State v. Swarva

541 P.2d 982, 86 Wash. 2d 29, 1975 Wash. LEXIS 751
CourtWashington Supreme Court
DecidedOctober 30, 1975
Docket43583
StatusPublished
Cited by11 cases

This text of 541 P.2d 982 (State v. Swarva) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Swarva, 541 P.2d 982, 86 Wash. 2d 29, 1975 Wash. LEXIS 751 (Wash. 1975).

Opinions

Hamilton, J.

This is a condemnation proceeding. At issue is the amount of compensation due to property own[30]*30ers Everett L. and Lebia Woods, whose land was condemned by the State for highway construction. In return for an agreement for immediate use and possession, RCW 8.04.090, the State offered compensation in the amount of $123,728, and deposited that amount with the court. The owners withdrew the deposit in accordance with the statute, and trial was had on the issue of just compensation.

At the trial, the State’s appraisal experts testified to just compensation on a raw acreage basis, in amounts of $87,000 and $94,000. The owners’ expert testified on a lot basis, in the amount of $200,450. The jury returned a verdict for $107,000. The trial judge, however, entered judgment for $123,728, the amount of the State’s deposit, on the theory that the agreement for immediate use and possession bound the State to that amount as a minimum compensation.

Both parties appealed. The owners’ primary contention is that the State’s experts should not have been permitted to evaluate the property on an acreage basis and that the State should not have been permitted to introduce testimony of a compensation value lower than that reflected in its offer of settlement. The State appeals from the trial court’s additur. The Court of Appeals reversed the trial court, holding the additur improper and the State entitled to an award in the amount of the difference between the verdict and the deposit withdrawn by the owners (an amount of $16,728). State v. Swarva, 12 Wn. App. 84, 528 P.2d 267 (1974). We granted the owners’ petition for review.

The property in question was in the process of being platted by the owners. Certain preliminary steps had been taken toward such a development. The owners had subdivided part of their property and had engaged an engineer who drew up a preliminary plat which was filed and approved by King County. The final plat was drawn up and conformed with King County requirements but was hot approved because of the condemnation proceeding in connection with this highway. The owners had made some physical changes of the property by bringing in fill dirt, [31]*31installing a sewer line to accommodate the subdivision, laying down some roads and curbing, and installing water lines.

We first consider whether appraisal testimony based on different evaluation theories was properly admitted. The owners assert that admission of acreage basis evaluation testimony violates the rule of In re Medina, 69 Wn.2d 574, 418 P.2d 1020 (1966). We there held that unimproved land could not properly be compared for evaluation purposes to a fully developed subdivision, because to do so would lead to speculation and conjecture as to the present market value of the property. The owners argue that this rule should preclude the State from evaluating land on an acreage basis when some steps towards development have been taken. However, the Medina rule is intended to prevent speculation as to present market value. The record does not indicate that the State’s appraisers indulged in unfounded speculation. The State’s experts, aware of the status of the property, were of the view that, given the nature and location of the property (especially its close proximity to a major airport), its best use for the immediate and foreseeable future was as a holding property, an investment for development in the future.

Property often takes its present market value from its potential future use. Where different theories of best use each are supported by credible evidence, it would be unreasonable and unrealistic to expect both parties to use identical appraisal methods. 1 L. Orgel, Valuation under the Law of Eminent Domain § 31 (2d ed. 1953); see Atlantic Coast Line R.R. v. United States, 132 F.2d 959 (5th Cir. 1943); State v. Obie Outdoor Advertising, Inc., 9 Wn. App. 943, 516 P.2d 233 (1973). This is not a case where, as in Medina, a particular theory is entirely speculative and clearly inappropriate. It was not error, therefore, to admit appraisal testimony on both acreage and lot bases, since each theory was in some measure supported by the record. The trial court rightly concluded that a jury question was presented.

[32]*32 The owners contend that RCW 8.26.180 (3)1 prohibits the State from introducing testimony of a value lower than that reflected in the offer of settlement which was paid into court. The State responds by pointing to RCW 8.04.092,2 incorporated by reference in the agreement by which the owners drew down the settlement deposit, [33]*33which states that should the verdict be less than the amount paid into court, the State shall be entitled to a judgment for the difference. We note initially that RCW 8.26.180 is a guideline statute only, and its terms do not declare rights. In fact, RCW 8.26.030 (2) so states:

(2) The provisions of RCW 8.26.180 create no rights or liabilities and shall not affect the validity of any property acquisitions by purchase or condemnation.

In recently considering this statute, the Court of Appeals concluded:

[A] cquiring state agencies should follow the guidelines established by RCW 8.26 to insure open and exhaustive negotiation for settlement with the owner before condemnation or trial. However, once the condemnation trial begins, the parties are in an adversarial position and the guidelines should not apply. The question of whether a particular witness followed sound appraisal practices is a matter for cross-examination and argument.

State v. Obie Outdoor Advertising, Inc., supra at 950.

Moreover, even were the statute to be considered as establishing more than guidelines, RCW 8.26.180 is not inconsistent with RCW 8.04.092, or with the procedure followed by the State in this case. The language pointed to by the owners is in RCW 8.26.180 (3):

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Snohomish County v. Kay Kohler
Court of Appeals of Washington, 2013
Lawrence v. Department of Health
138 P.3d 124 (Court of Appeals of Washington, 2006)
State v. Paul Bunyan Rifle & Sportsman's Club, Inc.
130 P.3d 414 (Court of Appeals of Washington, 2006)
State v. Costich
98 P.3d 795 (Washington Supreme Court, 2004)
State v. Costich
72 P.3d 190 (Court of Appeals of Washington, 2003)
Shields v. Garrison
957 P.2d 805 (Court of Appeals of Washington, 1998)
State v. Swarva
541 P.2d 982 (Washington Supreme Court, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
541 P.2d 982, 86 Wash. 2d 29, 1975 Wash. LEXIS 751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-swarva-wash-1975.