Wilmoth v. Southwest Arkansas Utilities Corp.

2015 Ark. App. 185, 457 S.W.3d 694, 2015 Ark. App. LEXIS 206
CourtCourt of Appeals of Arkansas
DecidedMarch 11, 2015
DocketCV-14-289
StatusPublished
Cited by1 cases

This text of 2015 Ark. App. 185 (Wilmoth v. Southwest Arkansas Utilities Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilmoth v. Southwest Arkansas Utilities Corp., 2015 Ark. App. 185, 457 S.W.3d 694, 2015 Ark. App. LEXIS 206 (Ark. Ct. App. 2015).

Opinion

WAYMOND M. BROWN, Judge

I,This appeal is from a judgment awarding compensation for the condemnation of a utility easement. On appeal, the landowner contends the circuit court erred by (1) entering an order of possession, ex parte, without any notice to it and thereby denying it the opportunity to respond or request a hearing; (2) excluding the testimony of certain witnesses who could not directly relate their testimony to the fair market value of the properly. We find merit in the landowner’s second point. Accordingly, we reverse and remand for a new trial. 1

The condemned property is part of a 460-acre tract where a wildlife sanctuary for exotic animals and a visitor park are operated. On August 14, 2012, appellee Southwest Arkansas Utilities Corporation (SWEPCO) filed a complaint against appellant Safari Real Estate, LLC, and its manager, Leon Wilmoth, to obtain a utility easement across Safari’s ^property for purposes of building a transmission line. SWEPCO deposited $36,000 into the court’s registry as just compensation. An order of possession was entered by the Benton County Circuit Court on August 21, 2012. Safari answered and later withdrew the funds from the court’s registry.

In advance of trial, SWEPCO filed a motion in limine seeking to prevent Safari from presenting evidence on topics other than the fair market value of the property. SWEPCO also sought to preclude litigation over the route of the transmission line as decided by the Public Service Commission (PSC). The circuit court held a hearing on the motions in limine just prior to the start of the trial. The court excluded certain of Safari’s witnesses, ruling that the only proper evidence was that related to the fair market value of the property taken.

At trial, Safari’s appraiser, Thomas Rife, testified that Safari owned approximately 462 acres, divided into four quadrants, to keep the various animals separated. In his calculations, he valued the raw land at $2,000 per acre, with another $1,500 per acre for improvements such as roads, fencing, ponds, and maintaining the grounds. He did not consider any barns or other buildings in his calculations. He said that SWEPCO was taking 9.17 acres for its transmission line through the middle of Quadrant Four. He opined that the remaining 104.83 acres in Quadrant Four could no longer be used as a wildlife park because of U.S. Department of Agriculture regulations concerning wild and exotic animals. He calculated the damages from the taking at $399,000. This included $32,000 for the 9.17 acres in the easement and $367,000 for the damages to Quadrant Four.

Tom Reed, SWEPCO’s appraiser, testified that Safari owned approximately 350 acres | ¡¿while the entire Wilmoth family holdings totaled over 600 acres. He valued the property at $2,500 per acre before, and $2,395 after, the taking, for a total of $37,000 in damage to the property’s market value. According to Reed, a study of a semi-rural area near Fayetteville indicated that the maximum extent of any harm to remaining properly was no farther than 225 feet on either side of a power-line easement. He used this figure in calculating the value of Safari’s remaining property after the taking. He disagreed with Rife that Quadrant Four was rendered useless by the taking of the easement, asserting that it could still be used for agricultural purposes.

The jury, in a verdict signed by nine jurors, awarded Safari $87,539 for the taking of its property. After giving SWEP-CO credit for the compensation deposited into the registry at the commencement of the case, the judgment amount was $50,939, together with prejudgment interest of $3,402.45. This appeal followed.

Safari’s first point is that the circuit court erred in issuing the order of possession on an ex parte basis, thereby violating Safari’s due-process right to contest the seizure of its property, the amount of the deposit, and the manner, timing, and necessity of the taking. There is no merit to this point.

Both the United States Supreme Court and the Arkansas Supreme Court have held that the Fifth Amendment to the United States Constitution does not require payment prior to the taking nor does it necessarily require a pre-taking hearing. 2 All that is required is that |4a “reasonable, certain and adequate provision for obtaining compensation” exist at the time of the taking. 3 Here, the statutory scheme calls for a deposit into the registry of the court and for a jury to determine the amount of the compensation. 4 Safari fully participated in the case by filing an answer to the petition, withdrawing the funds from the court’s registry, and responding to SWEPCO’s motion in limine with one of its own, all without objecting to the procedure by which SWEPCO obtained possession.

This brings us to Safari’s arguments concerning the circuit court’s rulings that prevented it from submitting evidence that was not directly related to the fair market value of the easement taken by SWEPCO. On appeal, we will not reverse a circuit court’s ruling on the admission of evidence absent an abuse of discretion. 5 An abuse of discretion is a high threshold that does not simply require error by the circuit court, but requires that the court act improvidently, thoughtlessly, or without due consideration. 6

At the hearing on the motion in limine, Safari sought to have its witnesses testify as to elements of severance damages, to the remaining tract and whether it could continue to be used as a wild-animal safari park. The circuit court excluded the testimony, ruling that the only proper testimony was that concerning the before-and-after value of the property. In doing so, the court inadvertently took an unduly narrow view of what proper damages are | Bin a condemnation case. It did so by not considering how certain testimony, although not directed specifically at the property’s fair market value, may nevertheless be. relevant in determining the fair market value. As discussed below, there is no requirement that each witness be able to directly relate his or her testimony to the fair market value of the property.

After the court’s ruling excluding the witnesses, Safari proffered the testimony of Leon Wilmoth, Todd Hawkins, and Michael Cordeiro as to the costs of various improvements that Safari considered necessary as a result of the taking. Wilmoth testified that, as a result of the loss of the use of Quadrant Four for the park, it would be necessary to acquire a replacement for Quadrant Four and then build replacement barns and holding pens, fence some 2.5 miles of substitute acreage, and build replacement reservoirs. Hawkins gave an estimate of approximately $298,000 for construction of two standard iron buildings, measuring 40’ x 300’. On cross-examination, he could not say whether the buildings were required.

Likewise, Cordeiro, a dirt contractor, gave an estimate of approximately $332,000 to rebuild the roads, to build a new pond and dam, and to clear for the fence and barn. He estimated the cost to clear the fences at $2,200 an acre.

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Bluebook (online)
2015 Ark. App. 185, 457 S.W.3d 694, 2015 Ark. App. LEXIS 206, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilmoth-v-southwest-arkansas-utilities-corp-arkctapp-2015.