Lead Opinion
OPINION
The State of Texas appeals from a judgment in a statutory condemnation proceeding awarding Lloyd McCarley $366,820 as just compensation for the State’s taking of 836 square feet from his property for use in the Texas Department of Transportation’s construction of the State Highway 45 toll road project. The judgment was based on a jury’s verdict on a single issue inquiring as to the amount of damages. The jury awarded $371,000. The trial court credited the State’s prior deposit of the amount of the special commissioner’s award in order to take possession— $4,180 — to yield the judgment amount.
Because we conclude that the evidence was legally and factually sufficient to support the jury’s award of $371,000 as damages for the State’s statutory condemnation of McCarley’s property, we will affirm the trial court’s judgment.
To address the State’s challenge to the jury’s damages award, we apply the familiar standards of legal and factual sufficiency review.
The sole issue submitted to the jury inquired:
On September 16, 2003 [the date the State took possession of the property], what was the difference between (a) the fair market value of the landowner’s whole property before the taking, excluding any consideration of the condemnation or proposed project and (b) the fair market value of the remainder only, after the taking, giving consideration to the uses to which the condemned part is to be subjected.
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Answer by stating the difference in Fair Market Value in dollars and cents.
The jury was given the following definitions:
“Fair Market Value” means the price which the property would bring when it is offered for sale by one who desires, but is not obligated to sell, and is bought by one who is under no necessity of buying it, taking into account all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available within a reasonable future period. In making your determination of Fair Market Value, you will consider the “Highest and Best Use” of the land involved. “Highest and Best Use” means that legal use to which the property could have been adapted on the date of taking, or within the reasonably foreseeable future thereafter which was legally permissible, physically possible, financially feasible, and provided the owner with the greatest net return.
The jury was thus instructed to calculate McCarley’s damages by comparing the fair market value of his property before and after the taking, reflecting both the loss of the part taken plus any diminution of the remainder’s value. See Westgate, Ltd. v. State,
The charge further directed the jury that, when calculating these measures of fair market value, its ultimate focus should be the price the property would have brought in a transaction between a willing seller and willing buyer at the time. See City of Austin v. Cannizzo,
These principles, in part, enable a landowner to recover all reasonably foreseeable consequential damages from the taking in the statutory condemnation proceeding and not be “burdened with the delay and expense of future lawsuits.” White v. Natural Gas Pipeline Co. of Am.,
The jury heard evidence that, at relevant times, McCarley had owned two adjacent undeveloped lots totaling approximately 1.75 acres in size. One lot, approximately 1.0106 acres in size, was situated at the corner of Ranch Road 620, a busy thoroughfare that ran generally east-west at that location, and Lyndhurst Street, which ran generally north-south until it ended at its intersection with 620. Both roads were originally at grade level. The second lot, roughly .7381 acres in size, sat immediately south of the first lot, its east side fronting Lyndhurst. As of the date of taking, the property was partially within the City of Austin, and the rest within the City’s extraterritorial jurisdiction.
McCarley presented evidence that although he had not yet developed the property, he had previously performed extensive planning and permitting in anticipation of developing it for commercial uses. In 1996, McCarley hired a land planner, Richard Crank, and an engineer, Curtis Wilson, to complete a subdivision of the property and obtain the necessary permits to develop the site. Wilson obtained general retail zoning for the portion within the Austin city limits. Crank prepared the necessary applications and obtained approval for a two-lot subdivision with a front-lot retail development and rear-lot office development. Wilson engineered a utility plan for water and waste-water service, which was approved, as well as a plan for stormwater abatement that was approved by the Texas Natural Resource and Conservation Commission. Wilson also designed a stormwater drainage and detention plan, which the City approved after requiring a restrictive covenant requiring that the two lots would share water quality and stormwater detention facilities and be developed only as a unified development. The City eventually granted full site plan approval for development of the property.
The jury heard evidence regarding the City of Austin’s requirements that McCar-ley had to meet to obtain his site development permit. These included three forms of stormwater management regulations: (1) environmental regulations requiring that the property have ponds that would detain the rainwater falling onsite in a 2-year storm; (2) drainage criteria requiring the property to have ponds designed to retain the rainwater falling onsite in a 100-year storm, detain the water, and release it slowly at a rate no greater than the flow from the property’s natural, pre-development state; and (3) requirements that the property be designed to receive all storm-water from a 100-year storm that would
Although the State emphasizes that McCarley’s site development permit had expired before it condemned his property, evidence that McCarley had succeeded in obtaining one is nonetheless probative of the reasonably foreseeable uses of McCar-ley’s property before it was condemned. See Cannizzo,
The State condemned a 836 square-foot triangular “corner clip” from McCarley’s front lot at the 620-Lyndhurst intersection. The property was to be used in TxDOT’s conversion of part of 620 into the State Highway 45 toll road. Construction evidently was underway but not yet completed by time of trial. TxDOT’s plans were to elevate the existing 620 roadway five to seven feet on a solid retaining wall within the existing right-of-way along McCarley’s front lot. This road would serve as a frontage road for Texas 45. Lyndhurst would similarly be elevated on an embankment for several hundred feet to meet the new, higher frontage road at the site of the former intersection with 620. According to the State’s engineering expert, the corner clip taken from McCar-ley’s property would be used in building an embankment area needed to raise the roadways and “to find a place maybe for utilities to make a bend and serve folks down Lyndhurst.”
Although the State’s engineering expert disputed Wilson’s analysis — he insisted that a 24-inch pipe TxDOT was laying under Lyndhurst would sufficiently drain any stormwater from McCarley’s side of that street — there was evidence consistent with TxDOT’s anticipating that McCarley’s property would flood. The State’s appraiser testified that TxDOT intended to build concrete riprap in the corner clip area to prevent erosion at the Lyndhurst intersection. Also, during its negotiations with McCarley, TxDOT had contemplated constructing an 18-inch reinforced con
The State’s engineering expert, who had oversight responsibilities during the design phase of the Texas 45 project, testified that the “retaining wall” was actually intended to shield the school from noise likely to come from the elevated main lanes of Texas 45, which were to be several feet higher than the frontage roads. He explained that “[t]he plan sheets refer to it as a retaining wall because we’re trying to help out the school and we can’t call it anything else because we’re not meeting federal mandates” to obtain federal funding for a noise wall, adding that “I’m probably going to get in a lot of trouble for saying that we built one anyway, but we did.” However, the witness acknowledged that the agency had ^stopped short of “building a full blown, we’re going to get in trouble, kind of sound wall,” and he could not say that it would be effective given that the roadway was higher than the school. It was within the province of the jury to weigh the credibility of the State’s explanations of its “retainiing wall.”
McCarley presented evidence that TxDOT’s use of the corner Iclip to elevate roadways and in its drainage^ system have destroyed his ability to develop the remainder. Wilson explained that to re-permit the remainder, McCarley would be required to satisfy the same City of Austin stormwater management regulations that he had successfully met when obtaining his earlier development permit. These requirements, again, included demonstrating that his property had been designed to receive all stormwater from a 100-year storm that would flow to the property from its entire natural upstream basin if the basin was fully developed, and pass it through the property through a dedicated easement or public right-of-way. Wilson opined that McCarley no longer met these requirements and that there was nothing McCarley could do to remedy noncompliance and obtain a permit to develop the remainder or any part of it. The State did not controvert Wilson’s testimony regarding McCarley’s ability to obtain the City of Austin permits required to develop his remainder. See Cannizzo,
McCarley’s appraiser opined that the uses of the remainder to a willing buyer is comparable to that of property with greatly restricted uses, like Christmas tree sales. He calculated the remainder’s fair market value as $72,000. Subtracting this figure from the pre-condemnation fair
The State’s sole challenge to the sufficiency of the evidence supporting the jury’s award is that any diminution in the value of McCarley’s remainder is not com-pensable because it arose from the State’s use of its existing right-of-way along the former 620 and not its use of the corner clip. See Schmidt,
In light of this conclusion, we need not address the Stated issues presuming that McCarley’s damages are recoverable only under an inverse condemnation theory, and we express no’ opinion regarding them.
We affirm the fcrir-l court’s judgment.
Concurring Opinion by Justice PATTERSON.
Notes
. In apparent response to such arguments by the State prior to trial, McCarley asserted a "conditional counterclaim in inverse condemnation,” pleading ”[t]o the extent necessary ... in inverse condemnation for damages-resulting from the drainage problems caused by the project.”
. We sustain a legal sufficiency complaint if the record reveals: (a) the complete absence of a vital fact; (b) the court is barred by rules of law or of evidence from giving weight to the only evidence offered to prove a vital fact; (c) the evidence offered to prove a vital fact is no more than a mere scintilla; or (d) the evidence establishes conclusively the opposite of the vital fact. City of Keller v. Wilson,
When the evidence offered to prove a vital fact is so weak as to do no more than create a mere surmise or suspicion of its existence, the evidence is less than a scintilla and, in legal effect, is no evidence. See Ford Motor Co. v. Ridgway,
When reviewing a challenge to the factual sufficiency of the evidence supporting a vital fact, we must consider, weigh, and examine all of the evidence in the record, both supporting and against the finding, to decide whether the verdict should be set aside. Plas-Tex, Inc. v. U.S. Steel Corp.,
. As the supreme court has summarized these governing principles:
It has been uniformly recognized in the development and refinement of the market value test for determining severance damages that the State v. Carpenter method of trial and submission is appropriate in all but exceptional cases. The jury is instructed that the term market value is the price the property will bring when offered for sale by one who desires to sell, but is not obliged to sell, and is bought by one who desires to buy, but is under no necessity of buying. The jury is asked to find the market value of the remainder tract immediately before the taking and the market value thereof immediately after the taking. In the determination of the latter, the jury is instructed to take into consideration the uses to which the land taken is to be subjected. The answers to the issues are to be determined in the light of the evidence offered by the parties and admitted under the rulings of the trial court. As said in State v. Carpenter, everything which affects the market value of the land itself, having due regard for past and probable future injuries, may be accurately reflected by ascertaining the difference in value, when all the legitimate testimony is properly submitted to the jury for consideration; and it is proper to admit evidence upon all matters which tend to increase or diminish the present market value. The landowner may recover damages which are reasonably foreseeable, and he may show the reasonably probable uses of the tract taken that are calculated to depress the value of the remainder tract and thus enhance the recovery of damages. See Cannizzo, supra, where it was recognized that the determination of the value of a tract taken permits consideration of all uses to which the property was reasonably adaptable and for which it was, or in reasonable probability would become, available within a reasonable time. But the public authority should not be required to pay severance damages on the basis of uses of the tract taken which are not at the time of the taking so reasonably probable as to be reflected in present market value and the jury should be permitted to give such weight to this factor as a prospective purchaser of the remainder tract would give.
City of Pearland v. Alexander,
. In Pieratt, the City condemned a portion of Pieratt's service station property for use in widening a road. Pieratt was awarded compensation in the statutory condemnation proceeding. Subsequently, Pieratt sued for additional consequential damages, lost profits he attributed to loss of access to his business during the road construction. The supreme court held that Pieratt's suit was barred. It concluded that Pieratt’s lost profits damages had been foreseeable at the time of the statutory condemnation proceeding where "this record shows that Pieratt knew, or could have known, the character of the street improvement at the time of the condemnation; and, furthermore, at such time he knew, or could have known, the terms of the contract under which it was to be consummated.” City of La Grange v. Pieratt,
. The witness explained that "[a] lot of times they don’t like to do a 90 [degree turn] because they get losses.”
Concurrence Opinion
concurring.
I concur in; the majority’s decision to affirm the judgment of the county court, but write oep arutely in the interest of fully
This appeal arises from a statutory condemnation action filed by the State of Texas against Lloyd S. McCarley for a portion of his property needed for a highway project. The jury awarded $371,000 to McCarley. In five issues, the State contends on appeal that (1) McCarley’s claim for damages was an inverse condemnation claim; (2) the trial court did not have subject matter jurisdiction over the inverse condemnation claim because it was not ripe; (3) the State has sovereign immunity because McCarley failed to plead and prove the requisite intent for an inverse condemnation claim; (4) McCarley does not have a justiciable interest in the inverse condemnation claim; and (5) there was no competent evidence or, in the alternative, insufficient evidence to support the jury’s award of $371,000 in damages. For the reasons that follow, I would affirm the county court’s judgment.
FACTUAL AND PROCEDURAL BACKGROUND
In April 2004, the State brought a condemnation suit to acquire a “corner clip” of McCarley’s property located at the corner of Ranch Road 620 and Lyndhurst Street in Williamson County. The State sought to acquire 836 square feet of land as part of its project to widen and improve Ranch Road 620 to become State Highway 45. The project included elevating the highway frontage road by several feet above existing grade on a solid retaining wall across McCarley’s property and elevating Lyn-dhurst for several hundred feet to meet the new, higher frontage road at the former intersection with 620. The county court appointed a panel of special commissioners to determine the amount of adequate compensation to be paid by the State. The commissioners awarded McCarley $4,180 in damages. McCarley objected to the commissioners’ award and appealed to the county court.
At the time of the condemnation, McCarley’s property, consisting of two lots and approximately 1.75 acres, was vacant. The lot that fronted 620 (“Lot 1”) was zoned, in part, “GR, retail,” and the lot that fronted Lyndhurst (“Lot 2”) was zoned “interim single family.”
Prior to trial, McCarley filed a “conditional counterclaim in inverse condemnation” for “damages resulting from the drainage problems caused by [the State’s] project.” In response, the State filed a plea to the jurisdiction and a motion to exclude McCarley’s evidence. In the plea to the jurisdiction, the State asserted that McCarley’s counterclaim should be dismissed based on sovereign immunity because he failed to plead the “intent” required for an inverse condemnation claim, that there was a lack of ripeness because no flooding had occurred and no site plan had been denied, and that McCarley lacked a justiciable interest because he no longer owned the property. In the motion to exclude McCarley’s evidence, the State
At trial, McCarley called three experts, a land planner/development consultant, a civil engineer/design consultant, and a real-estate appraiser. The land planner testified that he assisted McCarley in the site planning process, starting in 1996 and continuing through the 1998 approval of the site plan for the lots’ development. He testified that the process took “about 16 months.” He also testified that McCarley contacted him after the site plan expired about resubmitting the site plan for approval, but that resubmission was put on hold after McCarley learned of the State’s highway project.
The engineer testified concerning the highway project’s drainage system. He opined that the system prevented McCar-ley’s remainder property from being developed within the City of Austin’s requirements for stormwater management. The engineer testified that the City requires that a property be designed to receive and address all stormwater from a 100-year storm event that would flow to the property from the drainage basin upstream. It was the engineer’s opinion that as a result of the drainage system, stormwater would back up on the remaining property in a 100-year storm event and the City of Austin would not grant a permit for any type of development for the remainder.
McCarley’s appraiser testified to the market values of the property before and after the taking and the effect of the State’s drainage system on the remainder’s value. He recommended compensation for the taking of $403,000. His recommendation was based in part on the engineer’s conclusions concerning the inability to develop the property after the taking because of the highway project’s drainage system. He testified that the highest and best use for Lot 1 at the time of the taking was commercial or retail, and he placed a value on Lot 1 prior to the taking of $400,000. He supported his value by analyzing comparable sales in the area. He testified that Lot 2’s highest and best use was “office/warehouse,” and he placed a value of $75,000 on Lot 2 prior to the taking, also based on comparable sales in the area. He concluded that the remainder value for both lots after the taking was $72,000. He reached this conclusion by reducing the lots’ value before the taking by 85% due to the inability to develop the property in light of the highway project’s drainage system. In reaching the remainder’s value, he compared “properties that had flooding problems and those that didn’t, and then compared how much the difference of prices were.” He also arrived at a similar value for the remainder using the income approach, “what a buyer would pay for a particular income stream.” Under this approach, he compared rents for commercial sites that were used for “outdoor vendor sales” such as Christmas trees to arrive at a value for the remainder property.
The State’s witnesses were the engineer in charge of the highway project’s construction, a land planner/architect, and a real-estate appraiser. The engineer explained the design and construction of the highway project’s drainage system. The land planner/architect testified concerning zoning for Lot 1, concluding that the “highest zoning” was “neighborhood office.” Relying in part on the State’s other expert’s conclusions, the appraiser recommended compensation for the taking in the amount of $4,682, the market value of the 836 square feet. The appraiser did not include any compensation for the remaining property as it was his opinion that the condemnation of the 836 square feet did
This appeal arises from a statutory condemnation action filed by the State of Texas against Lloyd S. McCarley for a portion of his property needed for a highway project. The jury awarded $371,000 to McCarley. In five issues, the State contends on appeal that (1) McCarley’s claim for damages was an inverse condemnation claim; (2) the trial court did not have subject matter jurisdiction over the inverse condemnation claim because it was not npe; (3) the State has sovereign immunity because McCarley failed to plead and prove the requisite intent for an inverse condemnation claim; (4) McCarley does not have a justiciable interest in the inverse condemnation claim; and (5) there was no competent evidence or, in the alternative, insufficient evidence to support the jury’s award of $371,000 in damages. For the reasons that follow, I would affirm the county court’s judgment.
FACTUAL AND PROCEDURAL BACKGROUND
In April 2004, the State brought a condemnation suit to acquire a “corner clip” of McCarley’s property located at the corner of Ranch Road 620 and Lyndhurst Street in Williamson County. The State sought to acquire 836 square feet of land as part of its project to widen and improve Ranch Road 620 to become State Highway 45. The project included elevating the highway frontage road by several feet above existing grade on a solid retaining wall across McCarley’s property and elevating Lyn-dhurst for several hundred feet to meet the new, higher frontage road at the former intersection with 620. The county court appointed a panel of special commissioners to determine the amount of adequate compensation to be paid by the State. The commissioners awarded McCarley $4,180 in damages. McCarley objected to the commissioners’ award and appealed to the county court.
At the time of the condemnation, McCarley’s property, consisting of two lots and approximately 1.75 acres, was vacant. The lot that fronted 620 (“Lot 1”) was zoned, in part, “GR, retail,” and the lot that fronted Lyndhurst (“Lot 2”) was zoned “interim single family.”
Prior to trial, McCarley filed a “conditional counterclaim in inverse condemnation” for “damages resulting from the drainage problems caused by [the State’s] project.” In response, the State filed a plea to the jurisdiction and a motion to exclude McCarley’s evidence. In the plea to the jurisdiction, the State asserted that McCarley’s counterclaim should be dismissed based on sovereign immunity because he failed to plead the “intent” required for an inverse condemnation claim, that there was a lack of ripeness because no flooding had occurred and no site plan had been denied, and that McCarley lacked a justiciable interest because he no longer owned the property. In the motion to exclude McCarley’s evidence, the State
At trial, McCarley called three experts, a land planner/development consultant, a civil engineer/design consultant, and a real-estate appraiser. The land planner testified that he assisted McCarley in the site planning process, starting in 1996 and continuing through the 1998 approval of the site plan for the lots’ development. He testified that the process took “about 16 months.” He also testified that McCarley contacted him after the site plan expired about resubmitting the site plan for approval, but that resubmission was put on hold after McCarley learned of the State’s highway project.
The engineer testified concerning the highway project’s drainage system. He opined that the system prevented McCar-ley’s remainder property from being developed within the City of Austin’s requirements for stormwater management. The engineer testified that the City requires that a property be designed to receive and address all stormwater from a 100-year storm event that would flow to the property from the drainage basin upstream. It was the engineer’s opinion that as a result of the drainage system, stormwater would back up on the remaining property in a 100-year storm event and the City of Austin would not grant a permit for any type of development for the remainder.
McCarley’s appraiser testified to the market values of the property before and after the taking and the effect of the State’s drainage system on the remainder’s value. He recommended compensation for the taking of $403,000. His recommendation was based in part on the engineer’s conclusions concerning the inability to develop the property after the taking because of the highway project’s drainage system. He testified that the highest and best use for Lot 1 at the time of the taking was commercial or retail, and he placed a value on Lot 1 prior to the taking of $400,000. He supported his value by analyzing comparable sales in the area. He testified that Lot 2’s highest and best use was “office/warehouse,” and he placed a value of $75,000 on Lot 2 prior to the taking, also based on comparable sales in the area. He concluded that the remainder value for both lots after the taking was $72,000. He reached this conclusion by reducing the lots’ value before the taking by 85% due to the inability to develop the property in light of the highway project’s drainage system. In reaching the remainder’s value, he compared “properties that had flooding problems and those that didn’t, and then compared how much the difference of prices were.” He also arrived at a similar value for the remainder using the income approach, “what a buyer would pay for a particular income stream.” Under this approach, he compared rents for commercial sites that were used for “outdoor vendor sales” such as Christmas trees to arrive at a value for the remainder property.
The State’s witnesses were the engineer in charge of the highway project’s construction, a land planner/architect, and a real-estate appraiser. The engineer explained the design and construction of the highway project’s drainage system. The land planner/architect testified concerning zoning for Lot 1, concluding that the “highest zoning” was “neighborhood office.” Relying in part on the State’s other expert’s conclusions, the appraiser recommended compensation for the taking in the amount of $4,682, the market value of the 836 square feet. The appraiser did not include any compensation for the remaining property as it was his opinion that the condemnation of the 836 square feet did
The jury was given one question — the difference in market value of McCarley’s property immediately before the taking and the market value of the remaining property after the taking, with definitions of “fair market value” and “highest and best use”:
On September 16, 2003, what was the difference between (a) the fair market value of the landowner’s whole property before the taking, excluding any consideration of the condemnation or proposed project and (b) the fair market value of the remainder only, after the taking, giving consideration to the uses to which the condemned part is to be subjected.
“Fair Market Value” means the price which the property would bring when it is offered for sale by one who desires, but is not obliged to sell, and is bought by one who is under no necessity of buying it, taking into consideration all of the uses to which it is reasonably adaptable and for which it either is or in all reasonable probability will become available within a reasonable future period. In making your determination of Fair Market Value, you will consider the “Highest and Best Use” of the land involved.
“Highest and Best Use” means that legal use to which the property could have been adapted on the date of taking, or within the reasonably foreseeable future thereafter which was legally permissible, physically possible, financially feasible, and provided the owner with the greatest net return.
After the jury determined the difference in value to be $371,000, the county court credited the State’s prior deposit of the amount of the special commissioner’s award against the jury’s award and entered judgment against the State. The State’s appeal followed.
ANALYSIS
Standard of Review
The State raises both legal and factual sufficiency issues as to the jury’s award of damages for the statutory partial taking of McCarley’s property. “In determining whether a finding is supported by legally sufficient evidence, we consider the evidence in the most favorable light, and indulge every inference in its favor.” Tarrant Reg’l Water Dist. v. Gragg,
In reviewing the factual sufficiency of the evidence, we consider, weigh, and examine all the evidence presented at trial, including any evidence contrary to the judgment. Plas-Tex, Inc. v. U.S. Steel Corp.,
Whether damages for a taking are com-pensable under the constitution depends on the type of damage involved, and com-pensability is a question of law for the court, subject to de novo review. County of Bexar v. Santikos,
Inverse Condemnation
The State asserts that McCarley’s claim for damages due to his alleged injury from the State’s drainage system was an inverse condemnation claim and that such claim was not ripe for determination during the statutory condemnation case because the highway project was still under construction, no site development permit had been denied, and no flooding had occurred on the remaining property. The State also argues that McCarley did not plead or prove the requisite intent and that McCar-ley lacks a justiciable interest because he sold the property. The State contends that although a claim concerning the drainage system may be actionable at some point in the future, the claim can be brought only in inverse condemnation because it relates to the “anticipated effect of drainage improvements being constructed by [the State] in its existing right-of-way, and does not relate to the use of the 836 square feet being acquired.” The State argues McCarley’s claim is inverse because the State did not seek as part of its statutory condemnation to inundate McCarley’s remainder with -stormwater runoff from its drainage system.
“When the government takes private property without first paying for it, the owner may recover damages for inverse condemnation.” Gragg,
Although McCarley could have brought an inverse condemnation action had there been no partial taking, a further proceeding was not appropriate or necessary in light of the already pending condemnation proceeding. See Westgate, Ltd. v. State,
The trial court properly allowed McCar-ley as the landowner to recover all of the
1. Was McCarley’s claim ripe?
The State argues that McCarley’s claim concerning the State’s drainage system was not ripe because the highway project was still ongoing, there had been no flooding on his property, and there had been no permit denial at the time of the statutory condemnation. In support of its argument that McCarley’s claim was not ripe because the highway project had not been completed, the State cites Hubler v. City of Corpus Christi,
The State cites State v. Malone,
The State also relies on Coble v. City of Mansfield,
In contrast, the evidence as to McCar-ley’s remaining land was that the State’s drainage system prevented the remainder property from being permitted for development under the City’s requirements. Unlike Coble, there was no evidence that the City’s requirements might not apply to McCarley’s remaining land after the taking or that a variance might be granted.
2. Did McCarley establish the requisite intent?
The State also argues that the State has sovereign immunity from McCarley’s claim because McCarley failed to establish the requisite intent. The requisite intent for a takings claim is present when the governmental entity knows that a specific act is causing identifiable harm or knows that the harm is substantially certain to result from an authorized governmental action. See Gragg,
There was evidence that the State designed the drainage system knowing that stormwater would back up on McCarley’s property. In addition to the evidence that the State designed and constructed the
3. Did McCarley have a justiciable interest in his claim?
The State argues that because McCarley sold the remaining property in February 2006, he lacks a justiciable interest in his claim. But McCarley owned the property at the determinative time, i.e., at the time of the taking. See City of Fort Worth v. Corbin,
I would overrule the State’s issues on inverse condemnation.
Statutory Condemnation Award
The State does not contend on appeal that the question to the jury was an incorrect statement of the law, but argues that there was no competent evidence or, alternatively, insufficient evidence to support the jury’s finding that the difference in value of the whole property before the taking and the remaining property after the taking was $871,000. The State contends that the jury’s award was improper because evidence of the drainage system’s effect on the remaining property’s value was incompetent evidence and, because it was the only evidence tendered by McCar-ley supporting the remainder damages, there was no evidence to support the award. The State argues that the determination of any decreased value should have been limited to the effect of McCar-ley’s loss of the “corner clip” and not the effect of the highway project’s drainage system on his remaining property. The State draws a distinction between the alleged damages from the drainage system in its “existing right-of-way” and any damages from the “taking of [the] corner clip.” The State argues that it is entitled to judgment based on the only competent testimony of condemnation damages, the value of the part taken as testified to by the State’s witness. This issue goes to the compensability of McCarley’s damage claim arising from the drainage system, which we review de novo. Santikos,
1. Compensability of McCarley’s claim
In a statutory partial takings case, the property code provides for condemnation damages as follows:
If a portion of a tract or parcel of real property is condemned, the special commissioners shall determine the damage to the property owner after estimating the extent of the injury and benefit to the property owner, including the effect of the condemnation on the value of the property owner’s remaining property.
Consistent with the county court’s charge to the jury, statutory condemnation damages to the remainder are calculated by ascertaining the difference between the market value of the remainder immediately before and after the condemnation, taking into consideration the nature of any improvements and the use of the land taken. See Interstate Northborough,
The supreme court has addressed the recovery of damages for the diminution in value to the remaining property in partial takings, placing emphasis on the particular facts and injuries alleged in determining whether the landowner is entitled to com-pensable damages for a loss in value. See Santikos,
Several years later in Heal, the supreme court again disallowed property owners’ recovery “for the diminution in value of their remaining property not directly attributable” to the partial taking in a condemnation case.
More recently, the supreme court allowed damages for the property’s loss in value in a condemnation suit in which the State was acquiring a partial strip of commercial property to widen a highway and its frontage road. Interstate Northborough,
In another recent partial condemnation action, the supreme court, addressing recoverable damages, disallowed recovery for the loss in the remaining property’s value when the county took 0.485 acres of land for constructing a frontage road on an
The supreme court reversed the jury’s award, holding injury from the change in the property’s location to below the frontage road not compensable and that the jury should not have considered the elevation change to determine the amount of damages:
From the proposition that landowners have no right to insist that their premises be visible, it follows that they have no right to insist that they remain at grade level.... We hold that any damages resulting from leaving unimproved, raw land in its natural state while raising or lowering an adjacent roadbed in hilly terrain are community in nature.
Id. at 463.
With these principles in mind, I would reject the State’s argument that McCar-ley’s damages are not compensable. McCarley’s injury that forms the basis of his claim for diminution in value to his remaining property from the State’s drainage system is comparable to the type of injury the land owners faced in Interstate Northborough, which injuries were found to be “special and unique.”
2. Sufficiency of evidence at trial
Both the State’s and McCarley’s appraisers testified that the appraisal process for valuing vacant land includes determining the property’s highest and best use, and that this determination is limited to “legally permissible” uses of the property.
The State did not present evidence to dispute McCarley’s engineer’s testimony on this issue. The State’s engineer testified that he was not an expert on the City of Austin’s requirements for development:
Q. You’ve never gone out and actually done a development for a landowner like Mr. MeCarley.
A. No, sir. We never try and skimp and meet the bottom dollar; we just try and do the right thing.
Q. Yes, sir. You have never taken a development project through the City of Austin.
A. I have not.
Q. You don’t have knowledge as to what the City of Austin requires? A. I have some knowledge, but, no, I’ve never taken a project through.
The State also objected to MeCarley questioning the State’s engineer on “land planning issues” on the ground that the questioning was outside the engineer’s area of expertise:
I’m objecting because this witness was offered as an expert as a witness on the design of the facilities of the highway facility. He’s asking him about things having to do with Mr. McCarley’s property that he was not involved in. So he’s going outside of what he was offered as an expert on.
In sum, the evidence showed that the City of Austin’s requirements precluded development of the remainder property.
McCarley’s real estate appraiser testified that because the remaining property could not obtain a development permit, its use was comparable to a commercial site for outdoor vendor sales such as Christmas trees.
Q. What we’re really concerned about in the regulatory climate of the City of Austin is whether we can get a site development permit for the property, right?
A. For the remainder, sure. Well, and the whole, yes.
Q. Because if you can’t get a site development permit, you can’t develop any permanent improvements on the property, right?
A. True.
Q. And [Lots 1 and 2 are] not worth very much if you can’t get a site development permit, are they?
A. That’s true.
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Q. You do agree that that’s the key inquiry is whether or not you could get a permit from the City?
A. It would be — The presumption of my remainder appraisal is that you could.
Q. And you went through the four steps of highest and best use. If you can’t get it legally permitted, you can’t build it, and it’s not the highest and best use, right?
A. True.
The trial court instructed the jury to consider the highest and best use. The jury properly considered the evidence of probable uses that would be legally permissible before and after the taking in deciding the ultimate issue of market value. See State v. Windham,
. The State provided evidence that Lot 1 was zoned in part GR (community commercial) and in part single family at the time of the taking. The parties agreed, however, that pri- or to the taking, the highest and best use for Lot 1 was for it to be developed commercially, although they disagreed on the type of commercial development.
. The State provided evidence that Lot 1 was zoned in part GR (community commercial) and in part single family at the time of the taking. The parties agreed, however, that pri- or to the taking, the highest and best use for Lot 1 was for it to be developed commercially, although they disagreed on the type of commercial development.
. Because McCarley's claims concerning the drainage system in the statutory proceeding were known to him, he had a duty to bring those claims in the condemnation proceeding or risk losing them. See City of LaGrange v. Pieratt,
. The evidence showed that the drainage system's design was complete "for all intents and purposes" and that construction was substantially complete.
. There was evidence that resubmission of the 1998 site plan would have been futile. McCarley’s land planner testified that there was nothing that McCarley could do to comply with the City’s requirement or to obtain a site permit for development.
. Section 21.042(d) prevents recovery for community damages:
In estimating injury or benefit under Subsection (c), the special commissioners shall consider an injury or benefit that is peculiar to the property owner and that relates to the property owner’s ownership, use, or enjoyment of the particular parcel of real property, but they may not consider an injury or benefit that the property owner experiences in common with the general community.
Tex. Prop.Code Ann. § 21.042(d) (West 2000).
. The State asserts that none of the drainage improvements that form the basis of McCar-ley’s claim are within the 836 square feet that the State condemned and, therefore, any injuty from the drainage system was incompetent evidence in the statutory condemnation proceeding. But there was evidence that the State’s design included drainage improvements within the 836 square feet. There was evidence that a drainage pipe and approach ditch to the pipe were within the 836 square feet, that "concrete riprap” was to be built on the condemned portion to prevent erosion, and that the condemned property was to provide an embankment area that would back up water on McCarley’s remaining property. In any event, even if the evidence was limited to the State’s uses of the 836 square feet, one use was for drainage.
.The measure of McCarley's damages is the same whether his claim is classified as an inverse condemnation claim or as part of the statutory condemnation award. See State v. Schmidt,
. To determine the highest and best use, the testimony was that an appraiser considers four components, "what’s legally permissible, what's physically possible, what’s financially feasible, and what's maximally productive.” Evidence on development issues is admissible in takings cases as part of an expert's valuation determination and the expert’s basis for the highest and best use of property without the necessity of obtaining a definitive decision from the governmental entity involved. See City of Austin v. Cannizzo,
. The State’s motion to exclude McCarley's evidence did not seek to exclude McCarley’s experts on the basis of relevance, reliability, or qualifications. See Tex.R. Civ. P. 702. The State’s motion was based on the same issues that have been raised on appeal concerning McCarley’s inverse condemnation claim— ripeness, requisite intent, and justiciability.
. The parties disputed which properties were included in the condemnation proceeding. McCarley’s experts included both Lot 1 and Lot 2 in their valuation determinations, and the State’s experts only included Lot 1. There was evidence supporting a damage award based on both lots. See State v. Windham,
