State ex rel. Department of Highways v. Calvert

209 So. 2d 759, 1968 La. App. LEXIS 5404
CourtLouisiana Court of Appeal
DecidedApril 2, 1968
DocketNo. 10978
StatusPublished
Cited by6 cases

This text of 209 So. 2d 759 (State ex rel. Department of Highways v. Calvert) 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. Calvert, 209 So. 2d 759, 1968 La. App. LEXIS 5404 (La. Ct. App. 1968).

Opinion

PRICE, Judge.

On August 15, 1961, the State of Louisiana, through the Department of Highways, filed this action to expropriate 32.825 acres of land from the defendants in connection with the construction of Interstate Highway No. 20 through Ouachita Parish, Louisiana. This parcel of land was part of a total tract of 52.525 acres owned by defendants in the corporate limits of West Monroe, Louisiana. Prior to the taking by the State the entire tract was bounded on the south by Natchitoches Street, on the west and north by Stella Street, and on the east by North Main Street. Eight acres of the tract were used for a drive-in theater which was leased [760]*760to a Mr. H. G. Prophit, Jr., also made a party defendant in this suit. The expropriation took 4.6 acres of the area being used by the theater. The remainder of the 52.525 acre tract was undeveloped land.

The Department of Highways deposited the sum of $174,367.00 in the registry of the court as just compensation, itemized as follows:

Value of land expropriated $116,027.00
Value of improvements being used as drive-in theater which were expropriated 58,000.00
Value of fence not included in drive-in theater 340.00

In answer to the suit the defendants contested the amount deposited as adequate compensation and claimed severance damages to the remainder of the property. After trial on the merits of the case in November, 1967, the district court rendered judgment in favor of defendants awarding them $577,208.00 as the market value of the 32.825 acres taken, and severance damages of $129,400.00 to the remaining property, subject to a credit of $174,367.00 previously deposited in the registry of the Court. From this judgment the Department of Highways has appealed.

Appellant has raised four serious issues by its appeal:

(1). That the evidence does not establish that there was any immediate intent to develop the property for the use as a shopping center nor does it reflect that there was a reasonable probability that it could be developed as such in the foreseeable future.
(2). The propriety of accepting opinion testimony on the highest and best use of land from witnesses not possessing the training and qualifications of a licensed real estate appraiser.
(3). The reliance by the district court on the opinion of witnesses as to the fair market value of land that resulted from a market data analysis using as comparables sales of tracts of a much smaller size than that being appraised.
(4). The acceptance by the district court of the cost reproduction method of arriving at the value of improvements without allowing any depreciation.

The three real estate appraisers who testified for plaintiff were of the opinion that the best and highest use of the property prior to the expropriation was for a combination of commercial, residential and industrial use. They considered the frontage along Natchitoches Street for a depth of between 150 to 400 feet as being most suitable for commercial purposes. In their opinion a strip of approximately eight acres on Stella Street would have been most suitable for residential use, and the area in between the commercial and residential was best suited for light industrial purposes. The maximum estimate of these witnesses for the value of the commercial property was $10,000.00 per acre. The value of the industrial property was estimated between $2,000.00 and $2,500.00. The estimates of residential property value along Stella Street were given on a front foot basis of $22.50 to $25.00 per front foot. None of the plaintiff’s witnesses were of the opinion that the remainder of 19.7 acres left after the expropriation suffered any damages by reason of the taking.

All of these witnesses agreed that the area being used for a drive-in theater was being put to the highest and best use. The improvements pertaining to the theater were appraised by plaintiff’s witness, Mr. Chester Driggers, on a replacement cost basis at $94,991.00 and depreciated by 33.3% for a net depreciated value of $63,359.00.

Defendants called a total of eleven witnesses. Robert B. Sims of Ruston, Lawrence L. May of Shreveport, and Donald Thames of Monroe, all possessed the qualifications of a real estate appraiser. Wil[761]*761liam R. Boles, Edward Murray Hudson, Saul A. Mintz and Jack L. Smith were identified as persons with considerable experience in development of commercial properties in the Cities of Monroe and West Monroe. It was also shown that several of these individuals held offices with various financial institutions and made real estate appraisals on behalf of these institutions as well as for their personal business ventures.

All of defendants’ witnesses were of the opinion that the highest and best use of the entire 52.525 acre tract, exclusive of the eight acres occupied by the drive-in theater, was for the development of a regional shopping center. Among the factors on which their opinions were based was the size of the tract under a single ownership, its location in regard to residential subdivisions and traffic thoroughfares, suitable terrain without detrimental characteristics for development, and its freedom from zoning restrictions. Several of these witnesses testified that this was the only tract of this size to their knowledge under a common ownership in the corporate limits of either Monroe or West Monroe. Two of these witnesses stated that they had considered this property for development of a shopping center but were advised by the owners that the property was not for sale.

The only witnesses of defendants who testified as to the fair market value of the property were the three real estate appraisers, Mr. May, Mr. Sims and Mr. Thames. The other witnesses only testified as to the highest and best use of the property.

These witnesses used the market data approach and generally used the same com-parables. These were sales of smaller tracts comprising between five and nine acres which had been purchased in the development of neighborhood shopping centers in West Monroe, and other cities. Based on these comparables, the opinions as to the per acre market value of the 52.525 acre tract ranged from $12,500.00 to $15,000.00.

Defendants’ appraisers also concluded that the remaining 19.7 acres were damaged as a result of being severed from the larger tract. They opined that it was no longer of sufficient size or accessibility for use as a shopping center and that its best and highest use after its severance was for light industrial purposes. Their estimate of value for this purpose was $8,000.00 per acre.

The courts of this State have held on many occasions that a person does not have to be a professional real estate appraiser to be qualified to give expert testimony on the value or use of land. State, Through the Department of Highways v. Lumpkin, 147 So.2d 80 (La.App.2nd Cir., 1962); State, Through the Department of Highways v. Madden, 139 So.2d 21 (La.App.2nd Cir., 1962). In the case of State, through the Department of Highways v. Huson, 166 So.2d 3 (La.App.2nd Cir., 1964), this Court held:

“The courts of this state have repeatedly held the trial court is vested with much discretion in determining whether a witness is qualified to testify as an expert.”

We feel that the trial judge was correct in accepting the testimony of Mr. Hudson, Mr. Boles, Mr.

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209 So. 2d 759, 1968 La. App. LEXIS 5404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-department-of-highways-v-calvert-lactapp-1968.