State ex rel. Department of Highways v. Goldberg

223 So. 2d 174, 1969 La. App. LEXIS 5139
CourtLouisiana Court of Appeal
DecidedMay 22, 1969
DocketNo. 2684
StatusPublished
Cited by4 cases

This text of 223 So. 2d 174 (State ex rel. Department of Highways v. Goldberg) 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. Goldberg, 223 So. 2d 174, 1969 La. App. LEXIS 5139 (La. Ct. App. 1969).

Opinion

SAVOY, Judge.

The State of Louisiana through the Department of Highways filed this suit expropriating for highway purposes a portion of defendant’s property located at the northeast corner of Fourth and Scott Streets in Alexandria, Louisiana. Plaintiff deposited $15,966.00 as just compensation for the property expropriated. Defendant filed responsive pleadings alleging the amount deposited was inadequate and seeking an increase in the award for the value of the land taken, as well as severance damages. After trial on the merits, the district court awarded defendant $34,-243.47 plus legal interest and certain costs, subject to a credit for the amount previously paid. From this judgment plaintiff appealed. Defendant did not appeal or answer the appeal.

The record shows that defendant’s property was taken for the purpose of relocating and widening La. Highway No. 1 through Alexandria. Before the taking, defendant’s property comprised a lot on the northeast corner of Fourth and Scott Streets fronting 85.66 feet along Fourth Street and 106.66 feet along Scott Street. These are paved streets with concrete curbs and sidewalks. The lot is in an older section of Alexandria about one block from the Baptist Hospital, which until recent years was residential in nature. In recent years there have been more and more acquisitions of property in this area for commercial uses. Improvements consisted of two frame residences built about 50 years ago. The larger unit on the corner had been converted into three apartments, and the adjoining unit contained two apartments. These structures were in poor condition, and a frame garage to the rear of the lot had collapsed. Prior to the expropriation these units had been rented for a gross rental of $225.00 a month.

The original lot contained 9,135.86 square feet. The highway took a strip through the lot comprising 3,869.63 square feet, leaving a remaining lot on the north side of irregular shape containing 5,193.12 feet, and a small triangular area on the south side containing 73.11 square feet.

On filing the proceedings plaintiff deposited with the court $15,966.00, being $14,511.00 for the land; $1,300.00 salvage value for the improvements; and, $155.00 for damages.

Prior to the trial, in answer to certain requests for admissions, plaintiff admitted the property taken had “a value of $3.75 per square foot for the land alone”. During the trial, the district court ruled that plaintiff was bound by this admission and could not introduce evidence to the contrary. However, certain testimony was allowed, as a proffer of proof, to show that the evaluation of $3.75 per square foot included the value of the improvements.

Each party called two experts to testify as to the value of the land and improvements. Defendant called Messrs. Habeeb Monsur, Jr. and William C. Webb. Mr. Monsur appraised the land and improvements separately, valuing the land at $3.00* per square foot, or $27,408.00; and the buildings at $6,250.00 and $2,576.00. These total $36,234.00. He considered the larger remaining tract was damaged 60%, and the smaller tract 100%. Mr. Webb valued the land at $3.50 per square foot before the taking, which figures $31,976.00. He valued the houses at $5,580.00 and $3,091.20. These figures total $40,647.20. It was his opinion that the remaining larger tract was damaged by 50%, and the smaller tract by 100%.

Plaintiff’s experts were Messrs. M. C. Gehr and Darrel V. Willet. Mr. Gehr [176]*176valued the land at $3.75 per square foot as commercial property, which amounted to $34,260.00. It was his opinion that the improvements were only worth their salvage value of $1,200.00 since the structures would need to be torn down for the land to be used as commercial property. These figues total $35,460.00. He did not believe the larger remaining tract had been damaged because of the taking, and considered the smaller tract was damaged 65%. Plaintiff’s other expert valued the whole property, with improvements, before the taking at only $19,500.00. His evaluation was out of line with the other appraisers, and with the admission as to the value of the land, and was disregarded by the district court.

The district court awarded $14,508.75 for the value of the land taken, on the basis of 3,869.63 square feet at $3.75 per square foot. For the improvements the court allowed $5,915.00 for the larger corner house and $2,835.00 for the smaller house, totaling $8,850.00 for the improvements. For severance damages, the smaller tract of 73.11 square feet was considered damaged 100%, and $274.16 was allowed; the larger remaining tract was considered damaged 55%, and $10,710.56 was allowed. These awards total $34,243.47. The district court also awarded defendant $1,300.00 for the fees of his experts, and $150.00 for other special costs incurred.

The only issue raised on appeal relates to the award for the improvements on the property. Plaintiff maintains that the district court erred in finding that the two 50-year-old structures increased the fair market value of the subject commercial property by $8,750.00'. It is maintained that the net effect of the testimony of all appraisers was that the land was worth $3.75 per square foot with or without the buildings, and that a wise investor would have to remove the buildings in order to get a reasonable return on his investment. It is further contended that the district court erred in finding that the highest and best use of the property was for commercial purposes which includes multi-family dwellings (rental units) or apartments, since commercal purposes necessarily excludes use for residential purposes.

The defendant maintains that plaintiff’s position requires use of evidence not properly before the court which tended to show a value for the property less than the admitted and stipulated amount of $3.75 per square foot. Counsel for defendant contends that the testimony of plaintiff’s experts was properly disregarded because of their inadequate investigation as to the improvements located on the comparables used in arriving at their evaluations. It is further argued that the judgment of the district court should not be disturbed as it was based on well-grounded testimony of defendant’s experts.

In view of the admisson that the land, without improvements was worth $3.75 per square foot, this Court agrees with the district court’s evaluation of the land alone on that basis. On the other hand, considering the explanation as to how the land was so valued, we believe that all evidence presented should be allowed. As explained by Mr. Gehr, the land was valued at $3.75 per square foot because it was commercial property. As such, he believed the improvements were worth only a salvage value of $1,200.00 as situated on the subject property. There is no inconsistency in this position. Nor does the admission as to the value of the land restrict the court in any way in interpreting the testimony of the experts as to the value of the improvements as situated on or as combined with the particular land in question.

However, we agree with plaintiff that the record does not substantiate a holding that the two buildings were worth their full replacement value as located on the subject property. In view of the value of the land as commercial property, a purchaser who would pay $3.75 per square foot for the land would certainly have in mind [177]*177the eventual destruction of the buildings. The record shows it would not be economically feasible to continue indefinitely to rent the structures at only $225.00 per month gross income.

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Related

State ex rel. Department of Highways v. McInnis
360 So. 2d 887 (Louisiana Court of Appeal, 1978)
STATE, DEPT. OF HIGHWAYS v. Whitman
313 So. 2d 918 (Louisiana Court of Appeal, 1975)
State v. Goldberg
226 So. 2d 769 (Supreme Court of Louisiana, 1969)

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Bluebook (online)
223 So. 2d 174, 1969 La. App. LEXIS 5139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-department-of-highways-v-goldberg-lactapp-1969.