UDOT v. Boggess-Draper Company

2025 UT App 58
CourtCourt of Appeals of Utah
DecidedMay 1, 2025
DocketCase No. 20220875-CA
StatusPublished

This text of 2025 UT App 58 (UDOT v. Boggess-Draper Company) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
UDOT v. Boggess-Draper Company, 2025 UT App 58 (Utah Ct. App. 2025).

Opinion

2025 UT App 58

THE UTAH COURT OF APPEALS

UTAH DEPARTMENT OF TRANSPORTATION, Appellee, v. BOGGESS-DRAPER COMPANY, LLC, Appellant.

Opinion No. 20220875-CA Filed May 1, 2025

Third District Court, Salt Lake Department The Honorable Barry G. Lawrence No. 090921179

Robert E. Mansfield and Megan E. Garrett, Attorneys for Appellant Derek E. Brown, Stanford E. Purser, Barbara H. Ochoa, and Andrew Kolter, Attorneys for Appellee

JUDGE MICHELE M. CHRISTIANSEN FORSTER authored this Opinion, in which JUDGES GREGORY K. ORME and JOHN D. LUTHY concurred.

CHRISTIANSEN FORSTER, Judge:

¶1 In 2009, the Utah Department of Transportation (UDOT) condemned a portion of a parcel of property owned by Boggess- Draper Company, LLC (Boggess) for a major project that included building a new freeway interchange and reconstructing a roadway. The parties were unable to reach an agreement on the amount of just compensation and severance damages that Boggess should receive for the condemnation, and the matter eventually proceeded to a jury trial to determine damages. After the trial, the jury awarded Boggess over $1.7 million, which included compensation for the value of the property taken as well UDOT v. Boggess-Draper Co.

as severance damages. UDOT appealed, arguing the district court had improperly excluded evidence that Boggess eventually sold the remainder property and that the property had since been developed. The Utah Supreme Court agreed with UDOT and reversed the verdict and remanded the matter for a new trial. See Utah Dep’t of Transp. v. Boggess-Draper Co., 2020 UT 35, ¶¶ 1–2, 11, 467 P.3d 840.

¶2 Following a trial on remand, the jury awarded Boggess approximately $330,000 for the value of the condemned property, but it determined that Boggess was not entitled to severance damages on the remaining property. Boggess now appeals this verdict, asserting the district court abused its discretion when ruling on the admissibility of evidence relating to (1) the post- valuation sale and development of the remainder property, (2) the terms of an offer to purchase the property prior to the taking, (3) the benefits UDOT’s project provided to the remainder property, and (4) the project’s influence on the property’s value. Although most of Boggess’s arguments are not well taken, we agree with Boggess that the court’s decision to admit evidence about the benefits the project conferred on the property was based on a misunderstanding of controlling law. Because the admission of this evidence was harmful to Boggess, we reverse the verdict and remand the matter for a new trial.

BACKGROUND

¶3 In 2009, Boggess owned an undeveloped parcel of property (the Property) at the southwest corner of 11400 South and Lone Peak Parkway in Draper, Utah. At the time, 11400 South was a two-lane road that did not connect to the I-15 freeway. Lone Peak Parkway was one of two commercial frontage roads that connected the closest neighboring interchanges on I-15 (10600 South and 12300 South). The area around the Property had

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already been developed for commercial use and was occupied by a Walmart and two car dealerships.

¶4 UDOT sought to acquire a portion of the Property along 11400 South to construct a new I-15 interchange and widen and extend the existing roadway (the project). UDOT prepared an appraisal to assess the value of the proposed taking, but negotiations fell apart when the parties could not agree on the total value of the taking, which was to include both the value of the taken property and any severance damage to the remaining property. Thereafter, UDOT filed an eminent domain action to condemn the desired portion of the Property. As the litigation progressed, the parties stipulated that the valuation date for the Property was December 17, 2009.

¶5 The matter eventually proceeded to a jury trial that took place in 2018. Utah Dep’t of Transp. v. Boggess-Draper Co., 2020 UT 35, ¶ 5, 467 P.3d 840. Prior to trial, Boggess had filed a motion in limine asking the district court to exclude evidence that Boggess had sold the remainder of the Property in 2016 and that the land had since been developed into two car dealerships. Id. ¶¶ 5–6. The court had granted the motion based on a perceived “categorical rule prohibiting evidence of any sale or development of property after the date of its taking.” Id. ¶ 13. At the close of trial, the jury awarded Boggess over $1.7 million, which included compensation for the value of the property taken as well as severance damages. Id. ¶ 9.

¶6 UDOT appealed, asserting, among other things, that the district court had erred in granting Boggess’s motion in limine and categorically barring evidence of the post-valuation sale and development of the Property. Id. ¶ 11. The Utah Supreme Court agreed with UDOT. Id. ¶ 2. The court held “that a post-valuation- date sale or other development is potentially relevant evidence, and not subject to a categorical bar under the code,” id. ¶ 23, and that the admissibility of such evidence is governed by the Utah Rules

20220875-CA 3 2025 UT App 58 UDOT v. Boggess-Draper Co.

of Evidence, including rule 403, id. ¶¶ 18, 25. The court determined that “[a] post-valuation-date sale or development of property may be relevant to the extent it aids the factfinder in checking assumptions about the development potential of the property in question,” id. ¶ 20, but it also recognized that “such developments may not be conclusive, as where market conditions have changed markedly from those expected at the time of the taking,” id. ¶ 24. The court noted, however, that “[c]oncerns about unexpected changes in market conditions can be raised and tested in the crucible of the adversary system—through dueling experts and otherwise,” id. ¶ 25—because these concerns go “to the weight of the evidence and not its competency or its relevance,” id. ¶ 27 (quotation simplified).

¶7 After determining the district court had erred in excluding the post-valuation sale and development evidence, the supreme court then concluded that the error constituted reversible error. Id. ¶ 31. It reasoned that the exclusion of the evidence had “hamstrung” UDOT in presenting any evidence to rebut Boggess’s claim for severance damages, which was “premised on the idea that UDOT’s taking diminished access to the remaining property and increased commuter traffic.” Id. ¶¶ 32–33. The court accordingly reversed the verdict and remanded the matter for a new trial. Id. ¶ 2.

¶8 Following a multi-day trial on remand, the jury awarded Boggess approximately $330,000 for the value of the condemned property, but it determined that Boggess was not entitled to severance damages. Boggess contends this verdict—which represents a roughly $1.4 million reduction from the first verdict—is attributable to four improper evidentiary rulings rendered by the district court. We briefly summarize each of the court’s challenged rulings.

¶9 Evidence of the post-valuation sale and development of the Property. Boggess filed a pretrial motion in limine seeking to

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again exclude evidence of the 2016 sale and development of the Property. Boggess argued that this evidence was improper under rule 403 of the Utah Rules of Evidence because any probative value was substantially outweighed by a danger of unfair prejudice, confusing the issues, and misleading the jury. The district court granted the motion in part, concluding that the sales price of the Property should be excluded, but it denied the motion insofar as it concerned evidence of the fact of the sale and subsequent development of the remainder parcel (the post- valuation evidence), concluding that such evidence was admissible.

¶10 Evidence of general benefits to the Property.

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