State Ex Rel. Commissioner of Department of Transportation v. Williams

828 S.W.2d 397, 1991 Tenn. App. LEXIS 566
CourtCourt of Appeals of Tennessee
DecidedJuly 17, 1991
StatusPublished
Cited by19 cases

This text of 828 S.W.2d 397 (State Ex Rel. Commissioner of Department of Transportation v. Williams) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Commissioner of Department of Transportation v. Williams, 828 S.W.2d 397, 1991 Tenn. App. LEXIS 566 (Tenn. Ct. App. 1991).

Opinion

OPINION

FRANKS, Judge.

In this action the state, through its power of eminent domain, took .233 acres of plaintiffs’ .7 acre unimproved tract of land in Sumner County to construct a road and deposited $78,600.00 with the court. In the resulting trial, the jury returned a verdict of $33,333.33 for the land taken and $63,-333.34 for incidental damages to the remainder.

The state has appealed and raised numerous issues. The state insists any one of the following constitutes reversible error:

A. The admission of proof on potential commercial use in the face of zoning and deed restrictions.
B. The admission of expert opinion testimony of Carman and Cassetty charging it was based on speculation and hearsay as to the change in the area from residential to commercial.
C. Admission of rebuttal proof on whether the neighborhood residents would enforce the deed restrictions.
D. Admission of Judge Ernest Pelleg-rin’s testimony as a rebuttal witness as he had been present in the courtroom during the trial of the case.
E. Admission of the expert testimony of Balthrop given his drastically altered appraisal and the state’s late decision ■ not to call him as a witness.
F. The comments by the trial judge in the presence of the jury in referring to the zoning restrictions as “ancient” or “archaic”.

The property is zoned residential 1 and the deed contains a restrictive covenant prohibiting commercial use but the eviden-tiary record is replete with testimony that the character of the area has changed dramatically since the restrictive covenants were put in place and extensive commercial developments are in the immediate vicinity of the tract.

At trial, the owners offered three different opinions as to the value of their land. Maridare Williams, a joint owner, testified to a value of $198,000.00 on the date of the taking and a real estate broker and appraiser, Gene Carman, testified that since the transition to commercial development had caused land prices in the area to “soar”, he opined it was proper to take into account commercial sales in the area to establish the value of the property. He stated at the time of the taking the entire tract had a value of $173,600.00 and the part taking should be compensated at *400 $168,600.00 and the remainder, to which the owners effectively would have no access, at $5,000.00. Realty appraiser and auctioneer, Jimmy Parks Cassetty, also relied upon commercial sales in the area. He valued the .7/10ths acre tract at $200,-000.00 before the taking and opined that the remainder, after the taking, would sustain incidental damages of $127,820.00 and the property taken had a value of $66,-573.00, for total damages in the amount of $194,393.00. Over the state’s objection, Cassetty testified that given the commercial development in the area and the results of his informal polling of neighbors as to the likelihood of enforcing the restrictive covenants, that a willing, knowledgeable, informed purchaser would purchase the property for potential commercial development.

The state’s proof focused on the current zoning and the import of the deed restrictions. Its appraiser, Lewis Garber, initially valued the land based on its potential for commercial development at $75,000.00. Later, upon becoming aware of the deed restrictions, he altered his appraisal valuing the part taken at $7,000.00 and incidental damages to the remainder of $14,000.00, for a total value of $21,000.00.

As a counter to the landowner’s theory, the state offered the Gallatin City Planner, Ted Clark, who testified he would not, at the time of taking, have recommended rezoning the tract from residential to commercial.

Preston Balthrop, a state appraiser, listed as a state’s witness, appraised the disputed tract three times. In the first two appraisals he considered the tract as potential commercial property and found that the property taken was worth $27,060.00 and that incidental damages to the remainder were $51,524.00 for a total of $78,584.00. On learning of the deed restriction shortly before trial, this witness also altered his appraisal to $4,481.00 for the land taken and $8,532.00 for incidental damages to the remainder, for a total of $13,013.00.

The state elected not to call Balthrop as a witness and when the landowners sought to read Balthrop’s discovery deposition the trial judge offered the state two options: it could call Balthrop as a witness, who would be permitted to explain his change in values, or the owners could call Balthrop as a rebuttal witness. The state elected the first option and the owners were allowed to examine Balthrop on his revised opinion.

In rebuttal the owners offered proof from area residents who said they would not oppose lifting the restrictive covenants to allow commercial use of the tract. On cross-examination, several of the witnesses admitted their property with restrictions had also been taken by the state.

Taking into account the potential for commercial uses by the experts in arriving at opinion of value was not error. Shelby Co. v. Mid-South Title Co., Inc., 615 S.W.2d 677 (Tenn.App.1980). The court’s objective in an eminent domain proceeding is to award just compensation for the taking to the landowner. Love v. Smith, 566 S.W.2d 876 (Tenn.1978). The market value of the land taken is the price which would be paid by a willing buyer from a willing seller at the time the land was taken considering all of its potential uses. Shelby County. In determining fair market value, the trier of fact should consider all uses to which the property might be reasonably put at the time of the taking. See id. The highest and best use may be considered in fixing values so long as it is not the sole measure, see Love, 566 S.W.2d at 878; Layne v. Speight, 529 S.W.2d 209 (Tenn.1975).

Present zoning is but one of many factors to be considered in valuing the land taken. Shelby County, 615 S.W.2d at 680. Zoning is not dispositive because zoning changes may be made reflecting the changing needs and circumstances of the community. See State ex rel. Com’r D.O.T., v. Veglio, 786 S.W.2d 944 (Tenn.App.1989). The same rule obtains where the land owner’s deed contains restrictions. See 4 A.L.R.2d 1111, Restrictions — Change in Neighborhood and A.L.R.2d Later Case Service.

Where the state’s experts and the landowner’s experts disagree as to whether the land taken has probable commercial use *401 based on potential rezoning, the likelihood of commercial zoning and its impact on value are questions for the jury. Shelby Co., 615 S.W.2d at 680.

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Bluebook (online)
828 S.W.2d 397, 1991 Tenn. App. LEXIS 566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-commissioner-of-department-of-transportation-v-williams-tennctapp-1991.