United States v. 100.00 Acres of Land in Livingston County

369 F. Supp. 195, 1973 U.S. Dist. LEXIS 13760
CourtDistrict Court, W.D. Kentucky
DecidedMay 4, 1973
DocketCiv. A. No. 2089
StatusPublished

This text of 369 F. Supp. 195 (United States v. 100.00 Acres of Land in Livingston County) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. 100.00 Acres of Land in Livingston County, 369 F. Supp. 195, 1973 U.S. Dist. LEXIS 13760 (W.D. Ky. 1973).

Opinion

FINDINGS OF FACT, CONCLUSIONS OF LAW AND OPINION

ALLEN, District Judge.

Following a two day bench trial, the transcription of the evidence and the filing of briefs by the parties, this action is now before the Court for decision as to the just compensation to be paid to the owners of what is known as “Dog Island” for the condemnation in fee simple by the Government of their ownership of approximately 105 acres of property, which has been taken by the Government for use in connection with the erection of a dam on the.Ohio River, the project being known as the “Smithland Project”.

Dog Island is located approximately eleven miles north of the City of Paducah, Kentucky, and is 600 feet east of the Illinois mainland and about one-half mile west of the Kentucky mainland. It lies at elevation 316 feet to 326 feet and contains about 90 to 95 acres of cleared land and approximately 10 acres of woodland.

Dog Island was purchased by Robert N. Frazer and Dorothy F. Frazer, his wife, in 1954 and sold in 1958 to C. E. Gordon and Bertha F. Gordon, his wife, although the Frazers retained a one-half mineral interest in the property. The property was used for agricultural purposes, and primarily for the production of corn from 1958 to 1966, when the United States leased it in anticipation of the taking for the Smithland Project. The property has never been used for mining purposes, although Mr. Frazer has been in the fluorspar business all of his life and retained, as stated above, a one-half mineral interest in the property.

The date of taking of the property was June 4, 1970, and the Court, pursuant to the ruling of the Sixth Circuit in the case of United States v. 79.39 Acres of Land in Breckinridge and Meade Counties, etc., 440 F.2d 1190 (1971), allowed testimony to be introduced as to alleged comparable sales both prior to that date and thereafter.

In this action, the condemnees have argued that the property has four highest and best uses, whereas the Government has insisted that its only best use is for agricultural purposes. The condemnees insist, and produced evidence to support their contentions, that the property could be used for a mooring site, for a fluorspar development, for hunting uses, and finally for agricultural purposes.

[197]*197As might be expected, the values placed on the property, in light of the conflicting views as to the highest and best use of the property, produced widely varying estimates of the fair market value, ranging from $226,000 on the part of the landowners, to $21,200 on the part of the Government.

After examining all of the evidence and authorities relating thereto, the Court has concluded that the highest and best use of the property is agricultural, and that the fair and just compensation to be awarded is the sum of $28,250.

The landowners produced considerable testimony relating to the use of Dog Island for a barge terminal. One of their witnesses, Mr. Steve Fugate, a realtor with six years experience, testified that Livingston Point, which is used as a barge terminal, is some 13 miles from Dog Island on the Ohio River and is leased for $1,800 per month for that purpose. He came to the conclusion that a value of $206,000 should be placed on Dog Island, because he believed it could be adaptable for barge terminal purposes and mooring. Another witness for the defendants, Mr. Bill Williams, who is engaged in the sale of livestock and feed and has also purchased and sold land, testified'to the same effect as to the lease on Livingston Point, and placed a fair market value of $220,000 on Dog Island, on the theory that it would yield a rental of $22,000 per year as a mooring site and barge terminal.

The United States objected to the introduction of this testimony on the basis of its speeulativeness, but did not bring to the Court’s attention the case of United States v. Rands, 389 U.S. 121, 88 S.Ct. 265, 19 L.Ed.2d 329 (1967). That case is an absolute bar to the landowners’ contention that they are entitled to recover the value of Dog Island arising out of its projected use as a barge terminal and mooring site. In that case, the respondents owned land along the Columbia River. They leased the land to the State of Oregon with an option to purchase, it being contemplated that the State would use the land as an industrial park, part of which would function as a port. The option was never exercised since the land was taken by the United States in connection with a lock and dam project for the development of the river. The United States then conveyed the land to the State of Oregon at a price considerably less than the option price. In the condemnation suit, the trial judge determined that the compensable value of the land taken was limited to its value for sand and gravel, and for agricultural purposes, and that its special value as a port site could not be considered. The ultimate award was about one-half of the claimed value of the land if used as a port.

The Ninth Circuit reversed, 367 F.2d 186 (1966), concluding that the port site values should be compensable, but the Supreme Court reversed the Ninth Circuit and upheld the District Court. In so doing, it relied upon its previous decision in United States v. Twin City Power Company, 350 U.S. 222, 76 S.Ct. 259, 100 L.Ed. 240 (1956), and pointed out on pages 124 and 125 of 389 U.S., page 268 of 88 S.Ct. that special value in both cases arises from access to and use of navigable waters. As was true in Twin City, “if the owner of the fast lands can demand port site value as part of his compensation, ‘he gets the value of a right that the Government in the exercise of its dominant servitude can grant or withhold as it chooses . . . . To require the United States to pay for this value would be to create private claims in the public domain’. 350 U.S., at 228 [76 S.Ct., at 263].”

Coming next to the value of Dog Island as a hunting preserve, defendants’ witness Mr. Fugate described two hunting preserves as having been sold and which he thought were comparable to Dog Island. Both of these were fifty miles away and located in the Mississippi flyway. One consisted of 150 acres purchased in 1972 for $140,000 and the other consisted of 50 acres bought in March, 1970 for $35,000. The Court is of the opinion that these two sales are [198]*198not actually comparable because of the distance at which they are located from Dog Island.

On redirect examination, Mr. Fugate testified as to another hunting tract which sold for $100 per acre in 1960, consisting of 200 acres in Livingston County, Kentucky. These hunting premises were located about seven miles from Dog Island, and he believed that $160 per acre would be a fair price for the 200 acres.

Even if these sales were comparable, the Court has very serious doubts, under the Rands doctrine, as to whether the hunting values inherent in Dog Island would be compensable, since they are dependent upon the use of the navigable waters surrounding Dog Island and are made possible by reason of their access to the navigable waters of the Ohio River.

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Related

Montana Railway Co. v. Warren
137 U.S. 348 (Supreme Court, 1890)
United States v. Twin City Power Co.
350 U.S. 222 (Supreme Court, 1956)
United States v. Rands
389 U.S. 121 (Supreme Court, 1967)
United States v. Ham
187 F.2d 265 (Eighth Circuit, 1951)
United States v. Silver Queen Mining Company
285 F.2d 506 (Tenth Circuit, 1960)
R. B. Rands Et Ux. v. United States
367 F.2d 186 (Ninth Circuit, 1966)
United States v. 79.95 Acres of Land, More or Less
459 F.2d 185 (Tenth Circuit, 1972)
United States v. 84.4 Acres of Land
224 F. Supp. 1017 (W.D. Pennsylvania, 1963)
United States v. 287.89 Acres of Land
241 F. Supp. 456 (W.D. Pennsylvania, 1965)

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Bluebook (online)
369 F. Supp. 195, 1973 U.S. Dist. LEXIS 13760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-10000-acres-of-land-in-livingston-county-kywd-1973.