State Ex Rel. Department of Highways v. Levy

136 So. 2d 35, 242 La. 259, 1961 La. LEXIS 634
CourtSupreme Court of Louisiana
DecidedDecember 11, 1961
Docket45621
StatusPublished
Cited by77 cases

This text of 136 So. 2d 35 (State Ex Rel. Department of Highways v. Levy) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana 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. Levy, 136 So. 2d 35, 242 La. 259, 1961 La. LEXIS 634 (La. 1961).

Opinion

HAMLIN, Justice.

*263 This matter involves the expropriation of a lease affecting a certain described piece of property located in the City of Shreveport, Louisiana. In the exercise of our supervisory control (Art. VII, Sec. 11, La.Const. 1921), we granted certiorari to review a judgment of the Court of Appeal, Second Circuit (129 So.2d 516, 517), which awarded defendant $46,500.00 as the value of its lease and reversed and set aside a judgment of the trial court holding that the market value of the lease expropriated was No and 00/100 Dollars and casting defendants in costs.

The facts leading up to the instant controversy are correctly recited by the Court of Appeal as follows:

“ * * * many years ago a brick building designed for the use and operation of a laundry and dry cleaning business was erected at the corner of Howell Street and Line Avenue in the City of Shreveport. The business owned and operated on the said premises by Shreveport Laundries, Inc., was liquidated in 1955 and in the accomplishment of said liquidation the land and improvements thereupon were sold to one David Goldman, acting for himself and associates, for the sum of $90,000.00, and the laundry business, together with all equipment and appurtenances, was sold to Ben Levy, Sr., for a consideration of $65,000.00. Contemporaneously with these conveyances Goldman leased the building to Levy, Sr., for a term beginning September 9, 1956 and ending March 8, 1958, at a rental of $750.00 per month, together with the assumption by the lessee of additional obligations therein specified. Under date of November 7, 1956, another lease was executed by Goldman as lessor and Ben Levy, Jr., as lessee, in which the term was fixed as commencing September 9, 1956, and terminating March 8, 1963, in consideration of a monthly rental of $750.00 through March 8, 1958, and $1,000.00 thereafter for the remainder of the term of said lease. An amendment to the last described instrument was executed between the said parties under date of September 1, 1957, extending the term thereof to March 8, 1968, and providing for an increase of $100.00 per month in the rental provided in the original lease subsequent to March 8, 1963. The lease, as amended, was conveyed by Ben Levy, Jr., to New Way Laundry & Dry Cleaning Corporation by instrument dated October 13, 1958. Under threat of expropriation Goldman and his associates, as owners of the land and improvements, sold and conveyed the same to plaintiff by instrument dated February 6, 1959, for a cash consideration of $152,000.00, it being specifically understood and agreed that the said sale and convey *265 anee was made subject to the lease dated November 7, 1956 and amended September 14, 1957. (It is evident that the date of amendment to the lease is in error and should have been set forth as September 1, 1957).
“New Way Laundry & Dry Cleaning Corporation, under mutual agreements with plaintiff, did not vacate the leased premises, which are the subject matter of this litigation, until on or about the month of June, 1960, at which time the unexpired term of the original lease as amended would have been approximately ninety-three months.”

On March 2, 1959, plaintiff brought suit for the expropriation of the lease, alleging that defendant’s leasehold had no market value other than the nominal sum of $10.00, which it had deposited in the registry of court; it stated that the expropriation was necessary for the construction of State Project No. 451-01-07, Federal Aid Project No. 1-20-1(17) 17, Shreveport Expressway, State Route Louisiana 1-20, Federal Aid Interstate Route No. 4.

In answer to plaintiff’s petition, the defendants (New Way Laundry & Dry Cleaning Corporation, assignee of the lease by assignment from its president, Ben Levy, Jr., was added as a party defendant) prayed for $450,000.00, plus $25,000.00 attorney’s fees. They averred that the value of the unexpired term of the lease was worth no less than $250,000.00, and that the value of the machinery in place and connected to the leased building amounted to' $200,-000.00. New Way Laundry & Dry Cleaning Corporation (real party defendant and hereinafter referred to as defendant) filed an amended answer, averring that “to permit petitioner herein to expropriate the aforesaid lease upon payment to respondent of the nominal sum of $10.00 constitutes a taking of petitioner’s property without the payment of the fair value thereof and will cause respondent to suffer heavy damages by reason of being required to locate its plants in some other building if one can be found; and to take respondent’s lease and the fixtures which go with the lease without payment of the substantial value thereof would directly contravene the provisions of the Fourteenth Amendment to the Constitution of the United States of America, of Article 1, Par. 2, and Article 4, Par. 15, of the Constitution of the State of Louisiana, and of Articles 467, 468 and 497 of the Revised Civil Code of Louisiana.”

In rejecting defendant’s demands, the trial court found that the instant lease did not have a value in excess of what defendant was previously paying for the lease; that plaintiff had not expropriated defendant’s business; that the equipment located in the building did not belong to plaintiff; 1 *267 and that the disruption of defendant’s business and the cost of removal were consequential damages for which there was no recovery.

On appeal, the Court of Appeal found that the facts established on trial did not prove that the ownership of the machinery, equipment, etc., for which New Way Laundry & Dry Cleaning Corporation was claiming an allowance of damages to the extent of $200,000.00, was vested in the claimant; 2 it stated that it could pronounce no definitive judgment with reference thereto.

The Court of Appeal further stated that in a strictly technical sense the defendant had failed to prove any value of the leasehold interest, but being influenced by the equities of the case, it would give a more detailed consideration to a basis upon which the value of the lease could be determined.

A review of the evidence (witnesses for the defendant testified that the land had a value of $90,000.00 to $100,000.00, and that the replacement cost of the building would be $238,000.00) convinced the Court of Appeal that it could use a hypothetical question which would indicate the total value of land and improvements at $328,000.00, whereas, the land and improvements had actually been purchased by plaintiff from the owner thereof for a total consideration of $152,000.00. A witness for the defendant testified that the rental value of the property should be fixed at $39,000.00 to $40,000.00 per year; the Court of Appeal employed $40,000.00 as a hypothetical estimate of rental. The Court then adopted a proportionate formula, which it stated as follows:

“The cost of land and improvements represented by the hypothetical question is to the actual consideration as the hypothetical estimate of rental is to the proportionate rental upon the actual consideration involved.”

*269

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lambert v. State, Through Dept. of Transp.
683 So. 2d 839 (Louisiana Court of Appeal, 1996)
Rivet v. STATE, DOTD
635 So. 2d 295 (Louisiana Court of Appeal, 1994)
Saucier v. State, Department of Transportation & Development
635 So. 2d 295 (Louisiana Court of Appeal, 1994)
State, Department of Transportation & Development v. Manuel
640 So. 2d 299 (Louisiana Court of Appeal, 1994)
LeBlanc v. State ex rel. Department of Transportation & Development
615 So. 2d 365 (Louisiana Court of Appeal, 1993)
STATE, DEPT. OF TRANSP. & DEV. v. Mayet
521 So. 2d 671 (Louisiana Court of Appeal, 1988)
STATE, DEPT. OF TRANS. & DEVELOPMENT v. Jacob
491 So. 2d 138 (Louisiana Court of Appeal, 1986)
State D. of Trans. & Dev. v. Estate of Clark
432 So. 2d 405 (Louisiana Court of Appeal, 1983)
STATE, DEPT. OF TRANSP. & DEVELOPMENT v. Tynes
433 So. 2d 809 (Louisiana Court of Appeal, 1983)
Transcontinental Gas Pipe Line Corp. v. Terrell
416 So. 2d 571 (Louisiana Court of Appeal, 1982)
State ex rel. Department of Highways v. Bitterwolf
401 So. 2d 380 (Louisiana Court of Appeal, 1981)
STATE THROUGH DEPT. OF HIGHWAYS v. Wilson
372 So. 2d 632 (Louisiana Court of Appeal, 1979)
State ex rel. Department of Highways v. Dyess
350 So. 2d 1304 (Louisiana Court of Appeal, 1977)
State, Department of Highways v. Advance Enterprises, Inc.
332 So. 2d 899 (Louisiana Court of Appeal, 1976)
State, Dept. of Hwys. v. Ross Continental Mot. L., Inc.
328 So. 2d 883 (Supreme Court of Louisiana, 1976)
State, Department of Highways v. Dugas & LeBlanc, Ltd.
327 So. 2d 594 (Louisiana Court of Appeal, 1976)
State ex rel. Department of Highways v. Hunter
309 So. 2d 786 (Louisiana Court of Appeal, 1975)
State, Dept. of Hwys. v. Denham Springs Dev. Co., Inc.
307 So. 2d 304 (Supreme Court of Louisiana, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
136 So. 2d 35, 242 La. 259, 1961 La. LEXIS 634, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-department-of-highways-v-levy-la-1961.