Saratoga County Maple Corp. v. State, 26 A.D.2d 46 (1966)

In eminent domain cases, an expert’s valuation of property based solely on averaging the per front foot sales prices of comparable properties without adjustments for differences is an improper method of valuation and inadmissible.

Summary

The State appropriated a portion of Saratoga County Maple Corp.’s property for highway purposes. The claimant’s expert valued the land by averaging front foot sales prices of neighboring properties without accounting for differences in location, size, or other characteristics. The Court of Claims awarded damages, which were later reduced by the Appellate Division. The Court of Appeals reversed, holding that the expert’s method of averaging front foot values was an improper valuation technique, rendering the expert’s testimony without probative force and necessitating a new trial.

Facts

The State appropriated part of Saratoga County Maple Corp.’s property for highway construction. The property was located on Route 7, also known as the Troy-Schenectady Road. Claimant’s expert, Babbitt, determined a value of $250 per front foot by averaging the front foot sales prices of several other parcels of land along Route 7. These parcels exhibited a wide range of front foot values (e.g., $400, $200, $95), reflecting differing characteristics and locations. The subject property had a shallow depth, especially at its eastern border, and was located half a mile from a shopping center, unlike some of the “comparable” properties.

Procedural History

The Court of Claims initially found the property’s value before the taking to be $22,500 and after the taking to be $500, awarding $22,000 in damages. The Appellate Division found the award excessive and reduced it to $17,000. The New York Court of Appeals reversed the Appellate Division’s order and remanded the case for a new trial.

Issue(s)

Whether an expert’s opinion on property valuation in an eminent domain case is admissible when it is based solely on averaging the front foot sales prices of neighboring properties without adjustments for differences in comparability.

Holding

No, because averaging the front foot sales prices of neighboring properties without adjustments for differences is a faulty and legally erroneous method of valuation.

Court’s Reasoning

The Court of Appeals found the expert’s valuation method flawed because it involved simply averaging the per front foot sales prices of purportedly comparable properties without accounting for significant differences in their characteristics and locations. The court noted that the wide range of front foot values among the supposedly comparable parcels ($95 to $400) indicated that they were not truly comparable without adjustments. The court emphasized that sales of other parcels used as criteria must be adjusted to reflect differences between them and the subject property. The expert failed to make such adjustments, instead relying on a purely mathematical averaging approach. The court also pointed out that the expert included sales that occurred *after* the appropriation, potentially reflecting the impact of the very project for which the land was being taken, which is impermissible under United States v. Miller, 317 U.S. 369. The court stated, “[A]n expert cannot reach his result mechanically by the mere mathematical process of averaging front footage sales prices, of parcels having obvious differences one from another as denoted by their locations and sales prices, without making adjustments for the prices of those that are more similar or dissimilar to the one in question.” The court concluded that this improper methodology rendered the expert’s testimony without probative force, requiring a new trial where a proper valuation method could be employed.