Opinion ID: 1913355
Heading Depth: 1
Heading Rank: 8

Heading: Did the trial court err when it refused to strike the testimony of Kelleys' appraiser regarding purchase agreements used as comparable sales in valuing the condemned property?

Text: City claims that the trial court erred in refusing to strike the testimony of Kelleys' appraiser regarding certain comparables used in his appraisal. More specifically, City objects to the appraiser's use of two purchase contracts entered by Kelleys. Traditionally, offers for the sale of land have not been admissible as proof of value. Nickels on Eminent Domain, Sales and Offers, § 21.4(3). The value of an offer depends on too many considerations to allow it to be used as a test of the worth of property. Horner v. Beasley, 105 Md. 193, 65 A. 820, 822 (1907). This court has taken the position that the foundation for the receipt of this type of evidence rests largely within the discretion of the trial court and to warrant a reversal on either the admission or exclusion thereof a clear abuse of such discretion must be shown. State Highway Commission v. Hayes Estate, 82 S.D. 27, 41, 140 N.W.2d 680, 688 (1966) (citing Nystrom v. State, 80 S.D. 58, 119 N.W.2d 123 (1962)). Admission of comparable sales rests largely within the discretion of the trial court in a condemnation proceeding. State By and Through Dept., etc. v. Richey Motor, 296 N.W.2d 505 (S.D.1980). The modern trend in the law of evidence in eminent domain proceedings favors both a liberal rule of admissibility and the giving of broad discretionary control to the trial judge. A number of cases have held that a price fixed in an unconsummated contract of sale, entered into by the owner of the condemned property with a third person before the condemnation, is admissible as substantive evidence of the value of the property. See, State Roads Commission v. Wyvill, 244 Md. 163, 223 A.2d 146 (1966); Wolff v. Commonwealth of Puerto Rico, 341 F.2d 945 (1st Cir.1965); United States v. Certain Parcels of Land Etc., 144 F.2d 626 (3d Cir.1944); Virgin Islands Housing Authority v. 15.5521 U.S. Acres of Land, 230 F.Supp. 845 (DVI 1964); Brush Hill Development Inc. v. Commonwealth, 338 Mass. 359, 155 N.E.2d 170 (1959). The rationale of these decisions is well expressed in Certain Parcels of Land. It is true that the contract had not been consummated and that, as argued by the government, reception of such evidence makes it possible for a landowner, learning that condemnation of his property is likely, to enter into a collusive agreement of sale so as to manufacture evidence in support of an exorbitant claim. This danger is not to be minimized, particularly in view of the difficulty which might well be entailed in proving such collusion. Yet evidence of a bona fide sale, otherwise relevant, should not be excluded because of the possibility that some landowner might conspire with another to defraud the government by manufacturing collusive evidence. Such objections go to the weight of such evidence rather than to its admissibility, and the trial affords opportunity, both by cross-examination and comment to the jury, to bring such evidence to its proper perspective for the jury's consideration. The penalties of the criminal law also will afford a deterrent to such persons without depriving others of significant evidence of the value of their property in condemnation proceedings. Certain Parcels of Land, 144 F.2d at 630. Modern pretrial discovery procedure, properly used, affords opportunity for the investigation of any such contracts which will be offered in evidence. Unlike offers and options, contracts for the purchase of land are binding obligations, not lightly ignored; the fact the contracts have not progressed into sales seems to go to the weight of the evidence rather than to its sufficiency. State Roads Commission, 223 A.2d at 153. In the instant case, the contract for sale was not just an option. The contract was entered in good faith and was valid and binding upon the parties. The fact that the sales were never completed does not turn the contract into an inadmissible offer. There was a willing seller and a willing buyer who mutually obligated themselves to sell and buy at a price and upon terms specifically agreed upon. Nothing but the final consummation remained. City was allowed to cross-examine the experts in great detail concerning their method of valuation. We cannot hold that the admission of such purchase agreements caused an improper verdict in this case. We are satisfied that the trial court admitted evidence of these sales as part of the foundation for the expert's appraisal and its admission does not constitute a clear abuse of discretion or reversible error. Although these sales were not finalized, they were of sufficient reliability to be admitted as evidence of the condemned property's value. [City's] objections go to the weight of such evidence rather than to its admissibility, and the trial court affords opportunity, both by cross-examination and comment to the jury, to bring such evidence to its proper perspective for the jury's consideration. Certain Parcels of Land, 144 F.2d at 630.