Housing Authority of the City of Little Rock v. Fisher
Docket: 5-4291
Court: Supreme Court of Arkansas; October 23, 1967; Arkansas; State Supreme Court
Conley Byrd, Justice, presides over an eminent domain case involving the Housing Authority of the City of Little Rock, Arkansas, which appeals the trial court's award of $161,000 to Lawrence and Faye Fisher, arguing it is excessive. The Authority also contests the court's decision to award interest on the amount exceeding a $101,081.26 deposit made on November 9, 1965, which granted the Authority fee simple title and immediate entry to the property.
The Fishers, along with Black White Cab Company, contested the condemnation and sought a transfer to equity. A compromise was reached on August 3, 1966, allowing the Fishers to withdraw the deposit while preserving their right to contest compensation. The court ruled that the Authority could acquire the property, and the Fishers could collect all rents accrued before June 1, 1966, while Black White Cab Company agreed to pay $500 monthly in rent starting June 1, 1966, until vacating by November 1, 1967.
The property, located at 114 East Markham, measures 55½ feet wide and 140 feet deep, serving the taxicab business, which Lawrence Fisher valued at $200,000. Expert testimonies varied: Mr. Cohen valued it at $166,000, while Mr. Morse estimated it at $161,000, both using income and comparable sales approaches. In contrast, the Housing Authority's experts, Mr. Payne and Mr. Larrison, valued the property at $83,000 and $84,000, respectively, based solely on comparable sales. The Authority suggests that a $55,000 sale by Ed I. McKinley to the Fishers in 1965 reflects the area's market value. All expert testimonies were met with some degree of discredit by opposing analyses.
The witnesses evaluated multiple sales and some doubted the authenticity of the sale in question as an arm's length transaction. Even if it were considered such, witnesses could view it as a bargain rather than a true market price. Minimal cross-examination occurred regarding Mr. Byron Morse's testimony. The Housing Authority argued that the $1,000 monthly lease between Black White Cab Company and the Fishers was not a legitimate transaction and did not reflect the property's rental value, citing its witnesses' estimates of $600 to $700 for rental value and a current lease to Black White Cab Company for $500. The record does not indicate that the lease between the Fishers and Black White Cab Company was not an arm's length transaction, nor does the $500 lease with the Housing Authority effectively represent fair rental value compared to the $1,000. Therefore, the trial court's determination of a fair market value of $161,000 is upheld as not contrary to the evidence. The Housing Authority's contention that the appellees should not receive interest on the excess judgment during the rental period is supported by precedent. Consequently, the judgment is modified to include interest at 6% on the excess judgment from June 1, 1966, and is affirmed as modified, with dissent from Justices Brown and Jones.
