Title: Sauvageau v. Hjelle

State: north-dakota

Issuer: North Dakota Supreme Court

Document:

213 N.W.2d 381 (1973) George D. SAUVAGEAU and Francis Sauvageau, Plaintiffs/Appellees, v. Walter R. HJELLE, North Dakota State Highway Commissioner, Defendant/Appellant. Civ. No. 8853. Supreme Court of North Dakota. December 5, 1973. *385 Jos. A. Vogel, Sp. Asst. Atty. Gen., State Highway Dept., Bismarck, for appellant. Wattam, Vogel, Vogel & Peterson, Fargo, for appellees. KNUDSON, Judge. This is an appeal by Walter R. Hjelle, the State Highway Commissioner [hereinafter Commissioner], from the judgment in a condemnation proceeding brought by the Commissioner to acquire certain land for the right of way for Interstate Highway 29. The Commissioner sought to acquire a right of way in the W-½ NW-¼ of Section *386 14 and to take immediate possession thereof by making an offer to purchase 24.11 acres of land from brothers George D. and Francis Sauvageau, depositing in the office of the clerk of the district court of Cass County the amount of such offer, $8,764.00, as provided by Section 14 of the North Dakota Constitution. George D. and Francis Sauvageau, claiming that the offer of the Commissioner "is wholly inadequate and does not represent the fair market value of the property taken nor does it make allowance for proper resulting consequential and severance damages to the remaining property not taken," appealed to the district court as provided by § 24-01-22.1, North Dakota Century Code, and demanded a jury trial on the question of damages. The jury returned a verdict in favor of the Sauvageaus for $39,677.75, consisting of $12,657.75 for the value of the land actually taken, $10,100.00 in severance damages, and $16,920.00 in consequential damages. The court ordered judgment for $51,654.98, including the jury award, costs, expert witness fees, interest and attorney fees of $10,304.78. This appeal is from that judgment. George D. Sauvageau owns an interest in four tracts of land, all located in Township 138 North, Range 49 West, Cass County. He is the sole owner of the NE-¼ of Section 15, which is the homestead of George and his wife, Marie Sauvageau [hereinafter the home place]. He and his brother, Francis, own as joint tenants the W-½ NW-¼ of Section 14, a tract of approximately 80 acres. George and Marie own, as joint tenants, the SE-¼ of Section 11 and the NW-¼ of Section 13. It is not disputed that "for a number of years" the four tracts have been farmed as a unit by George Sauvageau and his wife, Marie. It appears that Francis Sauvageau does not actively participate in farming the 80-acre tract. Though no testimony is found in the record directly so stating, all inferences point to that conclusion. All four tracts abutted on an east-west gravelled road which, prior to the taking, provided access to all portions of the farm unit, except the south part of the 80-acre tract. The 80-acre tract was traversed in a general southwest-northeast direction by Rose Coulee, a natural watercourse approximately one and one-half to three feet deep, which, for approximately three-fourths of the year, prevented access to that part south of Rose Coulee from the north part. Access to the south part was provided by a north-south township road along the west side. The right of way of 1-29 acquired by the Commissioner separated the home place lying on the west side of 1-29 from the other tracts lying east of 1-29, and left that part of the 80-acre tract lying south of Rose Coulee landlocked and inaccessible, without access to a public road, as the north-south township road became a service road on the west side of 1-29. There remained of the 80-acre tract approximately 12 acres north and 43.89 acres south of the coulee after the taking. Access to that part south of the coulee will require the construction of a crossing over the coulee. The Commissioner raised three issues in his brief, as follows: The three issues raised by the Commissioner will be considered separately. *387 First, he asks whether § 32-15-22(2), North Dakota Century Code, will permit an award of severance damages to remaining land from which no part was taken where, as he contends, four parcels of land lack contiguity and unity of ownership, but are farmed as a unit. The Section cited provides: The Commissioner first urges that the word "parcel" in subsection 2 refers, in this case, only to the 80-acre tract; and that therefore the 80-acre tract may not be considered as part of a larger unit in considering severance damages. We believe, however, that such a narrow construction of the statute is not warranted. The Commissioner refers us to California case law. Subsection 2 of our statute is based upon the California eminent domain statute, West's California Code, Civil Procedure, § 1248, and contains the exact same language as our subsection 2. The California Supreme Court has said with respect to this subsection, (1) that what constitutes a parcel of land in contemplation of subdivision 2 is essentially a question of law, but may involve issues of fact; People v. Nyrin, 256 Cal. App. 2d 288, 63 Cal. Rptr. 905 (1967); (2) that severance damages can only be allowed where there is unity of use between the parcel condemned and the parcel retained; Hemmerling v. Tomlev, Inc., 67 Cal. 2d 572, 63 Cal. Rptr. 1, 432 P.2d 697 (1967); and (3) that to constitute unity of property between two or more contiguous but prima facie distinct parcels of land, so as to entitle a landowner to severance damages, "there must be such connection or relation of adaptation, convenience, and actual and permanent use as to make the enjoyment of the parcel taken reasonably and substantially necessary to the enjoyment of the parcels left, in the most advantageous and profitable manner in the business for which they are used." City of Menlo Park v. Artino, 151 Cal. App. 2d 261, 311 P.2d 135 (1957); City of Stockton v. Marengo, 137 Cal. App. 760, 31 P.2d 467 (1934). California, at least, does not appear to limit severance damages to the single parcel from which the land taken is severed. Neither has this Court placed so narrow a reading on the statute. In O'Connell v. Hjelle, 143 N.W.2d 251 (N.D.1966), we stated in our syllabus that: In that case a husband and wife owned several parcels of land. A number of other parcels were owned by the husband and wife jointly with the parents of the husband. All the parcels were operated as a single unit. The Commissioner condemned part of several parcels owned by the husband and wife only. There the trial court denied the Commissioner's motion to exclude any evidence of damages to lands owned jointly with the husband's parents. We upheld that decision on appeal. *388 Our holding there is equally applicable to this case. If in fact there was sufficient unity between the parcels so that they constitute one unit, then the award of severance damages based on the unit as a whole was permissible. The taking, under those circumstances, would be from the unit as a whole rather than from the 80-acre tract alone. We must next proceed to the question of unity. The Commissioner contends that the four parcels here lacked unity of ownership and contiguity; and that therefore there is no unity in the tracts here which will support an award of severance damages. There is no single rule or principle established for determining the unity of lands for the purpose of awarding damages in eminent domain cases. While generally there must be unity of title, contiguity of use, and unity of use, under certain circumstances the presence of all of these unities is not essential. Usually unity of use is given the greatest emphasis, and it has been called the controlling and determining factor. 29A C.J.S. Eminent Domain § 140, p. 591, and numerous cases cited therein. The Commissioner contends there is neither unity of ownership nor unity of contiguity in this case. We will consider each facet separately. Generally speaking, in order to allow severance damages for a portion of a parcel or parcels of land claimed as a single unit taken by condemnation, there must be unity of ownership between the part taken and the remaining part. 95 A.L.R.2d 887, 890, § 2. And where a tract of land taken by condemnation is held by two persons as contenants or tenants by the entirety, and the severances damages allegedly caused by the condemnation are claimed as to an adjoining tract which is solely owned by one of the owners of the condemned tract, there is a division of authority. 95 A.L.R.2d 897, § 6(b). Some cases hold that the unity of ownership between the two tracts is not sufficient to support an award of severance damages. Duggan v. State, 214 Iowa 230, 242 N.W. 98 (1932); Tillman v. Lewisburg & N. R. Co., 133 Tenn. 554, 182 S.W. 597, L.R.A.1916D, 259 (1916). Other cases hold that the same quantity or quality of interest or estate in all portions of a tract is not essential. 29A C.J.S. Eminent Domain § 140, p. 595. Cited in support of that proposition are Barnes v. North Carolina State Highway Commission, 250 N.C. 378, 109 S.E.2d 219 (1959); and State ex rel. LaPrade v. Carrow, 57 Ariz. 429, 114 P.2d 891 (1941). The record here shows that George D. Sauvageau owned an interest in all four tractssole ownership in the home tract, joint ownership with his brother, Francis, in the 80-acre tract, and joint ownership with his wife, Marie, in the remaining two tracts. There is no evidence that Francis Sauvageau has ever actively participated in farming the 80-acre tract. Marie Sauvageau appeared pursuant to statutory authorization granted by § 32-15-20, N.D.C.C., and claimed an interest in all four tractsjoint ownership with her husband of the SE¼ of Section 11 and the NW¼ of Section 13, a statutory interest in the home place as the family homestead, and an interest in the 80-acre tract by virtue of her continued assistance in operations on it for 38 years. All evidence shows that the tract has been farmed by George D. Sauvageau and his wife, Marie, as part of one unit consisting of four tracts. We conclude that upon these facts the continuous use of the 80-acre tract as an integral part of the farm unit establishes sufficient identity of ownership to support the jury's conclusion that the entire farm was one unit. We next treat the question of contiguity as it relates to use. While certain of our *389 cases involve noncontiguous land utilized as a unit (see O'Connell v. Hjelle, 143 N.W.2d 251 (N.D.1966), and Minnkota Power Co-Operative v. Bacon, 72 N.W.2d 880 (N.D.1955)), in none has the question been directly presented whether damages may be awarded in a condemnation action to noncontiguous lands which are utilized as a unit. The O'Connell decision centered upon unity of ownership, in its relation to unity of use; no direct reference to the question of contiguity was raised as error, and this Court did not decide that question. Perhaps the classic federal case on the question of contiguity is Baetjer v. United States, 143 F.2d 391 (1st Cir. 1944), cert. denied 323 U.S. 772, 65 S. Ct. 131, 89 L. Ed. 618. There, the federal government condemned two tracts of land on an island ten miles east of Puerto Rico. The two tracts were owned by a trust which raised sugar cane on the tracts, transported the cane to Puerto Rico, where it was processed in facilities also owned by the trust. The trust claimed damages to the entire business. From denial of that claim, the trust appealed. The First Circuit Court of Appeals ruled that if the tracts were united in use, compensation would be required. The Court stated, in part, at page 395: DiVirgilio v. State Road Department, 205 So. 2d 317, 320 (Fla.1967), contains the following analysis of contiguity as it relates to use: The court there was attempting to determine what was meant by the term "adjoining property" under its statute, F.S.A. § 73.071(4). It devised the following rule: *390 We believe this test is a sound one. Integration of use is not disputed in this case. With respect to proximity, the record establishes that prior to the taking the home place was separated from the 80-acre tract by a section line. The SE¼ of Section 11 commences approximately one-half mile east of the 80-acre tract, and is itself separated from the NW¼ of Section 13 by a township road. All four tracts are encompassed within a geographic area measuring two miles from east to west and one mile from north to south. We are led to the conclusion that the evidence establishes sufficient contiguity to support, under proper instructions, a jury conclusion that the entire farm was one unit. In its instructions to the jury, the trial court said: The jury, having determined under proper instruction that the four tracts constituted one unit, this Court will not intervene. We are convinced that subsection 2 of § 32-15-22, N.D.C.C., permits an award of damages in a situation of this nature; and that the jury may correctly conclude that the "parcel," part of which was severed, was the 80-acre tract viewed as part of an entire unit, there being sufficient evidence of contiguity and unity of ownership. As his second issue, the Commissioner asks whether § 32-15-22(3), N.D.C.C., requires that consequential damages be not only greater in degree but also different in kind from those suffered by the public generally. More specifically, he contends that the only damage shown was loss of access; and that loss of access is an insufficient basis upon which to award consequent damages, because such damage is not different in kind from that suffered by the public in general. In King v. Stark County, 67 N.D. 260, 271 N.W. 771 (1937), this Court held in syllabus 2: And at page 774, we added: In paragraph 2 of the syllabus of Chandler v. Hjelle, 126 N.W.2d 141 (N.D. 1964), we said: The evidence shows that the market value of the property to any prospective purchaser will be diminished by the following combination of factors: (1) Isolation of the home place from the remaining tracts in the farm unit, which, to be economical, must be farmed as a unit; (2) circuity of travel; and (3) the required construction of a crossing over Rose Coulee. These are all damages which are different in kind from those suffered by the public in general. A reasonably prudent man would, we believe, take these factors into account when forming a judgment as to the market value of the Sauvageau unit. Loss of pre-existing access to property, part of which is taken, is compensable where the loss of access combined with other factors obviously reduces the market value of property to a prudent prospective purchaser of that property. Such damages are those within the contemplation of King v. Stark County, supra, and the jury's award of such damages must be upheld on appeal. The Commissioner contends that consequential damages were awarded for loss of access by Mrs. Marie Sauvageau. This is not the case. The award was made to George D. and Francis Sauvageau. Mrs. Marie Sauvageau appeared pursuant to statutory authorization to claim an interest in all four tracts, but there was no award to her directly. Both parties state that consequential damages are limited to only those instances where no property is taken. However, in Little v. Burleigh County, 82 N.W.2d 603, 608 (N.D.1957), we said that consequential damages may be awarded whether or not property is taken in construing § 32-15-22, N.D.C.C., as follows: In Court syllabus paragraphs 9 and 10 of Little v. Burleigh County, supra, we held: Thus subsection 2 of § 32-15-22 authorizes the awarding of compensation, when property is taken, for both severance damages due to the taking and consequential damages not due to the taking, the consequential damages arising from the construction of the improvement. Subsection 3 of § 32-15-22 authorizes the awarding of compensation, when property is not taken, for consequential damages arising from injuries to property, though no part thereof is taken, which will be damaged by the construction of the proposed improvement. The final issue raised by the Commissioner concerns attorney's fees. He asks whether, in awarding attorney fees, the trial court should restrict its `consideration to the difference between the original deposit and the jury award. The statute, § 32-15-32, N.D.C.C., provides that in a condemnation action, "the court may in its discretion award to the defendant reasonable actual or statutory costs or both, which may include ... reasonable attorney's fees for all judicial proceedings." In United Development Corporation v. State Highway Department, 133 N.W.2d 439, 441 (N.D.1965), we held in Court syllabus paragraph 10: We held in Morton County Board of Park Commissioners v. Wetsch, 142 N.W.2d 751 (N.D.1966), at syllabus paragraph 3, which we followed in Municipal Airport Authority of City of Fargo v. Stockman, 198 N.W.2d 212 (N.D.1972): The appellate court will not interfere with rulings on discretionary matters unless an abuse of discretion is shown, which abuse must be a manifest abuse. Bartholomay v. St. Thomas Lumber Co., 124 N.W.2d 481 (N.D.1963). The burden of showing such error and establishing affirmatively that the trial court abused its discretion rests upon the appellant Commissioner. Morton County Board of Park Commissioners v. Wetsch, 142 N.W.2d 751, 753, and numerous cases cited therein. The Commissioner contends that the trial court ruled as a matter of law that all four tracts constituted one unit and that the State, as a result, was forced to reappraise the land. In effect, he asks this Court to find, as a matter of law, that "the result obtained" was to raise the award from $24,333 (the amount of damages determined by the State's reappraisal) rather than from $8,764 (the deposit) to the final award of $39,677. The record does not support the contention of the Commissioner that the trial *393 court ruled as a matter of law that the four tracts constituted a unit. In addition to the jury instructions with regard to unity of the tracts, the trial court instructed the jury as follows: The trial court's memorandum opinion with respect to attorney's fees, after citing the admonition contained in Morton County Board of Park Commissioners v. Wetsch, 136 N.W.2d 158 (N.D.), contains the following statements: The record supports the position that the Commissioner's original deposit was based on an erroneous appraisal. We cannot say as a matter of law, based upon the record here, that the subsequent increase in appraised valuation by the Commissioner was not due to the skill, knowledge, experience and efforts of the counsel for the landowners, showing the need for an increase in the deposit by the Commissioner. Viewing the case as a whole, we cannot say that the trial court abused its discretion in awarding attorney's fees. It has found that $10,304.58 is a reasonable and just fee in view of all of the factors in the case. In arriving at this reasonable figure, we cannot say that it considered impermissible factors. This court will not substitute its judgment for that of the trial court. The judgment is affirmed. ERICKSTAD, C. J., and PAULSON, TEIGEN and VOGEL, JJ., concur. VOGEL, J., was not a member of this Court at the time of submission of this appeal; he participated on the briefs filed in this case.