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. Schwegmann Westside Expressway, Inc., 669 So. 2d 1172, 1996 La. LEXIS 594, 1996 WL 92080 (La. 1996).

Opinion

669 So.2d 1172 (1996)

STATE of Louisiana, DEPARTMENT OF TRANSPORTATION AND DEVELOPMENT
v.
SCHWEGMANN WESTSIDE EXPRESSWAY, INC.

No. 95-C-1261.

Supreme Court of Louisiana.

March 1, 1996.
Rehearing Granted in Part With Order; Otherwise Denied April 26, 1996.

*1173 Salvatore Panzeca, Metairie, Robert L. Ledoux, Baton Rouge, Gregory G. D'Angelo, Metairie, Frederick J. Fuselier, Baton Rouge, Panzeca & D'Angelo, Metairie, for Applicant.

David L. Stone, Stephanie D. Shuler, New Orleans, for Respondent.

JOHNSON, Justice.[1]

We granted certiorari in this expropriation matter to determine whether the jury's severance damage award of $4,850,000.00 was an abuse of discretion. In addition to severance damages, the jury awarded Schwegmann Westside Expressway Inc. (hereafter Schwegmann) $150,000.00 for the loss of land and improvements actually taken. The trial court awarded statutory attorney's fees of 10%, expert witness fees plus exhibit and court costs. (Of the total monetary award rendered below, this court is only deciding the amount of severance damages). On appeal, the fourth circuit decided that the jury's award was not an abuse of discretion and found that the severance damage award was within the range established by experts testifying on behalf of both parties. State of Louisiana, Department of Transportation and Development v. Schwegmann Westside Expressway, Inc., 651 So.2d 1359 (La.App. 4 Cir.1995). Since we believe the jury's award was excessive, we set aside the amount for severance damages and award an amount that is consistent with the evidence found herein.

FACTS

The State, through the Department of Transportation and Development (hereafter DOTD), expropriated a portion of property owned by Schwegmann located on Chef Menteur Highway in New Orleans, pursuant to La.R.S. 48:441 et seq. As its initial estimation of compensation, DOTD deposited $133,000.00 into the registry of court. In its original answer, Schwegmann demanded $200,000.00 as compensation for the property taken, and $500,000.00 in severance damages. Subsequently, an amended answer was filed and Schwegmann increased its reconventional demand to $1,050,000.00, of which $850,000.00 was for severance damages.

The property at issue, a 40 foot wide (approximate 13,272 sq. ft.) strip of land which fronts Chef Menteur Highway was used for parking and is one part of a two part parcel separated by Old Gentilly Road. The first part which contained the section which was taken, lies between Chef Menteur Highway and Old Gentilly Road and serves as the parking facility. The other part lies beyond Old Gentilly Road and contains a two-story, 255,000 square foot building. This part housed a Schwegmann Supermarket, other retail merchants and the Schwegmann corporate headquarters. The property is owned entirely by Schwegmann Westside Expressway, Inc. which leases the entire parcel to *1174 Schwegmann Giant Supermarket.[2] As a result of the taking, the Schwegmann property no longer has direct access to and from Chef Menteur Highway.

At trial, DOTD presented expert testimony which described the expropriated land both before and after the taking as "special purpose" property, specifically a Schwegmann Supermarket. Testifying on behalf of DOTD were Clifford McCormick, Irvington Eppling and Peter J. Talluto, all real estate appraisers. McCormick testified that the property in question had a before taking value of $8,984,000.00 and an after taking value of $8,881,530. Eppling determined that the before taking value was $8,177,328 and the after taking value was $7,883,556. Talluto testified that the before taking value was $8,148,786 and the after taking value was $7,871,036.

Conversely, Schwegmann's appraisers based their estimates on the basis of an assumed "highest and best use" of the property as a discount retail outlet or warehouse, not a Schwegmann Supermarket. Frederick M. Guice and Jean Felts were accepted as experts in the field of real estate appraisals. Guice determined that the before taking value was $4,050,000.00, and the after taking value was $3,200,000.00 while Felts stated that the before taking value was $3,660,000.00 and the after taking value was $2,765,000.00.

At the conclusion of trial, the jury awarded Schwegmann $150,000.00 for the 40 foot strip that was expropriated. Additionally, it awarded $4,850,000.00 in severance damages or approximately five times the amount of damages sought by Schwegmann in pleadings filed in this matter.

In a 2-1 decision with J. Landrieu dissenting, the fourth circuit affirmed the award. It found that the jury's award of $4,850,000.00 in severance damages was reasonable because it was within the "range" established by the experts by taking DOTD's highest before taking value of $8,984,000.00 and Schwegmann's lowest after taking value of $2,765,000.00, yielding a difference of $6,219,000.00. It reasoned that the jury was not bound to accept in full any expert's testimony, but instead could accept parts of the testimony of two or more experts and reject other parts of their testimony.

In his dissenting opinion, J. Landrieu disagreed with the majority's decision to affirm the jury's award of $4,850,000.00 in severance damages. He concluded that the jury could have used either DOTD's before and after value as if the property were a Schwegmann Supermarket, or defendants before and after value as if it were not, however, it was "clearly illogical" for the jury "to mix plaintiff's appraisers' value (used as a giant supermarket) and defendants appraisers' value (not used as a giant supermarket) and conclude that the difference was within the range of damages". Schwegmann Westside Expressway, Inc., supra at 1369.

In its application for certiorari, DOTD cites three assignments of error: (1) That the appellate court erred in affirming the jury's verdict by reasoning that the jury could have relied upon more than one expert's opinion as to the market values of the subject property both before and after the taking, even though the opinions of the respective party's experts were based upon different facts, assumptions and methods; (2) That the appellate court erred in awarding the verdict, a) by reasoning that the highest and best use of the property changed as a result of the taking; b) by holding that the defendant proved such a change in the highest and best use by competent evidence; and (3) That the appellate court erred in affirming the jury's verdict that the defendant suffered severance damages when the defendant failed to introduce any competent evidence to show a loss of the property value to the remaining parcel after the taking.

The evidence in this matter proves that the taking of a portion of the Schwegmann property certainly damaged the remaining property because direct access and some visibility were lost as a result. Schwegmann presented evidence that the taking converted what *1175 had been property fronting an unrestricted 2-way, 6-lane major highway carrying 30,000 vehicles daily, to one with access solely to a 1-way service road carrying 1200 cars per day. Moreover, the service road was only accessible from a point 500 feet west of the property where the Schwegmann store was not visible. Further evidence of damage came from testimony given by the expert appraisers, and even two of DOTD's appraisers stated that the value of the remaining parcel diminished as a result of the taking.[3] Based on these findings, the last assignment of error is without merit. The remaining assignments of error will be discussed below.

DISCUSSION

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669 So. 2d 1172, 1996 La. LEXIS 594, 1996 WL 92080, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-dept-of-transp-dev-v-schwegmann-westside-expressway-inc-la-1996.