Metropolitan Atlanta Rapid Transit Authority v. Martin

Citation388 S.E.2d 346,193 Ga.App. 566
Decision Date17 October 1989
Docket NumberA89A1168,Nos. A89A1139,s. A89A1139
PartiesMETROPOLITAN ATLANTA RAPID TRANSIT AUTHORITY et al. v. MARTIN et al. MARTIN v. METROPOLITAN ATLANTA RAPID TRANSIT AUTHORITY.
CourtUnited States Court of Appeals (Georgia)

Kutak, Rock & Campbell, Charles N. Pursley, Jr., Albert Sidney Johnson, Atlanta, for appellants.

Bovis, Kyle & Burch, John M. Bovis, B. Dean Grindle, Jr., Michael S. Young, Atlanta, for appellees.

Reynolds & McArthur, Charles M. Cork III, Macon, amicus curiae.

CARLEY, Chief Judge.

Pursuant to OCGA § 22-2-100 et seq., condemnation proceedings were instituted against a portion of a tract of property owned by Donald Martin and leased to Electrical Distributors, Inc. (EDI). An appeal was taken from the special master's award of compensation. As to Martin, the jury found that the property was not unique and an award of $297,500 as the fair market value of the condemned property was made. As to EDI, the jury found that the property was unique and an award of $200,000 as the business loss occasioned by the condemnation was made. In Case No. A89A1139, Metropolitan Atlanta Rapid Transit Authority and DeKalb County (Condemnors) appeal from the judgment entered on the jury's verdict. In Case No. A89A1168, Martin and EDI cross-appeal from that judgment.

CASE No. A89A1139

1. At the close of the evidence, the Condemnors moved for a directed verdict on the issue of EDI's entitlement to a recovery for a business loss as a separate element of compensation. The trial court denied this motion. After judgment was entered on the jury's verdict, the Condemnors filed a motion for judgment n.o.v. This motion was also denied. The Condemnors enumerate as error the denial of these motions for directed verdict and for judgment n.o.v.

"[W]hen the business belongs to a separate lessee, the lessee may recover for business losses as an element of compensation separate from the value of the land ..., provided only that the loss is not remote or speculative. [Cit.]" Department of Transp. v. Dixie Hwy. Bottle Shop, 245 Ga. 314, 315, 265 S.E.2d 10 (1980). " '[I]f the business has suffered damage because of the taking of the real property upon which it is carried on, the correct measure of damages would be the difference in market value prior to and after the taking. While various elements, such as loss of profits, loss of customers or possibly what might be termed a decrease in the earning capacity of the business may all be considered in determining the decrease in value of the business, they represent no separate element of damage.' [Cit.]" (Emphasis supplied.) Old South Bottle Shop v. Dept. of Transp., 175 Ga.App. 295(1), 333 S.E.2d 127 (1985). The Condemnors urge that no probative evidence as to either the existence or the amount of any decrease in EDI's value as a business was adduced and that the issue of EDI's recovery of a business loss was, therefore, erroneously submitted to the jury.

The Condemnors' own expert testified that, in his opinion, there was no difference whatsoever in the pre-condemnation and post-condemnation value of EDI as a business. This shifted the burden to EDI to come forward with evidence to show that a compensable decrease in its value as a business had occurred. See generally Department of Transp. v. Bird, 158 Ga.App. 369, 371, 280 S.E.2d 394 (1981). Martin, as the majority shareholder and president, testified on behalf of EDI. After giving his reasons, Martin testified that, in his opinion, EDI had "lost seven to eight million dollars" as the result of the condemnation. However, Martin never gave any opinion as to whether or how this loss would translate into a specific decrease in the value of EDI as a business. A loss of profits, a loss of customers, or a decrease in a business earning capacity may be considered as factors which enter into the ultimate determination of the compensable decrease in the value of a business. However, those factors do not themselves represent separate elements of damage. Old South Bottle Shop v. Dept. of Transp., supra. Thus, EDI may have produced evidence that, as the result of the condemnation, it had lost some "seven to eight million dollars" in the form of lost profits, loss of customers or a decrease in its earning capacity. However, it produced no evidence as to whether that loss had resulted in a decrease in its value as a business and, if so, the specific amount of compensation that would be recoverable therefor. See generally State Hwy. Dept. v. Andrus, 212 Ga. 737, 95 S.E.2d 781 (1956). Compare Department of Transp. v. Driggers, 150 Ga.App. 270, 257 S.E.2d 294 (1979). Martin never testified that, as the result of the factors enumerated by him, it was his opinion that a purchaser would have been willing to pay only a specific lesser amount for EDI as an on-going business than he would have been willing to pay before the condemnation.

In the absence of some evidence to guide the jurors in determining the existence and amount of a decrease in the value of EDI as a business,...

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5 cases
  • City of Atlanta v. Lei, No. A04A1836.
    • United States
    • United States Court of Appeals (Georgia)
    • April 13, 2005
    ...emphasis supplied.) Morris v. Savannah Valley Realty, 233 Ga.App. 762, 765(4), 505 S.E.2d 259 (1998). 18. See MARTA v. Martin, 193 Ga.App. 566, 567-568(1), 388 S.E.2d 346 (1989) (jurors were erroneously allowed to reach a verdict as to the existence and the amount of a business loss sustain......
  • Whitfield v. Department of Transp., A00A1891.
    • United States
    • United States Court of Appeals (Georgia)
    • February 21, 2001
    ...relocated in the area, and that Green suffered damages measured by the loss of the value of the business. MARTA v. Martin, 193 Ga.App. 566, 567-568, 388 S.E.2d 346 (1989); Dept. of Transp. v. Kendricks, 148 Ga.App. 242, 244-247, 250 S.E.2d 854 (1978). Contrary to the contention of Whitfield......
  • Fulton County v. Dangerfield
    • United States
    • United States Court of Appeals (Georgia)
    • March 16, 1990
    ...in context, it is observed that the condemnor does not contest the relevancy of the denial of the permit. See MARTA v. Martin, 193 Ga.App. 566(2), 388 S.E.2d 346 (1989). The witness' opinion was based on statements made by city employees before the hearing and by the Mayor and MARTA represe......
  • Cornwell v. State
    • United States
    • United States Court of Appeals (Georgia)
    • October 20, 1989
    ......Marcus Davis, Steven A. Suna, Atlanta, for appellant.         Thomas C. Lawler ... recognizes Bundren as the controlling authority and points out that in Bundren, the "charges were ......
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