Court Opinion

ID: 9538060
Source: CourtListenerOpinion
Date Created: 2023-08-07 07:29:38.499823+00
Date Added: 2024-06-11T14:57:25.889473
License: Public Domain

ON REHEARING
BLOODWORTH, Justice.
All the justices are of opinion that the-application for rehearing should be overruled.
Due to earnest insistence of counsel that we ought to review other rulings of the *32trial court since they are likely to occur on a retrial, we consider the following assignments of error not treated in our original opinion. Since three of the justices do not concur in some of the conclusions reached, the concurrence or dissent of each justice appears at the end of each group of assignments of error (I-IV, inclusive).
I.

Assignments of error 25} 27, 30 and 34

As we understand it, the question raised by these assignments is whether in testimony given on direct examination by a real estate expert, he may state the sales prices of “comparable lands” when his testimony is obtained from hearsay sources.1
We are of the opinion that an expert should be permitted on direct examination to state the sales prices of “comparable lands” even though his knowledge of such sales prices is obtained from, or is founded upon, hearsay, for the reason that he should be permitted to show the basis for his opinion of the value of the land in question.
Our court has long recognized that, in part, opinions as to value by expert witnesses may be based on hearsay. In Alabama Consolidated Coal & Iron Co. v. Turner (1906), 145 Ala. 639, 652, 39 So. 603, 606, 117 Am.St.Rep. 61, in a suit by a riparian owner against a mill owner for taking water from, and polluting, a stream, our court said:
"There was no error in allowing the witness, Lackey, to state what in his opinion was the market value of this mill property June, 1902. The market price of property being a conclusion which is largely made up of presumptions, may always be proved by the opinions of witnesses based, of necessity even in fact on hearsay. Burks v. Hubbard, 69 Ala. 380; E. T. V. & G. R. R. Co. v. Watson, 90 Ala. 44, 7 South. 813.”
As aptly stated in International Paper Co. v. United States, 227 F.2d 201 (5 Cir. 1955) :
“On the threshold of this discussion, we consider it well established that, typically, the fair market value of real estate is proven by expert witnesses. Such experts must base their opinions on such information in the art that accounts for their becoming experts. Such opinions are based on their knowledge of other sales comparable in type, location and size, their knowledge of the likely demand for such property and their knowledge of the market conditions prevailing in the area in which the land lies. Because of the nature of expert testimony on value, a certain amount of hearsay is a necessary ingredient of the opinion which is the product of the expert’s study. * * *”
That there are four views in this country as to the admissibility of such evidence seems clear. See, Annotation at 12 A,L.R.3d 1064, “ADMISSIBILITY OF HEARSAY EVIDENCE AS TO COMPARABLE SALES OF OTHER LAND AS BASIS FOR EXPERT’S OPINION AS TO LAND VALUE”; State ex rel. Herman v. Wilson (1967), 4 Ariz.App. 420, 420 P.2d 992; 5 Nichols on Eminent Domain, 3d Ed., §§ 18.4, 18.42,18.45.
One view strictly applies the hearsay rule; the second holds the evidence admissible for the limited purpose of showing the basis of the witness’ opinion (the so-called “Texas Rule”); the third holds the admission of such evidence is discretionary with the trial court; and, the fourth that such evidence may be admitted for general purposes.
We think the more recent and better reasoned cases follow the “Texas Rule.” As a matter of practice, in the trials of *33most condemnation cases neither party is too concerned with “comparable sales” as hearsay — what the opposing parties are concerned about, and that at which they direct their attacks, is the question of comparability of the respective tracts of land.
See, jurisdictions which follow the “Texas Rule” listed at 12 A.L.R.3d 1068. See also, State ex rel. State Highway Commission v. Bloomfield Tractor Sales, Inc., 381 S.W.2d 20 (Mo.Ct.App.1964); State ex rel. State Highway Commission v. Barron, 400 S.W.2d 33 (Mo. 1966); State Highway Commission v. Fisch-Or, Inc., 406 P.2d 539 (Or.1965); Cohn v. State, 438 S.W.2d 860 (Civ.App.Texas, 1969); Forest Preserve District of Du Page County v. Harris Trust and Savings Bank, 108 Ill.App.2d 65, 247 N.E.2d 188 (1969).
Some of the reasons for following the “Texas Rule” are enumerated in United States v. 60.14 Acres of Land, etc., 362 F.2d 660 (3 Cir. 1966), viz:
“* * * A real estate appraiser, no matter now well qualified he may be in general, therefore, is not an expert on the value of property which is unknown to him or is situated in an area which is unfamiliar to him. United States v. 13,255.53 Acres of Land, 158 F.2d 874 (3 Cir. 1946). Instead the essential elements of the real estate expert’s competency include his knowledge of the property and of the real estate market in which it is situated, as well as his evaluating skill and experience as an appraiser.
“This does not, however, mean that one who has the necessary training, experience and skill and has familiarized himself retrospectively with the necessary data cannot form an expert opinion of value which is substantially superior to that of the average man and therefore useful to the jury. All opinion evidence of market value is to some extent inherently speculative (see Kimball Laundry Co. v. United States, 338 U.S. 1, 6, 69 S.Ct. 1434, 93 L.Ed. 1765, [7 A.L.R.2d 1280] (1949); United States v. Miller, 317 U.S. 369, 374-375, 63 S.Ct. 276, 87 L.Ed. 336, [147 A.L.R. 55] (1943)), for it seeks to describe in the form of a realistic event what is a theoretical construction, — something which in fact did not occur. Indeed while the expression of opinion of market value based on retrospectively obtained information may seem on the surface to be of inferior quality, it would be naive to suppose that the local expert is not himself obliged to resort to the records of prior transactions, for they obviously are not all matters within his current recollection. The distinction between contemporaneously and retrospectively acquired information is an artificial one, and at the most would affect only the weight of the expert’s opinion. In the often quoted words of Chief Judge Parker, ‘Artificial rules of evidence which exclude from the consideration of the jurors matters which men consider in their everyday affairs hinder rather than help them at arriving at a just result. In no branch of the law is it more important to remember this, than in cases involving the valuation of property, where “at best, evidence of value is largely a matter of opinion”. See Montana R. Co. v. Warren, 137 U.S. 348, 352, 11 S.Ct. 96, 34 L. Ed. 681 * * * [1890].’ * * *”
LAWSON, SIMPSON, MERRILL, HARWOOD and MADDOX, JJ., concur.
LIVINGSTON, C. J., COLEMAN and McCALL, JJ., dissent.
II.

Assignments of error 29 and 37

As we understand it, these assignments raise the issue whether certified copies of deeds of allegedly “comparable lands” offered to show the sales prices are admissible, although this evidence is hearsay
We are of the opinion that an expert “may take into consideration the con*34sideration stated in a deed” as one of his sources of information, just as he could consider oral statements of the sales price made to him by persons familiar with the transaction stating the sales price, as we have already indicated we hold. State ex rel. State Highway Commission v. Bloomfield Tractor Sales, Inc., 381 S.W.2d 20, 24 (Mo.Ct.App.1964), supra. We can see no good reason why a party should not be permitted to introduce in evidence certified copies of deeds solely for the purpose of showing the basis for the opinion of the real estate expert as to the value of the land in question although such evidence is not considered as primary evidence of the sales price of the property. When such evidence is allowed, the other party would be entitled to a limiting instruction to the jury.
LAWSON, MERRILL, HARWOOD, MADDOX and McCALL, JJ., concur.
LIVINGSTON, C. J., SIMPSON and COLEMAN, JJ., dissent.
III.

Assignments of error 23, 26, 28, 31, 32, 33, 54 and 55

These assignments charge error on the part of the trial court with respect to several questions relating to “comparables” addressed to an expert real estate witness. If there is another trial, it is not likely these questions will arise again in their present forms. We do not, therefore deem it appropriate to deal with these evidentiary questions at this time.
All the Justices concur.
IV.

Assignments of error 35 and 21

With respect to assignment of error 35, it appears that during direct examination of appellee’s expert real estate witness, and prior to his testifying what his investigation disclosed as to a sale of certain other land, appellant made a request to “cross-examine” (examine on “voir dire”) the witness with respect to certain matters the witness had found in his investigation. The trial court overruled this request saying to appellants’ counsel that he would have ample time “to do it” on counsel’s cross-examination of this witness.
We are of the opinion that such request for “voir dire” examination addressed itself to the discretion of the trial court and that no abuse of discretion is shown in this instance. State v. Wilbanks, 5 Div. 869 [MS] (Oct. 9, 1969). We suggest that the better practice in such a situation would be to allow examination on “voir dire.”
In assignment of error 21, appellants complain of the giving of appellee-condemnor’s written requested charge No. P-4, the pertinent portions of which instructed the jury that “the measure of the compensation and damages to be awarded the landowners in this case for the taking of this property is the difference in the fair cash market value of the landowners’ entire tract of land immediately prior to and at the time of the taking of such property and the fair cash market value of the tract of land remaining to the landowners immediately after the time of taking of such property * *
Appellants say that giving this charge is reversible error because it fails to mention that “enhancement” in value to remaining lands shall not reduce the compensation for the land taken. Appellants contend this omission leaves the jury to consider “enhancement” in value to the remaining lands due to construction of the canal which appellee proposed to build. Appellants admit there was no evidence from the witness stand to show “enhancement” but they say the jury “viewed” the property and could have considered the prospects of industrial sites along the canal which they may have felt enhanced the value of the remaining tract. Appellants say, therefore, the *35charge is in conflict with Title 19, § 14, Code of Alabama 1940 2 which provides in effect that “enhancement” to remaining lands (except in highway condemnations) shall not reduce the compensation for the taking.
We hold that omission of a statement of the law regarding “enhancement” from the charge No. P-4 did not make the giving of the charge error for the reason that there was no evidence from the witness stand as to “enhancement.” We will not presume that the jury’s viewing the premises supplied evidence of “enhancement” which is otherwise lacking.
We do not decide whether there may be other reasons for holding that the charge was given without error.
All the Justices concur.
Opinion extended and application for rehearing overruled.
All the Justices concur.

. Tlie question of admissibility of profferred testimony as to “comparable” lands is, under our decisions, a matter for determination by the trial court. Popwell v. Shelby County, 272 Ala. 287, 130 So. 2d 170, 87 A.L.R.2d 1148; Southern Electric Generating Co. v. Leibacher, 269 Ala. 9, 110 So.2d 308.

. “The amount of compensation to which the owners and other parties interested therein are entitled must not he reduced or diminished because of any incidental benefits which may accrue to them, or to their remaining lands in consequence of the uses to which the lands to be taken, or in which the easement is to be acquired, will be appropriated; provided that, in the condemnation of lands for ways and rights of ways for public highways, the commissioners may, in fixing the amount of compensation to he awarded the owner for lands taken for this use, take into consideration the value of the enhancement to the remaining lands of such owner that such highway may cause.”