State ex rel. Department of Highways v. American Credit Exchange, Inc.

161 So. 2d 397, 1964 La. App. LEXIS 1391
CourtLouisiana Court of Appeal
DecidedMarch 2, 1964
DocketNo. 6082
StatusPublished
Cited by1 cases

This text of 161 So. 2d 397 (State ex rel. Department of Highways v. American Credit Exchange, 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 ex rel. Department of Highways v. American Credit Exchange, Inc., 161 So. 2d 397, 1964 La. App. LEXIS 1391 (La. Ct. App. 1964).

Opinion

ELLIS, Judge.

This expropriation suit was instituted under the provisions of LSA-R.S. 48:441 et seq. by the State of Louisiana through the Department of Highways against American Credit Exchange Inc. in order to obtain certain property for the construction of the Baton Rouge Expressway. The plaintiff will be hereinafter referred to simply as the “Highway Department” for the sake of brevity.

The Highway Department’s estimate of the award due the landowner herein was $15,898.00 for the land taken and $7,127.00 [398]*398as severance damages. Accordingly, a deposit of $23,025.00 was made in connection with the filing of this suit.

After a trial on the merits judgment was rendered by the District Court awarding a total judgment of $28,127.00 for the property actually taken and for severance damages to the remainder. Counsel for the I-Iighway Department perfected an appeal from this judgment.

The property affected consisted of five contiguous lots in Zee Zee Gardens, a subdivision which is designated as an A-l residential zone. The lots formed a rectangular area bounded on the east by Ebony Avenue and on the south by Viero Street, both of which thoroughfares were blacktopped. The total area in these lots before the taking was 47,458 square feet. The strip taken consisted of 27,215 square feet of land and it crossed defendant’s lots diagonally in such a manner that two lots were virtually taken and the other three lots were partially taken. No direct access is available to the expressway from any of the lots in question.

The area left in part of lot 59-D, the only land left to defendant to the north of the expropriated tract, is 6,867.7 square feet. This partial lot presently narrows from a frontage of 58.00 feet on Ebony Avenue to 20.82 feet in the rear and is bounded on the south for 178.16 feet by the expressway.

Lot 49-H and 49-G considered as a unit for the sake of clarity now have a frontage of 56.37 feet on Ebony Avenue to the east and a boundary of 97.15 feet on the west. To the north, this unit is bounded by the expressway for a distance of 178.95 feet and to the south, the original frontage on Fiero Street of 174.24 feet is undisturbed. The area of this unit is 13,-375 square feet.

Counsel for appellant made two main specifications of error in the trial court’s judgment. It is contended that the trial judge erred in “rejecting the State’s appraisal upon which the deposit was made, and in which he found no error, while at the same time engaging in a variety of ‘corrections’ in the defendant’s appraisals and then adopting the ‘amended’ results * * * ” It is urged that the trial court erred in “disregarding the statutory requirements that the defendant carry the burden of proving its claim.”

In this connection, it is strenuously urged by appellant’s counsel that the trial court erred in giving substantial approval to< the conclusions reached by the landowner’s appraisal, after having found in it very serious errors. On the other hand, Mr. Cobb’s appraisal for the Highway Department was dismissed by the trial court for an “obvious error.”

It is suggested that since the trial court found no error in the conclusion of Mr. Pugh, the other appraiser for the Highway Department, then his appraisal should have been approved.

Another point in the trial court’s opinion which is attached is the Court’s finding: “I am of the opinion that damages to the remaining placed at $6,500.00 could be justified, but if I mistake not, the State’s-appraisers in the taking here calculated the damages at $7,000.00.”

Since there were no improvements on the property the “costs approach” was not used. No income as such was received from the property taken. Therefore, the comparable sales approach was used by all four appraisers herein. According to Mr. J. B. Pugh, one of the highway appraisers, this approach is “basically an approach in which you’ve utilized known sales to compare them to subject property to get an indication of value.”

All appraisers testifying in this case used the same initial approach, i. e. the market date or comparable sales approach. As comparable sales, both of the landowner’s appraisers actually used five lot sales in the subdivision immediately adjacent to the subject property. The landowner’s appraisers also converted the value [399]*399of the subject property into square foot •values due to the fact the lot's left to the landowners contained a great portion of their original front footage, but lost great percentage of their area to the rear.

As pointed out by counsel for the landowner, although four sales were examined by Pugh, only two sales were actually used in his calculations:

“In my opinion the sale from Sachse to Hays is the latest sale, being January 3, 1962. In my opinion its the most indicative of the value of subject property. It indicates $86. The next one would be the Bates sale which indicates on one basis $109 and on another $100. The average is $89. I think that a fair indication would approximate that paid by Hays from Sachse, and if rounded it indicated a value of subject property at $90 a front foot. That’s for lots S9-D and E.”

It is difficult to see how Mr. Pugh arrived at this $90 figure. The above quote is typical of Mr. Pugh’s testimony as a whole. His testimony is most vague and difficult to follow concerning Pugh’s exact method of arriving at adjustments from the comparable sales he actually used to determine the value of subject property. The adjustments for location, for time and for lot types are all quite important. None of these adjustments was explained by Mr. Pugh. He merely gave a figure, without adequate explanation for the front value of subject lots S9-D and E.

Pugh related his comparables to only these two inside lots. Then he related the value of these inside lots in the subject property to the other lots in the subject property. These inside lots were, merely because of their greater depth, considered by Pugh to be substantially more valuable than lots with greater frontage and one ■corner lot.

For these reasons, it is deemed that the testimony of Mr. Pugh is not clear and the methods he used in his appraisals were not appropriate when applied to subject property. The testimony of Mr. Leroy Cobb, appellant’s other appraiser, is not relied -upon, on appeal, by the appellant and is therefore disregarded herein. It is found, after a complete review of the record presented herein that the trial court was not in error in rejecting the appraisals of both of the appraisers for the Department of Highways.

In regard to appellant’s attacks on the testimony of Mr. Kermit A. Williams, which testimony is relied upon heavily by the trial court in arriving at the award granted herein, the following observation is made. It is true that certain errors were made in Mr. Williams’ testimony, as pointed out by counsel for appellant. However, these errors are not deemed to be of such a basic nature as to discredit or weaken the final results obtained. Especially is this true after the indicated adjustments were made by the trial court. The errors made in the testimony relied upon were apparently merely mathematical miscalculations. Counsel for appellant has not pointed out any errors in the adjustments made, but complains only of the fact the adjustments were made.

Similar adjustments were made by the District Judge in the valuation set by Mr. W. D. McCants, Jr. McCants’ method of appraisal was similar to the method employed by Williams.

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Bluebook (online)
161 So. 2d 397, 1964 La. App. LEXIS 1391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-department-of-highways-v-american-credit-exchange-inc-lactapp-1964.