Title: State v. City of Terre Haute

State: indiana

Issuer: Indiana Supreme Court

Document:

250 Ind. 613 (1968)
238 N.E.2d 459
STATE OF INDIANA
v.
CITY OF TERRE HAUTE, A MUNICIPAL CORP.
No. 31,003.

Supreme Court of Indiana.
Filed July 1, 1968.
*614 John J. Dillon, Attorney General, Ronald S. Timmons and Charles J. Deiter, Deputy Attorney Generals, for appellant.
Frank P. Crawford, City Attorney, City of Terre Haute, Indiana, for appellee.
LEWIS, C.J.
This is an appeal from the judgment of the Vigo Superior Court in a proceeding brought by the State of Indiana to appropriate two (2) parcels of real estate in which the City of Terre Haute had an interest for the purpose of constructing Interstate Highway I-70.
In 1946 the City of Terre Haute received a mandate from the State of Indiana to cease and desist from polluting the Wabash River. This required the City of Terre Haute to construct a sewage disposal system for the City's use. A Boston, Massachusetts, consulting engineering firm was retained and it commenced to study the situation with the original plans being developed by it in the period of 1951 to 1953.
On September 11, 1961, the State of Indiana filed this condemnation against the City of Terre Haute for a right-of-way over parts of two (2) tracts of land. One tract comprising 31.98 acres was owned outright by the City, and on the other tract of 7 1/2 acres, the City had a claimed option to purchase. These tracts were adjacent to one another and it was on these tracts that the City had planned to build its sewage disposal plant.
*615 After several meetings between the Mayor of Terre Haute and the State Highway Commission in an attempt to select and agree on an alternate route, it was decided that the Highway, I-70, would be built as previously planned and that the site of the proposed sewage disposal plant must be moved to another near-by property.
Although no actual construction had begun on the project and the land remained unchanged, the condemnation was responsible for generating additional costs to the City of Terre Haute. In its plea for damages the City specifically alleged the following items:
Evidence relevant to these items of damages was admitted by the Trial Court over valid objections by opposing counsel. The jury returned a verdict for the City of Terre Haute in the sum of $94,330. From this verdict the State of Indiana appeals to this Court raising the following errors:
*616 Concerning appellant's second assigned error, the pertinent Indiana Statute, Burns' Indiana Stat., Anno., (1968 Repl.), § 3-1706, reads as follows:
The problem now manifests itself: Which items of the alleged damages are compensable under the Indiana condemnation procedure? It is well settled in Indiana that when land is taken which has a fair market value at the time of its appropriation, the measure of damages is the fair market value for which the land could be sold if the owner was willing to sell. If the land has a higher market value by reason of use or uses to which it may be adapted, but to which it has not been put, the owner is entitled to the greater value. State v. Tibbles (1954), 234 Ind. 47, 123 N.E.2d 170. On this the law is agreed; however, State v. Tibbles, supra, goes on to say that the fair market value of the land taken is all that may be recovered by the condemnee. Whether this is applicable in the case at bar is what we must now decide.
In State v. Ensley (1960), 240 Ind. 472, 164 N.E.2d 342, the condemnee had business property which abutted a thoroughfare; he sought damages for the land actually taken which was granted, but he also sought to receive compensation because a divider strip was constructed between lanes thereby affecting ingress and egress to his business establishment. This Court stated:
Recovery was denied with this Court stating:
From this case we may draw the conclusion that this Court will allow damages in addition to the fair market value of the land actually taken, but only where the facts in a particular case justify it.
In State v. Jordan (1966), 247 Ind. 361, 215 N.E.2d 32, a limited-access expressway was constructed which greatly hampered ingress and egress to the appellant's business parking lot. The parking lot was "leased" from another party; however, this Court found that the agreement between the lessor and lessee was too vague to constitute a leasehold interest in the land. The Court made the following statement:
With the above statement in mind, the case of State v. Geiger & Peters, Inc. (1964), 245 Ind. 143, 196 N.E.2d 740, will be examined. The appellant owned a business which fronted on a limited-access expressway. The construction of the expressway greatly hampered the ingress and egress of his customers. This Court granted compensation saying:
Compensation was given other than the fair market value of the land actually taken in this case based on the condemnee's being deprived of a present use. This case recognizes that in some situations fair market value of the land taken is not an adequate measure of damages.
State v. Tibbles, supra, provides us with some guidelines in ascertaining what damages, beyond those attributable to the fair market value of the land taken, are compensable. In this case the land condemned was intended to be used by the condemnee as a lot on which to display and sell house trailers. However, this was a future intended use and was not in esse. This Court stated:
*620 Therefore, we conclude from this case that one may not recover for damages for intended use to arise in the future.
After a search of Indiana law we can find no Indiana cases which deal with the factual situation which presents itself here. However, a search of other jurisdictions produced the following cases. In City of Chicago v. Provus (1953), 415 Ill. 618, 114 N.E.2d 793, the appellees owned a tract of land in Chicago. They intended to build an apartment complex on the premises. However, the City of Chicago condemned a right of way through it thereby frustrating the appellees in their future plans. The appellees had already expended monies for architectural fees, and F.H.A. appraisals, and sought to set them off as damages against the condemnor. In denying their claim for these damages the Supreme Court of Illinois stated:
However, as previously stated, the Indiana law allows damages in addition to the fair cash market value of the land actually taken. The State of New York has chosen to treat a similar problem differently in Application of Westchester County (1953), 127 N.Y.S.2d 24. Here, as well, the appellants were planning to build an apartment complex on a given parcel of land, part of which was condemned and taken by the County of Westchester to acquire lands for a parkway *621 or boulevard. They had, previous to the condemnation, expended monies for architectural fees and F.H.A. appraisals. The Supreme Court of New York deviated from the strict fair cash market value standard and allowed partial recovery by stating:
We are impressed with this case. While we may not award damages for a future intended use, the plans and designs of the consulting engineering firm purchased by the City were in esse at the time the land was taken. These plans were fairly allocable to the subject parcel, and the expenses were incurred in good faith prior to the taking. While *622 these expenditures did not enchance the cash fair market value of the land taken, they were attached to it as though they were an actual physical improvement. From the planning to the actual construction of a physical structure is a series of continuing stages of development. It would be inequitable to allow recovery for a partially completed building, but not to allow recovery for expenses incurred in a previous stage of development. Therefore the appellee should be compensated for the damages sustained by it in regard to the planning and engineering work actually performed before the day of taking. Evidence should be elicited at trial in order to ascertain what these damages are.
However, the other expenses for which the appellee seeks compensation arose in the future after the day of the taking and are not the proper subject for compensation under our eminent domain statute.
In United States ex rel. T.V.A. v. Powelson (1942), 87 L. Ed. 1390, 319 U.S. 266, the following statement appears:
Therefore, the damages sustained by the appellee to the engineering and plans which were in esse at the time of the taking are proper matters on which evidence may be heard at trial. However, evidence admitted as to other elements of damages concerning the extension of the water main, the increased diameter of the water main, the bends around the bridge foundation, and the highway permits, was all inadmissible since such matters are not of the proper subject matter to be compensated for by the State of Indiana.
The appellant's first assigned error also poses to this Court an issue which we deem worthy of clarification. On October 9, 1961, the State of Indiana filed its motion for a change of venue from the county, with the motion being granted on the same day. Following this order, the parties then struck counties, and on October 13, 1961, the cause was ordered venued to Sullivan County with the State being given ten (10) days to perfect its change. The State took no further action to perfect such change.
On February 24, 1964, the Vigo Superior Court ordered the cause redocketed in said Court on the grounds that the State had failed to perfect the change. Under Burns' Indiana Statutes, Anno., (1967 Repl.), § 2-1406, after the motion has been granted, the moving party must pay the costs of the change to the Clerk's Office. Upon receipt of this payment, the Clerk's Office transfers the cause to the appropriate Court, and the change is perfected.
It is the appellant's contention that the State is not liable for these costs payable to the Clerk since the State is exempt under Burns' Indiana Statutes, Anno., (1968 Repl.), § 2-3005. See also Ex Parte Fitzpatrick (1909), 171 Ind. 557, 86 N.E. 964.
Therefore, since Burns' § 2-3005, supra, only requires the payment of these costs to perfect the change, and since the *624 State is not liable for these costs; the change was automatically perfected on October 13, 1961, when the Court ordered the cause venued to Sullivan County.
We agree with the appellant in its statement that in highway condemnation proceedings, the State is not liable for ordinary Court costs, thereby exempting the State from paying the Clerk of the Vigo Superior Court. However, we cannot agree with the appellant in its conclusion that the change in this cause was perfected. After a thorough search we have found no Indiana case deciding this issue.
However, the costs that are referred to in § 2-1406, Burns' Indiana Statutes, Anno., (1967 Repl.), are the costs that are occasioned by the change. The statute placed the burden on the moving party to pay such costs. The payment of the costs to the Clerk of the Court is notice to the Clerk of the Court to prepare the transcript and forward the same to the Clerk of the proper county. In view of the fact that the State of Indiana is excused from paying such costs we cannot believe that the State is excused from notifying the Clerk in some manner to prepare the transcript sans costs and to forward the same to the proper county. As the State of Indiana is the moving party it would hardly seem reasonable to expect the Clerk, without some notice from the moving party, to prepare the transcript and forward the same. And, in view of the fact that the State is relieved from making the disbursement for costs, the State's counsel should, by proper notice of praecipe (or other notice) notify the Clerk to complete the administrative functions of preparing the transcript and forwarding the same.
In the case at bar the record is devoid of any affirmative action taken by the State of Indiana to inform the Clerk to proceed to prepare a transcript and forward the same. The early case of Cooper et ux. v. The Arctic Ditchers (1877), 56 Ind. 233, discusses change of venue and the duties involved on the moving party and the Clerk. In the *625 case at bar since the attorneys for the State of Indiana failed to notify the Clerk in any manner within the time limit prescribed for perfecting the change, we conclude that the State has failed to demonstrate error on the part of the Court in redocketing this matter.
Since the Court committed reversible error in admitting improper evidence, we must reverse and order a new trial not inconsistent with this opinion.
Arterburn, Hunter and Jackson, JJ., concur; Mote, J., not participating.
NOTE.  Reported in 238 N.E.2d 459.