Metropolitan Water Dist. v. Campus Crusade
| Citation | 135 Cal.App.4th 568,37 Cal.Rptr.3d 598 |
| Decision Date | 19 December 2005 |
| Docket Number | No. E034248.,E034248. |
| Parties | The METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA, Plaintiff and Respondent, v. CAMPUS CRUSADE FOR CHRIST, INC. et al., Defendant and Appellant. |
| Court | California Court of Appeals |
Redwine and Sherill, Justin M. McCarthy, Scott R. Heil, Riverside; Berger & Norton, Michael M. Berger, Los Angeles, Gideon Kanner, John T. Fogarty; Matteoni, Saxe & O'Laughlin, Norman E. Matteoni and Peggy M. O'Laughlin, San Jose, for Defendants and Appellants.
Jeffrey Kightlinger, Lauren R. Brainard, Los Angeles; Cox, Castle & Nicholson, Kenneth B. Bley and Edward C. Dygert, Los Angeles, for Plaintiff and Respondent.
In 1997, Metropolitan Water District of Southern California (Metropolitan) brought an eminent domain action to condemn land owned by Campus Crusade for Christ, Inc. and Del Rosa Mutual Water Company (collectively Campus Crusade) to construct a segment of a 43-mile water pipeline. Metropolitan sought to preclude Campus Crusade from presenting evidence of over $12 million in severance damages based on various factors, including the danger of pipeline rupture, the cutting of mature trees, and potential uses of the property that were contingent upon a zone change. Metropolitan also sought to exclude evidence concerning any temporary severance damages resulting from the delay in construction.
In 2000, Judge Cynthia Ludvigsen denied most of Metropolitan's motions in limine and ruled that the evidence of severance damages was admissible. After Judge Ludvigsen's reassignment and replacement by Judge John P. Wade in 2001, Metropolitan again filed numerous motions in limine to exclude the same evidence. In 2002, after over four years of litigation, Judge Wade granted the motions and rejected Campus Crusade's claim that it had suffered any severance damages as a result of the taking. Campus Crusade waived its right to a jury trial. The trial court awarded $479,278.45 in damages, none of which was attributable to severance damages.
In challenging the trial court's judgment, Campus Crusade claims that Judge Wade committed the following errors: violated principles of comity and judicial efficiency by overturning Judge Ludvigsen's rulings; usurped the role of the jury by excluding all evidence of severance damages; and imposed upon Campus Crusade the burden of proving severance damages contrary to the rule in Code of Civil Procedure section 1260.210. Campus Crusade claims that it was entitled to present evidence concerning each item of damages, including evidence of a reasonable probability of a change in zoning laws, the diminution in value caused by the cutting of mature trees, the potential damage that would result from an earthquake, and the evidence of damages caused by the delay in construction.
We conclude that Judge Wade overstepped his authority by overruling Judge Ludvigsen's prior ruling. We also conclude that Judge Wade erred in placing upon Campus Crusade the burden of proof as to the existence of severance damages. Under Code of Civil Procedure section 1260.210, Campus Crusade bears only the burden of producing evidence to show a reasonable probability of injury resulting from the governmental taking. Campus Crusade satisfied its burden of production because it offered substantial evidence that should have been presented to a jury in determining the amount of just compensation.
We reverse the judgment and remand for a new trial.
Metropolitan is a public agency established to channel water from the inland areas to the coastal plains of Southern California. The Inland Feeder Project was a project to construct a 43-mile water pipeline from Devil Canyon to Diamond Valley Lake. The pipeline was 12 feet in diameter and constructed of welded steel that was five-eighths of an inch in width. Most of the pipeline was buried hundreds of feet below the earth's surface.
Campus Crusade owned 1,824 acres of land along the northern edge of the City of San Bernardino. Part of the land was located in the city and part of the land was in the city's sphere of influence, which was also unincorporated territory of San Bernardino County. The property was the site of the historic Arrowhead Springs Hotel, the International School of Theology, several office buildings, a conference center a sports field, and a village. Most of the property, however, was undeveloped. The property also contained a lake, hot and cold running springs, and several streams. Arrowhead Spring Water extracted water from the property and Campus Crusade received substantial income from Arrowhead.
In early 1996, Campus Crusade retained Thomas Thornburgh, a land developer, to assist with its comprehensive development plans for the entire property. The city seemed to be enthusiastic and supportive of Campus Crusade's plans for future development.
Campus Crusade's plans were disrupted when Metropolitan decided to construct its pipeline across Campus Crusade's property. Metropolitan initially intended to condemn certain areas, including a 10.4-acre parcel in fee (INFEDI-31-100), 18.7 acres of permanent easements (INFEDI-31-100PEA1, INFEDI-31-100PEA2, INFEDI-30-140PEA1), and 27.4 acres of temporary construction easements for a period of seven years (INFED1-100TEA1 and INFED1-100TEA2). It later added two permanent tunnel easements, one below ground and the other above ground (INFED1-31-100PEA3).
On December 10, 1996, Metropolitan's board of directors adopted a resolution of necessity. On December 23, 1996, Metropolitan deposited funds into the State Treasury, thereby setting the date of valuation.
In the following month, on January 23, 1997, Metropolitan filed its complaint in eminent domain and an ex-parte application for possession. Metropolitan's first amended complaint included the two additional permanent easements.
Campus Crusade submitted statements of valuation from three appraisers, E.R. Metcalfe, James Smothers, and Robert Swing. The appraisers estimated the value of the property interests being taken between $1,500,000 and $1,600,000 and the temporary and permanent damage to the remainder between $12,600,000 and $14,000,000.
The pipeline cut across Campus Crusade's property at a location that was most valuable and most amenable to development. One of the permanent easements ran up against some of the existing buildings. Although the pipeline was about 30 feet away, the resolution provided that Metropolitan acquired the land "... for the purpose of constructing, reconstructing, maintaining, operating, enlarging, removing, and replacing a line or lines of pipe at any time, and from time to time, for water transportation, with every appendage or structure necessary or convenient to be installed at any time in connection therewith; ..."
The resolution also provided that Campus Crusade may not interfere unreasonably with Metropolitan's rights over the permanent easements. The resolution restricted Campus Crusade's ability to modify the typography, construct buildings, or plant trees in the areas covered by the easements.
As to the areas covered by the temporary easements, Metropolitan disclaimed any obligation to restore vegetation to its prior condition. Campus Crusade had a row of mature trees that served as a natural entryway for the historic hotel. Metropolitan's use of the temporary construction easements required the cutting of all the mature vegetation in that area.
Before the taking, Campus Crusade had two ways of accessing its property. The primary access route was through State Highway 18. Campus Crusade also had secondary access rights through 40th Street over a neighboring parcel. The taking interfered with Campus Crusade's secondary access rights.
In addition to the impacts caused by Metropolitan's use of the condemned areas, the pipeline also posed the risk of rupture. As a potential significant impact, Metropolitan analyzed this risk in its environmental impact report. The pipeline crossed a branch of the San Andreas Fault at this site. Campus Crusade's experts opined that Metropolitan constructed this section of the pipeline as a "safety valve" by raising the pipeline hundreds of feet to within several feet of the earth's surface, making the pipeline accessible after a breach for any necessary repairs. A breach in the pipeline could cause a sudden outflow of millions of gallons of water onto Campus Crusade's property at a rate of 1,000 cubic feet per second.
Contrary to Campus Crusade's claim for damages, Metropolitan submitted a revised statement of valuation for $392,000 for all the property interests with no severance and temporary damages. On October 7, 1999, Metropolitan filed a final offer of compensation for $1,500,000 plus costs and interests, which excluded any damages related to Campus Crusade's water rights. Metropolitan subsequently increased its offer to $3,500,000.1 Campus Crusade revised its demand to $12,500,000 for the property interests taken and severance damages.
On January 4, 2000, Metropolitan filed the first of many motions in limine to exclude evidence. Metropolitan requested that the court exclude all references to "temporary severance damages" for construction-related interference to Campus Crusade's conference facility. Metropolitan filed two additional motions, one involving Campus Crusade's claim for cost-to-cure damages for Metropolitan's interference with Campus Crusade's right of access and the other damages related to the pipeline grade at a particular location. The parties' trial briefs also raised other issues of temporary and permanent severance damages.
On August 24, 2000, after conducting an evidentiary hearing, Judge Ludvigsen denied most of Metropolitan's motions and allowed Campus Crusade to present evidence to support its claims for severance damages, including damages caused by the...
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