SECOND DI VI SI ON

M I LLER, P. J.

, DOYLE and REESE, JJ.

N O T IC E : M otions for r e c ons i de r a tion m us t be

ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

http://w w w .ga a ppe a l s .us /r ule s

October 27, 2017



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A1 7 A 0 9 0 8

. PHH INVESTM ENTS et al

. v. DEPARTM ENT OF

TRANSPORTATION. DO-0 3 6

D O Y LE , J u d g e.

In t h i s co n d em

n at i o n act i o n

, co n d em

n ees PHH In v es t m en t s , In c., an d Zen i th

In v es t m en t s

, In c., (co l l ect iv el y “ Defen d an ts ”) ap peal fro m t h e g ran t of p art i a l

s u m m ary ju d g m en t to p et i t i on er Geo rg i a Dep art m e n t o f Tran s p o rt at io n (“ DOT”)

p recl u d i n g an award of cert ai n co n s eq u en ti al d am ag es to t h e Defen d an t ’ s co nt i g u ou s

t ract o f p ro p ert y ari s i n g fro m t he al l eg ed t ak in g o f t h e Defen d an t s ’ eas em en t acro ss

a d jo i n in g co n d em

n ed p ro p ert y

. Th e Defen d an t s arg u e t hat t h e t ri al co u rt erred b y

ru l i n g t hat the y can n o t reco v er, as p art o f D OT’ s co n d em n at i o n act i o n, t h e d i m i n u t i o n

i n val u e o f t h ei r co n t i g u ou s p arcel b as ed o n t h e p art i al t ak i n g o f t h ei r eas em en t s o v er

t h e ad jo i n i n g co nd em

n ed p ro p ert y . Fo r t h e reas o n s t h at fo l l o w, we affi rm

.Su m m ary ju d g m en t i s pro p er wh en t h ere i s n o g en u i n e i s s u e o f

m at eri al fact an d t h e m o van t i s en t i t l ed t o ju d g m en t as a m at t er o f l aw.

A d e n o v o s t an d ard o f rev i ew ap pl i es t o an ap p eal fro m a g r a n t o f

s u m m ary ju d g m en t

, an d we v i e w t h e ev i d en ce, an d al l reas o n ab l e

co n cl u s i o n s an d i n feren ces d rawn fro m i t, i n t h e l i g h t m o s t fav o rab l e t o

t h e n o n m ov an t

. 1

Th e fa c t s rel ev an t t o t h i s ap p eal are u n di s p ut ed

, an d t h e reco rd s h o ws t h at

Ed en s an d Av an t Fi n an ci n g II Li m i t ed Part n ers hi p (“ E&A”) o wn s a p arcel o f l an d,

i d en t i fi ed o n a p l at as Parcel 6

, n ear t h e i n t e r s e c t i o n o f Geo rg ia Hi g h way 4 0 0 an d

Hi g hway 5 3 . Parcel 6 i s a s tri p m al l an ch o red b y a Kro g er g ro cery s t o re.

C o n t i g u o u s t o Parcel 6

, t h ere is a s m al l er p arcel wi t h i n t h e s t ri p m al l

, i d en t i fi e d a s

Parcel 5 a n d o wn ed by PHH. PHH l eas es Parcel 5 t o Z en i t h

, wh i ch o p erat es a

W en d y ’ s res t au ran t o n t h e s i t e.

Parcel 5 s i t s at t h e act u al i n t e r s e c t i o n o f th e h i g h way s

, t u ck ed i n t o t h e

eas t ern m o s t co rn er 2 an d s i t u at ed b et ween t h e E&A p arcel an d t h e i n t ers ect i o n

. As

1 (Ci tat i o n om i tt ed .) Ma tj o u l i s v. In t eg o n Gen

. In s

. Co r p

., 2 2 6 Ga. Ap p

. 4 5 9 (1 )

(4 8 6 SE2 d 6 8 4 ) (1 9 9 7 ).

2 At th i s l o cat i o n

, t h e in t ers ect i o n i s n ot p erfect l y al i g n ed w i t h t h e p o i n t s o f t h e

co m p as s : Hi g h way

4 00 n o rt h ru n s ap pro x i m at el y n o rt h eas t

, a n d Hi g h way 5 3 n o rt h

ru n s ap pro x i m at el y n o rt h w es t

. Parcel 5 s i t s on t he s o u th ern / eas t ern s i d e o f Hi g h way

4 0 0 an d o n t h e n o rt hern / eas t ern s i d e o f Hi g hway 5 3

.

2o ri g i nal ly co n fi g u red

, Parcel 5 d i d n o t h av e d ri v eway s d i rect l y acces si n g Hi g h way s

4 0 0 an d 5 3

, s o w h en PHH p u rch as ed Parcel 5

, i t al s o recei v ed an eas em en t fo r acces s

o v er Parcel 6

, s o t h at Parcel 5 co u ld be acces sed fr o m b o t h h i gh way s

. Us i n g t h es e

eas em en t s

, n o rt h b ou n d d ri v ers o n Hi g h way 4 0 0 can cro s s Hi g h way 5 3 an d t u rn ri g ht

d i rect l y i n t o Parcel 6 (t h e s t ri p m al l ) wh ere t hey can acces s Parcel 5 v i a an i n t ern al

ro ad way cal l ed Bi g Ho r n D r i ve, wh i ch co nn ect s Hi g h way s 4 0 0 an d 5 3 an d ru n s

b eh in d t h e W en d y ’ s r e s t a u r a n t al o n g t h e bo rd er o f Parcel s 5 an d 6

. So u t h b o u n d

d ri v ers o n Hi g h way 4 00 h av e to t u rn l eft o n t o Hi g h way 5 3

, wh ere t h ey can t u rn l eft

i n t o Parcel 6 an d acces s Parcel 5 v i a t h e s ou t hern p o rt io n o f Bi g Ho rn Dri v e. Dri v ers

o n H i g h way 5 3 g o i n g i n ei t h er di rect i o n can t urn i n t o t h e sam e en t ran ce t o Bi g Ho rn

Dri v e. Th es e m et ho ds al l o wed dri v ers t o v i si t t h e W en d y ’ s res t au ran t o n Parcel 5 an d

ret u rn t o t h e h i g h w ay s rel at i v el y eas i l y fro m an y d i rect i o n.

In 2 01 4

, DOT en d eav ored t o creat ed a “ co n t i n u o u s fl ow i n t ers ect i o n ” t o eas e

t raffi c at t h e b u sy i n t ers ect i o n

. To t h at en d

, DOT fi l ed a p et i t i o n t o co n d em n cert ai n

p o rt i on s o f Parcel 6

, i ncl u d in g t h e p o rt i o n s co n t ai n i ng t h e eas em en ts u s ed b y t h e

Defen d an t s fo r acces s t o P a r cel 5

. No p o rt i o n of Parcel 5 was co nd em ned

. Aft er

co m p l et i o n o f t h e p ro

ject

, d ri v ers ’ d i rect acces s t o Parcel 5 w o u ld b e ei t h er fro m t h e

n o rt h b o un d ri g h t -h an d l an e o f Hi g hway 5 3 o r b y d ri v i n g s ou t h b o u n d o n Hi g h way 5 3

3t o an o t h er en t ran ce t o Parcel 6 ju s t t o t h e s o u t h an d on t h e sam e s i d e of Hi gh way 5 3.

Di rect acces s fro m Hi g h way 4 0 0 wo u l d be cu t o ff i n ei t her d i rect i o n

, b u t Hi g h way

4 0 0 d ri v ers i n ei t h er d i rect i o n wo u l d b e rero u t ed t o t h e acces s po i n t o n Hi g h way 5 3.

Al s o

, d ri vers co ul d n o t ex i t at t h e eas em en t po i n t o n t o H i g h w a y 5 3 ; t h e o n l y ex i t s

wo u l d b e a l an e en t eri n g Hi g hway 4 0 0 n o rt h b o u n d or an ot h er p o i n t on Hi g h way 5 3

a s h o rt d i s tan ce s ou t h

.

In res p o n s e t o t h e p e t i t i o n

, t h e Defen d an t s arg u ed t h at t h e red u ced acces s to

Hi g hway s 4 0 0 an d 5 3 wo u l d n eg at i vel y i m p act th e b u s i n es s o f t h e W en d y ’ s

res t au ran t

, co n v ert i n g i t fro m a “ co nv en i en ce” lo cat io n t o a “ d es t in at i o n ” l o cat i o n n ot

s u i t ed t o a fas t-fo o d r e s t a u r an t

. T h erefo re, t h ey arg u ed

, t h ey are en t i t l ed to

co n seq u en t i al d am ag es fo r t h e d i m i nu t i o n i n p r o p ert y v al u e res ul t i n g fro m t h e

red u ced acces s t o t h e W en d y ’ s res t au ran t, i n ad d i ti o n t o t h e red u ct i o n i n v al u e o f t h e

eas em en t s t h em sel v es

. Th e t ri al co u rt ru l ed t h at t h e Defen d an t s

, as o w n ers o f Parcel

5

, were n o t en t i t l ed to cl ai m co n s eq u en t ial d am a g e s f o r i n ju ry t o Parcel 5 res u l t i n g

fro m t h e t ak i ng o f p o rt io n s of an ad jo i n i n g p ro p ert y , Parcel 6 . Th e Defen d an t s n o w

ap p eal

.

4Th e Defen d an ts arg u e th at t h ey are en t i t l ed t o reco v er th e di m i n ut i o n i n m ark et

v al u e o f Par c e l 5 3 i n t h i s act i o n fo r co n d em n at i o n o f p o rt i o n s o f Parcel 6

. W e

d i s ag ree.

As t he tri al co u rt p o i n t ed o u t i n i ts ord er, th i s cas e i s co n t r o l l e d b y Geo r g ia

Po wer v. Br a

y

, 4 wh i ch ad d res s ed a cl ai m b y a n ei g h b o ri n g l an d o w ner s eek i n g

c onse q ue ntial d am ag es ari s i ng fro m t h e co n d em n at i o n of an eas em en t t o i n s t a ll pow e r

l i nes on t h e co n d em

ned p ro p ert y

. 5 In t h at s cen ari o

, t h e S u p r em e Co u rt o f Geo rg i a

h el d t h at

[c] o n s eq u en t i al d am ag es t o a co n t i g u ou s t ract o f l an d h av i n g a d ifferen t

o wn ers h i p fro m t h at i n wh i ch t h e t ak i n g o ccu rs m ay b e real an d m ay i n

fact ex is t

, b u t a s ep arat e o wn er’ s cl ai m fo r co n s eq u en t ial d am ag es t o h i s

l an d co n t i g u ou s t o th e t ract wh ere t h e t ak i n g o ccu rs can n ot b e as s ert ed

i n a co n d em

n at i o n act i o n

. Co ns eq u en t i al d am ag es t o “ t he rem ai n d er o f

3 (Ci t at i o n s an d p u n ct u at i o n o m i t t ed .) D ep t

. o f Tr a n s p

. v. W h i t eh ea d

, 2 5 3 Ga.

1 5 0

, 1 52 (2 ) (3 1 7 SE2 d 5 4 2 ) (1 9 8 4 ) (“ W h en a p ro p ert y o w n er’ s eas em en t o f acces s

t o a p u b l i c ro ad i s i n t erfered wi t h, t he m eas u re o f co n s eq u en t i al da m a g e s i s an y

d i m i n u ti o n i n t h e m ark et v al u e o f th e pro p ert y b y r e as o n o f s u ch i n t erferen ce.”)

(p u n ct u at i o n o m i t t ed ).

4 2 3 2 Ga. 5 5 8 (2 0 7 SE2 d 4 4 2 ) (1 9 7 4 ).

5 See i d . at 5 5 8 -5 5 9

.

5t h e t ract i n wh i ch t h e tak i n g o ccu rs ” are t h e o nl y co n s eq u en t ial d am ag es

t h at m ay b e reco v ered i n t h e co n dem n at i o n act i o n

. 6

Bas ed on t h i s ru l e, t h e Defen d an t s here can n o t reco v er co n seq u en t i al d am ag es

fo r Parcel 5 i n t h i s act io n b ecau s e t h ey d o n o t o wn t h e co n d em n ed p arcel , Parcel 6

,

an d n o p art o f Parcel 5 i s b ei n g co n dem ned

. T hi s ru l i ng d o es no t fo recl o s e reco v ery

i n th e p res en t act i on o f (a) t h e m ark et v al u e o f t h e t ak en p o rt i on o f t h e eas em en t s

, an d

( b ) d am ag es refl ect i n g t he d i m i n u t i o n i n v al u e, i f an y

, of PHH’ s eas em en t s wi t h i n

Parcel 6 as t h o s e eas em en t s r em ai n aft er t h e pro ject

. 7 Nev ert h el es s

, t h e Defen d an t s

can n ot o b t ai n dam ag es refl ec t i n g t h e di m i n is h ed v al u e o f Parcel 5

, wh i ch d am ag es

m u st b e reco v ered , i f at al l , i n an act i o n fo r i n v ers e co n d em nat i on

. 8

6 Id . at 5 6 0

.

7 See i d

. (cl ari fy i n g t h at co n s eq u en ti al d am ag es t o t h e rem ai n d er o f t h e

co n dem n ed t ract are av ai l ab l e). DOT co n ced es th i s i n i t s ap p el l at e bri ef, n o t i n g t h at

“ [i ] n t h e ev en t t h at t h ere i s an y d am ag e t o A p p el l an t s as s o ci at ed wi t h t h e [t em p o rary

an d perm an en t ch an g es ] b y th e DOT [t o ] t h o se eas em en t s o n t h e d ri v eway s

, Ap p el l an t s wo u ld h av e t h e o pp o rt u n i t y t o h av e t h e m eas u re o f t h at d am ag e d eci d ed

b y a ju ry

. ”

8 See S i mo n v. Dep t

. o

f Tr a n s p

. , 2 45 Ga. 4 7 8

, 4 8 0 (2 6 5 SE2 d 7 7 7 ) (1 9 8 0 )

(“ [D] am ag es t o [ u n co nd em n ed ] p ro p ert y res u l t i n g fro m t h e co n d em n at i o n o f [a]

n ei g h b o r’ s p ro p ert y

, i f co m p en s ab le, m

u s t b e s o u g h t in a s ep arat e act i o n ag ai n s t t h e

co n dem n o r.”). See, e.g

., Do u g h er t y Co u nt y v. Ho r n s b

y

, 2 1 3 Ga. 1 14

, 1 1 6 (9 7 SE2 d

3 0 0 ) (1 9 5 7 ) (“ [Th e] eas em en t of acces s i s a p ro p ert y ri g h t , o f w h i ch th e lan d o wn er

can n o t b e dep ri ved u p o n t h e g ro u n d t h at t h e s afet y o f t h e p ub l i c t rav el i n g u p o n t h e

6Th e cas es rel i ed u p o n by t h e D e f e n dan t s d o n o t d em an d a d i fferen t res u l t

b ecau s e t h ey i n v o l v e d i fferen t fact u al s cen ari o s

. Fo r ex am p l e, i n S & S F

o o d S vcs

. v.

DOT

, 9 t h is Co u rt s t at ed i n d i ct a t h at a l eas eh ol d er m i g h t b e en t i t l ed t o co ns eq u en t i al

d am ag es ari s i n g f

r o m t h e t ak i n g o f an eas em en t i t u s ed wh ere i t s l eas eh o l d an d

eas em en t were p art o f a s i n g l e, l arg er p arcel s ub ject t o co n d em

nat i on

. 1 0 Si m i l arl y

, in

Ci r cl e K Gen er a l v. DOT

, 1 1 t h e l an d o wn er su rv i v ed su m m a r y j u d g m en t b ecau s e i t

o wn ed t he t ract at i s s ue in t h e co n d em n at io n act i o n, in cl u d i ng an eas em en t fo r acces s

t h at was d es t ro y ed wi t ho u t a real s u bs t i t u t e. 1 2 In co n t ras t t o b ot h o f t h o s e cas es

, t h e

Defen d a n t s are n o t t h e o wn ers o f t h e co n dem n ed p arcel

, s o t hei r cl ai m fo r

co n seq u en t i al d am ag es t o t hei r n ei g h b ori n g p arcel i s m is p l aced h ere.

h i g h way m ay b e en d a n g ered b y t h e ex erci s e of t h i s eas em en t b y t h e ab u t t i n g

l an d o wn er, wi t h o u t ju s t an d ad eq u at e co m p en s at io n b ei n g fi rs t p ai d t o t h e o wn er. “ );

E a s t s i d e Pr op er t ies v. DOT

, 2 3 1 Ga. A pp

. 2 1 7

, 2 18 -2 1 9 (4 9 8 SE2 d 76 9 ) (1 9 9 8 )

(i nv ers e co n dem n at i o n act i o n ).

9 2 2 2 Ga. Ap p . 5 7 9 (4 7 5 SE2 d 1 9 7 ) (1 9 9 6 ).

1 0 See i d . at 5 8 1 (1 ).

1 1 1 9 6 Ga. Ap p . 6 1 6 (3 9 6 SE2 d 5 2 2 ) (1 9 9 0 ).

1 2 See i d . at 6 1 7 -6 1 8

.

7Bas ed o n B r a y an d t h e reco rd b efo re u s

, we d i scern n o erro r i n t he t ri al co urt ’ s

g ran t o f p art i al s u m

m ary ju dg m en t t o DOT p recl u d in g reco v ery o f d am ag es fo r t h e

d i m i n u ti o n i n v al u e t o Parcel 5 i n t h i s act i o n. 1 3

Ju d g men t a f f i r m ed . Mi l l er

, P. J., a n d

Rees e, J., co n cu r

.

1 3 See S i mo n , 2 4 5 Ga. at 4 7 9 -4 8 0

.

8