Court Opinion

ID: 9600800
Source: CourtListenerOpinion
Date Created: 2023-08-22 01:31:28.668413+00
Date Added: 2024-06-11T09:39:42.887660
License: Public Domain

HEARN, C.J.,
concurring in part and dissenting in part:
Respectfully, I concur in part, and dissent in part. I would reverse and hold that the long-term Tenant is entitled to the portion of the condemnation award which is supported by the only evidence adduced at trial, or, in the alternative, I would reverse and remand to allow the introduction of evidence under the correct method of valuation for a partial taking.
I agree with the majority that only Article. 32(b) of the Lease’s Condemnation Clause applies here, as Tenant had taken possession of the property prior to the institution of the condemnation proceeding. Additionally, the order of reference limited the scope of the Master’s findings to the proper apportionment of the condemnation award; therefore, any prayer for rent abatement under the Condemnation Clause must be the subject of a separate action. I also agree the Master erred in his alternative findings that Tenant’s sole remedy was to terminate the lease, and that the Condemnation Disclosure operated to exclude the condemned area from analysis under the Condemnation Clause.
However, notwithstanding the interpretation of the contractual Condemnation Clause, I find that the main purpose of this proceeding was to apportion the condemnation award, which sounds in equity, as specifically prescribed by Section 28-2-460 of the South Carolina Code (2007) (“The payment of the [condemnation] funds so awarded must be held by the clerk of court pending the final order of the court of common pleas in an equity proceeding to which all persons served with the *671Condemnation Notice must be necessary parties.”). See also Gordon v. Drews, 358 S.C. 598, 604, 595 S.E.2d 864, 867 (Ct.App.2004) (“To determine whether this suit is legal or equitable, we must look to the ‘main purpose’ of the action as reflected by the nature of the pleadings and proof, and the character of relief sought under them.”). Accordingly, although we must apply the “any evidence” standard of review to the legal question of whether the parties’ lease permitted Tenant to share in the condemnation award, once that is determined, we are free to make findings according to our own view of the preponderance of the evidence to determine how to equitably apportion the award. Tiger, Inc. v. Fisher Agro, Inc., 301 S.C. 229, 391 S.E.2d 538 (1989); Townes Assocs., Ltd. v. City of Greenville, 266 S.C. 81, 221 S.E.2d 773 (1976). The majority holds any argument that the Master failed to equitably apportion the award is not preserved for review; however, I view the standard of review not as an argument that must be raised before a trial judge in order to be preserved, but rather as the lens through which we are required to view the arguments on appeal.
Generally, a lessee, as the holder of a constitutional property interest, or as an “owner” under eminent domain statutes, is entitled to just compensation when all or part of the leasehold interest is lost by condemnation. South Carolina State Highway Dept. v. Hammond, 238 S.C. 317, 120 S.E.2d 21 (1961). Moreover here, the Condemnation Clause specifically provides Tenant is entitled to a portion of any condemnation award for a loss of its leasehold estate. At the time the property was partially condemned, Tenant had over seventy-three years remaining on its seventy-five year lease and presented expert testimony explaining the extent to which the condemnation diminished its interest. Conversely, Landlord presented no evidence Tenant’s leasehold interest was not adversely affected, nor did it object to the method of valuation used by Tenant’s expert. Despite this, the majority finds Tenant is not entitled to any portion of the condemnation award, a result the majority acknowledges “may appear harsh.” Based on our standard of review, I believe this result is not only harsh, but inequitable. I would reverse and award Tenant the sum of $81, 400, the amount testified to by Tenant’s expert and the only figure supported in the record. *672See Hough v. Hough, 312 S.C. 344, 440 S.E.2d 387 (1994) (finding a party cannot complain about the valuation of an asset by a court where the party fails to present any evidence on the issue).
The majority posits, without actually adopting, a new rule in this jurisdiction for the valuation of a leasehold in the case of a partial taking. While the scholarship inherent in the majority’s opinion is undeniable, this issue is not before us. No argument was advanced to the Master or before us on appeal that a different method of valuation should be applied where the take is partial. See Langley v. Boyter, 284 S.C. 162, 181, 325 S.E.2d 550 (Ct.App.1984) rev’d on other grounds, 286 S.C. 85, 332 S.E.2d 100 (1985) (“[Ajppellate courts in this state, like well-behaved children, do not speak unless spoken to and do not answer questions they are not asked.”). Moreover, while I agree with the majority’s conclusion that the Master erred in the method he used to value the Tenant’s interest, were I to adopt a new method of valuation, I would reverse and remand. I believe it is highly inequitable in this statutorily-mandated equity proceeding, not to afford Tenant the benefit of a remand in order to develop the record under a method of valuation which has heretofore never been recognized in South Carolina. See Mobil Oil Corp. v. Phoenix Cent. Christian Church, 138 Ariz. 397, 675 P.2d 284 (1983) (reversing and remanding under similar circumstances where the appellate court disagreed with the valuation method applied by the lower court in a partial condemnation proceeding).
Accordingly, I concur in part and dissent in part.