State v. Wandermere Co.

949 P.2d 392, 89 Wash. App. 369
CourtCourt of Appeals of Washington
DecidedDecember 23, 1997
Docket15478-5-III
StatusPublished
Cited by4 cases

This text of 949 P.2d 392 (State v. Wandermere Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Wandermere Co., 949 P.2d 392, 89 Wash. App. 369 (Wash. Ct. App. 1997).

Opinion

*371 Sweeney, C.J.

This is a condemnation case. The State’s theory of the case would have limited its taking to a 24.45-acre parcel of property, owned by The Wandermere Company and leased to Acme Concrete Company as a sand and gravel pit. Wandermere’s theory of the case expanded the State’s taking to a 62-acre parcel that included not only the 24.45-acre parcel actually mined by Acme but also an additional 37 acres which contained sand and gravel deposits but had not been mined. The jury accepted Wandermere’s theory of the case. The question presented is whether its evidence was legally sufficient to submit Wandermere’s theory of the case to the jury. Or, said another way, whether the trial court should have ruled as a matter of law that the taking was limited to the 24.45 acres and the jury’s award for the additional 37 acres represented, as a matter of law, an improper payment for a future intended use. See Doolittle v. City of Everett, 114 Wn.2d 88, 786 P.2d 253 (1990). We agree with the trial court. There was sufficient evidence of a unified and current use of the 62-acre parcel to submit Wandermere’s theory to the jury. We therefore affirm the judgment.

FACTS

Evidence

In 1993, the State of Washington condemned 5.56 acres owned by The Wandermere Company as part of a highway construction project. Wandermere leased 24.45 acres, which included the condemned property, to Acme Concrete Company for a sand and gravel pit. Acme Jiad mined the site as recently as 1988. Buildings and equipment used for the operation were located on the 5.56 acres.

The State offered $38,900 for the taking. The State’s offer was premised on its theory that the condemned 5.56 acres was part of the 24.45-acre leased parcel that contained *372 little remaining sand and gravel deposits. Hence, its highest and best use was not as a mine, but for residential purposes. Wandermere and Acme maintained that the taking was from part of a larger 62-acre parcel that contained 4.5 million cubic yards of sand and gravel yet to be mined.

The State presented evidence that only the 24.45-acre leasehold was appropriately zoned for mining operations or covered by a state mining permit. The additional 37 acres was zoned for single family dwellings. An engineer called by the State also concluded that the 37 acres contained little sand and gravel. An appraiser hired by the State concluded that the highest and best use for the 5.56 condemned acres was residential and valued the property at between $9,000 and $12,000 per acre.

Robert Ross and Herbert Brown are members of the family that owns Wandermere. They testified that the gravel pit had been in use since the 1920s. The family regarded the entire 62 acres as a single unit and expected to mine all of it. When Acme’s predecessor wanted to lease the property in 1977, Wandermere limited the lease to 24.45 acres because it did not want to commit the entire parcel to one lessee. Acme’s officers and employees testified that in 1987 the company explored extending the lease to the additional 37 acres. Acme’s expert estimated that the 37 acres contained about 4.5 million cubic yards of sand and gravel suitable for construction. He also testified that approximately 500,000 cubic yards of sand and gravel remained in the original 24.45-acre site. Acme claimed that it did not pursue the expanded lease because new construction slowed and consequently so did the demand for sand and gravel. It closed the mine. Construction increased in the early 1990s, but by that time Acme was aware of the State’s intent to condemn the property for highway construction.

A Department of Natural Resources (DNR) employee, William Lingley, testified that Frederick Hobbs of Acme contacted him in 1987 to inquire about expanding the mining permit to cover the additional 37 acres. Mr. Lingley testified that the DNR probably would have granted the *373 extension because of the high demand for sand and gravel and a Growth Management Act preference for expansion of existing mines over granting permits for new mines.

Dwight Hume, a land use planning consultant and former zoning adjuster, also testified that the highest and best use of the 37 acres was mining. He concluded that Wandermere could have obtained the necessary zoning change because mining was not a unique or new land use in the area. The owner had mined the adjoining 24.45 acres since the 1920s. Wandermere was the landowner and the closest neighbor to the proposed new zone. The steep sides of the 37 acres provide a natural buffer for the mine. Trucks transporting the sand and gravel had direct access to State Route 395. There were no severe environmental consequences that would follow the proposed extension. And, the Growth Management Act favored mining out existing sites.

Perry Michael Taylor is an expert in the design and construction of concrete batch plants and facilities for aggregate crushing, sorting and sizing. He evaluated the ground that would be left after the State’s taking and concluded only 1.36 acres would be available to locate a batch plant—substantially less than would be needed. Most of the remaining site was either too steep or too unstable for building. The State presented expert opinions that the remaining site was suitable for building.

Steve Robinson, Acme’s president, testified the Wandermere plant had a special value to Acme because it was located in the high growth areas of north Spokane and Spokane County. This location reduced the cost of transporting the product, which gave Acme a competitive edge. He testified Acme always intended to reopen the mine and continued to pay the annual rental of $10,000 per month, even after it closed the mine in 1988. It also continued to pay the additional annual minimum royalty payment of $12,500. Under the lease, Acme paid Wandermere a royalty of $1 for every cubic yard mined. Mr. Robinson testified that when Acme heard reports that the State intended to condemn the property for a road project, it moved its batch plant and equipment.

*374 Dewitt Sherwood also testified the highest and best use of the larger parcel was mining. Mr. Sherwood concluded the taking had eliminated the highest and best use for the 62-acre parcel. He based his opinion on testimony that the remaining acreage had no suitable site for the batch plant. He used the income approach to measure the loss. Mr. Sherwood testified the fair market rental value of the property at the time of the taking was $20,000 per month. And Wandermere would have collected $4.5 million in royalty payments had mining continued. Mr. Sherwood viewed all royalty amounts as rent. He assumed a lessee would mine all 4.5 million cubic yards of the sand and gravel remaining on the 37 acres in the next 10 years, and ultimately pay Wandermere royalties of $4.5 million. To this sum, he added the monthly rental payments for 10 years, discounted both the royalties and the monthly rent amounts to present value, and subtracted the reversionary value of the property after the mine was depleted. Based on these calculations, Mr. Sherwood estimated the value of the acreage, if used as a sand-and-gravel mine, was $4,580,000.

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Bluebook (online)
949 P.2d 392, 89 Wash. App. 369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-wandermere-co-washctapp-1997.