State v. Ransome

392 So. 2d 490
CourtLouisiana Court of Appeal
DecidedOctober 6, 1980
Docket13578
StatusPublished
Cited by19 cases

This text of 392 So. 2d 490 (State v. Ransome) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Ransome, 392 So. 2d 490 (La. Ct. App. 1980).

Opinion

392 So.2d 490 (1980)

STATE of Louisiana
v.
Al J. RANSOME et al.

No. 13578.

Court of Appeal of Louisiana, First Circuit.

October 6, 1980.

*491 G. William Jarman, Baton Rouge, for plaintiff-appellee, State of Louisiana.

Leon Gary, Jr., Baton Rouge, for defendant-appellant, Noel Gilbert and Robert A. Westerlund GRW Investments.

James D. Caldwell, Baton Rouge, for defendant-appellant, Al J. Ransome.

Before ELLIS, COLE and WATKINS, JJ.

WATKINS, Judge.

This is an expropriation suit brought by the State of Louisiana against Al J. Ransome, Noel Gilbert, Robert A. Westerlund and GRW Investments, a Louisiana partnership, to expropriate property on Highland Road in Baton Rouge lying immediately south of the "I-10" exit ramp. The suit was filed under LSA-R.S. 19:1-14. No answers were timely filed. Hence, the sole issue before the trial court was the amount *492 of compensation. The trial court awarded defendants the amount of $215,553.60, plus $5,000.00 attorney's fees, and costs. Defendants appeal, seeking an increase in the amount awarded. We affirm.

The trial court's written reasons for judgment are well stated, and we adopt them as our own:

"The State of Louisiana filed an expropriation suit on July 18, 1979, against Al J. Ransome, Noel Gilbert, Robert A. Westerlund and GRW Investments, a Louisiana partnership domiciled in East Baton Rouge Parish, composed of Ransome, Gilbert and Westerlund, hereafter called Owners, seeking to expropriate Lot 7, Square 259, Suburb Swart and Square C, Suburb Swart, located in the Parish of East Baton Rouge, Louisiana, for the location of a vocationaltechnical educational facility. Sherman A. Bernard, Commissioner of Insurance, as rehabilitator of First Republic Life Insurance Company, was made a party defendant by supplemental petition filed on August 16, 1979.

The suit was filed in accordance with LA-R.S. 19:1-14. No answers were timely filed, therefore, the sole issue before this Court is, what compensation is owing to the Owners. R.S. 19:5.

The property sought to be expropriated was previously owned by Pike Burden, who conducted a printing business on Square C & used Lot 7 as a parking lot. The property is located south of Myrtle Street, Baton Rouge, Louisiana, and is defined as:

Lot 7, Square 259, measures 60 feet on Julia Street and 120 feet on St. Charles Street, being a corner lot consisting of 7,200 square feet.
Square C measures 335.5 feet on Highland Road, 332.95 feet on the south side of Julia Street, 300 feet on the west side of Royal Street and 183.6 feet on the north side of Terrace Street, constituting 77,442.3 square feet. Located on Square C is a masonry building of approximately 8720 square feet and a metal building of 1800 square feet.

The law provides that property shall not be taken by the state except for public purposes and with just compensation paid to the owner. In considering just compensation it is necessary to consider the highest and best use of the property. Section 4 of Article 1 of Louisiana Constitution, Marathon Pipe Line Company v. Pitcher, 368 So.2d 994 (La.1979).

Plaintiff's appraisers consisted of J. Russell Doiron, (MAI) and Thomas Dupree (MAI).

Mr. Doiron issued a primary appraisal on May 1, 1979, to the Facility Planning and Control Department wherein he stated the subject property has an estimated market value of $180,000. In this primary report he made mention of a conversation with Richard Erbland, commercial loan officer of Louisiana National Bank, and Officer of Margate Corporation, a wholly owned subsidiary of Louisiana National Bank. Mr. Erbland (Exhibit D-1) valued the subject property from $150,000 to $200,000. Subsequently Mr. Doiron submitted a final appraisal report dated July 20, 1979, wherein he valued the property at $150,000. His estimate for this valuation was based on a market comparison approach wherein he used the past three sales of the subject property. These sales consisted of:

(1) Sheriff's sale of the subject property wherein it was valued at $125,000 by appraisers appointed in accordance with law;
(2) Sale from Louisiana National Bank, who acquired the property at the Sheriff's sale, to Margate Corporation. Inasmuch as Margate Corporation is a wholly owned subsidiary of Louisiana National Bank, he did not consider the sale as an `arms-length' sale, and
(3) Sale from Margate Corporation to G.R.W. Investments' present owner, dated April 19, 1979, for $150,000.

It was Mr. Doiron's opinion that since the first and third sales exposed the property to the open market within a five month period, the latter sale constitutes the true estimate of the subject property.

Mr. Dupree estimated the value of the subject property by three methods, the cost *493 approach to value, the income approach to value and the market data approach to value. Each of these approaches required the appraiser to determine the square footage value of the subject property. In determining land value, Mr. Dupree used the following comparables in the immediate area;

(1) Witter-Lipsey properties located west of the subject property and containing 53,585 square feet. This property, zoned M-2, was sold by George Patton Waters to Witter-Lipsey on August 2, 1979, for $79,000, which yielded a price of $1.47 per square foot.
(2) B. L. Miller property located north of the subject property and containing 4,469 square feet. This property, zoned A-4, was sold by Drometal Construction, Inc., to B. L. Miller on May 1, 1979 for $6,000 which yielded a price of $1.37 per square foot.
(3) A land purchase contract on Lot 3, Square A, Suburb Swart wherein the sale is to be passed by February 1, 1980, which is zoned M-1 and will yield $.72 per square foot.
(4) A land lease by Werner & Stower to Michael Wayne Morrison on Lot 5, Square 259, Suburb Swart which is leased for 24 months at $175.00 per month.

Mr. Dupree testified that the Witter-Lipsey sale was the best comparable and because the subject property is located on Highland Road, he valued the subject property at $2.00 per square foot.

In his cost approach to value, Mr. Dupree valued the present improvements at $44,769.00, miscellaneous improvements, as walks, drives, etc., at $1500.00 and the land (84,642.3 square feet @ $2.00 per square foot) at $169,300.00, for a total value of $215,000.00 (See Exhibit P-12, page 20-23).

The income approach to value resulted in an evaluation of $212,700.00. (See Exhibit P-12, page 24-25). The market data approach to value resulted in an evaluation of $207,400.00 (See Exhibit P-12, page 26 & 27). Mr. Dupree testified the highest and best use of the property was for warehouse buildings, as constructed by Witter-Lipsey on property adjacent to the first comparable.

Defendant's appraisers, John LeJeune and Kermit Wayne Williams, values ranged from $416,287.00 to $451,400.00.

Mr. LeJeune stated that the subject property's highest and best use would be for the development of a multi-story office building. This opinion was based on the current growth of downtown Baton Rouge which is attributed to the Governmental Complex located north of the subject property. He reasoned that the area of the subject property will develop more rapidly in the future due to the availability of land in the surrounding area.

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392 So. 2d 490, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-ransome-lactapp-1980.