United States v. 3,727.91 Acres of Land in Pike County

416 F. Supp. 525
CourtDistrict Court, E.D. Missouri
DecidedJune 25, 1976
DocketNo. N71 C 40
StatusPublished
Cited by1 cases

This text of 416 F. Supp. 525 (United States v. 3,727.91 Acres of Land in Pike County) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. 3,727.91 Acres of Land in Pike County, 416 F. Supp. 525 (E.D. Mo. 1976).

Opinion

MEMORANDUM

NANGLE, District Judge.

This matter is before the Court following a trial held on April 12, 1976 to determine the amount of compensation due and owing to the Elsberry Drainage District following the taking of a portion of its lands on September 27, 1971.

This case was tried before the Court without a jury. The Court having considered the pleadings, the testimony of the witnesses, the documents in evidence and being otherwise fully advised in the premises, hereby makes the following findings of fact and conclusions of law as required by Rule 52, Federal Rules of Civil Procedure:

FINDINGS OF FACT

1. The Elsberry Drainage District (hereinafter “District”), organized to reclaim and to protect real property from flooding, was incorporated by the Circuit Court of Lincoln County, Missouri on January 3, 1911 under the authority of Chapter 41, Article 1, Revised Statutes of Missouri 1909.

2. The government took the land involved herein on September 27, 1971, along with additional parcels, in order to develop a waterfowl refuge area.

3. On August 1, 1975, this Court ruled that the Elsberry Drainage District was the owner in fee simple of approximately 214 acres of levees and ditches. This ruling was the result of an assertion of interest by the District in portions of land sold to the government by various landowners.

4. The levees, which were the sole focus of the valuation testimony presented at the trial, are roughly seven miles long, ten feet high and seventy feet wide. They were constructed in 1917 and 1918 and therefore were 53 to 54 years old on the date of taking.

5. Credible testimony establishes that the levees and ditches were in very poor condition. The ditches had standing timber [527]*527in them. The levees had brush and timber growing on them and were riddled with ground hog burrows.

6. It was the opinion of Thomas Fallrath, Senior Staff Realty Officer for the government, which the Court finds to be credible, that the levees had a useful life of 50 years. The Court notes that Warren Magruder, an earth moving contractor, testified that levees have a useful life of approximately 100 years. Mr. Magruder, however, had not inspected the particular levees in question, as had Mr. Fallrath. Furthermore, the Court is of the opinion that Mr. Fallrath’s background and experience entitle his testimony to more credence than that of Mr. Magruder on the question of the levees’ useful life.

7. The District was of the opinion that there were no comparable sales on which to base an opinion as to market value. Accordingly, the District presented evidence as to the reproduction cost of the levees. The estimate given, which stands uncontradicted, is $273,750.40. The District, asserting that the levees had a useful life of 100 years, claims that the value of the property, based on the formula of reproduction cost new less depreciation, would be $125,925.18.

8. Alternatively, the District looked to the sales between the government and the various landowners, which, prior to the August 1, 1975 order of this Court, were thought to incorporate the lands involved herein. The District divided the total amount of acreage in each sale into the total purchase price to arrive at a price per acre, and then multiplied that price by the amount of acreage in each sale which was, in fact owned by the District. After making adjustments for increased land values, the District produced a valuation of $104,-378.16. The Court finds that this formula is entirely too speculative to have any bearing on valuation herein. The lands involved in the sales included timberlands, and lands well-suited for farming. By contrast, the lands involved herein consist of ditches and levees of an irregular shape. Accordingly, the Court concludes that the prices paid by the government for the total acreage can not be deemed to relate to the District properties. The evidence presented established that separate valuations for the land and for the levees was not done by the government at the time of these sales by the landowners and accordingly, the Court can not determine with sufficient certainty the amount of the acreage price attributable to the farm and timberlands and the amount attributable to the levees. Clearly, the nature of the respective properties indicate that the lands are not comparable.

9. David F. Galloway, President of the Board of Supervisors of the District, valued the land at $525.00 per acre. The Court finds that Mr. Galloway’s valuation testimony is entitled to no credence herein as the sales upon which such valuation was based were clearly not comparable sales.

10. The government produced the testimony of Harry G. Herring, a real estate appraiser. It was his opinion, after inspecting the property, checking legal records, the neighborhood, and similar sales, that the property had no more than a nominal value.

11. M. T. Chandler, another real estate appraiser, testified that the levees could be used for cattle grazing if fencing were installed. He stated that such fencing would be exceedingly expensive. It was his opinion that the fair market value of the lands involved herein would be $11,770.00. He based this valuation on his experience as an appraiser and on the basis of comparable sales. After reviewing a number of sales and determining that most were not comparable due to the nature of the lands involved, he determined that a sale of property to the Missouri Conservation Commission on April 29, 1971 was comparable.

12. Mr. Fallrath also gave his opinion as to the value of the land involved. After examining the property, talking with people in the area, examining the records in the county, examining sales in the area and using his experience and knowledge as a real estate appraiser, Mr. Fallrath concluded that the fair market value of the lands would be $10,700.00. Mr. Fallrath stated that the sale to the Missouri Conservation Commission was the only comparable sale.

[528]*52813. Testimony presented by the District established that the sale to the Missouri Conservation Commission was made by the sellers, the Riverland District landowners, only in an effort to rid themselves of marginally viable business. The price requested and received $11,000.00, was reached by determining the total financial obligations of the Riverland District, $10,800.00. The sale price was not reached as a result of negotiations between the buyer and seller as to the value of the lands but simply was determined by totalling the indebtedness of the Riverland District.

14. No evidence was presented indicating that the District would have to provide substitute levees and ditches.

CONCLUSIONS OF LAW

The Court has jurisdiction over the subject matter and the parties to this suit in accordance with 28 U.S.C. § 1358.

It is well established that the burden of proving the value of the condemned lands rests upon the condemnee. United States ex rel. Tennessee Valley Authority v. Powelson, 319 U.S. 266, 63 S.Ct. 1047, 87 L.Ed. 1390 (1943); Welch v. Tennessee Valley Authority, 108 F.2d 95

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Bluebook (online)
416 F. Supp. 525, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-372791-acres-of-land-in-pike-county-moed-1976.