State v. St. Charles Airline Lands, Inc.

871 So. 2d 674, 2004 WL 894862
CourtLouisiana Court of Appeal
DecidedApril 27, 2004
Docket03-CA-1292, 03-CA-1293, 04-CA-20
StatusPublished
Cited by7 cases

This text of 871 So. 2d 674 (State v. St. Charles Airline Lands, Inc.) 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. St. Charles Airline Lands, Inc., 871 So. 2d 674, 2004 WL 894862 (La. Ct. App. 2004).

Opinion

871 So.2d 674 (2004)

STATE of Louisiana, Pontchartrain Levee District
v.
ST. CHARLES AIRLINE LANDS, INC.

Nos. 03-CA-1292, 03-CA-1293, 04-CA-20.

Court of Appeal of Louisiana, Fifth Circuit.

April 27, 2004.
Rehearing Denied May 21, 2004.

*677 R. Ryland Percy, III, Katherine T. Percy, Gonzales, LA, for Plaintiff/Appellant.

Randall A. Smith, Andrew L. Kramer, L. Tiffany Davis, New Orleans, LA, for Defendant/Appellee.

James J. Coleman, Sr., New Orleans, LA, for Defendant/Appellee.

Panel composed of Judges SOL GOTHARD, CLARENCE E. McMANUS and WALTER J. ROTHSCHILD.

WALTER J. ROTHSCHILD, Judge.

This consolidated appeal arises from the expropriation by the State of Louisiana, Pontchartrain Levee District ("Levee District") of certain properties owned by St. Charles Airline Lands, Inc. ("SCAL"), for the purpose of building a hurricane protection levee. In 1965, Congress authorized a project for levee construction along the banks of Lake Pontchartrain in order to provide hurricane protection to the parishes of St. Charles, Jefferson, Orleans, and St. Bernard. The property at issue in this case is located in St. Charles Parish adjacent to and along the north side of U.S. Highway 61, commonly referred to as Airline Highway. It begins near the intersection of Airline Highway and the Interstate 310 interchange and extends nearly two miles to Ormond Boulevard. The subject property is designated as wetlands.

The Levee District instituted expropriation proceedings by filing petitions for expropriation, pursuant to LSA-R.S. 38:351, et seq., on May 31, 1991, and January 24, 1994[1], and orders of expropriation were signed for the property sought in each petition. The Levee District deposited its estimate of just compensation for the taking of each property into the registry of the court, which was $24,104 for the 1991 taking and $47,595 for the 1994 taking. The Levee District based its calculation of just compensation on its belief that the property consisted of undevelopable wetlands. SCAL contested the amount of just compensation deposited by the Levee District in each suit, arguing that the value of the property was much higher than estimated by the Levee District and that SCAL was also entitled to severance damages. SCAL argued that the property was not undevelopable and that the highest and best use of the property at the time of the takings was for commercial and residential development.

A four-day trial began on January 13, 2003 and concluded on January 17, 2003. At trial, in order to establish that the property's highest and best use at the time of the expropriations was residential and commercial development, SCAL had the burden of proving that it could have obtained permits to develop the property from the Louisiana Department of Natural Resources ("DNR") and the U.S. Army Corps of Engineers ("Corps") at the time of the takings.

On March 11, 2003, the trial court rendered a judgment in favor of SCAL, finding that there was a reasonable probability that the requisite wetland permits could have been obtained at the time of the takings to develop the property to its highest and best use, which was commercial *678 and residential development. The trial court awarded additional compensation in the amount of $1,326,338.60 for the 1991 taking, and $1,742,081.90 for the 1994 taking. This award includes additional just compensation for the property actually expropriated, compensation for temporary construction servitudes, and severance damages for the remaining property that was adversely affected by the takings.

A hearing on SCAL's Motion to Determine Attorney's Fees, Expert Fees, and Costs was held on August 6, 2003. On September 25, 2003, the trial court rendered a judgment in favor of SCAL, awarding attorney fees in the amount of 10% of the additional compensation awarded at trial and interest, expert fees in the amount of $151,435.79, and costs in the amount of $15,186.87.

The Levee District filed appeals from both the judgment on the trial on the merits and the judgment awarding attorney fees, expert fees, and costs, and these appeals were consolidated by this Court. On January 20, 2004, SCAL filed an answer seeking an increase in the amount of attorney fees awarded.

TRIAL TESTIMONY

At trial, both the Levee District and SCAL introduced evidence and testimony regarding wetlands permitting and valuation of the property.

SCAL presented the testimony of Bennett Oubre, who was accepted as an expert in real estate appraisal. He stated that the subject property, which is north of Airline Highway, is 307 acres owned by SCAL. He believes that the I-310 interchange opened in June of 1991 and was going to bring a significant impact to St. Charles Parish as far as development potential. The property at issue in this case is the first property that is present just after exiting I-310, and he believes it was well-suited for commercial and residential development in 1991. As an appraiser, he considered many factors in valuing the property, including permittability. He opined that it was probable that SCAL would have received permits for the property in the reasonably foreseeable future.

Mr. Oubre valued the subject property at $12,000 per acre prior to the 1991 taking, and he opined that the compensation for use of SCAL's property for the temporary servitude during construction should be determined by using 9% of the value of each acre used. He stated that there is no reasonable, feasible, financial way to develop the remaining property at this point because of the alignment of the levee through the property. Therefore, he opined that severance damages should be awarded, and he estimated these damages at $1,393,285.

With regard to the 1994 taking, Mr. Oubre believed the property should be valued at $14,000 per acre, and 9% of this value per acre should be used to determine the value of the temporary servitude required to construct the levee. He further opined that the remainder of the property had no economic value after the taking, so severance damages of $1,581,257 should be awarded.

On cross-examination, Mr. Oubre agreed that $700 is within the range of value for undevelopable wetlands, but he believed the property could have been permitted and developed. He stated that most of St. Charles Parish and the Greater New Orleans region were wetlands at one time.

SCAL called George Castille, III to the stand. Dr. Castille is employed by Coastal Environments, Inc., and he was accepted by the court as an expert in the fields of historical geography and navigability of waterways. He researched the history of permits and the probability of obtaining a permit in this case, based on historical *679 trends and projections for the subject property. He stated that the vast majority of the property that has been developed along Airline Highway was wetlands at one time. Further, the majority of lands developed in the New Orleans area were originally wetlands and there has been a constant effort to utilize wetlands for human needs.

In addition to photographing sites and researching permits, Dr. Castille looked at the data supplied by DNR and the Corps regarding the percentage of permits that are granted. He stated that both a DNR permit and a Corps permit would have been required to develop this property. He indicated that less than 1% of DNR permit applications in St. Charles Parish and less than 1% of Corps permits in the New Orleans District were denied from 1985 to 1990.

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Bluebook (online)
871 So. 2d 674, 2004 WL 894862, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-st-charles-airline-lands-inc-lactapp-2004.