State Highway Commission v. Stockhoff

519 P.2d 1281, 16 Or. App. 647, 1974 Ore. App. LEXIS 1249
CourtCourt of Appeals of Oregon
DecidedMarch 18, 1974
DocketNo. 21342
StatusPublished
Cited by3 cases

This text of 519 P.2d 1281 (State Highway Commission v. Stockhoff) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon 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. Stockhoff, 519 P.2d 1281, 16 Or. App. 647, 1974 Ore. App. LEXIS 1249 (Or. Ct. App. 1974).

Opinions

TANZEB, J.

The State of Oregon brought this condemnation action to acquire a portion of defendants’ acreage for the conversion of part of State Highway No. 6 (the Old Oregon Trail Highway) to a limited access highway. The property to be acquired is a strip of land on either side of the existing highway. The state’s amended complaint alleged that the amount due defendants was $19,000. Defendants answered that just compensation was $100,000. The state appeals from a judgment entered on a jury verdict of $50,000, contending that the trial court erred in excluding certain evidence and refusing to give certain jury instructions relating to that evidence.

The state’s first assignment of error raises the question of whether defendants’ contract to sell rock to the highway contractor constitutes a special benefit, the value of which can be set off against damages to the remaining property. The evidence produced at trial showed that a gravel quarrying operation was conducted on a portion of defendants’ property by the contractor and that the material taken from the quarry was used by the contractor in construction of the highway improvement. No quarrying operation had previously been conducted in that location.

Plaintiff’s valuation witness testified, after stating his opinion as to the severance damage to defendants’ remaining property, that the sale of rock [650]*650material to the contractor constituted a special benefit. Defendants’ counsel objected to any testimony on that subject and the court sustained the objection, ruling that the valuation of the rock was not a special benefit. Thereafter, plaintiff presented and the court refused an offer of proof in which plaintiff’s valuation witness testified that the demand for the rock changed the highest and best use of a portion of defendants’ property to a material site, and that, in his opinion, this constituted a special benefit in the amount of $9,000. Plaintiff’s valuation witness further testified that, if allowed to do so, he would offset the $9,000 special benefit against the severance damages to which he had previously testified.

A fundamental principle in the area of eminent domain is that the condemnee is entitled to be paid the difference between the market value of his property before and after the taking. 3 Nichols, Eminent Domain 64-65, § 8.6201 (1965). Different jurisdictions arrive at that result in various ways. In Oregon, the formula for oomputing just compensation is considered to be the value of the land taken plus the depreciation in value of the remaining area. State Highway Com. v. Bailey, 212 Or 261, 281, 319 P2d 906 (1957). The creation of a special benefit, i.e., any enhancement of the value of the remaining property which is not shared by the public generally, is one factor to be considered in determining the value of the remainder. If a special benefit is found, its value is to be set off against any damage to the remainder.

Plaintiff claims the gravel use to be a special benefit and defendants characterize it as a general benefit, i.e., one available to the general community. The issue, however, is whether the use was á cognizable [651]*651benefit at all, that is, an increment to the market value of the property arising from the improvement. We have concluded that the value of the rock sold to the contractor is not such a benefit.

The parties are agreed that the only market for the rock located on defendants’ land is for the construction of the highway. Once the highway has been completed, the land will once again be used as range land. The opportunity to sell the otherwise unmarketable rock was a nonrecurring windfall. It constituted an immediate business opportunity for the property owner which terminated when construction terminated. It did not increase the market value of the remainder and was therefore not a relevant factor in the valuation testimony.

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Related

Cca Associates v. United States
667 F.3d 1239 (Federal Circuit, 2011)
State ex rel. State Highway Commission v. Boothman
540 P.2d 1020 (Court of Appeals of Oregon, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
519 P.2d 1281, 16 Or. App. 647, 1974 Ore. App. LEXIS 1249, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-highway-commission-v-stockhoff-orctapp-1974.