United States v. Arthur E. Baker, Doris M. Baker, John L. Roach and Bettie Jo Roach

279 F.2d 603, 1960 U.S. App. LEXIS 4497
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 24, 1960
Docket16461
StatusPublished
Cited by2 cases

This text of 279 F.2d 603 (United States v. Arthur E. Baker, Doris M. Baker, John L. Roach and Bettie Jo Roach) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Arthur E. Baker, Doris M. Baker, John L. Roach and Bettie Jo Roach, 279 F.2d 603, 1960 U.S. App. LEXIS 4497 (9th Cir. 1960).

Opinions

BARNES, Circuit Judge.

This was a condemnation proceeding. The jurisdiction of the district court arises under Title 28 U.S.C. § 1358. A jury returned a verdict for the property owners in the sum of $165,500 from which judgment the government appeals. This Court has jurisdiction under Title 28 U.S.C. § 1291.

The government bases its appeal on the failure of the trial court to instruct the jury properly in two respects. It first complains that the trial judge refused to give a requested instruction on comparable or similar sales as the best evidence of market value. The government secondly complains that the jury should have been instructed to disregard the use to which the government intended the land put in their consideration of its market value.

The land subject to condemnation in this case consisted of 132.4 acres of a 513 acre truck and cotton farm located on the road joining Luke Air Force Base with Phoenix, Arizona. The land was [604]*604being condemned for use as a Capehart Housing project for the military personnel at Luke Air Force Base. The witnesses for the government testified that the land was worth $92,860 and $93,000. The witnesses for the appellees testified that the land was worth, including severance damages to the remainder, $269,280 and $232,300. It is noted that the jury’s verdict is almost midway between the value claimed by the government and the lower figure given by the appellees’ witnesses.

The theory of the government witnesses was that the land should be valued as farming land with some incremental amount for its potential as a residential subdivision. The government witnesses refused to recognize any severance damages, stating that any damage would be merely one of the factors to be taken into consideration when considering an offer at an inflated price for the portions suitable for residential purposes. The government witnesses attempted to rely in a large measure on alleged comparable sales of farming la.nd in the vicinity. At least one of these sales was ruled inadmissible as being too remote in point of time. The other comparable sales were farm land on the other or far side of the air base from Phoenix. The condemned land was between Luke Field and Phoenix. The far land was without the advantageous location on arterial roads possessed by the land against which this condemnation action was brought.

The witnesses for the appellees testified that they did not consider any of the sales relied upon by the government witnesses as comparable; and further, that no comparable sales existed upon which value could be estimated. Their testimony was based upon general expertise in valuing land, and their own judgment as to the prospects for future residential development of the area.

Under this state of the evidence, the court refused to instruct the jury as follows:

“Comparable sales, at arms length, in the open market of real property, often referred to as simillar sales, that occurred before the date of taking, are the best evidence of market value.”

(Government’s Req. Inst. No. 7.)

The appellees’ witnesses developed the general desirability of the tract in question for such a housing development. The land was physically suitable for building, was located outside the “noise clearance zone” established for Luke Air Force Base, and was near the base and adjacent to the main roads in the area. While a subdivision which had previously been attempted in the area had met with little success, it developed that that tract, besides being less favorably located, had been opened before Luke had been made a permanent installation in 1956. The permanency of the base was a controlling factor in the desirability of land in the area for housing purposes. Further, the former subdivision was developed on a modest scale, lots being sold rather than houses, and financing was not provided.

At the request of the government the jury was given a view of the premises upon which construction of the housing had already commenced. The government requested the following instruction as to government use, only the italicized portion being given:

“With regard to the view that you took of the Tract Friday afternoon, you are directed to remove from your consideration of Market Value the fact that the Government is presently making use of the condemned tract of land. You are to valúate the farm in the condition that it was in on March 11, 1957. The testimony of the Government’s and Defendants’ witnesses will be helpful to you in recreating the condition of said tract at that time.
You are further instructed that the Defendants are not entitled to compensation for loss of any future gain they might have hoped to realize from the tract over and above its fair market value. This is true also with respect to the government. You are not to consider any personal loss or gain to either party. Market [605]*605value of the property on the date of taking is the only problem under consideration.”

(Government’s Req. Inst. No. 11).

The government asserts that it was error for the judge to refuse to instruct the jury that comparable sales are the best indication of fair market value. The appellees do not controvert the truth of this proposition once such sales have been introduced in evidence, but urge that such an instruction would be inappropriate under the state of evidence in this case. The appellees point to the controversy over whether the sales relied on by the government witnesses actually were comparable. It is clear that the only relevance of the sales relied on would be to show the value of the land strictly as farming land, since the other sales were of isolated areas on the side of the base away from the established centers of population. It was established that strictly as farming land the areas were comparable, the same crop and approximately the same water potential existed. But it is clear that the other areas were of no help in determining the value of the land for residential purposes. The witnesses for the appellees testified that the highest and best use for the tract in question was not for farming, but rather for residential areas to meet the recently developed need for housing attendant on the permanent status given to Luke Air Force Base. The appellees contend that to give the instruction requested would invade the province of the jury in deciding the question whether the sales testified to were in fact comparable. They claim that effect of the instruction would have been to preclude that issue from the jury’s consideration, and force the jurors to ignore the evidence of the defendants based on an entirely different theory than that of the government, since no comparable sales were in fact introduced by appellees.

The government relies primarily on United States v. 5139.5 Acres of Land, etc., 4 Cir., 1952, 200 F.2d 659, and United States v. Ham,. 8 Cir., 1951, 187 F.2d 265. The 5139.5 Acre case is at best equivocal. In that case the reversal was based on the refusal to admit evidence as to adjacent sales.

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Bluebook (online)
279 F.2d 603, 1960 U.S. App. LEXIS 4497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-arthur-e-baker-doris-m-baker-john-l-roach-and-bettie-ca9-1960.