State Highway Commission v. Callahan

410 P.2d 818, 242 Or. 551, 1966 Ore. LEXIS 621
CourtOregon Supreme Court
DecidedFebruary 9, 1966
StatusPublished
Cited by15 cases

This text of 410 P.2d 818 (State Highway Commission v. Callahan) is published on Counsel Stack Legal Research, covering Oregon 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. Callahan, 410 P.2d 818, 242 Or. 551, 1966 Ore. LEXIS 621 (Or. 1966).

Opinion

HOLMAN, J.

This action was- brought by the state to condemn part of defendants’ land for the construction of freeway Interstate 5. The property was adjacent to the old Pacific Highway near the Siskiyou Mountain summit in Jackson County and was improved with a residence and a lodge with cocktail lounge and bar. Interstate 5 is a limited access freeway and all access rights of defendants’ remaining property were being taken, leaving the balance landlocked and virtually valueless. Upon trial the jury returned a verdict of damage to the property owners in the sum of $67,500 and the state appealed.

*553 The first three claims of error relate to the court’s refusal to allow a state’s expert valuation witness to testify as to the sale price of three parcels of property. The witness testified that, taking into consideration adjustments, two parcels were comparable; but he failed to state what the adjustments were. It would have been improper for the court to admit the sale price until the adjustments were explained. Admittedly, that may not have been the reason for the court’s ruling, but the result was proper nevertheless.

As to the third parcel, the witness was asked if the parties to that transaction knew that construction of Interstate 5 was contemplated. He replied that possibly the seller did, but he was not sure about the buyer. The property was adjacent to the old highway and was subsequently taken in its entirety by the state. In order for the sale price to be admissible, the property must not only have been reasonably comparable to the property sought to be condemned, but its sale must also have been made under normal and fair market conditions. A sale price affected by the state’s contemplated improvement of a highway and subsequent condemnation of adjacent property would not be such a sale. The witness could not say that the parties to the transaction were unaware of the impending construction and condemnations. In effect, he was therefore unable to say the sale was unaffected by artificial market conditions induced by the state. Admissibility of evidence of sales of other land is largely within the discretion of the trial court.

“It is incumbent on the party offering proof of other sales to show the facts which establish similarity.” 5 Nichols, Eminent Domain § 21.31, at 446 (Rev 3d ed 1962)

*554 The same would be true of normal market conditions. The trial court did not err in excluding testimony of the sale price of the third parcel.

The state offered into evidence and the court refused to admit deeds in defendants’ chain of title which showed that part of defendants’ property was subject to a reverter clause. The state had been a previous owner of a portion of the property and had deeded it to one of defendants’ predecessors in interest. The deed contained a provision that title would revert to the state if the adjacent highway right of way were used by the owner for parking vehicles. The state did not claim that title had reverted because of breach of the condition. The state sought only to introduce the documents to prove that the title contained a possibility of reverter which, in the eyes of a prospective purchaser, would tend to decrease its value.

The property owners contend that introduction of this evidence is not permissible because (1) the parties stipulated the only issue was value, (2) the state alleged defendants claimed to be the owners and defendants admitted the allegation, (3) the state did not allege any qualification of defendants’ title and therefore no such issue existed, and (4) the plaintiff in a condemnation case cannot impugn nor disparage the title of the defendants. These arguments amount to an assertion that the state is estopped from raising any issue as to defendant’s title.

It is our opinion that the court erred in refusing to admit the offered exhibits. In determining how much he would be willing to pay for the property, any reasonable purchaser would take into consideration the possibility that the reverter could occur at some *555 time in the future. For that reason the nature of the title was relevant to the issue of fair market value.

“* * * In determining the fair cash market value of the land condemned there should be taken into account all considerations that might fairly be brought forward and reasonably be given substantial weight in negotiations between the owner and a prospective purchaser.” State Highway Comm’n v. Superbilt Mfg. Co., 204 Or 393, 412, 281 P2d 707 (1955).

In arguing that the state has conceded the issue of title and is estopped from raising it, defendants cite Willamet Falls Canal & Lock Co. v. Kelley, 3 Or 99, 101 (Cir Ct 1869) and 2 Nichols, Eminent Domain § 5.2[2] (Rev 3d ed 1962). This rule may be accurate when the validity of defendant’s title is the real issue presented. Here, however, the state is not questioning the validity of title and is not attempting to force defendant to prove ownership of the land. The status of the title was relevant to value and was therefore admissible under the stipulated issue upon which the case was tried.

The last three assignments of error relate to the propriety of the closing arguments by defendants’ counsel to the jury. The following quotations demonstrate the arguments made, the objections and the rulings of the court.

“Mr. Jones: * * * But Mr. Hampton asked the question and made the statement anything that comes into the public treasury does not end up in their pockets, therefore what is the motivating factor for them to present a case as they have done? And it is that question which I propose to answer. First, there are many motives for human conduct. Now, Mr. Hampton raised this issue, and that is why I am entitled to talk about it.
*556 “In .addition to the motive for financial gain, which I do not believe in the slightest can be attributed to these men, there are the motives of a ■socialistic bureaucracy which resents the interference of the judiciary. And a system that has become as large as our federal highway program has created results never intended.
“Mr. Hampton: We would object to this. Whether or not the federal highway, federal government is a big or large government, or the state government, it is not material as to just compensation.
“Mr. Jones: Your Honor, I think it is very relevant when Counsel asks the question what motive is there for government to reduce just compensation. I think I have a right to answer that question.
“The Court: Objection overruled.
“Mr. Jones: As I said, the system creates a result never intended.
“Now, there has become a desire in this country for super highways in the name of progress, and I am not denying the majority of our citizens want super highways.

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Bluebook (online)
410 P.2d 818, 242 Or. 551, 1966 Ore. LEXIS 621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-highway-commission-v-callahan-or-1966.