Thompson v. State

319 S.W.2d 368, 1958 Tex. App. LEXIS 1656
Court of Appeals of Texas·Decided December 18, 1958·No. 3612·Published·Cited by 16 cases

Opinion

McDONALD, Chief Justice.

This is a condemnation suit. The parties will be referred to as in the Trial Court. The State of Texas -as plaintiff instituted condemnation proceedings against defendants to take certain of their lands upon which to reconstruct U. S. Highway No. 281. Special Commissioners awarded defendants damages in the amount of $7,-500. Objections and exceptions to such award were taken by-the defendants. Trial was to a jury in County Court upon the sole issue of damages, defendants having filed their admissions under Rule 266, Texas Rules of Civil Procedure.

The jury found that:

1) 36.67 acres of land taken had a reasonable market value of $1,500.

2) The balance of defendants’ land before the taking had a reasonable market value of $59,220.

3) The balance of defendants’ land after the taking had a reasonable market value of $53,346.

The Trial Court awarded defendants judgment for $7,374.

Defendants appeal, contending:

1) The jury’s answer to Issue 1, supra, finding the reasonable market value of the 36.67 acres taken to be $1,500, is not supported by and is contrary to the evidence.

2) The Trial Court erred in permitting plaintiff to read to the jury the amount *370 of money offered to defendants by plaintiff for the land in question.

3) The Trial Court erred in permitting counsel for plaintiff to inquire of defendants as to the original cost of acquisition of the land in question, over defendants’ objection.

4), 5) The Trial Court erred in permitting plaintiff to elicit testimony from the witness Paul Henderson as to the value of defendants’ remaining land in two separate tracts after the taking; and to elicit testimony from the witness Tom Diamond concerning the sale of land from one McCabe to one Weathers in 1952.

We revert to defendants’ 3rd contention, which complains of the action of the Trial Court in permitting plaintiff’s counsel, over defendants’ objection, to inquire of defendant the original cost of the land in 1950. Defendant replied that he paid $33,000 for 882 acres of land (or approximately $37.50 per acre). When counsel for plaintiff asked defendant how much he paid for the land, defendants’ counsel objected to the question on the ground that the date of purchase, 1950, was too remote to have any bearing on the cash market value of the land, and that the question and answer were immaterial as to any issue for the jury as to the reasonable cash market value of the land (in 1958), and would be prejudicial to defendants. The Trial Court overruled the obj ection and made defendant answer the question.

The general rule governing the above is stated in 16 Tex.Jur., Sec. 248, p. 572, as follows:

“The cost to the owner of the land and of the improvements subsequently made is not of itself evidence of market value. If such evidence is to be received at all, it is not admissible when a considerable interval of time has elapsed between the date of the purchase and the time of the litigation.”

See also Scott v. McLennan County, Tex.Civ.App., 306 S.W.2d 943, W/E Ref.N.R.E.; Hubbard v. Harris County Flood Control Dist., Tex.Civ.App., 286 S.W.2d 285, W/E Ref.N.R.E.

The object of the inquiry to the jury is to determine the reasonable market value of the property at the time of the taking. Market value in a condemnation suit is the price for which property will sell when offered by one who desires to sell, but is not obliged to do so; and is purchased by one who desires to buy, but is under no necessity of buying. State v. Carpenter, 126 Tex. 604, 89 S.W.2d 194. Any evidence which may reasonably contribute to an answer of such issue is admissible. The price the owner paid for the property is not admissible as such (since it does not necessarily reflect on market value at the time of the taking). It may become admissible, however, if sufficient predicate be developed whereby the evidence tends in a reasonable manner to reflect on the market value at the time of taking. To render such evidence admissible, it should be shown that the sale was very recent; that values have not changed in the area since the date of such sale; that such sale was not a forced sale, or a “kinfolks’ sale”; and that such sale was one between a seller who desired to sell but was not obliged to do so, and a buyer who desired to buy but was under no necessity of buying. When such predicate is laid, we think evidence of the price the owner paid for the property is admissible as tending to reflect on the reasonable market value at the time of the taking. Until such predicate is laid, the evidence is not admissible. As to how recent or how remote in point of time such purchase of the property occurred, the more remote in point of time the purchase, the less likelihood the admissibility of the purchase price — and the inore recent the purchase, the more likelihood the admissibility of the evidence. The trial judge has and should have broad, but not unlimited discretion, in determining the admissibility of evidence of the price the owner paid for his property, under the foregoing rules. *371 Should the evidence be inadmissible upon application of the foregoing rules — but be erroneously admitted, one resulting vice is the influence of such on the jury to place a value on the owner’s property below market value simply because the owner acquired it at a price considerably lower. See Reeves v. City of Dallas, Tex.Civ.App., 195 S.W.2d 575, W/E Ref.N.R.E.; Couch v. Gulf, C. & S. F. Ry. Co., Tex.Civ.App., 292 S.W.2d 901, W/E Ref.N.R.E.; City of Houston v. Pillot, Tex.Civ.App., 73 S.W.2d 585, reversed on other grounds Tex.Com.App., 105 S.W.2d 870.

Applying the rules announced, we have concluded that the Trial Court erred in requiring the defendant to testify as to the purchase price of the land over his counsel’s objection for the reasons briefly hereinafter noted. The date of the purchase was nearly eight years previous to the date of taking. This interval of time, we think, renders the evidence of purchase price too remote to have probative value in arriving at the reasonable market value in 1958. There was no showing that values in 1950 were substantially the same as in 1958 — and to the contrary, we take judicial knowledge of the fact that land values have increased generally during such period of time. Moreover, the record before us affirmatively shows that land values in Hamilton County have increased about 40% during such period. Finally, there was no showing that defendant had purchased the property in a free market sale. Defendants’ contention 3 is sustained. ,

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Thompson v. State, 319 S.W.2d 368, 1958 Tex. App. LEXIS 1656 (Tex. Ct. App. 1958).

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