Johnson County Broadcasting Corp. v. Iowa State Highway Commission

• Decision Date: 20 October 1964
• Docket Number: No. 51456,51456
• Citation: 256 Iowa 1251,130 N.W.2d 707
• Parties: JOHNSON COUNTY BROADCASTING CORPORATION, Appellee, v. IOWA STATE HIGHWAY COMMISSION and State of Iowa, Appellants.
• Court: Iowa Supreme Court

Page 707

130 N.W.2d 707

256 Iowa 1251

JOHNSON COUNTY BROADCASTING CORPORATION, Appellee, v. IOWA STATE HIGHWAY COMMISSION and State of Iowa, Appellants.

No. 51456.

Supreme Court of Iowa.

Oct. 20, 1964.

Evan Hultman, Atty. Gen., C. J. Lyman, Special Asst. Atty. Gen., and William L. Meardon, Iowa City, for appellants.

Swisher & Swisher and Marion Neely, and Messer & Cahill, Iowa City, for appellee.

MOORE, Justice.

With our permission, defendants appeal from the trial court's rulings on plaintiff's application to determine law points during its appeal from a condemnation award.

At the time of condemnation plaintiff's radio station operation consisted of a transmittal area just outside the north city limits of Iowa City which was connected by a coaxial cable with its studio and business office in downtown Iowa City, a distance of several miles.

Defendants condemned 8.45 acres of the transmittal area but there was no other taking of plaintiff's property. The existing two towers and radial wires were left intact. The condemnation did not impair plaintiff's operation of its existing 1000 watt radio station.

Plaintiff's petition alleges it had procured an engineering survey to ascertain necessary changes to convert to a 5000 watt operation and had been negotiating with the Federal Communications Commission to increase its wattage and hours of operation.

The survey indicated a 5000 watt operation would necessitate three towers, 300 feet of radial wires extending therefrom and that the 25 acre tract would be large enough to absorb the change. Plaintiff alleged the 16 1/2 acre tract remaining after condemnation was too small for its planned 5000 watt operation and it was thereby precluded from continuing its efforts to enlarge its operation.

The trial court on plaintiff's application to adjudicate law points (Rules Civil Procedure 105, 58 I.C.A.) ruled plaintiff could introduce evidence of (1) its future plans as bearing on the use and adaptability of the condemned property, (2) the before and after value of the entire radio station property and (3) the gross income of the 1000 watt operation and the projected gross income of a 5000 watt operation. Defendants assert the trial court erred in each of these rulings.

I. Defendants concede plaintiff may show the value of the transmittal area for any use to which it may reasonably be adapted. This now well established rule was first discussed in detail in Ranck v. City of Cedar Rapids, 134 Iowa 563, 111 N.W. 1027, which holds evidence of the value of the improvements on a lot, its value with and without the improvements, the type of business being carried on by condemnee, and that the lot was well adapted and valuable for such business was admissible to show the capabilities of the property. At pages 565, 566, 134 Iowa, page 1028, 111 N.W., it is said:

'In this estimation the owner is entitled to have the jury informed of all the capabilities of the property, as to the business or use, if any, to which it has been devoted, and of any and every use to which it may reasonably be adapted or applied. And this rule includes the adaptation and value of the property for any legitimate purpose or business, even though it has never been so used, and the owner has no present intention to devote it to such use.' This quote is followed by a long list of citations and examples of evidence held to be admissible under the rule.

Some of our later decisions of like effect are Hamer v. Iowa State Highway Comm., 250 Iowa 1228, 1230, 98 N.W.2d 746, 748; Iowa Development Co. v. Iowa State Highway Comm., 252 Iowa 978, 988-989, 108 N.W.2d 487, 493; Mohr v. Iowa State Highway Comm., 255 Iowa 711, 124 N.W.2d 141, 147.

Defendants argue this rule does not permit evidence of plaintiff's plans or subjective intent to use the property for a particular purpose in the future. Our holding in Mohr v. Iowa State Highway Comm., supra, is to the contrary.

In that case we hold evidence of condemnee's plans to grade the west part of his property, build a filling station, a garage and use it as a used car lot admissible for the purpose of showing its capabilities.

At page 721, 255 Iowa, page 147, 124 N.W.2d, we say:

'Although there is authority to the contrary, we have held, in line with a good many outside decisions, that evidence of a plan for the proposed improvement of the affected property is admissible for the purpose of showing its capabilities. Iowa Development Co. v. State Highway Comm., supra, 252 Iowa 978, 988, 108 N.W.2d 487, 493; Chicago & E. R. Co. v. Blake, 116 Ill. 163, 4 N.E. 488, 491; Rock Island & E. I. Ry. Co. v. Gordon, 184 Ill. 456, 56 N.E. 810, 811-812; Union Terminal R. R. Co. v. Peet Bros. Mfg. Co., 58 Kan. 197, 199-200, 48 P. 860; Chicago, K & N. W. Ry. Co. v. Davidson, 49 Kan. 589, 31 P. 131, and citations; Cincinnati & S. Ry. Co. v. Longworth, 30 Ohio St. 108. See, however, Sexton v. Union Stock Yards & T. Co., 200 Ill. 244, 65 N.E. 638, 639-640.'

We agree with the trial court's ruling and adjudication on the first proposition.

II. We do not agree with the trial court's ruling plaintiff could introduce evidence of the before and after value of all its property devoted to the operation of its radio station.

Plaintiff does not allege any change resulted in the operation of its 1000 watt radio station. Plaintiff makes no claim its downtown leasehold interest was disturbed in any way. Its use remained unchanged after condemnation.

We have frequently considered the question whether damages for a taking by condemnation should be assessed to all farm land in the vicinity owned by the condemnee or to the various tracts or parcels separately. If there is evidence from which the jury could reasonably find the entire acreage, though not contiguous, was used as one farm, so that the loss and inconvenience would affect its entire use and operation, then the question becomes one of fact. Ham v. The Wisconsin, Iowa and Nebraska Ry. Co., 61 Iowa 716, 17 N.W. 157; Paulson v. State Highway Comm., 210 Iowa 651, 231 N.W. 296; Hoeft v. State, 221 Iowa 694, 266 N.W. 571, 104 A.L.R. 1008; Stortenbecker v. Iowa Power and Light Co., 250 Iowa 1073, 96 N.W.2d 468.

In Cutler v. State, 224 Iowa 686, 278 N.W. 327, there was involved a 240 acre farm from which the condemned land was taken and an adjoining 80 acre tract owned in part by the owner of the 240 acres. The trial court instructed the 80 acre tract was not a part of the farm to which damages could be attributed, but the jury might take into consideration the advantage of using the two farms as one in fixing the value of the 240 acre tract before and after condemnation. We held the giving of this instruction not prejudicial. There was no showing of loss or inconvenience in the use of the 80 acre tract.

We need not, nor do we, decide whether the general rule applicable to farm parcels applies to plaintiff's use of its 25 acre tract and downtown leasehold interest. We are convinced in the absence of any claim of loss or inconvenience to the entire operation the before and after value of the leasehold should not be...