Borough of Wildwood Crest v. Smith
Court: New Jersey Superior Court Appellate Division; October 18, 1988; New Jersey; State Appellate Court
Wildwood Crest, the plaintiff, and defendants Cecile Smith and Monterey Motel, Inc. appeal from Law Division orders regarding the valuation of condemned beach property and the interest rates for the condemnation award. The plaintiff condemned unimproved beach properties owned by the defendants, which are similar in nature, fronting the Atlantic Ocean and including both upland property and beach property with public easements for recreation. After a de novo nonjury trial, the trial judge determined the fair market value of the Smith property to be $466,075 and the Monterey Motel property to be $453,250, as of February 7, 1983. A dispute arose concerning the nature and amount of interest on previously deposited funds, leading the court to order that the interest be compounded annually, aligning with court rules. Both parties cross-appealed, challenging the trial judge's valuation findings. The court upheld the trial judge's acceptance of the plaintiff’s expert opinions regarding the highest and best use of the properties, finding sufficient credible evidence in support. Notably, the judge significantly increased the value of the encumbered beach property from $0.95 to $9.50 per square foot, reasoning that the public easement affecting the comparable properties should not warrant a valuation adjustment, a point conceded by both parties during oral argument. The plaintiff's appeal also contested the decision to award compound interest instead of simple interest. The appellate court affirmed the trial judge's decision, agreeing with his rationale in the written opinion dated January 26, 1988. The document concludes with a note that the defendants’ predecessors had previously acquired riparian rights from the State, which was relevant to the valuation process.