Case Name: MISSISSIPPI TRANSPORTATION COMMISSION v. HIGHLAND DEVELOPMENT, LLC and Highland Development General Partnership
Court: Mississippi Supreme Court
Jurisdiction: Mississippi
Decision Date: 2002-12-05
Citations: 836 So. 2d 731
Docket Number: No. 2001-CA-00883-SCT
Parties: MISSISSIPPI TRANSPORTATION COMMISSION v. HIGHLAND DEVELOPMENT, LLC and Highland Development General Partnership.
Judges: Before McRAE, P.J., EASLEY and GRAVES, JJ.
Reporter: Southern Reporter, Second Series
Volume: 836
Pages: 731–747

Head Matter:
MISSISSIPPI TRANSPORTATION COMMISSION v. HIGHLAND DEVELOPMENT, LLC and Highland Development General Partnership.
No. 2001-CA-00883-SCT.
Supreme Court of Mississippi.
Dec. 5, 2002.
Rehearing Denied Feb. 6, 2003.
Barry Stuart Zirulnik, Jackson, Holla-man Martin Raney, Clarksdale, Billy Don Hall, Jackson, attorneys for appellant.
Paul R. Scott, Hernando, attorney for appellees.
Before McRAE, P.J., EASLEY and GRAVES, JJ.

Opinion:
McRAE, P.J.,
for the court.
¶ 1. A jury in the Special Court of Eminent Domain in DeSoto County awarded Highland Development, LLC and Highland Development General Partnership ("Highland" collectively) damages in the amount of $2,300,000 for the condemnation of 37.3 acres of its land for public use and damages to the remaining property. On appeal, the Mississippi Transportation Commission ("MTC") asserts that the trial court erred in (1) denying a new trial because the jury award is not based on credible facts and is so excessive as to evince bias, passion and prejudice, (2) allowing portions, of Highland's expert testimony, (3) denying its motion for a new trial because Highland's valuation expert allegedly failed to adhere to proper appraisal principles, and (4) refusing to strike for cause potential jurors.
¶ 2. While this was not the best tried case, we find no prejudicial error or any abuse of discretion that warrants reversal. The disparity in the experts' valuations alone is not indicative of bias, passion and prejudice. Both expert opinions were attacked through direct and cross-examination and with rebuttal testimony in the presence of the jury. A close review of the record indicates fault in both opinions, and the jury decided whether the respective testimony was credible. More importantly, the jury had the opportunity to view the property and assess their own damages independent of the experts' opinions. We find no reason to disturb those findings. Finally, we find that the trial court did not impede upon MTC's right to exercise peremptory challenges. We, therefore, affirm the judgment based on the jury verdict.
FACTS
¶ 3. Neil Burckart, a principal of Highland, obtained an option to purchase 462.3 acres in DeSoto County for residential development. Currently, 134 acres of the land is developed, and 328 acres contains a 102 acre lake and is otherwise undeveloped. Nine lots were sold from August through December of 1994, seventeen in 1995, seventeen in 1996, thirteen in 1997, two in 1998, and two in 1999. In 2000, MTC initiated condemnation proceedings for 37.3 acres to be used in the relocation and reconstruction of Mississippi Highway 304. At that time, there were 79 unsold subdivision lots which were from 1/5 to"3/4 mile away from the highway.
¶ 4. MTC's expert valuation appraiser, Dan Loflin, Jr., estimated the before value of the entire tract to be $2,813,700. He valued the undeveloped 226 acres, excluding the lake, at $4,000 per acre for a total of $906,500. He valued the unsold lots at $29,500 each and allowed for an absorption period of 4 years at a sales rate of 18 lots per year to reach the estimated net present cash value of the unsold lots at $1,907,200.
¶ 5. Loflin's total after value estimation is $2,615,925. He found that the value of the subdivision lots and the remaining undeveloped acres was unaffected by the project. He valued the 189 remaining acres (226 acres minus the acquired 37 acres) at the same $4,000 per acre for a total of $757,200. Loflin determined that the cost of relocating the sewage lagoon, including engineering and design costs to be $48,475. The difference between Loflin's before ($2,813,700) and after ($2,615,925) values equals $197,775, his estimation of just compensation. Loflin attributed the drop in lot sales to varying topography, competition from other developments, or interest rates.
¶ 6. Kip Walker, Highland's valuation expert, estimated the total value of the land before the taking to be $4,260,000. He valued the 79 developed lots at $32,000 per lot totaling $2,528,000; 211.6 acres of undeveloped land at $8,000 per acre totaling $1,693,298; 15 acres with low elevation at $2,500 per acre totaling $37,500; and gave no value to the 102 acre lake.
¶ 7. Walker estimated the total value after the taking to be $1,960,000. This figure includes the 79 developed lots at $17,500 per lot totaling $1,382,500; 50 acres of undeveloped land south of the new highway within 750 feet of the new highway line at $2,500 per acre totaling $125,000; 109.34 acres of undeveloped land south of the new highway fronting on Green River Road at $4,000 per acre totaling $437,344; 20 acres of undeveloped land north of the new highway at $1,000 per acre totaling $20,000; 15 acres of land with low elevation at $2,500 per acre totaling $37,500; and no value to the 97 acres left of the lake for a subtotal of $2,002,344. From this subtotal, Walker subtracted $45,000 for the cost to reconstruct the sewer lagoon for the rounded total of $1,960,000. The difference between Walker's before ($4,260,000) and after ($1,960,-000) values equals $2,300,000, his estimation of just compensation.
¶ 8. Hartley Fairchild, an expert, rebutted much of Walker's testimony. He basically concluded that the subdivision was poorly planned and that the remaining lots did not sell because the topography made grading more expensive and the lots less desirable. He also testified that the highway plans had a positive impact on the subdivision due to close proximity.
¶ 9. MTC filed several motions in limine and a motion to strike much of Walker's testimony, all of which the trial court denied. After viewing the property and hearing testimony for five days, the jury unanimously awarded Highland $2.3 million as just compensation and damages to the remainder. In accordance with the verdict, the trial court entered judgment for Highland. After being denied a new trial, MTC timely appealed to this Court.
DISCUSSION
I. Whether the jury award of $2,300,000 was based on conjecture, supposition or mere possibilities and was so grossly excessive as to evince bias, passion and prejudice.
¶ 10. We review the denial of a new trial for abuse of discretion. Alpha Gulf Coast, Inc. v. Jackson, 801 So.2d 709, 722 (Miss.2001). Also, in eminent domain cases, we must be satisfied that the award was not so excessive as to evince bias, passion, or prejudice and that it is supported by competent facts, not conjecture, supposition, or mere possibilities. Miss. State Highway Comm'n v. Viverette, 529 So.2d 896, 900 (Miss.1988)
¶ 11. This entire ease boils down to a battle of the experts. MTC argues that the disparity in valuations evinces bias, passion and prejudice or at least raises a red flag of doubt as to whether the jury was furnished -with a reasonable basis upon which to fix the value of the property. To support this contention, MTC submits that Walker's testimony was based on conjecture, supposition or mere possibilities. MTC complains that Walker used "judgment" where there was no factual data, and therefore he was speculating. The trial court allowed Walker's testimony noting that Walker could be questioned on cross-examination.
¶ 12. MTC notes that this Court has held that a "disparity in value could only have bias and prejudice for the jury in them duty of reaching a fair valuation." McDuffie v. Miss. State Highway Comm'n, 239 Miss. 518, 522, 124 So.2d 284, 285-86 (1960). No explanation is provided for the holding. There were two witnesses for the State whose valuations were within $50 of each other. The landowners' witness testified that the property was worth almost five times as much. Id. at 285. However, in the case sub judice only two valuation experts testified; there was not a third expert to corroborate or discount the two experts' figures.
¶ 13. MTC also cites four other cases where this Court has reversed the jury award or suggested a remittitur when there has been a vast discrepancy in valuation amounts. See Miss. Power Co. v. Walters, 204 So.2d 471 (Miss.1967); Miss. State Highway Comm'n v. Trammell, 252 Miss. 413, 174 So.2d 359 (1965); Miss. State Highway Comm'n v. Hillcrest Farm, Inc., 252 Miss. 154, 171 So.2d 491 (1965); Miss. State Highway Comm'n v. Pepper, 250 Miss. 347, 164 So.2d 911 (1964).
¶ 14. However, more recently we have noted that it is not uncommon for damages estimates to vary widely in condemnation cases. State Highway Comm'n v. Warren, 530 So.2d 704 (Miss.1988), Smith v. Miss. State Highway Comm'n, 423 So.2d 808 (Miss.1982). Also, we have hesitated to interfere with jury verdicts in eminent domain cases especially when the jury has viewed the land. Miss. Transp. Comm'n v. Bridgforth, 709 So.2d 430, 441 (Miss.1998); State Highway Comm'n v. Havard, 508 So.2d 1099, 1105 (Miss.1987).
¶ 15. MTC claims that it was merely taking 37 acres of undeveloped land and was doing no damage to the remainder. Highland asked the jury to consider damage to the whole property. We have noted that
the rule in this State is that when a part of a larger tract of land is taken for public use, the owners should be awarded the difference between the fair market value of the whole tract immediately before the taking and the fair market value of the remaining property immediately after the taking, without considering the general benefits or injuries to the use of the taken land.
Miss. State Highway Comm'n v. Hancock, 309 So.2d 867, 870 (Miss.1975). Also in eminent domain cases we are "not at liberty to order a new trial unless the verdict is so at variance with the evidence as to shock the conscience of the court ." Id. Further, if there is any substantial evidence supporting the award, we will not interfere, especially when the jury has viewed the property. See Bridgforth, 709 So.2d at 441; Miss. State Highway Comm'n v. Franklin County Timber Co., 488 So.2d 782, 787 (Miss.1986) (citing City of Jackson v. Landrum, 217 Miss. 10, 63 So.2d 391 (1953)).
¶ 16. The jury members are all taxpayers, and they know that the money paid in eminent domain proceedings essentially comes out of their pockets. Further, the jury is not bound by the opinions of the experts; the jury is free to assess its own damages independently of the opinions offered. See Franklin County Timber Co., 488 So.2d at 787 (citing Miss. State Hwy. Comm'n v. Terry, 288 So.2d 465, 466 (Miss.1974)).
¶ 17. The verdict here is supported by the evidence and is not outrageous or extravagant. Indeed, there was considerable testimony by both experts, and the award is the exact amount that Walker opined to be just compensation. The fact that the two experts have differing opinions as to the valuation of the property does not on its face indicate that there was bias or prejudice. See Franklin County Timber Co., 488 So.2d at 788.
¶ 18. Every complaint on appeal regarding Walker's testimony, and Burc-kart's for that matter, was brought out at trial in front of the jury either through direct examination, cross-examination or with rebuttal testimony. The jury viewed the land, heard the experts' opinions along with the extensive cross-examination and rebuttal testimony, and made an assessment. We find no reason to disturb these findings.
II. Whether the trial court erred in allowing portions of Walker's testimony.
¶ 19. MTC contends that it was error for the trial court to allow Walker and Burckart to attribute damages to the announcement of the proposed plans claiming that it violated the before and after rule. The trial court denied MTC's motion in limine and objections at trial to the allowance of their testimony in this regard.
¶ 20. In Pearl River Valley Water Supply Dist. v. Wood, 252 Miss. 580, 172 So.2d 196 (1965), this Court held that the date of the taking is the date the condemnation proceedings are initiated. This is the date from which the before and after values should be determined, not the date of publication or announcement of plans. In Wood, lot prices increased immensely after condemnation plans were announced. Nevertheless, the date the proceedings were commenced, three years later, was the date from which valuations should have been based. Id.
¶ 21. Just as a developer's decision to stop development in a subdivision upon learning of a potential condemnation proceeding cannot be used in the valuation process, the effects on property values after an announcement is made but before proceedings are initiated cannot be attributed to damages. See Jackson County Dev., Inc. v. Miss. State Highway Comm'n, 262 So.2d 416 (Miss.1972). This Court has clearly rejected evidence of enhancement or diminution in value due to publication of plans in arriving at the before value. See Wood, 252 Miss. 580, 172 So.2d 196.
¶ 22. Burckart testified that the 1997 announcement of the proposed highway plans may have been one of the reasons for the decline in sales especially since once he learned of the plans, he told prospective buyers of them. Burckart also testified that there were other possible causes and did not merely limit his reasoning for the decline in sales to the announcement of the project. His testimony as to the valuation and damage to his land is allowed as long as he does not hold himself out as an expert. See Potters II v. State Highway Comm'n, 608 So.2d 1227, 1235 (Miss.1992). There is no indication that Burckart's testimony was in violation of this principle.
¶ 23. Walker testified that the value of the lots in 1997 was $17,500 and that he increased the value per lot to $32,000 per lot "because of the stagnation in lot sales, and the fact that the subdivision was not successful in selling lots past that point, and because it was typical or common for other subdivision lots in the county for the value or prices to increase along with the value of the raw land." He claimed that the highway plans were not part of his analysis of the property value. Walker was questioned and cross-examined at length about this and other statements. The issue then became one of credibility, not admissibility, and Walker's credibility was certainly attacked at every corner. MTC was denied no opportunity to discredit his testimony.
¶ 24. Loflin, too, was questioned at length about his appraisal. The record is riddled with testimony that indicates that it is not unreasonable for the jury to have discounted Loflin's opinions and given more weight to Walker's. "It is the function of the jury as the traditional finder of the facts, and not the Court, to weigh conflicting evidence and inferences, and determine the credibility of witnesses." Clark v. Ill. Cent. R.R., 794 So.2d 191, 198 (Miss.2001). Therefore, the trial court did not err in admitting Walker's testimony. See Franklin County Timber Co., 488 So.2d at 787.
III. Whether the trial court erred in denying MTC's motion for new trial since Walker did not use certain appraisal principles in deriving fair market value.
¶ 25. MTC argues that Walker applied an improper appraisal methodology and as a consequence, did not provide the jury with fair market values thereby yielding grossly inflated figures. Because of this, MTC contends that it was error for the trial court to deny it a new trial.
¶ 26. Specifically, Walker testified that if he was appraising the value of the subdivision for a buyer or a lender for mortgage purposes, he would apply a discount rate because the buyer or lender would factor a reasonable time for 79 lots to sell, i.e. an absorption rate. He explained that the value in those appraisal circumstances would be discounted back to present value. He stated that in eminent domain proceedings discounting is not appropriate because the "buyer" is acquiring the land at one time, as of the date of the taking.
¶ 27. The standard for determining the fair market value is
the sales price that would be negotiated between knowledgeable and self interested persons, one who wants to purchase and one who wants to sell, the seller being under no obligation or compulsion to sell, and the buyer being under no necessity of having the property.
Potters II, 608 So.2d at 1231.
¶ 28. Highland submits that the issues were not properly preserved for appeal as no contemporaneous objection was made and it was not included in MTC's motion to strike Walker's testimony. Alpha Gulf Coast, Inc. v. Jackson, 801 So.2d 709 (Miss.2001). Rather, this issue was not specifically raised until MTC filed a motion for judgment not withstanding the verdict or new trial. MTC counters that its motion to strike Walker's testimony for generally failing to adhere to the before and after included the proper legal standard for valuing property.
¶ 29. Pursuant to Miss. R. Evid. 103(d), we may address this issue, even though it may not have been specifically preserved through objection at trial, if there was plain error. See also State Highway Comm'n v. Hyman, 592 So.2d 952, 957 (Miss.1991). We find no error.
¶ 30. Walker appraised the property as of the date of the taking. Therefore, it is not necessary to take into account an absorption rate when the property is being "sold" as of that date. The knowledgeable buyer in this case was buying the property on that date. This holding is not in contravention to Potters II.
IV. Whether the trial court's refusal to strike for cause potential jurors effectively abrogated MTC's rights under Miss. R. Civ. P. 47.
¶ 31. MTC requested that thirteen jurors be stricken for cause, but only two were stricken. Five others were removed with MTC's peremptory challenges. The trial court declined to excuse the others. Two of them actually served on the jury, and a third served as an alternate. MTC contends that by failing to strike the jurors for cause, the trial court forced MTC to use its peremptory challenges, and thereby effectively abridged MTC's right to exercise peremptory challenges pursuant to Miss. R. Civ. P. 47(c).
¶ 32. MTC relies upon United States v. Nell, 526 F.2d 1223 (5th Cir.1976), where the court reversed a jury verdict for failure to excuse individuals for cause. In Nell, the defense was forced to strike juror Bougher with a peremptory challenge after the trial court refused to strike him for cause even though his strong opinions and prejudices were acknowledged. Id. at 1228. Another juror had personal knowledge regarding one of the claims, and even though he stated he could be impartial, the trial judge did not question him as to the possibility or the depth of his potential prejudice. Id. at 1229.
¶ 33. MTC also cites City of Live Oak v. Townsend, 567 So.2d 926 (Fla.Dist.Ct.App.1990) in which similar questions were posed during voir dire, but the potential jurors were more adamant and zealous about their opinions, and most of them stated that they would not follow instructions contrary to their opinions regarding eminent domain. Id. at 927.
¶ 34. We have noted that "[a] trial court has wide discretion in determining whether to excuse prospective jurors, including those challenged for cause." Smith v. State, 802 So.2d 82, 86 (Miss.2001). Further, the trial judge "due to his presence during the voir dire process, is in a better position to evaluate the prospective juror's responses ." Id. (citing Wells v. State, 698 So.2d 497, 501 (Miss.1997)). Therefore, we will not set aside a determination that a juror is fair and impartial unless the trial judge was clearly wrong. Id. (citing Wells, 698 So.2d at 501).
¶ 35. The circumstances in Nell and Townsend are not comparable to this case. Here, none of the potential juror's expressed rigidness in their opinions. After being polled individually by the judge, they each vowed that they would remain impartial and follow the law and instructions of the court. Ample measures were taken to ensure a fair and impartial jury. See Tighe v. Crosthwait, 665 So.2d 1337, 1339-40 (Miss.1995). Hence, the trial court did not abuse its discretion in declining to strike certain jurors for cause; and therefore it did not impede upon MTC's right to exercise peremptory challenges.
CONCLUSION
¶ 36. The disparity in the experts' valuations alone is not indicative of bias, passion and prejudice. Both expert opinions were attacked through direct and cross-examination, and with rebuttal testimony in the presence of the jury. A close review of their testimony indicates fault in both opinions. More importantly, the jury had the opportunity to view the property and assess their own damages. Quite simply, the jury gave more credibility to Highland's expert, and we find no reason to disturb that finding. Also, we find the trial court did not abuse its discretion in declining to strike certain jurors for cause, and therefore it did not impede upon MTC's right to exercise peremptory challenges. Finding no reversible error or abuse of discretion, we hereby affirm the trial court's judgment entered on the jury verdict.
¶ 37. AFFIRMED.
DIAZ, EASLEY AND GRAVES, JJ, CONCUR. SMITH, P.J, DISSENTS WITH SEPARATE WRITTEN OPINION, JOINED BY WALLER AND COBB, JJ. PITTMAN, C.J, AND CARLSON, J" NOT PARTICIPATING.
. Loflin testified that the total just compensation was $197,775. Walker testified that the total just compensation was $2,300,000.
. Interestingly enough, Loflin originally estimated the before value of the property to be only $49,300 less than Walker's before value. He changed his appraisal the month before trial after MTC's counsel advised him that he had used an "incorrect method of appraising." Loflin explained that at the time of the taking the subdivision was unplatted even though Burckart told him the plats just needed to be recorded. Loflin only considered platted lots and changed his appraisal to the lower figure mentioned above.
. MTC used four of its peremptory challenges and one additional challenge for alternates.