Opinion ID: 380078
Heading Depth: 1
Heading Rank: 2

Heading: Adequacy of the Commission's Report

Text: 16 The government also challenges the adequacy of the commission's report under the guidelines set forth in the Merz case. Judge Henley thoroughly discussed the Merz guidelines and their application in this circuit in United States v. 403.14 Acres of Land, 553 F.2d 565, 568-70 & n.5 (8th Cir. 1977). In essence, the commission's report must clearly show the factual bases for the commission's findings and clearly indicate the path that the commission followed in arriving at its conclusion. Id. at 570. Here, the government argues the commission (1) erroneously adopted the after-taking valuation of the landowners' expert without any explanation or any market data support and (2) improperly calculated the award of severance damages as a separate and distinct item of just compensation apart from the difference between the market value of the entire tract immediately before the taking and the market value of the remainder immediately after the taking, citing United States v. 91.90 Acres of Land, supra, 586 F.2d at 86. 8 17 First, we reject the government's challenge to the commission's acceptance of the after-taking valuation of the landowners' expert. Having thoroughly reviewed the commission's report in light of this allegation of error, we note that the report is detailed and comprehensive: it describes the flowage easement and the farm; accurately states the issues and summarizes the conflicting testimony of the parties; discusses the evidence, distinguishes some points and adopts other points; and finally sets forth its market valuation findings and the basis for its conclusion. It is true that the commission distinguished the comparable sales offered by the landowners' expert in support of his after-taking valuation of the remainder. However, the commission concluded that one of the government expert's comparable sales (the Strickland sale), after some modification, was helpful and indicative of the value of the remainder. 18 Second, it is technically incorrect to think of severance damage as a distinct item of just compensation. E. g. United States v. 91.90 Acres of Land, supra, 586 F.2d at 86. In the absence of any other error, we would be reluctant to reverse a condemnation award merely because the commission's report expressly identified a specific amount of its award as severance damages, especially where the award is within the scope of the evidence rule, 9 that is, within the limits of the testimony. However, in light of our disposition of the severance damages issue discussed above, we must reverse and remand to the district court for further proceedings. On remand the district court should modify the amount of the compensation award in order to compensate the landowners for the flowage easement taken, including only properly allowable severance damage. 10 19 Accordingly, the judgment is reversed and remanded to the district court for further proceedings.