STATE EX REL. DEPT. OF TRANSP. v. Stallcup

97 P.3d 1229, 195 Or. App. 239, 2004 Ore. App. LEXIS 1157
CourtCourt of Appeals of Oregon
DecidedSeptember 15, 2004
Docket000242E2; A117839
StatusPublished
Cited by5 cases

This text of 97 P.3d 1229 (STATE EX REL. DEPT. OF TRANSP. v. Stallcup) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
STATE EX REL. DEPT. OF TRANSP. v. Stallcup, 97 P.3d 1229, 195 Or. App. 239, 2004 Ore. App. LEXIS 1157 (Or. Ct. App. 2004).

Opinion

*241 HASELTON, P. J.

In this condemnation action, the state appeals, assigning error to (1) the trial court’s denial of the state’s motion to set aside the judgment pursuant to ORCP 71 B or C; and (2) the trial court’s consequent award of attorney fees to the defendant landowner pursuant to ORS 35.346(7). 1 Defendant conditionally cross-appeals, asserting that the trial court erred in striking certain matters from his pleadings and in excluding certain evidence. As described below, we conclude that certain reports generated by defendant’s appraiser constituted “appraisals” within the meaning of ORS 35.346(5)(b) and that defendant’s failure to provide those reports to the state requires that the judgment be set aside. For the same reasons, the award of attorney fees to defendant must be vacated. Finally, as explained below, we do not reach the merits of defendant’s cross-appeal, given our disposition of the appeal. Accordingly, we reverse and remand.

Defendant owns property in Medford on which a “Wendy’s” fast-food restaurant is situated. The state determined that it needed to acquire a portion of defendant’s property adjacent to a road in connection with an improvement project. The state and defendant were unable to agree on the compensation that the state should pay for the taking and, on January 24, 2000, the state filed a complaint for condemnation, alleging that it had attempted to reach an agreement with defendant as to the compensation for the property, but was unable to do so, and that the true value of the acquisition was $70,800.

On September 26, 2000, counsel for defendant received a report from his appraiser, Michael Palmer, entitled “complete summary appraisal report.” 2 That document, which was unsigned and marked “draft,” provided two vastly different estimates of total compensation due. The first, based on the assumption that the Wendy’s drive-through *242 would not be damaged by the taking, estimated that the compensation due would be $80,591. The second estimate, based on the assumption that the drive-through would be affected, was $355,082.

On September 29, 2000, three days after receiving Palmer’s report, defendant filed his initial answer in the condemnation proceeding. That answer alleged that the true value of the subject property was $355,082—the amount of the second of two estimates in Palmer’s first “complete summary appraisal report.” Defendant did not, however—either at that time or thereafter—disclose that report to the state.

Palmer subsequently generated other “complete summary appraisal reports” for defendant. In particular, on April 24, 2001, Palmer provided defendant with a second “complete summary appraisal report.” Defendant disclosed that appraisal to the state pursuant to ORS 35.346. In July 2001, Palmer produced a third “complete summary appraisal report” but that document, like Palmer’s first report, was not disclosed to the state. Finally, in November 2001, Palmer produced a fourth “complete summary appraisal report” for plaintiff, which plaintiff provided to the state pursuant to ORS 35.346.

On January 2, 2002, defendant filed an amended answer. The amended answer alleged that defendant was entitled to $611,511 in compensation. With his motion to file the amended answer, defendant’s attorney filed an affidavit stating that the need to amend the answer was due to discovery of documents produced by the state that indicated that the highway project that caused the state’s need for defendant’s property would have significant impacts on defendant’s restaurant business. Those alleged impacts included the possibility that the highway project, when completed, would result in traffic cutting through defendant’s parking lot, as well as the possible displacement of the restaurant business entirely.

The state, in response, moved to strike from defendant’s amended answer the allegation concerning the value of the property, asserting that it was based on damage theories that were too speculative. The trial court agreed that one *243 of the theories—relating to the impact of “cut-through” traffic on the continued viability of defendant’s business—was too speculative because the appraiser had no basis to quantify the diminished use. Accordingly, the trial court granted the “motion to strike,” in part. 3

At trial, Palmer testified as a defense expert. Palmer described in detail the methodology underlying his valuation. He testified that the value of the property before the taking was $850,000 and that there were 62 parking spaces. He further testified that, after the taking, the number of parking spaces would be reduced to 35, which would be insufficient for a fast-food restaurant such as the Wendy’s located on defendant’s property. Using an income approach to value, Palmer concluded that the value of the property after the taking would be $370,000, and, thus, that the value of the property being acquired by the state was $480,000.

The jury ultimately returned a verdict determining that defendant was entitled to compensation of $135,000. Because that amount exceeded the state’s highest settlement offer ($117,500), defendant was entitled to reasonable attorney fees pursuant to ORS 35.346(7). 4 Consequently, defendant submitted a fee petition supported by documentation.

In reviewing those submissions, the state’s attorney discovered that Palmer had billed defendant’s law firm for four “complete summary appraisal reports”—rather than only the two that had been provided to the state. Thus, the state first learned of the existence of the other two reports. *244 Based on that revelation, the state moved, pursuant to ORCP 71 B and C, to set aside the judgment based on the newly discovered evidence.

In particular, the state argued that both of the previously undisclosed reports were “appraisals” that were subject to compulsory pretrial disclosure under ORS 35.246(5)(b), which provides:

“In the event the owner and condemner are unable to reach agreement and proceed to trial or arbitration * * * each party to the proceeding shall provide to every other party a copy of every appraisal obtained by the party as part of the condemnation action.”

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Related

State v. Naudain
452 P.3d 970 (Court of Appeals of Oregon, 2019)
Friends of Yamhill County, Inc. v. Board of Commissioners
238 P.3d 1016 (Court of Appeals of Oregon, 2010)
Wah Chang v. PacifiCorp
157 P.3d 243 (Court of Appeals of Oregon, 2007)
Dept. of Transportation v. Stallcup
138 P.3d 9 (Oregon Supreme Court, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
97 P.3d 1229, 195 Or. App. 239, 2004 Ore. App. LEXIS 1157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-dept-of-transp-v-stallcup-orctapp-2004.