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State, Department of Transportation & Development v. Knoll & Dufour Lands, LLC

Citations: 158 So. 3d 1; 2013 WL 6926516Docket: Nos. 13-399, 13-400

Court: Louisiana Court of Appeal; October 23, 2013; Louisiana; State Appellate Court

Narrative Opinion Summary

In a consolidated expropriation case, the Louisiana Department of Transportation and Development (DOTD) sought to reroute a highway for safety improvements, involving land owned by Knoll, Dufour Lands, LLC, and the Dauzarts. Initially, the jury awarded compensation to the defendants, which they contested, leading to a new trial where DOTD's failure to timely post a jury bond resulted in a bench trial. The trial court awarded higher compensation to the landowners, including damages for the land, improvements, and severance. The trial court's decision was partially affirmed and partially reversed on appeal. The appellate court emphasized that compensation should reflect the full extent of the owner's loss, including severance damages, but overturned the trial court's reliance on a report that separately valued trees from the land, which contradicted established case law. The case was remanded for reevaluation of certain compensation aspects, affirming other parts of the trial court’s judgment. The decision also addressed attorney fees as a percentage of the total award and clarified the accrual of interest post-judgment. Costs of the appeal were largely assigned to DOTD.

Legal Issues Addressed

Assessment of Expert Testimony in Expropriation Cases

Application: The court evaluated the credibility of expert testimony, emphasizing that expert opinions must be grounded in admissible evidence and consistent with industry standards.

Reasoning: Expert opinions on valuation serve as advisory tools for the court in expropriation cases; the trier of fact determines their weight based on the expert's qualifications, experience, factual basis, local familiarity, and potential bias.

Attorney Fees in Expropriation Proceedings

Application: Attorney fees were calculated as a percentage of the total compensation awarded, adjusted for any amounts deposited by the state.

Reasoning: Attorney fees should be calculated at 25% of the total award, minus any amount deposited by the State, following the trial court's future valuation of the trees' contribution to the land's total value.

Compensation for Expropriated Property under Article 1, Section 4 of the Louisiana Constitution of 1974

Application: The court determined that compensation must reflect the full extent of the owner's loss, including the value of the land, improvements, and severance damages.

Reasoning: The law specifies that compensation must reflect the full extent of the owner's loss, encompassing not only the appraised value of the property but also relocation costs, inconvenience, and other damages incurred due to the expropriation.

Expropriation Procedure under Louisiana Law

Application: The trial court conducted a bench trial due to the Department of Transportation and Development's (DOTD) failure to post the required jury bond in a timely manner.

Reasoning: DOTD failed to post a jury bond within the required sixty days, resulting in the trial court ordering DOTD to file the bond by October 5, 2012, or waive the right to a jury trial.

Interest on Expropriation Awards

Application: The appellate court clarified that legal interest on compensation amounts exceeding state deposits accrues from the defendants' answer to the expropriation.

Reasoning: The ruling also reverses the trial court's award of legal interest from the date of judicial demand, clarifying that interest accrues only after the trial court's final judgment, as specified in La.R.S. 48:455.

Severance Damages under Louisiana Revised Statutes 48:453

Application: The trial court awarded severance damages based on the diminished value of remaining property after partial expropriation, supported by expert testimony.

Reasoning: Severance damages account for the property's value before and after the taking, including the impact of the completed project and the loss of trees.

Valuation of Trees in Expropriation Cases

Application: The trial court's reliance on the GIBKO Report for tree valuation was overturned, with the appellate court reiterating that trees should not be valued separately from the land.

Reasoning: The court erred both manifestly and legally by admitting and relying on the GIBKO Report, as this contradicts the supreme court's ruling in Glassell, which determined that the value of trees should not be assessed separately but rather included in the overall land valuation.