183 So. 3d 757
La. Ct. App.2015Background
- LSU filed a quick-taking expropriation against Michael Villavaso for property at 1837 Tulane Ave / 318 S. Roman St. in New Orleans to build an academic medical center; LSU deposited $172,000 into court as just compensation.
- Villavaso had operated a special-events/daily parking business on the lot for ~11 years; he paid taxes on income and believed the use was legal or grandfathered.
- Villavaso’s appraiser (Jimmie Thorns) valued the property at $247,000–$250,000; LSU’s appraisers (Truax, Hilbert) valued it at about $171,900–$172,000.
- Villavaso sought additional compensation: difference in land value, $2,820 for improvements, business losses (CPA expert Theriot: $144,818), and mental anguish for a pre-title trespass; district court excluded LSU’s rebuttal appraiser (Tatje) under Daubert.
- Trial court awarded additional compensation totaling $412,638 (including business losses and mental anguish), plus $165,000 in attorney’s fees; on appeal, the Fourth Circuit affirmed except it reduced mental-anguish damages from $50,000 to $15,000 and otherwise upheld awards and attorney’s fees.
Issues
| Issue | Plaintiff's Argument (Villavaso) | Defendant's Argument (LSU) | Held |
|---|---|---|---|
| Fair market value of property | Thorns’ $250,000 valuation is correct based on many local comparables and Thorns’ experience | LSU’s appraisers’ lower $172,000 valuation is more accurate | Court accepted Thorns; affirmed $250,000 (credibility call, not manifestly erroneous) |
| Business losses from taking | Villavaso lost unique business and should recover lost profits ($144,818) in addition to land value | LSU: recovery for business losses is double recovery / speculative / parking may have been an illegal use | Court awarded business losses; Theriot’s methodology accepted (losses compensable where proven and parcel was indispensable to business) |
| Exclusion of LSU’s rebuttal expert and tax returns | Exclusion prejudiced LSU | Tatje (appraiser) unqualified to rebut CPA’s lost-profits report; tax returns offered late | Exclusion upheld: district court within discretion; exclusion not prejudicial; tax returns excluded as untimely |
| Mental anguish for pre-taking trespass | Award appropriate for impermissible pre-title trespass causing emotional harm ($50,000) | LSU: no bad-faith trespass or award excessive | Court found trespass and emotional harm but reduced award to $15,000 (district court erred equating owner to Williams Class I) |
Key Cases Cited
- State Dept. of Highways v. Constant, 369 So.2d 699 (La. 1979) (landowner may recover beyond market value where parcel taken is indispensable to business operations)
- State, Dept. of Transp. & Dev. v. Dietrich, 555 So.2d 1355 (La. 1990) (economic losses to business resulting from expropriation are compensable when proven by credible expert testimony)
- Williams v. City of Baton Rouge, 731 So.2d 240 (La. 1999) (bad-faith trespass can support mental-anguish damages; awards depend on plaintiff’s connection to the land)
- Allerton v. Broussard, 50 So.3d 145 (La. 2010) (appellate courts must defer to trial court factual findings absent manifest error)