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

651 So. 2d 1359, 94 La.App. 4 Cir. 0472, 1995 La. App. LEXIS 97, 1995 WL 37719
CourtLouisiana Court of Appeal
DecidedJanuary 31, 1995
Docket94-CA-0472
StatusPublished
Cited by2 cases

This text of 651 So. 2d 1359 (STATE, DEPT. OF TRANSP. & DEV. v. Schwegmann Westside Expressway, Inc.) 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. Schwegmann Westside Expressway, Inc., 651 So. 2d 1359, 94 La.App. 4 Cir. 0472, 1995 La. App. LEXIS 97, 1995 WL 37719 (La. Ct. App. 1995).

Opinion

651 So.2d 1359 (1995)

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

No. 94-CA-0472.

Court of Appeal of Louisiana, Fourth Circuit.

January 31, 1995.
Rehearing Denied April 19, 1995.

*1361 Jesse S. Guillot, New Orleans, Salvatore Panzeca, Metairie, and Robert L. Ledoux, Frederick J. Fuselier, Baton Rouge, for plaintiff.

David Stone, Randall A. Smith, Stephanie D. Shuler, Stone, Pigman, Walther, Wittmann & Hutchinson, New Orleans, for defendant.

Before KLEES, ARMSTRONG and LANDRIEU, JJ.

ARMSTRONG, Judge.

This is an appeal by the State of Louisiana, Department of Transportation and Development ("DOTD") from a money judgment following a jury trial in an expropriation case. The landowner whose property was expropriated is Schwegmann Westside Expressway, Inc. ("Schwegmann"). DOTD raises four issues on appeal: (1) whether the jury found excessive severance damages; (2) whether the severance damages awarded exceeded those claimed in Schwegmann's answer, (3) whether the trial court erred by excluding from evidence the written reports of appraisers; and (4) whether the trial court awarded excessive expert fees and other costs. We find no reversible error and affirm.

Schwegmann's property consists of two parcels in the Eastern New Orleans area. The northern parcel fronted directly on Chef Menteur Highway and extends south to Old Gentilly Road. The southern parcel extends from Old Gentilly Road south to Interstate 10. In other words, Schwegmann's property would be one contiguous parcel, extending northsouth from Chef Menteur Highway to Interstate 10, but for Old Gentilly Road running across it in an east-west direction. All of the property is leased to Schwegmann Giant Supermarkets. The northern parcel is used for parking. The southern parcel has a 255,000 square foot building which is used as a supermarket and corporate headquarters. DOTD expropriated the portion of the northern parcel which fronts directly on Chef Menteur Highway. Thus, Schwegmann's property no longer fronts directly onto Chef Menteur Highway. A rough sketch of the property, taken from DOTD's brief, is attached hereto as Appendix A.

The expropriation was done in connection with the construction of the elevated Danziger Bridge on Chef Menteur Highway. In addition to the taking of all the Schwegmann property's highway frontage, an elevated expressway was built directly in front (north) of the property where it used to front on Chef Menteur Highway. At trial, Schwegmann presented extensive expert testimony and other evidence that the property not taken suffered extensive severance damage as a result of the taking of all the highway frontage and the bridge project.

This severance damage occurred because of a loss of visibility, loss of access and loss of ease of ingress and egress. Before the expropriation, Schwegmann's property fronted directly onto a major six-lane highway (Chef Menteur) carrying some 30,000 cars a day, with easy direct visibility and access to the property in each direction. After the expropriation, Schwegmann's property fronted on a one-way service road carrying about 1,200 cars per day. Also, the service road must be entered from a lane that begins 500 feet west of the property, at a point from which the Schwegmann supermarket is not visible. *1362 There was evidence that the Schwegmann supermarket lost more than half its business soon after the bridge was constructed. (This evidence was admitted with the cautionary instruction that Schwegmann was not seeking and not entitled to compensation for loss of sales or profits, but that the supermarket's decline in business could be considered as evidence of loss of value of the property.)

The jury rendered a verdict of $150,000 damages for the property actually taken and $4,850,000 severance damages to the remaining property. The first item of damages, the $150,000 damages for the property actually taken, is not at issue on appeal. However, DOTD argues that the $4,850,000 severance damages is excessive.

The measure of severance damages is determined by La.R.S. 48:453(B) which states:

The measure of damages, if any, to the defendant's remaining property is determined on a basis of immediately before and immediately after the taking, taking into consideration the effects of the completion of the project in the manner proposed as planned.

Thus, the jury's task was to determine the amount by which the value of the non-expropriated property was reduced by the taking of the entire highway frontage and the construction of the elevated expressway.

In an expropriation case, the jury's determination of the amount of damages is a factual one and may not be overturned on appeal absent manifest error. West Jefferson Levee District v. Coast Quality Construction, 640 So.2d 1258, 1277-78 (La.1994). See also Stobart v. State, Through Dept. of Transportation and Development, 617 So.2d 880, 882-83 (La.1993) (discussing manifest error standard of review).

DOTD's argument is based on the fact that none of the five appraisers who testified, three for DOTD and two for Schwegmann, estimated the severance damages to be nearly as high as the jury's determination of severance damages. Thus, DOTD argues, the jury's determination must be wrong. However, the appraisers did not limit their testimony to estimations of severance damages but, instead, testified as to the value of the property before and after the expropriation. They also testified as to how they arrived at those before and after expropriation values. Further, four non-appraiser expert witnesses, who were qualified to testify as to the impact of the expropriation on the value of the property, also testified for Schwegmann. Lastly, there was direct factual (non-opinion) evidence of the adverse impact of the expropriation on the business of the supermarket located on the property which, in turn, evidences an adverse impact on the value of the property.

Five appraisers testified. For DOTD, McCormick testified to a before value of $8,984,000 and an after value of $8,881,530; Eppling testified to a before value of $8,177,328 and an after value of $7,883,556; Talluto testified to a before value of $8,148,786 and an after value of $7,871,036. For Schwegmann, Felts testified to a before value of $3,660,000 and an after value of $2,765,000 and Guice testified to a before value of $4,050,000 and an after value of $3,200,000.

Two key facts emerge from the five appraisers' testimony as to how they arrived at the before and after values. First, the three DOTD appraisers appraised the property as a "special purpose" property and, specifically, as a Schwegmann's supermarket. The two Schwegmann appraisers did not appraise the property as a "special purpose" property. Thus, the DOTD appraisers found the property to have much higher value than did the Schwegmann appraisers. The two Schwegmann appraisers testified that, if they had appraised the property as a "special purpose" property, then the before expropriation values they found would have been much higher. In fact, Guice testified that an appraisal done on a "special purpose" property basis would have resulted in a before expropriation value in the range of $10,000,000 to $12,000,000. Thus, the jury reasonably could have determined the before expropriation value of the property to be as high as $8,984,000, which was McCormick's before expropriation value.

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Related

STATE DEPT. OF TRANSP. & DEV. v. Scramuzza
673 So. 2d 1249 (Louisiana Court of Appeal, 1996)
STATE, DEPT. OF TRANSP. & DEV. v. Schwegmann Westside Expressway, Inc.
669 So. 2d 1172 (Supreme Court of Louisiana, 1996)

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651 So. 2d 1359, 94 La.App. 4 Cir. 0472, 1995 La. App. LEXIS 97, 1995 WL 37719, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-dept-of-transp-dev-v-schwegmann-westside-expressway-inc-lactapp-1995.