Opinion ID: 1217115
Heading Depth: 1
Heading Rank: 2

Heading: the billboards

Text: Next, Lamar and Whiteco assert that they have a separate, condemnable interest in the billboards because the billboards are realty. [1] In a dispute between a condemnor and the owner of the fee, we have developed a three-part test to determine whether structures annexed by the owner are personalty or realty. That test examines (1) the degree of permanency with which the chattels are annexed to the realty, (2) the adaptation of the chattels to the use or purpose to which the realty is devoted, and (3) the intention of the owner of the chattels to make them a permanent accession to the freehold. State Highway and Transp. Comm'r v. Edwards Co., 220 Va. 90, 96, 255 S.E.2d 500, 504 (1979); Danville Holding Corp. v. Clement, 178 Va. 223, 238, 16 S.E.2d 345, 351 (1941). Of these three factors, the thirdthe intention of the party making the annexationis paramount. Danville, 178 Va. at 232, 16 S.E.2d at 349. The foregoing test, however, is not applied to a dispute between the condemnor and a lessee of the fee when the lessee's structures are annexed to land taken under the power of eminent domain. Under the modern law of fixtures and the terms of the leases here, structures attached by the lessee to the real estate may be removed by the lessee at any time during the term, provided such removal can be made without injury to the freehold. 2 J. Sackman, Nichols' The Law of Eminent Domain § 5.47, p. 5-506 (rev. 3d ed. 1989). To apply the three-prong test set out above would, therefore, inevitably result in a finding that the lessee's structures were personalty precluding their inclusion in the condemnation award and precluding any compensation to the lessee therefrom even though the structures were acquired or damaged by the condemnation. Therefore, we have adopted the general rule that, as between the condemnor and lessee, structures attached to the condemned real estate but owned by the lessee are realty. This is the case even though, as between the landlord and lessee, the structures may be personalty. Foodtown, Inc. v. State Highway Comm'r, 213 Va. 760, 763-64, 195 S.E.2d 883, 886 (1973); 2 J. Sackman, supra. The value of the structures is included in the total award made for the freehold, even though the lessee has, by the terms of his lease, expressly reserved the right to remove them during or at the end of his term. Title to the structures passes to the condemnor as an incident of the entire taking. Id. The lessee becomes entitled to a share of the total award and to a subsequent proceeding to determine the appropriate amount of that share. [2] Foodtown, 213 Va. at 764, 195 S.E.2d at 886. The billboards in question here were supported by steel poles, three feet and five feet in diameter, respectively. The supporting poles were encased in concrete slabs, six feet square at the surface and extending underground over thirteen feet. They were, therefore, so attached to the realty as to be a part of it, insofar as the condemnor was concerned. Thus, title to them passed to the City when it acquired fee simple title to the land, and Lamar and Whiteco simultaneously acquired an interest in the award. In this case, Lamar and Whiteco had full notice of the condemnation. Furthermore, they asked for and consented to the order entered December 27, 1989, fixing the quantum of the award and directing its disbursement to the landowners. By the terms of the order, that award constituted just compensation for all right, title and interest acquired by the City, which, for reasons stated above, included Lamar's and Whiteco's billboards and leasehold interests. Accordingly, for the reasons expressed in this opinion, we will affirm the decision of the trial court. Affirmed.