State Ex Rel. State Highway Commission v. Chavez

456 P.2d 868, 80 N.M. 394
CourtNew Mexico Supreme Court
DecidedJune 9, 1969
Docket8684
StatusPublished
Cited by24 cases

This text of 456 P.2d 868 (State Ex Rel. State Highway Commission v. Chavez) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. State Highway Commission v. Chavez, 456 P.2d 868, 80 N.M. 394 (N.M. 1969).

Opinion

PER CURIAM.

Upon consideration of Motion for Rehearing, the opinion heretofore filed is withdrawn and the following substituted therefor:

OPINION

MOISE, Justice.

This is the sequel to State ex rel. State Highway Commission v. Chavez, 77 N.M. 104, 419 P.2d 759 (1966), wherein we decided that the trial court had erred in dismissing proceedings to determine damages, if any, resulting to a lessee’s interest in a business lease on state public lands because of action by the State Highway Commission condemning access thereto. Upon remand the issue of damages was submitted to a jury, resulting in an award of $25,000.00 to appellee, which the State Highway Commission (appellant) here seeks to have reviewed.

Although five points of claimed error are argued, the basic issue is whether the jury verdict is supported by substantial evidence, or is so excessive as to indicate bias, prejudice or a disregard or misunderstanding of the court’s instructions concerning the applicable law, and to require a reversal or remittitur.

We first consider appellant’s arguments in support of its position that there is no substantial evidence to support the verdict. It appears that appellant produced an expert witness by the name of Godfrey, and the appellee, in addition to testifying concerning his damages, produced a Mr. Templeton as a witness in his behalf. However, the opinions concerning value expressed by Mr. Templeton were stricken by the court upon appellant’s motion, which action has not been appealed and, accordingly, appellee’s only proof as to the amount of damages is that testified to by appellee himself.

Appellant concedes that the prevailing rule permits an owner to testify concerning the value of his land both before and after a taking by condemnation. Baltimore American Ins. Co. of New York v. Pecos Mercantile Co., 122 F.2d 143 (10th Cir. 1941); Board of Directors of Baker Metropolitan Water and Sanitation Dist. v. Calvaresi, 156 Colo. 173, 397 P.2d 877 (1964); Mississippi State Highway Commission v. Strong, 240 Miss. 756, 129 So.2d 349 (1961). It argues, however, that because the rule has been stated as one of practical necessity, particularly with reference to the value of chattels, see Annot., 37 A.L.R.2d 967, 982, and expert opinion was available here, we should adopt the rule followed by a minority of jurisdictions which denies the right of an owner to testify concerning the value of his property taken or damaged by the sovereign through the use of eminent domain. Among cases cited are: Alabama—Alabama Great Southern R. Co. v. Russell, 35 Ala.App. 345, 48 So.2d 239 (1949); Georgia—State Highway Department v. Parker, 114 Ga.App. 270, 150 S.E.2d 875 (1966); Rhode Island—Greene v. State Board of Public Roads, 50 R.I. 489, 149 A. 596 (1930); and Kentucky—Commonwealth Dept. of Highways v. Fister, 373 S.W.2d 720 (Ky.1963). For others, see I Orgel, Valuation Under Eminent Domain 567, n. 46 (2d Ed.1953). We would note that Alabama permits an owner to testify without qualification as an expert but, in the case cited, observed that the cross examination established the testimony was entitled to little weight in the light of an absence of a real basis for arriving at the value claimed. The other jurisdictions evidently require some showing as to knowlege or basis for an opinion as to value even by the owner, before permitting him to testify concerning the before and after value.

Although as stated by appellant it does not appear that we have ever been called upon to consider this question in a condemnation case, we note that in U.J.I. 7.13 an instruction is promulgated based upon the “general” rule or, as appellant denominates it, the “prevailing” rule, to the effect that a landowner may state his opinion as to the fair market value of his property. Also, it seems in order that we note our recent approval of this rule in a replevin action, Hicks v. Maestas, 70 N.M. 347, 373 P.2d 916 (1962). While we fully appreciate the considerations which move appellant to take the position which it espouses — in condemnation cases it is always in conflict with the owner and, in addition, it is advantageously situated to produce expert testimony, where as an owner whose property is being condemned may not be — we see no reason for us to adopt a minority rule, particularly where it has not been shown to our satisfaction that the verdicts arising from application of the prevailing rule are generally greatly excessive. Furthermore, we are impressed that apart from practical considerations, the majority rule has a strong foundation in reason and logic. Nichols explains the rationale as follows:

“ * * * [H]e (the landowner) may be presumed to have sufficient knowledge of the price paid, the rents or other income received, and the possibilities of the land for use, to have a reasonably good idea of what it is worth. * * * ” 5 Nichols, Eminent Domain, § 18.4(2) (3rd Ed.1962).

Of course, should it be demonstrated that the witness has no real familiarity with the property about which he offers testimony, or that his estimates of value are predicated upon considerations which are not legally relevant, it would then be proper to strike the testimony and admonish the jury. See Shelby County R-IV School District v. Herman, 392 S.W.2d 609 (Mo.1965); State v. Larson, 54 Wash.2d 86, 338 P.2d 135 (1959). But this was not the situation in the present case. Having been in continuous possession of the premises since 1948, and having gained his livelihood from the operation of a small business thereon for many years, appellee’s familiarity with the property in question and its economic value (at least to him) is indisputable. Moreover, the estimate of value which he offered was based on elements of cost and, while original cost is not necessarily determinative of present market value, it is certainly a relevant factor to be considered. See 4 Nichols, Eminent Domain, § 12.31(2) (3rd. Ed. 1962); Annot., 172 A.L.R. 236. The appellee was a competent witness and the evidence presented was relevant; the probative value of his testimony was for the jury to assess.

The appellant describes the award here being appealed as shockingly excessive. Let us examine the record and determine if this description is merited. The value testimony of appellee’s witness, Templeton, having been stricken, we do not consider the figures testified to by him. Appellee is thus left with his own testimony that his property had a $40,000.00 value immediately before the condemnation and a $5,000.00 value afterward, thus establishing that in his opinion he was damaged $35,000.00.

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Bluebook (online)
456 P.2d 868, 80 N.M. 394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-state-highway-commission-v-chavez-nm-1969.