State v. DAWMAR PARTNERS, LTD.

268 S.W.3d 79, 2007 Tex. App. LEXIS 4245, 2007 WL 1558816
CourtCourt of Appeals of Texas
DecidedMay 30, 2007
Docket10-06-00136-CV
StatusPublished

This text of 268 S.W.3d 79 (State v. DAWMAR PARTNERS, LTD.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. DAWMAR PARTNERS, LTD., 268 S.W.3d 79, 2007 Tex. App. LEXIS 4245, 2007 WL 1558816 (Tex. Ct. App. 2007).

Opinion

MEMORANDUM OPINION

TOM GRAY, Chief Justice.

The State of Texas brings this appeal from a judgment in a condemnation proceeding where the jury awarded the landowners $964,279.44 for the value of the property taken by the State and the damage to the remainder. Because the trial court did not err in admitting testimony of damages to the remainder and because it did not err in admitting testimony of value by Howard Gruetzner and Randy Reid, we affirm the trial court’s judgment.

Background

The State condemned 12.89 acres of a 79.54 acre tract, owned by Dawmar Partners, Ltd. and Lillian Gruetzner, hereinafter referred to as Dawmar, to improve FM 1695, or Hewitt Drive, in Hewitt, Texas. After the taking, the remainder of the property would not have direct access to FM 1695, because the roadway was to be elevated. At a Special Commissioners’ Hearing, Dawmar was awarded $267,000 for the taking. Dawmar filed objections to the award and the administrative proceeding was converted into a judicial proceeding. Before trial, Lillian Gruetzner passed away. A jury ultimately awarded Dawmar $964,279.44. The State appealed.

Damage to Remainder

In its first issue, the State contends that the trial court erred in admitting evidence of damages due to an impairment of access that was not material and substantial.

Whether to admit or exclude evidence is a matter committed to the trial court’s sound discretion. Interstate Northborough Partnership v. State, 66 S.W.3d 213, 220 (Tex.2001). To reverse a judgment based on a claimed error in admitting or excluding evidence, a party must show that the error probably resulted in an improper judgment. Id. Typically, a successful challenge to a trial court’s evidentiary rulings requires the complaining party to demonstrate that the judgment turns on the particular evidence excluded or admitted. Id.

The State raised the issue of impairment of access in its motion in limine in a pretrial hearing. The trial court declined to rule on the motion until it heard the evidence. David Bolton, one of Dawmar’s experts, had identified an area of 30 acres out of the 79.54 acres as an economic unit. He also testified that in his opinion, the highest and best use of the 30 acre economic unit was commercial and that was the basis on which he appraised the property including damage to the remainder. The State’s experts testified that the highest and best use of the entire property was as residential property. Bolton also *81 opined that the economic unit was worth $1.00 per square foot, totaling $1,306,800. Therefore, he concluded, the 12.89 acres taken by the State was worth $561,488. 1

At the time Bolton began to testify about the damage to the remainder, the State objected. The trial court overruled the objection. Bolton then testified that after the taking by the State, the highest and best use of the remainder, other than a separate tract of approximately 3 acres, of the economic unit changed. The reason for the change in the highest and best use was because the remainder no longer had direct access to the roadway and only had access through what had been the back of the property. Bolton testified that, as a result, the highest and best use of the remainder could only be as combined with the rest of the property, that is, residential property. Bolton estimated the value of the remaining 14 acres of the 30 acre economic unit to be $9,500 an acre. The highest and best use of a three acre portion of the economic unit had not changed and he continued to value it as commercial property worth $1 per square foot. Bolton concluded that the value of the land taken by the State plus the damage to the remainder of the economic unit totaled $1,039,524 ($561,488 part taken; $478,036 damages).

Randy Reid, a local real estate broker, also testified about the use and value of the property taken and the damage to the remainder. He also testified about an economic unit, however, he opined that the economic unit was only 19.21 acres. Over objection by the State, Reid opined that the taking had a major impact on the use of the remainder as commercial property. He believed that what made property more valuable and suitable for commercial use was visibility and good access. He said the 7 acres of the remainder no longer had the potential of being commercial property. Reid concluded that the value of the land taken and the damage was $703,778 ($561,662.64 part taken; $142,115.36 damages).

The State argues on appeal, as it did in the trial court, that Dawmar’s expert testimony about damage to the remainder was inadmissible because that damage was the result of an impairment of access to the property that was not material and substantial and therefore non-compensable. See City of Waco v. Texland Corp., 446 S.W.2d 1 (Tex.1969). The State does not argue that the damage to the remainder was non-compensable for any other reason. Thus, we limit our discussion to the specific argument raised by the State. However, this case was not about the impairment of access that was material and substantial. The denial of access to FM 1695 was a factor, but Dawmar’s evidence concentrated on the change in use of the economic unit from commercial to residential. See Interstate Northborough Partnership v. State, 66 S.W.3d 213, 223-24 (Tex.2001) (where evidence was about unsafe access to the remainder rather than damages due to material and substantial impairment of access). The Texas Supreme Court has suggested that when the best use of the property is a disputed issue, a change in the best use due to the taking can create compensable damages to the remainder. State v. Allen, 870 S.W.2d 1, 2 (Tex.1994). The best use of the property in this action was disputed. Dawmar’s experts testified that there was a change in the best use due to the taking and that the change *82 damaged the value of the remainder. In light of the testimony, the trial court did not abuse its discretion in allowing Daw-mar’s experts to testify about the damage to the remainder. The State’s first issue is overruled.

In its second issue, the State argues that there was no evidence or insufficient evidence to support the jury’s answer to Question No. 2 awarding remainder damages of $402,616.80. The State relies solely on a favorable determination to its first issue as support for its second issue. Because we held the trial court did not abuse its discretion in allowing testimony as to the remainder damages, the State’s second issue is overruled.

Testimony as to Value

In its third and fourth issues, the State contends that the trial court abused its discretion in admitting the testimony of two of Dawmar’s witnesses, Howard Gru-etzner and Randy Reid.

Howard Gruetzner was a co-executor of the estate of his mother, Lillian Gruetzner. Lillian was a co-owner with Dawmar of the property. He stated that Lillian’s will gave the property to his sister and to him. At trial, Howard took the stand to give his opinion as to the fair market value of the property.

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Related

Daubert v. Merrell Dow Pharmaceuticals, Inc.
509 U.S. 579 (Supreme Court, 1993)
Porras v. Craig
675 S.W.2d 503 (Texas Supreme Court, 1984)
State v. Allen
870 S.W.2d 1 (Texas Supreme Court, 1994)
Interstate Northborough Partnership v. State
66 S.W.3d 213 (Texas Supreme Court, 2001)
City of Waco v. Texland Corporation
446 S.W.2d 1 (Texas Supreme Court, 1969)
Kelley v. Marlin
714 S.W.2d 303 (Texas Supreme Court, 1986)
Ferguson v. Ferguson
111 S.W.3d 589 (Court of Appeals of Texas, 2003)
Casey v. Kelley
185 S.W.2d 492 (Court of Appeals of Texas, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
268 S.W.3d 79, 2007 Tex. App. LEXIS 4245, 2007 WL 1558816, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-dawmar-partners-ltd-texapp-2007.