State Highway Commission v. Anderson

242 N.W.2d 674, 90 S.D. 503, 1976 S.D. LEXIS 233
CourtSouth Dakota Supreme Court
DecidedMay 25, 1976
DocketFile 11753
StatusPublished
Cited by4 cases

This text of 242 N.W.2d 674 (State Highway Commission v. Anderson) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Highway Commission v. Anderson, 242 N.W.2d 674, 90 S.D. 503, 1976 S.D. LEXIS 233 (S.D. 1976).

Opinion

DUNN, Chief Justice.

This is a condemnation action. The land involved is situated in Roberts County, South Dakota, and was condemned for the construction of U.S. Interstate Highway 29. Defendants own 400 acres of land which was determined to be the unit for purposes of the condemnation action. The land contains improvements. Of the 400 acres, 27.60 acres were taken by condemnation. Since 2.21 acres were previously section line right-of-way, the net taking amounted to 25.39 acres. In addition 3.43 acres were temporarily taken by a construction easement. Due to the nature of the condemnation, the unit suffered severance damages, although the separated land will be joined by a road which will run beneath the completed Interstate Highway.

The jury returned a verdict for defendants in the amount of $25,000. Judgment for that amount was entered by the court. Plaintiff subsequently moved for a new trial. That motion was denied on September 2, 1975. Plaintiff appeals from the whole of the judgment and the order denying a new trial. We reverse and remand for a new trial.

The plaintiff State Highway Commission filed its declaration of taking June 21,1973. Trial to a jury to determine just compen *505 sation was held on April 1, 1975. The plaintiff called two land appraisers to the stand. The court allowed them to give their opinions as to the damages resulting from the taking, but would not allow them to testify as to specific sales of land which they had examined and relied upon in making their computations. Defendant, Arthur Anderson, and his son Kenneth took the stand and gave their opinions as to the value of the property and the damages sustained by the taking. Defendants also called two expert appraisers for their opinions. Plaintiffs appraisers’ estimates of the total damages were significantly lower than those of defendants’ witnesses.

The principal issue raised by plaintiff is that the court erred in ruling during the trial that evidence of comparable sales of real estate in the area was inadmissible as a matter of law. Plaintiff contends that the evidence of comparable sales was not being introduced as substantive evidence, but, rather, was to establish foundation for the computations of its expert appraisers, Meisner and Felker.

While not all of the jurisdictions so hold, the majority allows evidence of comparable sales to be introduced into evidence, (1) as substantive proof of the value of the property to which the comparison relates, and (2) to give an account of the factual basis upon which the expert founds his opinion on the issue of the value of the real estate in controversy. See 5 Nichols on Eminent Domain, § 21.3. South Dakota has consistently followed the majority rule that sales, if they are in fact comparable, are admissible for the above stated purposes. Tidball v. Miller, 1948, 72 S.D. 243, 32 N.W.2d 683; State Highway Commission v. Lacey, 1962, 79 S.D. 451, 113 N.W.2d 50; Nystrom v. State, 1962, 80 S.D. 58, 119 N.W.2d 123; and State Highway Commission v. Hayes Estate, 1966, 82 S.D. 27, 140 N.W.2d 680.

In this regard, the provisions of SDCL 19-6-12 and 19-6-13 are pertinent:

“19-6-12. An expert witness may be asked to state his inferences, whether these inferences are based on the witness’ personal observation, or on evidence in *506 troduced at the trial and seen or heard by the witness, or on his technical knowledge of the subject, without first specifying hypothetically in the question the data on which these inferences are based.”
“19-6-13. An expert witness may be required, on direct or cross-examination, tp specify the data on which his inferences are based.”

In Hayes Estate, supra, we held that when evidence of comparable sales is introduced for purposes of foundation of expert testimony only, the rule of comparability is not nearly as strict as when the sales are offered as substantive evidence of the value of the real property in question. See also 5 Nichols on Eminent Domain, § 21.3[2], at page 21-50.

In Lacey, Nystrom, and again in Hayes Estate, all supra, we held that whether this evidence should be admitted or excluded rests largely within the discretion of the trial court and the trial court’s ruling will not be disturbed unless there clearly appears to be an abuse of that discretion. Therefore, our inquiry centers on the comparability of the land sold with the condemned land of the defendants and whether there was an abuse of discretion in refusing this evidence.

Plaintiff’s witness Meisner testified that he studied thirty sales of farm real estate in the area and found three to be particularly helpful. He was not allowed to testify further about the sales in the presence of the jury, but an offer of proof was made in the judge’s chambers. Meisner would have testified about the following sales:

GRANTOR-GRANTEE DATE SIZE IMPROVEMENTS DISTANCE PROM CONDEMNED PRICE PROPERTY PER ACRE

Dystra-Brenberger 10-73 160 A. No 8 miles $ 318.75

Lenz Estate-Pohl 2-73 160 A. No adjacent $ 127.00

Victor-Lubke 5-73 160 A. Yes 14 miles $ 200.00

Witness Felker testified that he examined some sixty-five land sales in Roberts County and in North Dakota while working on his appraisal. In the offer of proof he testified to two helpful sales:

*507 GRANTOR-GRANTEE DATE SIZE IMPROVEMENTS DISTANCE PROM CONDEMNED PRICE PROPERTY PER ACRE

Janes Estate-Widhalms 2-74 400 A. Yes 18 miles $ 275.00

Pirmantgen-Widhalms 1-74 160 A. No 9 miles $ 212.00

We decline to rule on whether these sales were comparable for purposes of substantive evidence going to the price of the condemned land. What we do hold is that they were suitably comparable in time of sale, location, and soil conditions to be introduced into evidence for foundational purposes. Plaintiff and its experts made no representations that any of the land sold was identical to the land of defendants. On the contrary, they recognized the differences in each piece of land and were prepared to tell the jury how they adjusted the selling price of each piece of land upward or downward based upon these variables in arriving at their respective appraisals of defendants’ land and the total damages sustained by the condemnation. This included an adjustment for inflation of land values from the date of the sale, which the expert proposed to use in explaining his valuation, to the date of the taking of subject land. We feel that this information is essential to a jury in arriving at its verdict. Other factors not comparable would go to the weight rather than the admissibility of this evidence. Defendants would have the opportunity to cross-examine the expert to bring out all of the variables —as was aptly shown by the cross-examination on the offer of proof in chambers.

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Bluebook (online)
242 N.W.2d 674, 90 S.D. 503, 1976 S.D. LEXIS 233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-highway-commission-v-anderson-sd-1976.