Case Name: GULF STATES UTILITIES COMPANY v. Carl Edward HECK et al.
Court: Louisiana Court of Appeal
Jurisdiction: Louisiana
Decision Date: 1966-02-28
Citations: 191 So. 2d 761
Docket Number: No. 6587
Parties: GULF STATES UTILITIES COMPANY v. Carl Edward HECK et al.
Judges: Before ELLIS, LOTTINGER, LANDRY, REID and BAILES, JJ.
Reporter: Southern Reporter, Second Series
Volume: 191
Pages: 761–774

Head Matter:
GULF STATES UTILITIES COMPANY v. Carl Edward HECK et al.
No. 6587.
Court of Appeal of Louisiana. First Circuit.
Feb. 28, 1966.
On Rehearing Sept. 26, 1966.
Rehearing Denied Nov. 9, 1966.
Writs Refused Dee. 12, 1966.
John C. Christian and F. Frank Fontenot, of Milling, Saal, Saunders, Benson & Woodward, New Orleans, Middleton & Templet, Plaquemine, for appellants.
Samuel C. Cashio, Maringouin, Louis D. Curet, of D’Amico & Curet, Baton Rouge, Landry, Watkins, Cousin & Bon-in, New Iberia, Robert L. Roland, of Watson, Blanche, Wilson, Posner & Thi-haut, G. Dupre Litton, Baton Rouge, amici •curiae.
William A. Norfolk and Frank W. Mid•dleton, Jr., of Taylor, Porter, Brooks, Fuller & Phillips, Baton Rouge, Charles O. Dupont, Plaquemine, for appellee.
Before ELLIS, LOTTINGER, LANDRY, REID and BAILES, JJ.

Opinion:
LOTTINGER, Judge.
This is a suit for expropriation of a right •of way for the construction of electrical transmission lines over and across the property of the defendants. The petitioner is Gulf States Utilities Company, a Texas corporation authorized to do and doing business in the State of Louisiana. The defendant appellants are Carl E. Heck, and •other members of the Heck family.
By virtue of this proceeding, the petitioner seeks to expropriate a right of way running for a distance of 2543.7 feet through the property of the defendants. The width of said right of way sought is 170 feet, or 85 feet on each side of the center line. The property belonging to the defendants, and upon which the right of way is sought, comprises Sections 12 and 13 of Township 9 South, Range 11 East, in the Parish of Iberville, State of Louisiana.
The price of the right of way offered by petitioner, as set forth in the petition, is the sum of $2,383.20 for the servitude. No consequential or severance damages have been offered.
Prior to the filing of the present suit, certain conferences and correspondences was' carried on between petitioner and Mr. Carl Heck relative to the securing of the right of way. By letter of August 6, 1964 the petitioner offered the sum of $1,019.00 for the 10.19 acres to be taken by the right of way, which amounts to the sum of $100.-00 per acre. These conferences and correspondences between the parties, in addition to the consideration to be paid for the right of way, concerned the request by the defendants that the location of the right of way strip, as it runs across defendants' property, be moved to the rear portion of said property. The petitioners refused to move the location of the right of way and subsequently offered the sum of $2,383.20 for the right of way strip, this sum being computed at the rate of $240.00 per acre for a 9.93 acre strip. During the course of the conferences and correspondences, the defendants made a counter offer of $75,000.00 for the taking and severance damages. No offer was made by the petitioner for consequential or severance damages.
Sections 12 and 13, which are owned by the defendants, front on Bayou Grosse Tete, which enters the Intracoastal Waterway in front of, or east of the defendants' property. Most of the frontage of- defendants' property is on Bayou Grosse Tete, which according to the evidence, would have to be dredged to provide any large boat traffic. The right of way strip sought by the petitioners runs across the property approximately parallel to Bayou Grosse Tete, at a distance of about one-third of the depth of defendants' property from said bayou. The site of the right of way, as recommended and offered by the defendants, runs near the western edge of the property, however, it is not along the rear or western property line. In order to move the servitude as re quested by defendants, an angle or dog-leg would be required on the property of A. Wilbert Sons Lumber and Shingle Company situated south of defendants' property, however, the servitude, as it crosses defendants' property, would be along a straight line.
At the outset of the conferences and correspondences between the parties prior to the suit, Mr. Carl E. Heck, who represented the defendant family, advised the petitioner that the family had plans for a campsite subdivision on the property and asked various questions concerning the structures to be placed on the right of way by petitioner, whether any television or radio interference would be caused in the vicinity, as well as the request to remove the servitude to the rear of the property along an alley which they had set aside for utility lines. Although the question as to the radio and television interference was answered by petitioner, they failed to advise the defendants as to the type and size of the structures to be located thereon, and, of course, refused to move the location of the servitude.
By letter of November 6, 1964 the petitioner notified the defendants to the effect that due to the great difference between the valuation placed upon the right of way strip by the parties concerned, it was necessary that expropriation proceedings be commenced immediately in order to meet their construction schedule. In this letter, however, they did advise Mr. Heck that if he or any of the other owners of the property should " . . . find our offer acceptable, or wish to discuss the matter further, we shall be most happy to meet with you". By letter dated November 16, 1964 a reply by Clyde C. Caillouet, Attorney for the defendant family, advised the petitioner that his clients desired to discuss the matter further, and suggested a meeting at his office on November 25, 1964. Prior to the date of this meeting, on November 19, 1964, this suit was filed.
Certain exceptions were filed by the defendants, some of which were later dismissed upon motion by defendants, and others of which were referred to the merits. By way of interrogatories propounded upon petitioner, the answers to which were filed' December 10, 1964, the defendants discovered that two electrical transmission-lines, one 500KV and one 230KV, would cross their property. They were also advised as to the nature and size of the structures to be placed thereon. The-500KV line will be the largest electrical transmission line in the State of Louisiana, the evidence reflects that the only line in the United States of a similar size is located in the State of Virginia.
The Lower Court, which has not favored us with written reasons found that the highest and best use tó which the property of defendants may reasonably be put was for industrial purposes, as logical expectation is that said property may be developed as industrial property in the near future. Based upon three comparable sales of other property in the area, the value of said servitude was fixed by the Lower Court at the sum of $680.00 per acre, or a total of $6,800.00 for the 10 acres comprising the servitude. As severance damages, the Lower Court allowed 10% of the 84.52 acres situated east of the servitude, comprising the front part of defendants' land lying between the servitude and Bayou Grosse Tete and the Intracoastal Waterway. Eliminated from the property upon which severance damages was given, was the 2.24 acres situated on the highway and Bayou Richard, both of which run across the front of the property.
The defendants filed a declinatory exception to the effect that petitioner failed to satisfy the legal conditions precedent to the filing of an expropriation suit, in that they did not attempt, prior to suit, to conduct bonafide negotiations as to the location of the proposed right of way, nor to the value of land within the limits of the right of way sought, nor to the amount of severance damages to the adjoining property belonging to defendants and, furthermore, that petitioner has not made a tender of the true value of the land, or damages to defendants.
Article 1, Section 2 of the Constitution of the State of Louisiana provides that no person shall be deprived of life, liberty, or property except by due process of law, and that, except as otherwise provided in the constitution, private property shall not be taken or damaged except for public purposes and after just and adequate compensation is paid. The courts of this State have repeatedly held that expropriation laws, being special and exceptional in character and in derogation of common rights, must be strictly construed. Calcasieu & Southern Railway Company v. Witte, 224 La. 1091, 71 So.2d 854.
With regard to the expropriation, of property, Article 2627 of the Louisiana Civil Code provides as follows:
"If the owner of a thing necessary for the general use, refuses to yield it, or demands an exorbitant price, he may be divested of the property by the authority of law."
Louisiana Revised Statutes, Title 19, Section 2, further provides, in part, as follows:
"Where a price cannot be agreed upon with the owner, any of the following may expropriate needed property:
*
(9) Any domestic or foreign corporation created for the purpose of developing and transmitting electricity for power, lighting, heating, or other such uses. The buildings, transmission lines, stations, and substations expropriated or for which property was expropriated shall be so located, constructed, operated, and maintained as not to be dangerous to persons or property nor interfere with the use of the wires or other wire-using companies or, more than is necessary with the convenience of the land-owner." Emphasis added.
Thus we find that according to Article 2627 of the Civil Code and R.S. 9:2, as a condition precedent to the taking of property by condemnation proceedings, the condemnor must negotiate bona fide with the condemnee. Calcasieu & Southern, Railway Company v. Witte, supra. The evidence present in the record of this proceeding discloses that the petitioner first saw a representative of the defendants relative to the securing of a servitude over the defendants'land on or about July 24, 1964. By letter dated August 6, 1964, from petitioner to Mr. Carl E. Heck, the defendants were offered the sum of $1,019.00 for the right of way across the 10.19 acres. The petitioner based this offer of $100.00 per acre upon what they claimed to be an appraisal by their real estate appraiser. Subsequently the offer was raised to the sum of $150.00, and then, at a conference held on October 30, 1964, Mr. Heck contends that an offer of $500.00 per acre was made. However, the final communication of petitioner prior to suit was by letter dated November 6, 1964, in which they offered the sum of $240.00 per acre, or the sum of $2,383.20 for 9.93 acres of land encompassed by the proposed right of way. In this said letter the petitioner offered to discuss the matter further in the event one or more of the defendants so desired. This offer of discussion was accepted by letter of defendants' attorney dated November 16, 1964, which was three days prior to the filing of the suit and prior to the time fixed for the conference. In none of these negotiations did the petitioners ever offer any consequential or severance damages, which is the damages to the remaining property of th condemnee caused by use for which the condemned property is taken.
During the course of the above negotiations between the parties, the defendants re peatedly requested that the site of the right of way he relocated upon their property, and they repeatedly requested that discussions be had relative to the relocation. In the letter from petitioner to Mr. Heck dated August 6, 1964, the petitioner stated that " •* this change is not impossible but would most certainly not be the best location considering costs and rights of way already secured. We can understand your request and might add, in laying out the locations of these rights of way we try, wherever possible, to follow property line but due to the irregular shapes of many propertiesút is just not possible to do so and exercise good engineering practice". Mr. Heck testified that at the conference held between petitioner and himself, the petitioner flatly refused to consider relocating the right of way. Furthermore, the testimony of the engineer of petitioner, who laid out the course of the right of way, testified that he did not attempt to locate the servitude along property lines.
As stated above, the first offer made by petitioner to defendants was upon the basis of $100.00 per acre which, according to the petitioner was the valuation fixed by their appraiser, Mr. John Lejeaunie, a real estate appraiser of Baton Rouge, Louisiana. Mr. Lejeaunie, upon taking the witness stand, testified that he appraised the property on September 18, 1964, at which time he set a value of $300.00 per acre, less 20% thereof, for the taking of the servitude. The 20% was deducted because this was a right of way, not a fee simple transaction. Thus, the figure for the right of way, according to Mr. Lejeaunie, was set at the sum of $240.00 per acre. Subsequent to this evaluation by Mr. Lejeaunie, the petitioner raised its offer to the sum of $150.00 per acre.
In our opinion, the petitioner failed to carry on bonafide negotiations with the defendants prior to the filing of this suit. Black's Law Dictionary describes "bona-fide" as "in or with good faith; honestly, openly and sincerely". The law requires that such negotiations be above board.
The evidence discloses that petitioner raised its offer for the taking from $100.00 to $150.00 per acre after its own appraisers had fixed a valuation on the property at $240.00. No offer was ever made for severance damages, although defendant requested that such offer be made. We believe that there is no question that the construction of the powerful electrical transmission line across the property of defendants would cause severance damages to the remainder of its property both in the front and rear. The expert appraisers who testified on behalf of the defendants stated that severance damages, to the remainder of defendants' property caused by the taking of the servitude would be from twenty to twenty-five per cent of the market value prior to the taking.
The nature of the structures, as well as the fact that there would be two high powered lines instead of one, were not disclosed to the defendants until after the filing of suit and in answer to interrogatories, although the defendants had requested this information. Certainly such information was necessary in considering severance damages. The Lower Court awarded severance damages to the front portion of defendants' property, although not for the rear.
In addition to the above, although defendants requested on many occasions that the line be moved to the rear of their property, and defendants offered a right of way across the rear portion at a nominal cost, the petitioner flatly refused to discuss such removal.
Without going into the merits of the question of the location or relocation of the proposed line, besides the Hecks who are named defendants herein and oppose the proposed location, we have been favored by the Iberville Parish Police Jury, City of Plaquemine, Plaquemine-Iberville Chamber of Commerce, Iberville Parish Economic Development Council, Town of Maringouin, Village of Rosedale, Village of Grosse Tete and Louisiana Farm Bureau Federation, Inc., as Amicus' Curiae, or friends of the Court, who are likewise opposing the said proposed location of said line. They allege that the route selected by plaintiff will damage some 1900 acres of valuable waterfront land and that the economic benefit that will be derived from the land will be forever lost to the community if this route is approved by the Court. We are therefore of the opinion that all of these facts warrant a true and honest good faith negotiation as to the location of the proposed line upon defendants' property.
In view of the failure on the part of petitioner to' negotiate in good faith as to the price for the right of way, and its flat refusal to consider any severance damages or relocation of the line, we feel that the exception of prematurity is well taken. The exception is therefore maintained and the petitioner's suit is dismissed at petitioner's cost.
Judgment reversed.