State v. Vacation Land, Inc.

224 A.2d 31, 92 N.J. Super. 471, 1966 N.J. Super. LEXIS 526
CourtNew Jersey Superior Court Appellate Division
DecidedNovember 8, 1966
StatusPublished
Cited by4 cases

This text of 224 A.2d 31 (State v. Vacation Land, Inc.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Vacation Land, Inc., 224 A.2d 31, 92 N.J. Super. 471, 1966 N.J. Super. LEXIS 526 (N.J. Ct. App. 1966).

Opinion

The opinion of the court was delivered by

Goldmanan, S. J. A. D.

Defendant Vacation Land, Inc. appeals from a judgment based on a jury verdict awarding it $19,500 in condemnation, as well as from the denial of its motion for a now trial, on the grounds that the verdict was contrary to the weight of the evidence and grossly inadequate.

The State, through its Commissioner of Conservation and Economic Development, and in pursuance of its Green Acres [474]*474Program, brought condemnation proceedings to acquire 94.89 acres of land in Bass River Township, Burlington County. The propertjr is surrounded by Bass River State Eorest except for some 142' fronting on a road. The acreage is woodland and was acquired by defendant on April 6, 1962 for $24,000. On June 26, 1964 defendant conveyed two 20' x 100' adjoining lots to Sidney Erankel for $395, the deed being recorded on July 10 following. The complaint in condemnation was filed July 13, 1964, and was subsequently amended to include Frankel’s property. The jury awarded Frankel $395 at the same time it returned a verdict of $19,500 for defendant. There is no appeal from the Frankel award.

Defendant’s first witness was David M. Kaplan, a local real estate broker and appraiser. He did not fix a value on the basis of sales of comparable properties, but on his evaluation of the highest and best use for the tract — its development as campsites. He mentioned its accessibility to the state forest, certain rivers in the area, and the Atlantic Ocean, and then referred to an old plot plan, filed in 1898 but redrawn for defendant in 1962, which allowed for a total of approximately 1,800 lots measuring 20' x 100'. A reasonable size for a campsite in today’s market, he said, would be 40' x 100', resulting in 900 lots. However, it would be necessary for a developer to lose 200 of these lots in providing certain facilities and what was described as “central public land” to service the campsite areas. The remaining 700 lots could be promoted and sold for $400 each. Against this figure he allowed $200 a lot for installing roads and promoting sales, and thus arrived at a figure of $140,000 as the value of defendant’s tract.

Cross-examination elicited that Kaplan had not checked the local zoning ordinance which required a 75' lot width and also the licensing of tourist camps. He admitted he had no knowledge of any sales of comparable land in the area. Nonetheless, he testified that he had used the so-called Market Data Approach which, by his own definition, “is used to reflect a value of the property under consideration * * * by analyzing the sales of comparable or similar properties with [475]*475weight given for many factors, including time, size * * Ho further admitted that he was unaware of the local subdivision ordinance and said that if it existed it might be possible to get a variance.

Defendant’s other expert witness was Henry S. Haines, a local real estate and insurance broker. He disregarded the plan used by Kaplan as not feasible for subdivision purposes because of the existing subdivision ordinance, the 75' x 100' lot requirement, and the different street layout that would be needed. In his opinion, the highest and best use for the tract would be for campsites. His approach was not to consider lot size, but front foot value. To do this he projected the need for two arterial roads going through the tract, with seven lateral roads crossing them, and in this way arrived at a total lineal frontage of 25,928' which, at $10 per front foot, produced a figure of $259,280. The installation of roads, plus promotion costs, would require $152,510, leaving a fair market value of $106,770.

Haines did not use any sales of what he considered comparable property. However, he referred to a number of developments possessing various characteristics and which, in his opinion, could not be used for purposes of comparison because they were not similar. His only reason for referring to these developments was that they showed there was a market for land of this character to be used for subdivision or for campsites. On cross-examination he was questioned about certain sales within the immediate area, but said that he was unfamiliar with them. These are the sales used by Leon Wack, real estate broker and appraiser, who testified on behalf of the State.

Mack testified, as had Kaplan, that of the three land valuation methods (the Income, Cost or Reproduction, and the Market Data Approaches), only the last could be used in the circumstances. He then described three comparable sales in the area: (1) 44 acres sold on August 10, 1963 for $1,500 (about 835 an acre); (2) .125 acres sold on April 28, 1962 for 812,250 ($98 an acre), and (3) 504 acres sold on October [476]*4763, 1963 for $24,750 ($49 an acre). These tracts were similar to defendant’s. Using these three sales as an indication of market value, he concluded that defendant’s tract was worth $75 an acre, or $7,065.

On cross-examination Wack said that at the time he valued the property he knew of the $24,000 purchase price and of an existing purchase money mortgage of “approximately” $16,-000-&17,000. However, he considered the subject property comparable in varying degrees to each of the three mentioned sales. Asked why he did not value the property at $35 or $49 an acre — the prices brought in two of the sales — he said he considered defendant’s property superior by reason of location.

Defendant contends that the jury verdict can be set aside where it appears it was the result of mistake, partiality, prejudice or passion and, in the circumstances, should have been set aside. B. B. 4:61-1 (a) sets out the test to be applied on a motion for a new trial in jury eases:

“* * — On a motion for a new trial in an action tried before a jury, the trial judge shall not set aside the verdict as against the weight of the evidence unless, having given due regard to the opportunity of the jury to pass upon the credibility of the witnesses, it clearly and convincingly appears that the verdict was the result of mistake, partiality, prejudice or passion.”

As the transcript of the argument on the motion demonstrates, the trial judge was fully aware of that rule, and as cautious as it required him to be. The only reason that might be advanced for. setting the verdict aside, he said, was that the jury made a mistake, and in his opinion the jury had not. It had viewed the site and heard the evidence. It was not obliged to value defendant’s property by the single sale made to Erankel. Nor did it absolutely have to follow the comparable sales; it could take into consideration differences in neighborhood, conditions, suitability, and all the other variables that entered the picture. Although the verdict was “conservative,” and lower than he would have fixed as a fair value, there was nothing to show that it reflected mistake on [477]*477tiie part of the jury. The trial judge cited Kulbacki v. Sobchinsky, 38 N. J. 435 (1962), as stating his proper role on a motion for a new trial.

Loth sides admit that a verdict may not be set aside unless it is so far contrary to the weight of the evidence as to give rise to the inescapable conclusion of mistake, passion, prejudice or partiality, citing Hager v. Weber, 7 N. J. 201, 210 et seq. (1951), and Monihan v. Public Service Interstate Transp. Co., 22 N. J. Super. 149, 154 (App. Div. 1952).

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Cite This Page — Counsel Stack

Bluebook (online)
224 A.2d 31, 92 N.J. Super. 471, 1966 N.J. Super. LEXIS 526, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-vacation-land-inc-njsuperctappdiv-1966.