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State Through Dept. of Highways v. Bitterwolf, 415 So.2d 196

Facts

The State of Louisiana sought to expropriate a tract of land owned by Gordon J. Bitterwolf for highway improvements. Bitterwolf purchased the land in 1973, after the state had announced plans for the highway, which had already depressed property values in the area. The trial court awarded him compensation based on the value of the property taken and severance damages, but the state contended that the compensation should not account for depreciation that occurred before Bitterwolf's purchase.

The State of Louisiana, through the Department of Highways instituted this suit to expropriate a tract of land in St. Tammany Parish fronting on U. S. Highway 190 from the defendant, Gordon J. Bitterwolf. The land was needed as part of a State and Federal project to widen, improve and surface State Route La-U.S. 190 as a controlled access highway.

Issue

Does the quick-taking statute allow a property owner to recover compensation for depreciation in property value caused by a proposed project before the owner acquired the property?

The question presented by this case is whether the quick taking statute affords a property owner a right to recover, in addition to the value of his property taken, compensation for the depreciation in its value caused by the proposed project before he acquired the property.

Rule

The quick-taking statute, La.R.S. 48:453 (A), states that compensation for property expropriated is determined without considering any change in value caused by the proposed improvement for which the property is taken.

La.R.S. 48:453 (A) provides that the measure of compensation for property expropriated is determined as of the time of taking 'without considering any change in value caused by the proposed improvement for which the property is taken.'

Analysis

The court analyzed the quick-taking statute and determined that it was intended to prevent property owners from receiving compensation for changes in value that occurred before they acquired the property. Since Bitterwolf purchased the property after its value had already been depressed by the proposed project, he was not entitled to compensation for that depreciation. The court emphasized that the compensation should reflect the actual loss incurred by the property owner.

The evidence in this case makes it clear that most, if not all, of the change in value induced by the project's announcement occurred before Mr. Bitterwolf acquired the property. Accordingly, all of the change in value which occurred before Mr. Bitterwolf became the owner of the property should have been considered in measuring the compensation for the property taken and the damage to the remainder.

Conclusion

The court reversed the lower court's decision and remanded the case for further proceedings, stating that the previous courts had erred in their interpretation of the quick-taking statute.

We conclude for the foregoing reasons, that the previous courts fell into an error of law by assuming that La.R.S. 48:453 (A) required the trier of fact to disregard any change in value to the property caused by the proposed improvement which occurred before Mr. Bitterwolf's ownership.

Who won?

The State of Louisiana prevailed in the case because the Supreme Court found that the quick-taking statute did not permit compensation for depreciation that occurred before the property owner's acquisition.

The State of Louisiana prevailed in the case because the Supreme Court found that the quick-taking statute did not permit compensation for depreciation that occurred before the property owner's acquisition.

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