State Highway Commission v. Hooper

488 P.2d 421, 259 Or. 555, 1971 Ore. LEXIS 410
CourtOregon Supreme Court
DecidedSeptember 10, 1971
StatusPublished
Cited by15 cases

This text of 488 P.2d 421 (State Highway Commission v. Hooper) 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. Hooper, 488 P.2d 421, 259 Or. 555, 1971 Ore. LEXIS 410 (Or. 1971).

Opinions

HOWELL, J.

This is a condemnation case involving land owned by the defendants at the Woodburn interchange. The Court of Appeals affirmed the judgment awarded defendants in the trial court, and we granted the plaintiff’s petition for review.

The plaintiff, Oregon State Highway Commission, condemned 2.4 acres of approximately 150 acres belonging to defendants for the purpose of constructing a diamond interchange for improved exit from [557]*557Interstate 5 from the south, as shown on the map below.

[558]*558■■ The ' defendants’ land is bordered on the. west by the northbound lanes of Interstate 5 highway, and on the north by the Hillsboro-Silverton highway, which runs east and west and which intersects Interstate 5 by an overhead crossing northwest of defendants’ land. The taking of the 2.4 acres did not result in any basic change in the access to the roads and highways serving defendants’ property, which had no access to the freeway (Interstate 5) before or after the taking, but did have access to the Hillsboro-Silverton highway both before and after the taking. The part taken is contiguous to a frontage road which connects with the Hillsboro-Silverton highway on the north. The improvement contemplated by the Highway Commission includes relocation of the frontage road to the southeasterly edge of the 2.4 acres, contiguous to the remaining land of the defendants, and defendants will have the same access to the relocated frontage road.

Fifty-two of the 150 acres owned by defendants, including the parcel taken, were zoned “interchange development” or “commercial.” The balance of the land was zoned “residential and agricultural.” All of the land is level and of similar general characteristics, and was previously farm land. .s ■ •

The plaintiff alleged that the amount df, just compensation to be awarded defendants was the;sum of $9,600. The defendants alleged that the fair cash market value of the property taken was $48,000. Defendants claimed no damages to the remainder propr erty. A jury awarded defendants $24,000.

The primary issue in this ease is whether the 2.4 acres taken should be valued as a separate parcel or whether it should be considered as a part of de[559]*559fendants’ entire tract. If just compensation is to be determined by considering the 2.4 acres taken as part of the entire tract, does such method violate the rule in State Highway Com. v. Bailey et al, 212 Or 261, 281, 319 P2d 906 (1957), that any benefits to the property that remains can be used only to offset damages to that property and cannot be used to reduce the fair market valne of the land taken.

The trial court restricted the evidence to the valne of the 2.4 acres considered as a separate parcel and not as a part of the whole of defendants’ land; and refused to admit evidence as to the highest and best use and evidence of the valne of the defendants’ entire property and of the value of the defendants’ remaining property. The trial conrt found from the evidence and plaintiff’s offer of proof that benefits accrued to the remainder. The trial conrt ruled that evidence of benefits to the remainder would be improper under State Highway Com. v. Bailey, supra, because the defendants were claiming no damages to the remainder; consequently, only evidence of the fair cash market valne of the 2.4 acres would be considered.

The trial court also refused to give instructions requested by plaintiff that the market value of the 2.4 acres should be determined by considering it as a part of the entire property and not as a separate parcel.

The Conrt of Appeals also found that the parcel taken should be valued as a separate parcel and not as a part of the whole of defendants’ land.

1. The basic premise and the constitutional requirement in all condemnation cases is that the landowner is entitled to be awarded jnst compensation for the taking of his property. Oregon Constitution, Art. 1, § 18.

[560]*560Just compensation is to be considered in terms of what the owner has lost and not what the condemnor has gained. See Santiam Lumber Co. v. Conhaim, 218 Or 220, 344 P2d 247 (1959); 3 Nichols, Eminent Domain 49-50, § 8.61 (3d ed 1965). Compensation should be just to the condemnor as well as to the condemnee. See Searl v. School Dist., Lake County, 133 US 553, 10 S Ct 374, 33 L Ed 740 (1890).

2, 3. The measure of damages to be awarded the landowner in the case of a partial taking of his land is the fair market value of the land taken plus any depreciation in the fair market value of the remaining land caused by the taking. See Tunison v. Multnomah County, 251 Or 602, 445 P2d 498 (1968); State Highway Com. v. Burk et al, 200 Or 211, 265 P2d 783 (1954); Pape et al v. Linn County, 135 Or 430, 296 P 65 (1931). The depreciation in market value to the remaining land is often called severance damages. See State Highway Com. v. Vella, 213 Or 386, 323 P2d 941 (1958).

In Oregon, special benefits to the remainder land may be used only to reduce the damages to the remainder land and cannot be used to reduce the fair market value of the land actually taken. See State Highway Com. v. Bailey, supra at 277. This is also the rule in most jurisdictions, but has been widely criticized for the reason that if the special benefits to the remaining land exceed the severance damages to the remainder, the landowner is receiving double compensation — the market value of the land taken and the increased value of the remaining land. See Note, Benefits and Just Compensation in California, 20 Hastings L J 764, 767 (1969).

On the other hand, the rule has support on the [561]*561theory that if benefits are allowed to be offset against the value of the land taken, the condemnee may be forced to accept unrequested benefits rather than money. See generally 3 Nichols, supra, at 93-98, $ 8.6206 (1); Peacock, The Offset of Benefits Against Losses in Eminent Domain Cases in Texas: A Critical Appraisal, 44 Texas L Rev 1564,1566 (1966).

As a result of the decision in Bailey, we have two categories relating to condemnation awards in partial taking cases: (1) compensation for the value of the land taken against which special benefits may not be offset, and (2) depreciation to the value of the remaining land against which any special benefits may be offset. If we follow the defendants’ contention we could also have a third category of compensation for only the value of the land taken without consideration of special benefits or damages to the remainder because no damages are claimed by the landowner.

4. The defendants herein contend, and the Court of Appeals found, that the 2.4 acres taken must be valued as a separate and distinct economic unit, and evidence of the condition and value of the remainder is not material.

To support this position the defendants rely primarily on the decisions in State v. Meyer, 403 SW2d 366 (Texas 1966), aff'g. 391 SW2d 471 (Tex Civ App 1965); Territory v. Adelmeyer et al, 45 Hawaii 144, 363 P2d 979 (1961); and People v. Silveira, 236 Cal App 2d 604, 46 Cal Rptr 260 (1965).

In Meyer the state condemned a 15-acre tract from the front of defendant’s 103-acre tract in order to widen an existing highway. The land taken was 2600 feet long and 240 feet in depth.

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State Highway Commission v. Hooper
488 P.2d 421 (Oregon Supreme Court, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
488 P.2d 421, 259 Or. 555, 1971 Ore. LEXIS 410, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-highway-commission-v-hooper-or-1971.