HEAVICAN, C.J.
American Central City, Inc. (ACC), appeals from two separate decisions of the Lancaster County District Court. The cases were consolidated before this court for oral argument and disposition, and both cases involve complaints regarding the condemnation of three properties located in Lincoln, Nebraska. In case No. S-10-646, a civil suit for damages apart from the condemnation award, ACC claims that it had compensable property interests for which it was not paid when the Joint Antelope Valley Authority (JAVA) and the City of Lincoln (the City) took its land through condemnation. In case No. S-10-647, an appeal from the condemnation award, ACC alleges that it did not receive adequate compensation for its land. We affirm the decision of the district court granting JAVA's motion for summary judgment in the civil suit and granting JAVA's motion to dismiss in ACC's appeal from the condemnation award.
Edward H. Patterson is the owner and sole shareholder of ACC, and for simplicity, we will hereinafter refer to the appellant as "Patterson" rather than "ACC." The current cases involve three properties in Lincoln owned by Patterson: 2041 and 2047 S Street and 2100 Q Street. In addition, Patterson claims that he held a compensable property interest in properties owned by Edward and Dorothy Schwartzkopf (Schwartzkopf properties), which properties were located in the same neighborhood. The properties on Q and S Streets and the Schwartzkopf properties are all near the city campus of the University of Nebraska-Lincoln (UNL), between 19th and 22nd Streets east and west, and between Q and S Streets north and south. Patterson's properties and the Schwartzkopf properties were eventually condemned as part of the Antelope Valley project. The project was designed and implemented to provide Lincoln with flood control, transportation improvement, and community revitalization. The two cases before us originally involved three separate cases filed in the district court, the first of which we discuss only briefly to give the reader a complete procedural history of the proceedings in the district court.
Patterson and other parties filed an action for an injunction in the Lancaster County District Court under case No. CI04-4604 in December 2004. They requested an injunction against JAVA and the City to prevent the condemnation of their properties, but it was denied. In that same case, the parties also claimed that their properties were taken for an improper nonpublic purpose and that there was no proper neighborhood redevelopment plan. This action was earlier consolidated with the two cases currently on appeal, but it has not been appealed and is not now before us.
After the injunction was denied, JAVA filed a condemnation petition with the Lancaster County Court seeking to acquire Patterson's properties on Q and S Streets. The Lancaster County Board of Appraisers returned to Patterson an award totaling $128,750 for all the properties. Patterson appealed to the district court from that award, claiming inaccurate valuation, failure to negotiate in good faith on the part of JAVA, excessive taking, and taking for
In March 2008, Patterson also filed a third action to recover damages arising out of the condemnation proceedings. Patterson made claims against JAVA and the City for "inverse condemnation," violation of substantive due process rights, and recoupment of costs associated with the renovation of Patterson's properties on Q and S Streets. In the same suit, Patterson also claimed a property interest in the Schwartzkopf properties and in a building permit he claims was denied. JAVA filed a motion for summary judgment, which was granted. Patterson appealed, and this case is before us now as case No. S-10-646.
All three cases were consolidated after the civil suit was filed. The district court's "Order on Partial Summary Judgment" was entered on November 30, 2009, disposing of all claims in the injunction action, all claims in the civil suit, and all but two claims in the condemnation award action.
A bench trial was held on the remaining issues in the condemnation award action on March 18 and 19, 2010. After Patterson rested his case, JAVA made a motion to dismiss. The district court later granted that motion and found for JAVA. Patterson appealed. Other facts pertaining to the two cases will be discussed as needed in the analysis section.
In the civil suit for damages, Patterson assigns, consolidated and restated, that the district court erred in (1) granting JAVA's motion for summary judgment, (2) finding that Patterson did not have a compensable property interest in a building permit, (3) finding that Patterson did not have a property interest in his contract with the Schwartzkopfs, and (4) finding that there was no "inverse condemnation" or condemnation blight.
In the condemnation award action, Patterson assigns that the district court erred in (1) not granting Patterson the right to a full trial, (2) not permitting Patterson to testify to the "Highest and Best Use" of the properties taken, (3) not allowing Patterson to value his land using comparable sales of properties, (4) not allowing Patterson to use the City Web site to show aerial photographs, (5) not allowing Patterson to value the removable structures on the condemned land as an element of fair market value, and (6) not permitting Patterson to proffer evidence of "value-depressing actions" by JAVA and the City to decrease the true market value of his land.
An appellate court will affirm a lower court's granting of summary judgment if the pleadings and admitted evidence show that there is no genuine issue as to any material facts or as to the ultimate inferences that may be drawn from those facts and that the moving party is entitled to judgment as a matter of law.
In proceedings where the Nebraska Evidence Rules apply, the admissibility of evidence is controlled by the Nebraska Evidence Rules; judicial discretion is involved only when the rules make discretion a factor in determining admissibility.
In the appeal from the dismissal of his civil suit, Patterson assigns that he had a property interest in a building permit that the City denied, that he had a property interest in the contract to buy the Schwartzkopf properties, and that JAVA engaged in "inverse condemnation."
Patterson first argues that he had a property interest in a building permit he sought to obtain. He claims that he spent considerable time and money designing a building that would sit on the land he owned as well as on the Schwartzkopf properties. Patterson also claims that city officials informed him he could not build underground parking or place underground telecommunications in a flood plain and that hence, it would be futile to apply for a building permit for the Schwartzkopf properties. Patterson argues that because city officials told him it would be futile to apply for a building permit, his substantive due process rights were affected. He also argues that because of the allegedly false statement city officials made regarding building underground parking, he could not fulfill the contract with the Schwartzkopfs, and that he was prevented from going forward with his plans. Patterson also claims that if a building plan is code compliant, the City cannot refuse to issue a permit.
In reviewing a summary judgment, an appellate court views the evidence in a light most favorable to the party against whom the judgment is granted and gives such party the benefit of all reasonable inferences deducible from the evidence.
The record is devoid of any evidence that Patterson ever applied for a building permit, however. We have stated before that "[t]he mere issuance of a permit gives no vested rights to the permittee nor does he [or she] acquire a property right in the permit."
Patterson also claims that he had a compensable property interest in the contract he had with the Schwartzkopfs to buy their properties. The record reflects that Patterson entered into a contract to purchase the Schwartzkopf properties in May 1995, contingent upon Patterson's obtaining a building permit. After Patterson failed to obtain a permit, all parties signed a release excusing them from performance on the contract. In 2004, the Schwartzkopf properties were sold to JAVA. Patterson claimed that he had a continuing oral agreement to buy the Schwartzkopf properties after the release was signed in 1995.
The district court found that there was no compensable interest in the contract because it would not be enforceable in a court of law. Neb.Rev.Stat. § 36-103 (Reissue 2008), Nebraska's statute of frauds applicable to the sale of an interest in land, provides:
An oral contract to buy land falls under the statute of frauds. Despite the statute of frauds, however, an oral contract may be specifically enforced in cases of part performance.
By Patterson's account, he invested considerable time and expense in designing the structure that he wanted to build on the Schwartzkopf properties. He argues that this expense constituted part performance on the contract and that therefore, the oral contract falls within the exception to the statute of frauds.
Patterson's final assignment of error in this case is that JAVA engaged in inverse condemnation. "Inverse condemnation" is shorthand for a governmental taking of a landowner's property without the benefit of condemnation proceedings.
Patterson also claims that JAVA prevented him from putting his S Street properties to their "highest and best use" between the time he purchased them in 1995 and when they were condemned.
In support of this argument, Patterson presented the "Radial Reuse Malone Study Area Redevelopment Plan," which he claims demonstrates that UNL had plans to use that area for its own expansion and development. The redevelopment plan is dated 1989, and the plan covers the "sixteen blocks in the western portion of the Malone Neighborhood, bounded by 19th Street on the west, 23rd Street on the east, Vine Street on the north, and Q Street on the south." Patterson claims the map attached to the redevelopment study showed that his land had been "de facto deeded over to UNL."
In his second appeal, Patterson alleges six assignments of error. Generally speaking, Patterson argues that the three lots were inaccurately valued and that he was prevented from offering evidence to demonstrate that fact. Patterson also claims that he was not given a "full trial," but in fact the trial court granted JAVA's motion to dismiss at the close of Patterson's case. JAVA claims that by not assigning as error the district court's decision to grant the motion to dismiss, Patterson has admitted that he did not establish a prima facie case. However, we read Patterson's claim broadly enough to encompass an argument that the district court erred in granting the motion to dismiss.
We first address Patterson's claim that the trial court erred by not allowing him to testify as an expert as to the highest and best use of his properties. Essentially,
It is within the trial court's discretion to determine whether there is sufficient foundation for an expert witness to give his or her opinion about an issue in question.
An owner who is shown to be familiar with the value of his or her land shall be qualified to estimate the value of such land for the use to which it is then being put, without additional foundation.
The record demonstrates that the trial court allowed Patterson to testify extensively as to his intentions for the properties, and there is no question that Patterson had hoped to assemble land for development purposes. The trial court also allowed Patterson to testify extensively as to the remodeling and restoration he had done. But the trial court determined that Patterson was testifying as an owner, not as an expert.
Although Patterson did have some experience in buying and developing land, he did not establish sufficient foundation to testify as an expert. Patterson stated that he had a master's degree in finance and that he had served with various neighborhood improvement organizations. Patterson further testified that he had spent a lot of time reading case law, but that he was not a licensed real estate broker or appraiser.
The trial court did not abuse its discretion by allowing Patterson to testify as an owner but not as an expert. Patterson did not offer any evidence other than his own plans for the properties to support his contention that the properties should be considered as a whole rather than as individual parcels. Patterson's first assignment of error is without merit.
Patterson also argues that the trial court erred when it refused to allow him to present testimony as to comparable sales in the area. During the trial, Patterson introduced an exhibit entitled "Liberty Village Land Assembly" in order to testify that the highest and best use would be comparable to an earlier neighborhood redevelopment project. JAVA objected on the basis of foundation. Patterson testified that he was familiar with Liberty Village because he lived across the street from it and that he had estimated the demolition and construction costs for Liberty Village. Other than his estimates and speculation as to the worth of Liberty
It is fundamental that a plaintiff's burden to prove the nature and amount of its damages cannot be sustained by evidence which is speculative and conjectural.
When using the comparable sales method, it is well settled that evidence of the price at which other lands have been sold is admissible in evidence in condemnation proceedings on the question of damages where such evidence is predicated upon sufficient foundation to furnish a criterion for market or going value of the land condemned. However, it is equally clear that such land must be similar or similarly situated to the land condemned and to have been sold at about the same time as the taking in the condemnation action, especially when the price paid depends upon the market or going value rather than other considerations.
We dealt with this issue in Patterson v. City of Lincoln,
Patterson did not offer any evidence of comparable land sales, other than his speculations as to the Liberty Village redevelopment project. And, as the district court noted, Liberty Village was a multifamily, multibuilding complex, while Patterson's properties were individual parcels suited for single-family use.
The district court also noted that Patterson testified extensively as to what he had spent in restoration and remodeling. The
Patterson next claims that the district court erred when it refused to admit aerial photographs from the "interactive GIS property database website maintained by the [C]ity."
The trial court refused to admit the "GIS map" because it could not be printed from the Internet and copies could not be created and preserved for the purposes of appeal. Patterson did not present copies of the images at trial, nor did he lay foundation for when the photographs were taken. JAVA points out that the "GIS map" does not meet the requirements for a self-authenticating document under Neb. Rev.Stat. § 27-902 (Reissue 2008). The trial court did not abuse its discretion by refusing to admit the maps. This assignment of error is also without merit.
Patterson's fourth assignment of error alleges that the trial court erred in excluding his testimony as an expert of the value of the structures that he claimed were removable. As discussed above, Patterson was allowed to testify as an owner, but not as an expert, and Patterson introduced no evidence of the costs of restoration and remodeling, other than his estimate as to the money spent on materials. The district court noted that Patterson
Patterson did not present evidence as to what the value of those structures would be, had he removed them. And, other than estimates as to the cost of the materials used in renovation, Patterson offered no evidence as to what intrinsic value the structures might have. This assignment of error is also without merit.
Patterson next argues that JAVA and the City engaged in value-depressing actions that resulted in decreased value for
Other than his general allegations of a conspiracy on the part of JAVA, the City, and UNL, Patterson produced no evidence of value-depressing actions. He called no witnesses from JAVA or the City to testify as to when the final plan for the Antelope Valley project was put into place, and Patterson himself testified that he was aware that the plans had changed many times. Patterson made no offer of proof as to what exactly those "value-depressing actions" might be. Even accepting the truth of all relevant evidence and construing the evidence in a light most favorable to Patterson, he still failed to establish a prima facie case that his properties were undervalued or that JAVA engaged in value-depressing actions. Patterson's final assignment of error is therefore without merit.
Patterson finally argues that by sustaining JAVA's motion to dismiss, the district court denied him "the opportunity to hear and cross examine JAVA's appraiser or offer rebuttal testimony."
Under Neb. Const. art. I, § 3, the state cannot deprive any person of life, liberty, or property without due process of law. The protections of this procedural due process right attach when there has been a deprivation of a significant property interest.
A motion to dismiss at the close of all the evidence has the same legal effect as a motion for directed verdict.
As discussed above, Patterson's evidence consisted mostly of speculation and accusations that JAVA and the City had conspired against him. The only evidence adduced at trial was Patterson's testimony that he had been remodeling the properties.
In his appeal of the civil suit for damages, Patterson did not present sufficient evidence to present a genuine issue of material fact. In the appeal from the condemnation award, Patterson did not offer sufficient evidence to establish a prima facie case. The district court did not err in granting a summary judgment in the civil suit or the motion to dismiss in the condemnation award action. We therefore affirm the decision of the district court.
AFFIRMED.
WRIGHT, J., not participating.