State Ex Rel. Department of Highways v. DeTienne

No. 85-155 I N THE SUPREME C0UR.T O F THE S T A T E O F MONTANA 1985 THE S T A T E O F MONTANA, A C T I N G BY AND THROUGH THE DEPARTMENT O F HIGHWAYS O F THE S T A T E O F MONTANA, P l a i n t i f f and R e s p o n d e n t , VICTOR and VIBEKE DeTIENNE, husband & w i f e , Defendants and Appellants. APPEAL FROM: D i s t r i c t C o u r t of t h e F i f t e e n t h J u d i c i a l - D i s t r i c t , I n a n d f o r t h e C o u n t y of S h e r i d a n , T h e H o n o r a b l e R. C . M c D o n o u g h , Judge p r e s i d i n g . COUNSEL O F RECORD: For A p p e l l a n t : O'Toole & Hunt, Plentywood, Montana For R e s p o n d e n t : Beate Galda, Dept. of H i g h w a y s , H e l e n a , M o n t a n a S u b m i t t e d o n briefs: J u l y 2 5 , 1985 Decided: O c t o b e r 1 0 1 1985 Filed: Clerk Mr. Justice John Conway Harrison delivered the Opinion of the Court. This is an appeal from the District Court of the Fifteenth Judicial District, Sheridan County, Montana, in a highway condemnation action. A six-man jury found the defendant-appellants negligent in constructing a building as close to the highway as they did and returned a verdict for the appellants of $5,802.60 for the land taken by the State of Montana. The jury found no depreciation to the remaining property. We affirm. The plaintiff, State of Montana, through the Department of Highways, brought an action to condemn priva te property owned by defendants, Victor and Vibeke DeTienne, for construction of a state highway pursuant to 5 60-4-102, MCA. The property in question is an 8.36 acre tract containing two steel buildings located east of Plentywood. One of the buildings, a 70' x 180' structure, used in part for a garage and sales office for trucks and equipment and in part for storage of lumber and building materials, is affected by the location of a new highway. The highway right-of-way was 95 feet from the building before the construction project , but the new right-of-way is about 4% feet from one corner of the building. When the building was built there was adequate room to back a 60 to 80 foot semi-truck into the building. It is now difficult to drive trucks into the building and impossible to drive them completely around the building because of the location of the new highway. A hearing to determine the value of the property being condemned was held before a three-man value commission who valued the land and improvements taken at $5,800 but found no depreciation to the remainder. The DeTiennes appealed that finding to the District Court. The i s s u e s p r e s e n t e d t o t h e C o u r t a r e : (1) Whether the jury statement that appe?lant was negligent in constructing his huilding too close to the highway c o n s t i t u t e s r e v e r s i b l e e r r o r . (2) Whether the court erred in granting the State's motion i n l i m i n e c o n c e r n i n g s a l e s between o t h e r l a n d owners on t h e p r o j e c t and t h e S t a t e a s condemning a u t h o r i t y . (3) Whether the court erred i n admitting c e r t a i n of the State's exhibits. (4) Whether the court erred in giving its jury i n s t r u c t i o n on t h e " q u o t i e n t method" f o r d e t e r m i n i n g damages t o b e awarded. (5) Whether the court erred in refusing to give DeTiennes' p r o p o s e d j u r y i n s t r u c t i o n on i n c o n v e n i e n c e o f u s e . I n a n e m i n e n t domain a c t i o n t h e r i g h t o f t h e p r o p e r t y owner to receive compensation accrues at the d a t e of the s e r v i c e o f summons ( t h e t a k i n g ) , i n t h i s c a s e J u l y 3 0 , 1982. The f a i r market v a l u e of t h e p r o p e r t y on t h a t d a t e i s t h e measure of compensation for the property actually taken. Section 70-30-302(l), MCA. I t i s o n l y t h a t v a l u e which i s relevant. The DeTiennes ' b u i l d i n g was l a w f u l l y c o n s t r u c t e d before the taking and the reasons for its location in relation t o t h e new highway a r e i r r e l e v a n t t o t h e v a l u e o f t h e land a t t h e time of t h e taking. The o n l y i s s u e s p r o p e r l y b e f o r e t h e j u r y a r e t h e f a i r m a r k e t v a l u e on J u l y 3 0 , 1982, of the land taken, and w h e t h e r , a s a r e s u l t o f t h e t a k i n g , the value of DeTiennes' remaining property, including the building, was depreciated. The jury found the remaining property did not depreciate. DeTiennes a r g u e , however, the j u r y made t h i s f i n d i n g on " n e g l i g e n c e " r a t h e r t h a n i n a c c o r d with t h e i n s t r u c t i o n s given and b e c a u s e no i n s t r u c t i o n s on negligence were given, the jury's finding constitutes reversible error. When t h e j u r y returned its verdict, t h e foreman, w i t h t h e c o u r t ' s p e r m i s s i o n , made t h e f o l l o w i n g s t a t e m e n t : Well, w e were a l l w o n d e r i n g when we t a l k e d a b o u t t h i s a s t o why t h a t b u i l d i n g was b u i l t t h a t c l o s e t o t h e highway, and w e f e e l t h e d e f e n d a n t was n e g l i g e n t i n d o i n g what h e d i d , b u i l d i n g it t h a t c l o s e t o t h e highway. I t i s d o u b t f u l t h e jury understood negligence a s a l e g a l t e r m of art requiring the existence of a duty, but as it is commonly u n d e r s t o o d by t h e layman t o mean c a r e l e s s o r showing poor judgment. The c o u r t r e f u s e d t h e Highway D e p a r t m e n t ' s motion i n l i m i n e t o exclude evidence o f i t s d i s c u s s i o n s with DeTiennes i n 1980 about t h e location of the building. The Highway Department argued the testimony could result in a verdict which was not based on fair market value but on location of the building. DeTiennes a r g u e d s u c c e s s f u 7 1.y t h e jury should hear t h e reasons f o r t h e l o c a t i o n o f t h e b u i l d i n g and d e c i d e f o r i t s e l f w h e t h e r t h e b u i l d i n g s h o u l d h a v e been placed f a r t h e r back from t h e highway. DeTiennes c a n n o t now a r g u e t h e j u r y ' s v e r d i c t was e r r o r b e c a u s e it was d e c i d e d on negligence r a t h e r than i n accord with t h e i n s t r u c t i o n s given. By i n s i s t i n g t h e e v i d e n c e o f l o c a t i o n b e a d m i t t e d , DeTiennes c a n n o t now complain t h e j u r y v e r d i c t was n o t what t h e y had expected, if in f a c t t h e v e r d i c t was even a f f e c t e d by t h e evidence. The law i n Montana i s c l e a r : I t has long been t h e r u l e o f t h i s Court t h a t on a p p e a l w e w i l l n o t p u t a D i s t r i c t Court i n e r r o r f o r a r u l i n g o r procedure in which the appellant acquiesced, p a r t i c i p a t e d , o r t o which a p p e l l a n t made no o b j e c t i o n . [Citing cases.] Green v . Green (1978), 176 Mont. 532, 536, 579 P.2d 1235, 1237. T h e r e i s no e v i d e n c e showing t h e j u r y did not follow the court's instruction. The j u r y was p r o p e r l y instructed r e g a r d i n g t h e measure o f damages i n a n e m i n e n t domain a c t i o n . I t h e a r d v a l u a t i o n t e s t i m o n y from two w i t n e s s e s . I t reached a v e r d i c t within t h e evidence. I t apparently agreed with t h e Highway Department appraisers and the three value commissioners in finding no depreciation. There is no e v i d e n c e t h e j u r y r e a c h e d i t s d e c i s i o n on t h e l e g a l d o c t r i n e o f n e g l i g e n c e , which c l e a r l y i s n o t p a r t o f t h i s c a s e . W e do n o t f i n d any i m p r o p e r c o n d u c t on t h e p a r t o f t h e j u r y o r a n y prejudicial effect because of the foreman's comments. Although neither counsel objected to allowing the jury foreman's remarks, prudence suggests refusal of extraneous comments. The foreman's statement, however, is not reversible error. Nor d o we find any i n d i c a t i o n t h e j u r y intended to, or did, impeach its verdict. "The rule in Montana i s a j u r y may n o t impeach i t s own v e r d i c t b a s e d on mistake of the evidence or misapprehension of the law." J o h n s o n v. Green ( 1 9 6 9 ) , 153 Mont. 251, 255, 456 P.2d 290, 293. A second motion in limine offered by the Highway Department t o p r e v e n t t e s t i m o n y from o t h e r l a n d owners a l o n g the project regarding their sales to the Department was properly granted. The sales were not fair market t r a n s a c t i o n s , b u t w e r e made b e c a u s e o f impending condemnation proceedings and therefore w e r e n o t made between a willing b u y e r and a w i l l i n g s e l l e r . See S t a t e v . Hoblitt ( 1 9 3 0 ) , 87 Mont. 403, 413, 288 P. 181, 185. "Current f a i r market value is the price that would be agreed to by a willing and i n f o r m e d s e l l e r and b u y e r , . .. " S e c t i o n 70-30-313, MCA. The cases cited by D e T i e n n e s , S t a t e v. Voyich ( 1 9 6 3 ) , 142 Mont. 355, 384 P. 2d 765, and S t a t e v. G r e e n f i e l d ( 1 9 6 5 ) , 145 Mont. 164, 399 P.2d 989, a r e n o t on p o i n t . I n Voyich t h e issue is comparability of t h e n e i g h b o r i n g l a n d and n o t t h e final test of the market value of the property being condemned. The i s s u e i n G r e e n f i e l d i s w h e t h e r an e x p e r t c a n testify as to comparable sales and the prices paid in transactions between private persons before there was any knowledge o f condemnation o f t h e l a n d s f o r highway p u r p o s e s . The reasons for excluding evidence of such sales to a condemning authority are well summarized in 5 N i c h o l s on Eminent Domain through (Rev. 3 r d . Ed. 1984) a s f o l l o w s : Even in those jurisdictions where evidence o f comparable s a l e s i s a d m i t t e d , it i s g e n e r a l l y h e l d by t h e w e i g h t o f a u t h o r i t y t h a t evidence of t h e s a l e of a p a r c e l o f l a n d s u b j e c t t o condemnation t o t h e p r o p o s e d condemnor o r t o a n o t h e r p o t e n t i a l condemnor may n o t b e a d m i t t e d a s evidence o f t h e v a l u e o f t h e land condemned. E v i d e n c e showing what t h e company s e e k i n g t o condemn h a s p a i d f o r o t h e r l a n d s would p r o b a b l y b e t a k e n by t h e jury a s i n d i c a t i n g t h e market value, when, a s a m a t t e r o f f a c t , it d o e s n o t t e n d t o show t h e m a r k e t v a l u e o f t h e land. A company condemning l a n d m i g h t b e w i l l i n g t o g i v e more t h a n it i s w o r t h , and t h e owner o f l a n d m i g h t b e w i l l i n g t o t a k e less t h a n it i s w o r t h , t h a t i s , l e s s t h a n i t s m a r k e t v a l u e , r a t h e r t h a n have a lawsuit. Moreover, when a company s e e k s t o g e t l a n d o r condemn i t f o r p u b l i c u s e s , h a v i n g t h e power t o condemn, t h e landowner would p r o b a b l y come t o some agreement w i t h it r a t h e r than have a l a w s u i t , and t h i s a g r e e m e n t would show a compromise r a t h e r t h a n t h e m a r k e t v a l u e of t h e land. T h e r e a r e many r e a s o n s which m i g h t b e advanced i n s u p p o r t o f t h i s almost, i f not quite, universal rule. A s h e r e t o f o r e s t a t e d , such s a l e s a r e almost always i n t h e n a t u r e o f a compromise. The l a n d o w n e r , on t h e one side, may force a sale; and the condemnor, on t h e o t h e r , must have t h e l a n d , even t h o u g h it c o s t s more t h a n i t s value. Again, t h e c i r c u m s t a n c e s and surroundings a r e n e c e s s a r i l y d i s s i m i l a r , and t h e amount p a i d i s n o t o n l y t h e v a l u e o f t h e land a c t u a l l y taken, b u t a l s o t h e damages done to the entire tract, d e p e n d i n g upon t h e e x i g e n c i e s o f t h e location of t h e parcel acquired, the number o f a c r e s i n t h e e s t a t e , and o t h e r f a c t s peculiar t o the p a r t i c u l a r case. A1 I i n c i d e n t a 1 damages a r e i n c l u d e d , and t h e s e , o f course, should n o t be taken i n t o account i n f i x i n g t h e acreage value i n t h e market. E v i d e n c e a s t o damages p a i d i n o n e c a s e would c e r t a i n l y n o t b e admissible i n o r d e r t o determine t h e damages done i n a n o t h e r . Such t e s t i m o n y d o e s n o t , a f t e r a l l , go t o t h e m a r k e t value of t h e land, except incidentally, and i t i s n o t a r e a s o n a b l e o r f a i r t e s t of m a r k e t v a l u e . For these reasons we hold sales to condemnors are not a d m i s s i b l e t o e s t a b l i s h f a i r m a r k e t v a l u e when t h e s a l e s a r e p a r t o f t h e same p r o j e c t which r e s u l t e d i n t h e condemnation of other property, however s i m i l a r t h e p r o p e r t y may b e to that i n controversy, and r e g a r d l e s s o f w h e t h e r t h e payment was t h e r e s u l t o f a s e t t l e m e n t , an award o r a j u r y v e r d i c t . W e a g r e e w i t h t h e Oregon C o u r t i n C i t y o f P o r t l a n d v. Holmes (Or. 1962), 376 P.2d 120, 123, that there is a very r e a l distinction between voluntary sales and sales made to a u t h o r i t i e s a b o u t t o i n i t i a t e condemnation p r o c e e d i n g s . Only i f t h e p r i c e p a i d i s v o l u n t a r y can it b e a r e a s o n a b l e i n d e x of v a l u e . DeTiennes argue admission of two of the Highway Department's e x h i b i t s c o n s t i t u t e r e v e r s i b l e e r r o r . DeTiennes objected t o t h e i r admission during t r i a l f o r t h e reason they did not believe the exhibits were official records. DeTiennes f a i l e d t.o o b j e c t on t h e b a s i s o f l a c k o f f o u n d a t i o n and c a n n o t d o s o now. This Court has r u l e d previously t h a t a p a r t y c o m p l a i n i n g o f e r r o r must s t a n d o r f a l l on t h e ground r e l i e d on b y t h e t r i a l c o u r t . T e e s d a l e v. A n s c h u t z D r i l l i n g Co. f 1 9 6 0 ) , 138 Mont. 4 2 7 , 4 4 1 , 357 P.2d 4, 11; a n d B o w e r v. Tebbs ( 1 9 5 7 ) , 132 Mont. 146, 160, 314 P.2d 731, 739. Rule 9 0 1 , Montana R u l e s o f E v i d e n c e , p e r m i t s a u t h e n t i c a t i o n o f a document by testimony of a witness with knowledge that a m a t t e r i s what it i s claimed t o be. T h i s i s p r e c i s e l y what was d o n e h e r e . Mr. Jay Randall, a d i s t r i c t engineer f o r t h e Montana Highway Department, testified the documents in q u e s t i o n were a set o f c o n s t r u c t i o n p l a n s f o r t h e Plentywood South project . Had DeTiennes been concerned with inaccuracies i n t h e p l a n s o r w h e t h e r t h e p r o j e c t was b e i n g b u i l t according t o t h e plans, t h e y could have attempted t o show t h i s . They d i d n o t show u s e o f t h e e x h i b i t s a t t r i a l affected any of their rights, or they were prejudiced by t h e i r admission. For t h e s e r e a s o n s w e f i n d no error by t h e court i n admitting t h e exhibits. DeTiennes o b j e c t t o p l a i n t i f f ' s j u r y i n s t r u c t i o n on t h e " q u o t i e n t method" f o r d e t e r m i n i n g c o m p e n s a t i o n : You a not permitted t o a r r i v e a t t h e amount o f c o m p e n s a t i o n t o b e a w a r d e d b y the "quotient method," o r any o t h e r method w h e r e b y i n a d v a n c e o f d e t e r m i n i n g t h e amount, you a g r e e t o b e bound b y t h e d e t e r m i n e d amount. R a t h e r , f o u r o r more o f y o u r number who h a v e a g r e e d t o award damages m u s t a g r e e upon a s p e c i f i c amount known t o e a c h o f you when you v o t e i n f a v o r o f a w a r d i n g t h a t amount. This instruction, i n d e e d , may h a v e a t e c h n i c a l d e f e c t . Mere t e c h n i c a l d e f e c t s i n t h e i n s t r u c t i o n s , i f considered a s a w h o l e , d o n o t r e n d e r s u c h errors r e v e r s i b l e error. Lauman v . Lee (Mont. 1 9 8 1 ) , 626 P.2d 8 3 0 , 8 3 4 , 38 S t . R e p . 499, 503. The o p e n i n g p h r a s e o f t h e i n s t r u c t i o n c o u l d b e u n d e r s t o o d t o mean t h e q u o t i e n t method p e r se i s i m p e r m i s s i b l e . Reading the entire sentence, however, ma.kes c l e a r a n agreement in advance t o be bound by a n amount y e t t o be determined i.s impermissible. The i n s t r u c t i o n c 1 e a r l . y p r o h i b i t s t h i s k i n d of agreement. I t i s p o s s i b l e t h e j u r y was c o n f u s e d by t h e f i r s t phrase, but c l e a r l y t h e jury reached a v e r d i c t . There i s no showing t h i s was done by t h e i m p e r m i s s i b l e method o f a g r e e m e n t t o b e bound by an u n d e t e r m i n e d amount. DeTiennes failed to show any prejudice or interference with their s u b s t a n t i a l r i g h t s by r e a s o n o f t h e i n s t r u c t i o n . U n l e s s an error affects the substantial rights of an appellant, judgment w i l l n o t b e r e v e r s e d : On a p p e a l , p r e j u d i c e i s n e v e r presumed, and a judgment w i l l n o t b e r e v e r s e d merely because t h e lower c o u r t e r r e d ; i n order t o work a reversal, i t must a f f i r m a t i v e l y appear t h a t t h e e r r o r has a f f e c t e d s u b s t a n t i a l r i g h t s o f defendant on t h e m e r i t s o f t h e c a s e . [Citations omitted. ] It does n o t a f f i r m a t i v e l y a p p e a r from t h e r e c o r d t h a t d e f e n d a n t was prejudiced or t h a t substantial r i g h t s w e r e a f f e c t e d by r e a s o n o f t h e e r r o r . Conway v. Fabian (1939), 108 Mont. 287, 323-324, 89 P.2d 1022, 1 0 3 7 , c e r t . d e n i e d 308 U.S. 578, 60 S.Ct. 94, 84 L.Ed. F i n a l l y DeTiennes a r g u e e r r o r b e c a u s e t h e c o u r t r e f u s e d t o g i v e t h e i r i n s t r u c t i o n no. 10: You a r e i n s t r u c t e d t h a t i n d e t e r m i n i n g t h e amount o f d e p r e c i a t i o n t o t h e f a i r market v a l u e o f t h e remainder t o be paid by the State for the part of the Defendant's land not taken, you may consider inconvenience o f use t o t h e landowner resulting from t h e taking. O r d i n a r i l y damages may b e awarded o n l y f o r i n j u r y done to the particular lot or tract of land for which the right-of-way s t r i p i s taken. I n a s c e r t a i n i n g t h e award t o b e made, t h e v a l u e o f t h e a c r e a g e t a k e n and t h e d e p r e c i a t i o n i n v a l u e o f t h e remainder o f t h e p a r t i c u l a r t r a c t i s determined r e g a r d l e s s o f what o t h e r l a n d s t h e owner may p o s s e s s . Every item of inconvenience need not he considered by the jury. Instruction no. 10 could mislead the jury into believing it could consider any inconvenience to use suffered by DeTiennes whether or not it affected the market value of the property on the day of the taking. This is not the law. The amount of compensation to be awarded, whether the property actually is taken or injuriously affected by the taking, must be based on the market value of the property at the time of the taking. Only when inconvenience results in a diminution of market value of the property is it compensated. Compensation can not be for inconvenience per se. The damage being compensated must be to the [value of the] property itself. Less v. City of Butte (1903), 28 Mont. 27, 33, 72 P. 140, 141. The jury heard testimony on inconvenience and were properly instructed on the method to determine compensation. It concluded there was no diminution in the value of the property because of the location of the new highway, or because of any inconvenience resulting from its location. The judgment of the District Court is affirmed. Justices Mr. J u s t i c e Frank B. M o r r i s o n , Jr. d i s s e n t s a s f o l l o w s : I d i s s e n t i n p a r t and c o n c u r i n p a r t . I s p e c i f i c a l l y a g r e e w i t h t h e r e s o l u t i o n o f t h e i s s u e on impeaching t h e j u r y v e r d i c t u t i l i z i n g t h e v o l u n t e e r s t a t e m e n t o f t h e foreman. The s t a t e m e n t by t h e foreman i n d i c a t i n g t h a t the jury considered negligence presents an interesting question. By a n a l o g y , I believe t h e i s s u e t o be c o n t r o l l e d by J o h n s o n v. S u p e r Save M a r k e t s , Inc. ( 1 9 8 4 ) , 686 P.2d 209, 4 1 St.Rep. 1495. In t h a t case t h e jury returned a v e r d i c t f o r g e n e r a l damages i n t h e amount o f $17,000. However, t h e j u r o r s v o l u n t a r i l y added a hand w r i t t e n l i s t e n u m e r a t i n g f i v e separate elements of damage accounting for the total of $17,000. The itemization showed that the jury awarded damages f o r t h i n g s which d i d n o t f i n d s u p p o r t i n t h e r e c o r d . In refusing to impeach the verdict with the handwritten notations of the jurors, we said, ... w e a r e n o t c o m p e l l e d t o impeach a v e r d i c t with considerations of the jury which are vo1untariI.y o f f e r e d j u s t a s w e uniformly r e f u s e t o d o s o w i t h t h e same i n f o r m a t i o n a s e l i c i t e d u n d e r o a t h through a f f i d a v i t s . The s t a t e m e n t o f t h e foreman was a v o l u n t e e r s t a t e m e n t as the hand written notations in Johnson v. Super Save, supra, were. Therefore, I would hold that the foreman's s t a t e m e n t s should be disregarded. I dissent from the holding in the majority opinion a f f i r m i n g t h e t r i a l c o u r t r u l i n g g r a n t i n g a motion i n limine foreclosing consideration of s a I es under threat of condemnation. The majority opinion distinguishes between c o m p a r a b l e s a l e s u t i l i z e d by an e x p e r t w i t n e s s i n a r r i v i n g a t market value and the admissibility of those sales to establish market value. I believe this is unnecessary " s p l i t t i n g of h a i r s . " However, t h e m o t i o n i n l i m i n e and t h e ruling thereon, i n t h i s case, foreclose the consideration of such s a l e s f o r any purpose. Such r u l i n g r u n s c o n t r a r y t o t h e holding of this Court in State Highway Comm'n v. Voyich ( 1 9 6 3 ) , 1 4 2 Mont. 355, 384 P.2d 765. Justice Castles, in holding such s a l e s admissible s a i d : We a r e n o t c a l l e d upon, n o r d o we r u l e , on t h e q u e s t i o n o f a d m i s s i b i l i t y o f s a l e s t o condemners t o e s t a b l i s h market price. We have set forth s u f f i c i e n t h e r e , t h o u g h , t o e s t a b l i s h t h a t upon t h e o b j e c t i o n s r a i s e d by t h e S t a t e , a s h e r e t o f o r e q u o t e d , t h e D i s t r i c t C o u r t was n o t i n e r r o r i n allowing t h e evidence f o r t h e reason t h a t t h e o b j e c t i o n went t o c o m p a r a b i l i t y of t h e l a n d s , which c o m p a r a b i l i t y was shown.. .. I believe that the holding of the Court in Voyich, supra, is clearly that sales made under threat of condemnation a r e c o m p a r a b l e s a l e s . I f such s a l e s c o n s t i t u t e c o m p a r a b l e s a l e s t h e y can b e u s e d by an a p p r a i s e r i n a r r i v i n g a t market value. I t would a l s o seem t h a t t h e y a r e d i r e c t l y a d m i s s i b l e a l t h o u g h t h e C o u r t d i d n o t r u l e on t h a t q u e s t i o n . F o l l o w i n g t h e a u t h o r i t y found i n S t a t e Highway Comm'n v . Voyich, supra, I would hold that it was error t o prohibit consideration of these "comparable sales" for any purpose whatsoever. Such a d e t e r m i n a t i o n would r e q u i r e a n e w t r i a l . I would r e v e r s e and remand f o r a new t r i a l i n a c c o r d a n c e