Historic Blakely Authority v. Williams

• Court: Alabama Supreme Court
• Writing for the Court: BUTTS; HOUSTON
• Citation: Historic Blakely Authority v. Williams, 675 So.2d 350 (Ala. 1995)
• Decision Date: 22 September 1995
• Parties: HISTORIC BLAKELY AUTHORITY v. Norvie WILLIAMS, et al. 1940737.

Page 350

675 So.2d 350

HISTORIC BLAKELY AUTHORITY v. Norvie WILLIAMS, et al.

1940737.

Supreme Court of Alabama.

Sept. 22, 1995.

As Modified on Denial of Rehearing

Dec. 15, 1995.

H. William Wasden and Jean Walker Tucker, Mobile, for appellant.

Donald D. Doerr, Jr., Bay Minette, and James D. Smith, Stapleton, for appellees.

BUTTS, Justice.

The Historic Blakely Authority brought a condemnation action in the Probate Court of Baldwin County against Norvie Williams and others (hereinafter referred to collectively as "Williams"), seeking to exercise the power of eminent domain over four acres of real property owned by Williams.

After a preliminary ruling establishing that the Authority had the right to exercise the power of eminent domain over the property, the probate court condemned the property and assessed compensation of $32,000 for Williams. Williams appealed to the Circuit Court of Baldwin County; that court entered a partial summary judgment for the Authority on the issue of its authority to condemn the land under the doctrine of eminent domain.

The case proceeded to trial on the sole issue of the fair market value of the land, and a jury returned a verdict assessing compensation at $88,500. The Authority moved for a new trial, requesting oral argument; this motion was denied by operation of law, pursuant to Rule 59.1, Ala.R.Civ.P. The Authority appeals.

I.

The Authority was established by the state legislature to "establish, develop, operate, promote, protect, preserve, and maintain as a state historic park" a 2000-acre tract of woodland listed on the National Register of Historic Places and known as the "Blakely site." Ala.Code 1975, § 41-10-170. The park is designed to preserve important Civil War breastworks contained within the Blakely site and, to this end, the legislature conferred on the Authority "all powers necessary or convenient to effect the purposes for which it [the Authority] has been established." Ala.Code 1975, § 41-10-175. Inherent in these powers is the authority to control development of the land contained within the park. The four-acre tract of land at issue is located approximately 1.5 miles within the interior of the site, which has now been established as Historic Blakely Park. The tract is cleared, but has no utility connections.

At trial, Authority officer Joanne Flirt testified that the statutory restrictions governing Historic Blakely Park prevented the development or division of the four-acre tract. M.D. Bell, Jr., a certified real estate appraiser licensed by the state, testified that the highest and best use of the property is as a single homesite. He noted that there were several new subdivisions located near the perimeter of the park, and he based his calculations of the tract's value in part on the assumption that utilities would be available. He also stated that the tract at issue was especially attractive because it was private and contained a massive, picturesque oak. He expressed the opinion that, without considering that the land was surrounded by the park, and assuming that utilities could be installed, the fair market value of the land was $30,000.

A second licensed and certified real estate appraiser, Larson Edge, expressed the opinion that the highest and best use of the land would be as a part of the park. He explained that the statute creating the Authority vested it with the power to resist the installation of utilities, to seek rezoning, and to prevent subdivision and development of the tract. Based on the restrictions that the Authority could, and apparently would, impose on the land, he felt that the tract was not a viable place for a single homesite and estimated that the fair market value of the land was only $6,650.

In rebuttal, Williams called Jim Spence, a real estate broker. Spence stated that, based on the premise that the tract could be subdivided and/or developed, its value was $22,500 per acre. Virgil Hollings, a part-owner of the property, testified that he valued the land at $264,000, conditioned on its being divided and sold in parcels.

The Authority argues that the testimony of Spence and Hollings was impermissibly speculative, because it was based on the assumption that the land could be divided. The Authority points out that, in determining just compensation for the owners of condemned property, a jury may consider the uses to which the property is reasonably adapted or may be reasonably adapted at the date of the taking, but that speculative or imaginary uses of the property are not elements for the determination of the value of property. Popwell v. Shelby County, 272 Ala. 287, 130 So.2d 170 (1960). The Authority argues that, on the date of the taking, Williams's land could not be divided because the Act establishing the park was already in effect and the Act permitted the Authority to prohibit a division. The Authority thus concludes that the valuations given by Spence and Hollings were based on imaginary circumstances.

Just compensation to a landowner for condemned property...