Wilmer v. Fulton County School District

487 S.E.2d 709, 226 Ga. App. 884, 97 Fulton County D. Rep. 2386, 1997 Ga. App. LEXIS 812
Court of Appeals of Georgia·Decided June 18, 1997·No. A97A1268·Published·Cited by 2 cases

Opinion

Eldridge, Judge.

The Fulton County School District (“School District”) condemned 14.998 (“15”) acres of land owned by J. Grant Wilmer, Jr., Catherine W. de Ladoucette, Knox Randolph Wilmer, and Charles Wilmer (the “Wilmers”) as of November 3, 1994 when the award of a special master was entered by consent order.

The Wilmers filed a notice of appeal and except to the award on October 28, 1994.

The Wilmers and other members of their family owned a tract of land containing 176 acres, out of which the 15 condemned acres were taken. The real estate appraisal witnesses for the condemnor and the condemnees considered the highest and best use of the 15 acre parcel as a part of the larger 176 acre tract of land.

Pursuant to a separate consent order filed July 25,1996, the parties agreed that the only issue to be decided by the jury was the value of the 15 acre parcel. All claims of consequential damages to the remaining larger property were voluntarily dismissed.

At trial of the damages, all of the School District appraisers testified that they did not perform an appraisal of the 15 acres condemned, but they based their appraisal solely upon the valuation of the larger parcels of either 98 acres or 126 acres that were part of the 176 acre tract; they then applied a pro rata average value of the larger parcel to the 15 acre tract that was condemned.

Mr. Dennis Carr, a School District appraiser, testified that he considered the 15 acre condemned parcel as part of the 176 acres. He [885]*885used a sales comparison approach to analyze the sales of similar properties; however, he primarily looked for comparables to the 176 acre tract, which were large tracts of acreage. Using 126 acres of land that lay outside the flood plain, Mr. Carr reached an opinion as to the fair market value of such large tract of acreage and then he applied the exact per acre price of the larger tract to calculate the fair market value of the 15 acre tract condemned. Mr. Carr admitted that smaller parcels of land tend to sell for more per acre than larger parcels; notwithstanding this, he distinguished the price per acre for the 15 acre condemned parcel with the price per acre for the larger 126 acre parcel. Mr. Carr testified that “pro rata average is the way to do it these days.” Mr. Carr testified that he valued the 15 acre condemned parcel as part of the whole tract rather than as a separate free standing 15 acre parcel. Mr. Carr admitted that he used the “pro rata average valuation method” to make his appraisal.

Mr. David Childers, the other real estate appraiser for the School District, also appraised the entire tract of 176 acres as one economic unit of which the 15 acre parcel was a part. Mr. Childers reached the opinion that 98.3 acres of the property was suitable for apartment development, and he searched for sales that were similar in size to the 98.3 acres. The sales that Mr. Childers found comparable were for smaller acreage than 98 acres; he reduced the value per acre for the larger tract. His downward adjustment was 1.7 percent. He testified that a discount of as much as 11 percent could also be justified on the same reasoning. Although Mr. Childers admitted in testimony that smaller tracts of land sell for more per acre than large tracts of acreage, he applied the price per acre for the entire 98.3 acres that he appraised to the smaller 15 acre parcel condemned. Mr. Childers justified his actions by stating that he did not consider sales that would be comparable in size to the 15 acre parcel, “because what we are concerned with is a tract that is a total of 176 acres. Smaller land tracts typically sell for more per acre. That’s a typical pattern, so to do a proper appraisal of 176 acres you want to go find large land tracts that have sold.”

Since neither Mr. Carr nor Mr. Childers had done an appraisal of the 15 acre tract condemned, but instead used a pro rata method of appraisal of the entire tract, the condemnees moved to strike their opinions of value as an illegal method of evaluation.

The School District waived by not objecting to the motion to strike the experts’ valuation testimony; instead the School District sought to bolster the experts’ opinion testimony regarding the appraisal method used. The trial court denied the motion to strike.

In response to the pro rata average evaluations of Mr. Carr and Mr. Childers, the condemnees submitted their written request to charge number 26. The trial court refused to give charge number 26 [886]*886and condemnees timely excepted to such failure.

Some 53 acres of the larger tract fell within the 100 year flood plain, 24.7 acres was road frontage, and the Big Creek formed one boundary, requiring an undisturbed buffer zone along the creek. The remaining 96 acres have extremes in topography, i.e., high hills and deep valleys in some areas of this tract which would require extensive grading. This difference in acreage prevents a unitary evaluation approach from being proper.

Mr. James Pritchett and Mr. William Stripling were real estate appraisers who testified for the condemnees. Each appraiser gave his opinion as to the fair market value for the 15 acres condemned. Each stated that in his opinion the highest and best use of the 15 acres as being in conjunction with the larger tract.

The jury returned a verdict on September 11, 1996 which followed the testimony of the School District’s experts’ opinion of fair market value. Final judgment was entered on September 13, 1996. The notice of appeal was filed October 11, 1996. Held:

1. Appellants’ first enumeration of error is that the trial court erred in failing to exclude the opinion testimony of David Childers and Dennis Carr.

The evidence showed that there were 53 acres of flood plain, 24.7 acres minimum of road frontage, and that 96 acres have some areas with high hills and deep valleys which would require extensive grading. Thus, a pro rata averaging of the fair market value to the 15 acres condemned from the larger tract would not be appropriate to reflect actual fair market value of such condemned land as a proper method of appraisal to obtain the fair market value of the usable 15 acres for a school site carved out from the whole acreage, even when the 96 acres are treated as a unit, because there remain the extremes in topography in such untaken portion of the 96 acres that requires extensive grading for development.

“A pro rata method of ascertaining the value of a partial taking is not necessarily proper because the value of the part taken is not dependent on the size of the whole. If, for example, the 15-acre strip was taken from 105 acres (1/7 of the whole) rather than from 75 acres (1/5 of the whole), the pro rata method could result in a lower value simply because of the size of the whole. There was evidence that pro rata value would be greater for. smaller tracts of land. The county even points out . . . that the smaller tracts sell for more money per acre than larger tracts. In other words, selling 15 acres would not necessarily be at the same per-acre price as selling 75 acres. Yet it is only the 15 acres that is being ‘sold’ through condemnation.” Bland v. Bulloch County, 205 Ga. App. 317, 319 (2) (422 SE2d 223) (1992).

“In addition, the pro rata method does not accommodate variations in the value of different parts of a tract; a frontage strip may [887]*887have more value than a back strip, or a pond may have a different value than a hill on the same tract.

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Wilmer v. Fulton County School District, 487 S.E.2d 709, 226 Ga. App. 884, 97 Fulton County D. Rep. 2386, 1997 Ga. App. LEXIS 812 (Ga. Ct. App. 1997).

487 S.E.2d 709 (Wilmer v. Fulton County School District) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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