State ex rel. Department of Highways v. Hayes

150 So. 2d 667, 1963 La. App. LEXIS 1402
CourtLouisiana Court of Appeal
DecidedMarch 5, 1963
DocketNo. 783
StatusPublished
Cited by3 cases

This text of 150 So. 2d 667 (State ex rel. Department of Highways v. Hayes) 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. Hayes, 150 So. 2d 667, 1963 La. App. LEXIS 1402 (La. Ct. App. 1963).

Opinion

CULPEPPER, Judge.

This is an expropriation by a declaration of taking, filed under the provisions of L.S.A.-R.S. 48:441-460. The State took a portion of defendant’s land, measuring 214.04 feet by 27.15 feet, for a new highway. Plaintiff deposited $1,200 as compensation for the strip of land and railroad spur track taken, but no amount whatever was paid for severance damages. Defendant answered, applying for a trial to determine the market value of the property expropriated, plus severance damages, in the total sum of $35,498.30. After trial on the [668]*668merits the district judge held that the market value of the property expropriated was $1,200 and that any damages to the remaining land were more than off-set by special benefits resulting from the new highway.

The issues are the market value of the property expropriated, at the time of the taking on December 30, 1960, and the amount of any severance damages to the remainder of defendant’s property. If there were severance damages, a third issue is whether the amount thereof was offset by special benefits accruing to the remaining property as a result of the construction of the new highway.

The facts show that Hayes and his brothers had operated a ready-mix concrete business in New Iberia for several years prior to 1953 when they bought the subject property, as a part of a larger tract, for the purpose of expansion and construction of a new plant. The property was well suited for this purpose, it being located within the city and near a railroad track from which a spur could be constructed to bring in bulk cement. A graveled street ran from the property out about two blocks to Highway 90, which is the main street of New Iberia.

By 1957 the Hayes brothers had built the spur track and the concrete foundations for their plant. These foundations consisted of a concrete slab measuring 22 feet by 18 feet and four concrete pillars, each four feet in height, together with a concrete trough about 60 feet long which was intended to be used for a conveyor system for bulk cement from the spur track to the mixing apparatus. However, no further portion of the plant was constructed. In 1957 the Hayes’ sold their entire concrete mixing business to a competitor, Perry J. Burke. As a part of the consideration for this sale, the Hayes’ agreed not to operate a concrete mixing business in New Iberia for a period of ten years. The defendant, Warren J. Hayes, then actually went to work for Burke.

Later, the Hayes’ partitioned their property and the defendant, Warren J. Hayes, acquired the subject tract of land, a portion of which was expropriated. It is approximately rectangular in shape with a front of about 140 feet on Moore Street (the graveled outlet) by a depth of 214 feet along a dedicated, but not even graded, street next to the railroad. The 214 feet of spur track and the concrete foundations above described were located on this tract.

After 1957 the property was not used and had grown up in weeds when the State expropriated, in 1960, the strip measuring 214.03 feet by 27.15 feet off the side of the property next to the railroad. The State also took the spur track and part of the-concrete trough.

Mr. Hayes introduced in evidence the testimony of a scrap metal business owner, and' two real estate brokers, who testified that before the expropriation the property was best suited for a concrete mixing business, because -of the spur track and the existing concrete foundations for that type of equipment. They were of the opinion it could also be used for other businesses needing spur tracks, but in this event the concrete-foundations would have to be removed.. Their estimates of the value of the land varied from $23,000 to $30,000. Defendant himself valued his property at approximately $26,000, but it is apparent he gave this figure as the value to himself for use-as a concrete mixing plant, and not market value.

The only sale of comparable property used by defendant’s witnesses was a 1960 sale from Degravelle to Coburn of a tract of land located only about five blocks away, but fronting 90 feet by 200 feet on Highway 90 which is the main traffic artery of the city. The price was $20,000, or about $1.10 a square foot. Based principally on this sale, defendant and his experts contend his property is worth approximately $1.00 a square foot or a total of about $26,000 for the entire tract, and $5,247 for the 5,303 square feet taken.

On the other hand, the State’s expert appraisers, Mr. Fleming and Mr- Angers, [669]*669both of whom were local real estate brokers of many years experience with all types of appraisals and properties, listed and described in detail several recent sales of comparable property in the vicinity to support their estimate that the bare land was worth no more than 20‡ a square foot for industrial or warehouse use.

We agree with the district judge’s finding that “the testimony of defendant’s expert witnesses is not proper as a basis for fixing values, * * * their comparables were not good. * * * ”

The defendant’s experts were not as well qualified by training or experience with this type of property as the State’s witnesses. The one comparable they used was actually not comparable. They apparently ascribed some special value to the property by reason of the foundations for a concrete mixing plant, but the evidence shows there were already two concrete mixing plants in New Iberia and little likelihood that there would be a demand for a site for another.

Applicable here is the succinct statement of the law set forth in the recent case of State through Department of Highways v. Levy, 242 La. 259, 136 So.2d 35 (La.Sup.Ct.1961) as follows:

‘In expropriation suits the measure of compensation to be awarded for the property taken is the market value of that property — that is, the price which would be agreed upon at a voluntary sale between an owner willing to sell and a purchaser willing to buy. Most important in determining this market value are sales of similar or comparable properties in the neighborhood. If evidence of similar sales is not available, the value of the land expropriated must be determined by other means, generally the testimony of experts. The rule here is that the testimony of each expert should be given effect if that testimony appears to be well reasoned and sincere. However, if the expert testimony impresses the court unfavorably, it will be disregarded. Housing Authority of New Orleans v. Boudwine, 224 La. 988, 71 So.2d 541; Domino v. Domino, 233 La. 1014, 99 So.2d 328; State v. Grand Consistory, 237 La. 1005, 112 So.2d 692.’ State of Louisiana Through Department of Highways v. Hub Realty Company, Inc., 239 La. 154, 163, 118 So.2d 364, 368. See, State of Louisiana Through Department of Highways v. Havard, 239 La. 133, 118 So.2d 131; Parish of Iberia v. Cook, 238 La. 697, 116 So.2d 491; Rapides Parish School Board v. Nassif, 232 La. 218, 94 So.2d 40.”

We conclude that the market value of the bare land at the time of the expropriation was 20‡ a square foot or the sum of $1,060 for the 5,303 square feet taken. The-State’s two expert appraisers testified that the remainder of the $1,200 deposited was-arrived at by estimating that the spur track increased the value of the property by 10%,. that is, about 2‡ per square foot, which would make a total of 22‡ per square foot resulting in the sum of $1,166 for the land and spur track taken. They rounded the figure off at $1,200. They allowed no.

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Bluebook (online)
150 So. 2d 667, 1963 La. App. LEXIS 1402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-department-of-highways-v-hayes-lactapp-1963.