United States v. 3.0 Acres of Land, More or Less

378 F. Supp. 30, 1974 U.S. Dist. LEXIS 7684
CourtDistrict Court, W.D. Virginia
DecidedJuly 11, 1974
DocketCiv. A. No. 68-C-30-L
StatusPublished
Cited by1 cases

This text of 378 F. Supp. 30 (United States v. 3.0 Acres of Land, More or Less) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. 3.0 Acres of Land, More or Less, 378 F. Supp. 30, 1974 U.S. Dist. LEXIS 7684 (W.D. Va. 1974).

Opinion

OPINION AND ORDER

TURK, Chief Judge.

This is a land condemnation case which began on July 18, 1968 when the United States (plaintiff) filed a complaint in condemnation and a declaration of taking and deposited $3,000 as the estimated just compensation in the registry of this court. On July 24, 1968, the court determined that the title to the subject land vested in the United States as of July 18, 1968. Thereafter, pursuant to Rule 71A(h) of the Federal Rules of Civil Procedure, the court appointed three Commissioners to determine the [31]*31issue of just compensation for the property.

On November 14, 1970, the Commission viewed the property and heard evidence of the United States and the former equitable owners of the land, Hollis L. Barnett and Victoria D. Barnett (defendants). The Commission reconvened on December 5, 1970, heard closing arguments of counsel and determined just compensation to be $18,000. The Commissioners’ report was filed on December 7, 1970, and the United States timely filed written objections pursuant to Rule 53(e)(2) of the Federal Rules of Civil Procedure. The government’s objections to the Commissioners’ report are the subject of this opinion.

Relying primarily on the case of United States v. Merz, 376 U.S. 192, 84 S.Ct. 639, 11 L.Ed.2d 629 (1964) the government first argues that the Commissioners’ report is insufficient as a matter of law because of its conclusory nature. With respect to the evidence presented and the decision reached, the award merely' states:

“The landowner introduced the testimony of Hollis L. Barnett and expert witnesses Johnathan Crossley, V. Stuart Underwood and Ralph D. Lackey, who estimated the value of the property taken at various sums from $26,000 to $80,000. The United States introduced the testimony of Carl E. Vause, William O. Hooper and Oscar H. Beasley, Jr. The last two expert witnesses estimated the value of the property taken at $3,200 and $3,600 respectively.
Upon the view, evidence taken, argument of counsel and instructions of the Court granted November 13, 1970, the undersigned determined that the fair market value of the land taken at the time of taking was Eighteen Thousand Dollars ($18,000.00).”

In United States v. Merz, supra, the Court reviewed two cases involving eminent domain proceedings in which reports by Commissions appointed pursuant to Rule 71A(h) were utilized. In one case, the challenged report basically described the clearance easements taken, stated the highest and best use for the land, indicated that jugt compensation was to be determined by subtracting the landowners’ interest immediately after the taking from their value immediately before the taking, and assigned a dollar figure for damages assessed. In the second case, the Commission’s report contained résumés of all testimony heard; a description of the interest taken; the highest and best use of the lands; the acreage remaining after the taking and the amount of severance damage to it; the value of the fees taken ; the value of the easements; and the total awards. The Court noted in the second case that some of the awards were in excess of the evidence and that severance damages were allowed in some instances and denied in others without explanation. In both cases, the reports had been adopted by the District Courts; the Supreme Court found both reports to be inadequate.

The Court in Merz distinquished the use of a Commission from that of a jury on the basis of the control exercised by the judge over the hearing to which the jury is exposed. In the case of a Commission, the Court held that a conclusory award would not be sufficient because in such a case the District Court “will have no way of knowing what path the commissioners took through the maze of conflicting evidence.” 376 U.S. at 198, 84 S.Ct. at 643. Thus the Court stated that the District Court should carefully instruct the Commissioners on the law and the type of report to be filed and noted the responsibility of the litigants “to assist the process by specifying their objections to instructions, by offering alternate ones, and by making their timely objections to the report in specific, rather than in generalized form, as required by equity practice.” 376 U.S. at 199, 84 S.Ct. at 643.

There is no doubt that the Commission report now before this Court leaves much to be desired in light of Merz, and the reason for this is attrib[32]*32utable to the failure of either side to request instructions as to the kind of report to be filed. However, after reviewing the record in this case, the court is of the opinion that because of the uncomplicated issue presented and the fact that almost six years have elapsed since the inception of this case, little would be gained by resubmitting the case to the Commissioners for more specific findings. In Merz the Court noted Rule 71A (h) incorporates Rule 53(e) pursuant to which the District Court “may ‘modify’ the report on the basis of the record made before the commissioners. ...” 376 U.S. at 199, 84 S.Ct. at 644. The issue presented is not complex and the transcript indicates that the Commissioners focused clearly on it. As such, this case presents little difficulty in determining the path taken by the Commission in reaching the award in question, and this court will accordingly review the case without further consideration by the Commission.

The subject property is a three acre tract of land, rectangular in shape which borders the Blue Ridge Parkway for a distance of 630 feet at an area known as Whetstone Ridge. The land is crossed by a public road which affords access to the Parkway all year'. At Whetstone Ridge the Department of the Interior maintains a restaurant, a gift shop, a service station and maintenance area, and two houses for park rangers.

Mr. Barnett testified that he bought the property in 1964 for $1,250 and lived on the property from the fall of 1965. until March or April, 1966. During this time, he spent $8,500 in improvements to the property which included clearing and leveling it, installing a well, building a reservoir and renovating a cabin on the property. Mr. Barnett indicated that he had initially considered building cabins on the property but had concluded that he would build a motel according to a plan he obtained from Econo-Lodge.

Mr. Barnett called several expert witnesses who shared his opinion that the subject property was uniquely suited for a motel. Mr. Johnathan Crossley, a member of the American Institute of Real Estate Appraisers and the American Society of Appraisers, valued the property at $79,600 by means of the “land residual technique” of valuation after having concluded that the highest and best use of the property was a motel site. He noted that the subject property was unique in that it had a built-in restaurant and gas station and there were no other motels along that portion of the Parkway. His “land residual” valuation was derived by estimating the cost of the motel complex, the average room rental, the percentage occupancy rate, the potential operating costs, an interest rate designed to show a recapture and return on investment and the life of the motel. From these estimates, he estimated the net income generated and concluded that this return justified valuing the property at $79,600.

Mr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Davol Square Jewelry v. Narragansett Bay
Superior Court of Rhode Island, 2009

Cite This Page — Counsel Stack

Bluebook (online)
378 F. Supp. 30, 1974 U.S. Dist. LEXIS 7684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-30-acres-of-land-more-or-less-vawd-1974.