Lead Opinion
OPINION
This ease raises the question of what measure of damages is appropriate when a portion of property is taken for the reconstruction of a roadway that coincidentally includes the addition of a median foreclosing access to the remaining property from one side of the roadway. Appellants are property owners who had portions of their land taken, under the power of eminent domain, for the roadway reconstruction project. Appellants sought to have the partial loss of traffic access caused by the new median considered in the determination of damages fоr the partial taking. The trial court and the court of appeals both held that partial loss of traffic access is not a compensable loss, and accordingly, evidence of that loss may not be introduced into the determination of severance damages. We affirm on the same basis.
In early 1991 the Anoka County Commissioners approved a plan to reconstruct County State-Aid Highway Number 51, otherwise known as University Avenue, between 97th Avenue and 106th Avenue, Northwest. The significant aspect of the construction project, for purposes of this appeal, was the widening of the road and the installation of a median strip that prevents left turns into and out of properties along University Avenue.
Appellants are owners of four parcels of land, parcels 18, 19, 20 and 21, on the east side of University Avenue, between 101st Avenue and 102nd Lane. Parcel 18 contains a bank, the western portion of parcel 21 is improved with a gas station and convenience store, and parcels 19 and 20 are unimproved vacant lots. To accomplish the reconstruction of University Avenue, the county acquired a 27-foot strip of land from parcels 18, 19 and 20, and an 18.7-foot strip from parcel 21. The new median on University Avenue was constructed entirely on the existing right-of-way, and not on any оf the land taken from appellants. While the new median prevents left turns to and from the southbound lanes, access to and from the northbound lanes is unchanged.
Pursuant to the procedures set forth in Minn.Stat. ch. 117, the county petitioned for and obtained an order granting the transfer of title to the affected strips of land in mid-1993. At the same time, the trial court appointed commissioners to determine the damages due to each land owner, as provided in Minn.Stat. § 117.075. The commissioners’ recommendation for parcels 18 through 21 included severance damages that were based, in part, on the loss of traffic access to and from the southbound lanеs of University Avenue.
In two separate actions — one concerning parcels 18 and 19, and the other concerning parcels 20 and 21 — both the county and the landowners appealed to the district court. The county sought partial summary judgment in both matters, arguing that, as a matter of law, the property owners were not entitled to introduce evidence of the partial loss of traffic access into the damages assessment. The trial courts granted partial summary judgment on that basis and the landowners appealed. In a consolidated appeal, the court of appeals affirmed the grant of partial summary judgment as to both landowners. County of Anoka v. Maego, Inc.,
On appeal from summary judgment, we consider two questions: first, whether there are any genuine issues of material fact, and second, whether the lower courts erred in their application of the law. State by Cooper v. French,
It is well settled that the state must compensate a landowner when land is taken for a public purpose. The Minnesota Constitution provides: “Private property shall not be taken, destroyed or damaged for public use without just compensation therefor, first paid or secured.” Minn. Const. art. 1, § 13. A taking “include[s] every interference, under the right of eminent domain, with the possession, enjoyment, or value of private property.” Minn.Stat. § 117.025, subd. 2 (1996).
When there has been only a partial taking of land, the damages are known as “severance damages” and are measured by the “before and after” rule: the difference in market value of the land before the taking and the market value of the remaining land after the taking. Minneapolis-St. Paul Sanitary Dist. v. Fitzpatrick,
Interference with access to an abutting roadway may be a compensable taking. While property owners have no vested interest in the continued flow of traffic past the property, Hendrickson v. State,
Here, appellants suffered a partial taking of their properties for a public purpose, the reconstruction of University Avenue. Thus, there is no question that they are entitled to severance damages for that taking. The question presented is what factors may be considered in determining those damages. In particular, we must determine whether the loss of traffic access to and from one direction, caused by the construction of the median, may be included when determining the market value of their remaining land after the partial taking.
Appellants recognize that they do not have a right to be compensated for the loss of traffic access to and from the southbound lanes of University Avenue, if that were the only damage to the value of their properties. Nevertheless, they argue that they should be allowed to include that partial loss of access in the determination of severance damages, because access to trаffic is a factor that influences the market value of the remaining property. Further, they note that, in general, “evidence of any matter with [sic] would influence a prospective purchaser and seller in fixing the price” may be included when assessing severance damages. City of St. Paul v. Rein Recreation, Inc.,
We are not persuaded that the policy of evidentiary inelusiveness in market value determinations should overcome the longstanding rule that loss of traffic access from the construction of a median is not a compensa-ble taking. Allowing appellants to introduce traffic access into the determination of market value would allow them to do indirectly what they cannot do directly: be compensated for the loss of traffic access from one side of the roadway when they retain access to the other side.
Appellants face an additional barrier to recovering for the median construction: the loss of access did not result from changes in the property taken from appellants, but from a change on the existing right of way. Generally, an owner is not entitled to damages caused to remaining land by the use of an adjoining piece of property acquired from other landowners, even though all the properties are used for the same project. City of Crookston v. Erickson,
Appellants urge us to apply an exception to this general rule that we enunciated in City of Crookston.
We have never applied the City of Crook-ston doctrine to any facts other than those presented in that case itself, and we decline to do so here. In City of Crookston, we were concerned that the damages were practically impossible to apportion bеtween the part of the project built on the land taken from the owner and the project as a whole.
Moreover, deciding this case in appellants’ favor would yield future inequitable results. Clearly, if a land owner did not have any land physically appropriated but lost street access in one direction, the owner would not be entitled to damages for the loss of access. Gannons,
At its heart, appellants’ argument seems to be that the loss of access in one direction is somehow different in quality merely because it occurs coincidentally with an unrelated partial taking and that this difference is constitutional in its dimension. However, that implicit argument ignores the fact that the constitutional basis requiring compensation for a direct taking is identical to that requiring payment for damage to property without an actual physical appropriation. Minnesota Const. art. 1, sec. 13 requires compensation for interference with both “possession” and “valuе” of private property.
Therefore, we hold that the loss of traffic access may not be the basis of severance damages where a property owner is subject to a partial taking and coincidentally loses access due to the construction of a median barrier.
Our holding is also dispositive of appellants’ argument that excluding evidence of traffic access contradicts the Rules of Evidence and statutory eminent domain procedures insofar as those provisions have a policy of the broad admissibility of evidence that is helpful to the determination of market value. State by Humphrey v. Strom,
Affirmed.
Notes
. The dissent argues that our result would be different if we relied more heavily on State by Humphrey v. Strom,
. This issue is raised for the first time in this appeal. It is well settled that a party may not generally raise issues for the first time on appeal. Matter of Welfare of K.T.,
. See Hendrickson,
. Our conclusion is consistent with that of the majority of other stales that have faced this same question. County of Winnebago v. Rico Corp., 11 Ill.App.3d, 882, 883-84,
Dissenting Opinion
(dissenting).
I respectfully dissent from the majority’s conclusion that, when there is a partial taking in an eminent domain proceedings evidence of diminished access due to the construction of a road median is not admissible in determining the before and after fair market value of a landowner’s property. I believe the majority’s conclusion is incorrect for three reasons: (1) the majority’s reading of State v. Strom,
The state’s ability to compel owners to relinquish property to the state for public purposes is a powerful intrusion upon the right to the quiet and peaceful ownership of property. The majority correctly recites well-settled law that the state must compensate a landowner whose land is taken for a public purpose. Both the United States Constitution and the Minnesota Constitution expressly limit the state’s exercisе of the eminent domain power by requiring the payment of just compensation. See U.S. Const. amend. V; Minn. Const, art. I, § 13. These constitutional safeguards are rooted in the idea that no single individual should be forced to bear the entire burden for the good of all.
To insure that owners subject to the eminent domain power are made whole when their property is taken, legal safeguards have been established to ascertain the proper measure of damages. When there has been a partial taking of real property, the condemnation award breaks down into (1) damages for the part taken, and (2) severance damages to thе part remaining. Strom,
can occur because: (a) the part remaining is a smaller, less usable tract; and (b) the part remaining is adversely affected because of the way in which the land taken from the owner and others is put to use by the taker. This second type of revenue damages is also called “consequential” damages.
Id. (emphasis added). Severance damages are measured by the “before and after” rule: the difference in fair market value of the property before the taking and the fair market value of the remaining property after the taking. Minneapolis-St Paul Sanitary Dist. v. Fitzpatrick,
In Strom, we discussed at length a process to be followed in determining the appropriate measure of severance damages. We first affirmed the overarching principle that “[a]ny competent evidence may be considered if it legitimately bears upon the market value” of the property. Strom,
To determine the value of property taken in an eminent domain proceeding, the general rule is that “ ‘subject to the caveat that such proof must be competent, relevant and material, evidence of any matter with [sic] would influence a prospective purсhaser and seller in fixing the price at which a sale of the property could be consummated may be considered.’ ”
In other words, evidence will be admitted concerning any factor which would affect the price a purchaser willing but not*338 required to buy the property would pay an owner willing but not required to sell it, taking into consideration the highest and best use to which the property can be put. To not admit such evidence causes factors ordinarily considered when negotiating a price for a particular piece of property to be excluded and would result in the determination of a fair market value not of the property at issue, but of some nonexistent hypothetical piece of property.
Id. (citations omitted) (emphasis added).
I would adhere to our holding in Strom that “any competent evidence may be considered if it legitimately bears upon market value.” Id. Consequently, I disagree with the majority’s conclusion that Strom, Crook-ston, and our prior inverse condemnation rulings limit the introduction of evidence of diminished access as a factor relevant to the determination of the before and after fair market value of property when there has been a partial taking.
1. The majority’s reading of Strom is unduly narrow.
In Strom, this court held that evidence of construction-related interferences and loss of visibility to property following a partial taking was admissible not as a separate element of damages, but rather as evidence of the diminution in market value of the remainder. Id. at 560-62. In an attempt to harmonize its decision with Strom, the majority asserts that Strom is distinguishable because the damages “must arise from changes in the land actually taken, and not merely from the impact of the construction project as a whole.” However, Strom only supports this conclusion as it relates to the loss of visibility evidence.
The majority presumably relied on the following passage from Strom — concluding that the construction-related damages in that case were not general damages — in asserting that the Strom court tied the evidence admitted to physical changes in the property:
[I]n cases where there is a partial taking, the injured owner is not required to show that the injury is peculiar to his remaining property. It is sufficient that the damаge is shown to have been caused by the taking of part of his property even though it is damage of a type suffered by the public as a whole.
Id. at 560 (emphasis added).
Although this passage undoubtedly ties the admissibility of the evidence to the partial taking, it is less clear that the court limited admissibility to evidence of damages arising from the state’s use of the condemned property. This passage must be read in harmony with the text of the opinion as a whole. First, although the court explicitly stated in Strom that evidence of loss of visibility is admissible only when “the diminished visibility results from changes on the property taken from the landowner,” id. at 561, the court did not expressly place such a limitation on evidence of construction-related damages. Moreover, other passаges in Strom appear to conflict with such a limitation, including the court’s statement that “[t]he construction-related problems visited upon the Wood-bridge property are typical of the problems being experienced by other commercial properties located along the length of the reconstruction.” Id. at 557.
When we summarized our answer to the first certified question in Strom, we did not limit our holding to instances in which the damages arose from the state’s use of the condemned portion of the plaintiffs property:
We answer the first certified question in the affirmative: In a partial-taking condemnation action, evidence of construction-related interferences is admissible, not as a separate item of damages, but as a factor to be considered by the finder of fact in determining the diminution in market value of the remaining property.
Strom,
In a partial-taking condemnation action, to the extent that loss of visibility to the public traveling on a redesigned highway results from changes in the property taken from the owner, evidence of the loss is admissible, not as a separate item of damages, but as a factor to be considered by the finder of fact in determining the dimi*339 nution in market value of the remaining property.
Id. at 561-62 (emphasis added).
Notably, Strom cites with approval the decision of the Missouri Supreme Court in State ex rel. State Highway Comm’n v. Nickerson,
2. Inverse condemnation cases are not controlling in a partial takings context.
The majority erroneously relies on this court’s prior rulings that a landowner generally has no vested right to two-way access to traffic on an abutting street. See, e.g., State by Mondale v. Gannons, Inc.,
Unfortunately, the majority’s misplaced reliance on inverse condemnation precedent confuses the threshold issue of whether a property owner is entitled to compensation with the true issue in this case: whether evidence of diminished access is admissible to establish the proper measure of damages when there has been a partial taking. The Texas Court of Appeals recently criticized the state’s indiscriminate combination of these distinctly different elements of a condemnation action, noting that such an approach
mixes indiscriminately the rules which govern two distinctly different elements of a condemnation action: (1) the substantive rules applicable to a determination of whether the owner has a legal right to compensation; and (2) the substantive and evidentiary rules applicable to a calculation of the owner’s compensation once he has established a legal right to it.
State v. Schmidt,
There is a distinct and crucial difference in the admissibility of evidence of damages when governmental liability is not at issue— as in this case — as opposed to the admissibility of evidence when liability is at issue. Cynthia M. Filipovich, Inadmissibility of Governmental Highest Possible Use Evidence in a Partial Takings Case: A Departure From Constitutional Just Compensation, 70 U. Det. Mercy L.Rev. 873, 879 (1993). Under the general rule articulated in Strom, once government liability has been established, “[a]ny competent evidence [of the diminution in fair market value] may be considered if it legitimately bears upon the market value.” Strom,
Other jurisdictions have held that evidence of damages that are not compensable in an inverse condemnation context may be admit
3. City of Crookston v. Erickson supports admissibility.
In Crookston, this court recognized an exception to the general rule that a property owner may only be compensated for damages incurred by the state’s use of the owner’s condemned property:
[Wjhere a part of an owner’s land is taken for a public improvement such as [a sewage treatment plant], and the part taken “constitutes an integral and inseparable part of a single use to which the land taken and other adjoining land is put,” the owner is entitled to recover the full damage to his remaining property due to such public improvement even though portions of the public improvement are located on land taken from surrounding owners.
The appellant landowners argue that under the rule of Crookston, they are “entitled to recover their full damages to their remaining property caused by the University Avenue project even though portions of that project were located upon lands other than those strips actually taken from these owners.” They argue that becausе all of the components of the University Avenue projects were integral and inseparable to the entire project, Crookston precludes summary judgment in this case.
At least one court has applied the same rationale as this court applied in Crookston in allowing evidence of severance damages in a street improvement project condemnation. The California Court of Appeals allowed evidence of severance damages in People By and Through Dept. of Public Works v. Volunteers of America, accepting, the plaintiffs argument that the freeway “must be considered as a whole * * * as one integral part” of a single project, including the portion which was on the land of the plaintiffs.
The majority characterizes the appellant landowners’ loss of access due to the median installation as occurring “coincidentally” with an “unrelated partial taking.” I disagree. The record supports that the installation of the median restricting the flow of traffic to appellants’ property was part of an integrated attempt to ease congestion on University Avenue: the project necessarily — not coincidentally — required the widening of the street and condemnation of the appellants’ property. For these reasons, I believe the appеllants should be allowed to introduce evidence at trial of the effect of the loss of access on the before and after market value of their property.
The majority also concludes that allowing the appellants this opportunity would produce future inequitable results in that a landowner equally affected by the loss of access, but who faces no contemporaneous loss of property, would not be entitled to compensation under our inverse condemnation precedent. I am mindful of this apparent inequi
If there has been a partial taking, that is important. The significance of a partial taking is that it may establish, in a way that a non-taking cannot, the kind of close proximity between the remainder tract and the operation of the public improvement which is necessary to establish that any injury is indeed, direct, substantial and peculiar.
Strom,
I agree and would allow the appellants to offer evidence of the diminution of market value in this case.
. That the appellants are entitled only to the diminution in market value of the subject property and not to lost profits due to the lost traffic may be emphasized by the district court in a limiting instruction to the jury. See Riddle v. State Highway Comm’n,
Dissenting Opinion
(dissenting).
I join in the dissent of Justice Anderson.
