State Highway Commission v. Lacey

113 N.W.2d 50, 79 S.D. 451, 1962 S.D. LEXIS 19
South Dakota Supreme Court·Decided January 29, 1962·No. File 9930·Published·Cited by 10 cases

Opinion

BIEGELMEIER, J.

This is a landowner’s appeal from a jury’s award of $7,500 in a condemnation action.

The tract contained 17.31 acres of which the state took 11.65 acres, leaving the balance of 5.66 acres adjoining a section line 'but without access to presently graded road. Defendant complains of one instruction given and one refused by the trial .court. The instruction given was:

“Evidence has been introduced * * * relating to some other sales of property in that locality * * * that evidence as to the selling price of those other tracts is no direct evidence as to the value of this particular property which you have for considera *453 tion and the evidence was admitted simply as a ■basis for the opinion which the particular expert witness gave as his opinion of the value of this particular tract involved in this action.”

The c'ourt refused the following requested instruction:

“You are instructed that in determining the fair market value of the property in question you may consider evidence of actual sales of other lands,, and prices for which they were sold, if they are similar in their situation, relative position, and other circumstances relating to value, and such sales are fair and open in the market.”

As to the admissibility of the sale price of other real estate to prove the value of the property in suit, the cases present two principal views (1) the New York or Pennsylvania rule that the evidence is inadmissible and (2) the Massachusetts rule, that the evidence is admissible. The conflict and divergent views are found in notes to the cases at 118 A.L.R. 869 and 174 A.L.R. 386. See also Orgel on Valuation in Eminent Domain, Ch. XII, p. 454; Nichols on Eminent Domain, Third Edition, Ch. XXI, Vol. 5, p. 265 and Wigmore on Evidence, Third Edition, Vol. II, § 463-4. After adopting the Pennsylvania rule at least two courts have recently changed to the Massachusetts rule. County of Los Angeles v. Faus, 48 Cal.2d 672, 312 P.2d 680 and Redfield v. Iowa State Highway Commission, 251 Iowa 332, 99 N.W.2d 413. Counsel have cited a long list of cases touching the problem in its many phases. The record indicates it is unnecessary to determine that question in this appeal although reference will be made to opinions where the subject is discussed. The trial Court should present those issues to the jury which find support in the evidence and be responsive to the issues. Orrison v. City of Rapid City, 76 S.D. 145, 74 N.W.2d 489; Bathke v. Myklebust, 69 S.D. 534, 12 N.W.2d 550. Did defendant’s evidence of sales raise the issue presented? Defendant testified to one sale of property, that of Hays to Egan. This was *454 an adjoining tract of about ten acres. Thereafter Eganj the purchaser, was a witness for the state. Without dispute he testified he purchased the property after both he and the seller knew of the location of the proposed new interstate highway; it would have convenient access to it and abutted on Rice Street and Brandon road; this enhanced and increased its value for commercial purposes; it had never been flooded by the adjoining -river; the house on this parcel was worth $12,000, the land worth $9,000’ only because of its enhanced value after the interstate was built; without the interstate the house and land would be worth $13,000 to $15,000’. This would greatly reduce the value of the ten acres of land. He further testified he would not have been interested in the property except for the interstate highway and he paid quite a premium for that reason. Photographs showed, and it was conceded, most of defendant’s land was lower and flooded by the river; as stated it had no public road access to the proposed interstate; the house' on it was stipulated as being worth $980. Where the sale price reflects an important enhancement of value because of the building of the interstate highway, the sale' is clearly not admissible. The Supreme Court of Massachusetts, for which the rule of admissibility is identified has recently so held. Cole v. Boston Edison Company, 338 Mass. 661, 157 N.E.2d 209. Accord: City of Chicago v. Blanton, 15 Ill.2d 198, 154 N.E.2d 242. Cf. Hance v. State Roads Commission of Maryland, 221 Md. 164, 156 A.2d 644. These two properties were, as indicated, so dissimilar for comparisons of value that defendant was not prejudiced by the court’s rulings as to the Hays-Egan sale. Barnes v. North Carolina State Highway Commission, 250 N.C. 378, 109 S.E.2d 219, 232.

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State Highway Commission v. Lacey, 113 N.W.2d 50, 79 S.D. 451, 1962 S.D. LEXIS 19 (S.D. 1962).

113 N.W.2d 50 (State Highway Commission v. Lacey) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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