State v. Fullerton

34 P.3d 1180, 177 Or. App. 254, 2001 Ore. App. LEXIS 1584
CourtCourt of Appeals of Oregon
DecidedOctober 17, 2001
DocketC97-1304CV; A106704
StatusPublished
Cited by2 cases

This text of 34 P.3d 1180 (State v. Fullerton) 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 v. Fullerton, 34 P.3d 1180, 177 Or. App. 254, 2001 Ore. App. LEXIS 1584 (Or. Ct. App. 2001).

Opinion

EDMONDS, P. J.

In this condemnation proceeding, the State of Oregon through the Department of Transportation (ODOT), condemned property belonging to defendants for the Camelot/Sylvan Interchange project on Highway 26 in Portland. After defendants Peterson defaulted, ODOT filed an amended complaint alleging that the just compensation for defendants Fullertons’ property was $74,500.1 The Fullertons answered that the value of the land taken and the damages to their remaining property were at least $200,000. The jury awarded $83,259 as just compensation. The Fullertons appeal, arguing in part that the trial court erred by submitting to the jury the issue of whether there were “special benefits” to their property arising from the condemnation without evidence that would have enabled the jury to calculate those benefits. We reverse on that ground.

Until ODOT condemned part of the Fullertons’ land, their property had been used as a seven-unit apartment complex with accompanying garages. After the taking, the portion of the property the Fullerton’s retained was still usable as a seven-unit apartment complex, but there was only one route of vehicle access to public roads instead of the two routes that had previously existed, and the remaining garage units were suitable only for personal storage rather than for parking vehicles. As a result of the loss of the garages, the Fullertons were required to add a parking facility to their property in order to provide the amount of parking required by building codes. The project also triggered the need for additional landscaping to bring the property up to code. The issue in this case focuses on whether the Fullertons’ property benefitted in added value from ODOT’s project. The parties agree that the law provides that any devaluation of property retained by a condemnee can be offset by the value of any [257]*257“special benefit” that is conferred on the remaining property by the taking.

During the discovery process before trial, the Fullertons were provided with appraisals from their own appraiser and from ODOT’s appraiser as to the fair market value of the land taken. Neither appraisal reported that any amount of measurable “special benefit” had accrued to the Fullertons’ remaining land. As a result, the Fullertons moved in limine to exclude consideration by the jury of the “special benefits” issue. ODOT objected, arguing that, while it might not be able to produce a numerical assessment of the monetary value of such benefits, it would be able to produce evidence from which special benefits could be inferred. The trial court denied the Fullertons’ motion, and they first assign that ruling as error.

At trial, the parties presented expert testimony as to the value of the land taken. ODOT’s experts disagreed with the Fullertons’ experts as to that value, and there were multiple exhibits, calculations and photographs given to the jury from which it could determine a monetary value for the land. There also was evidence of the amounts by which the retained parcel had been devalued by the taking. However, there was no evidence of a monetary value of any special benefits to the property presented by either side. Some witnesses testified generally that the access to the property was structurally “better,” and that the paved parking lot would be better than a gravel lot, but another witness testified that the Fullertons’ property was “different, * * * but not necessarily better” because of the taking.

After the parties had finished presenting their evidence, they discussed the giving of a “special benefits” instruction. The court recognized that no monetary figure had been offered by the state as to the value of any special benefit but ruled that the issue could be submitted to the jury nonetheless. During closing arguments, the parties argued to the jury about the issue of special benefits. The Fullertons pointed to the appraisers’ assessments that there were no monetary special benefits, while ODOT relied on inferences arising from the paving, landscaping, and new drainage work to be done by the state. Over the Fullertons’ exception that [258]*258there was insufficient evidence to support the giving of such an instruction, the trial court told the jury that it could offset the value of any special benefits to the remaining property fi-Qm its calculation of the Fullertons’ loss because of the taking. That ruling forms the basis of the Fullertons’ final assignment of error.2

On appeal, the Fullertons argue that, before the issue of special benefits can be submitted to a jury, there must be evidence from which it can find a specific amount of money that represents the benefit. They assert that the record is devoid of any such evidence. ODOT counters that, under Oregon law, special benefits evidence is admissible without a specific dollar amount and that the record supports the giving of an instruction on the subject. In addition, it argues that,

“[E]ven if the challenged evidence had been inadmissible, its admission would have been, at most, harmless error in view of the benefits evidence that was admitted without challenge. That unchallenged evidence showed that before the project the owners’ property had a narrow, potholed driveway and parking lot, and that when the project is complete, the property will have a paved access road and parking area and irrigated landscaping. It also showed that paved parking costs less to maintain than gravel parking and makes property more attractive to investors in urban areas, such as greater Portland. Other unchallenged evidence showed that putting the property to its highest and best use would require paving the parking area and bringing the landscaping up to current development code standards, that it would be expensive to do so, and that the project will make those changes.”

“Special benefits” in a condemnation proceeding are benefits “peculiar to the [property]” that “increase its accessibility and enhance [its] highest and best uses.” State Dept. of Trans. v. Montgomery Ward Dev., 79 Or App 457, 464, 719 P2d 507, rev den 301 Or 667 (1986). Their value maybe used to offset the damages to the remainder of the property after a condemnation occurs, but it cannot be used to adversely [259]*259affect the right of the owner of the property to receive the fair market value of the land taken for public use. State Highway Com. v. Bailey et al., 212 Or 261, 319 P2d 906 (1957). In Bailey, the Highway Commission condemned the defendants’ farmland for use along a highway. The trial court struck the Highway Commission’s pleading that alleged that, although the taking would devalue the property in certain ways, there would be special benefits to the property. The commission’s pleading alleged the monetary value of the special benefits that would be conferred on the condemned lands. The court first determined that the improvements about which the Highway Commission wanted to offer evidence were in fact “special” benefits accruing only to the affected landowners, rather than general benefits to the region as a whole.

The court then undertook to describe the kind of evidence that is admissible on the issue of special benefits.3 It explained:

“We have held that it is unnecessary for the jury to make special findings as to the amounts of damages and benefits.

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Cite This Page — Counsel Stack

Bluebook (online)
34 P.3d 1180, 177 Or. App. 254, 2001 Ore. App. LEXIS 1584, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-fullerton-orctapp-2001.