STATE OF NEW JERSEY, by the
COMMISSIONER OF TRANSPORTATION,
Plaintiff-Appellant,
v.
SIMON FAMILY ENTERPRISES, L.L.C.;
1364 BLACK HORSE PIKE
CONDOMINIUM ASSOCIATION, INC.;
EMMA GRASSO; MARTIN HAMSON;
TOWNSHIP OF EGG HARBOR, in the
County of Atlantic, a municipal
corporation of New Jersey,
Defendants-Respondents.
Argued September 22, 2003 - Decided March 5, 2004
Before Judges Havey, Fall and Hoens.
On appeal from the Superior Court of New Jersey, Law Division, Atlantic County,
Docket No. ATL-L-1519-00.
Stuart A. Brooks argued the cause for appellant (Peter C. Harvey, Attorney General,
attorney; Patrick DeAlmeida, Deputy Attorney General, of counsel and on the brief with
Mr. Brooks).
Peter H. Wegener argued the cause for respondents (Bathgate, Wegener & Wolf, attorneys;
Mr. Wegener, of counsel and on the brief).
The opinion of the court was delivered by
HOENS, J.A.D.
Plaintiff, State of New Jersey, by the Commissioner of the Department of Transportation,
appeals from a judgment entered following a jury verdict awarding defendant Simon Family
Enterprises, L.L.C. compensation for a partial taking of a tract owned by Simon
and from an order denying a new trial on that complaint in condemnation.
We affirm.
The facts relevant to the dispute are as follows. Late in 1994, officials
from Atlantic County approached Sydney Simon of Simon Family Enterprises, L.L.C. in furtherance
of an effort to purchase a portion of a tract of land Simon
owned in Egg Harbor Township. The property in question is bordered by State
Highway Routes 40 and 322 (Black Horse Pike) on the southeast and County
Route 563 (Tilton Road) on the northwest. Tilton Road is comprised of one
traffic lane in each direction and carries approximately 18,000 vehicles per day, while
the Black Horse Pike is comprised of two traffic lanes in each direction
and carries approximately 40,000 vehicles per day.
The Simon parcel included a small "out parcel" near the center, owned by
a Mr. Roselle, which maintained an ingress/egress easement across the Simon tract to
Tilton Road. There is a McDonald's restaurant directly to the south of the
tract, a mobile home park directly to the north, and a mixture of
homes, businesses and vacant lots along the two bordering highways opposite the Simon
property. At the time, Atlantic County was beginning a road construction project that
included the elimination of the nearby Cardiff traffic circle, a part of which
plan included the creation of a connecting road between the Black Horse Pike
and Tilton Road. Completion of that aspect of the project required the acquisition
of a part of the Simon tract where the contemplated connecting roadway would
be built. For reasons not revealed in the record, negotiations stalled until the
State became involved with the project approximately two years later.
The State and Simon then attempted to negotiate a mutually agreeable price for
the sale of the subject portion of the property, estimated to be approximately
one-third of the Simon tract. Those negotiations ended with the State's offer of
$308,000 for the parcel, which Simon rejected. As the negotiations had failed, the
State, through the Department of Transportation, filed a complaint in condemnation on May
5, 2000, followed by a declaration of taking, pursuant to which the State
acquired 2.562 acres of the 9.713 acre tract owned by Simon on June
20, 2000. As required, at the same time the State deposited $308,000 with
the court representing its evaluation of just compensation.
As part of the construction project, a new road, Uibel Avenue, was constructed
on the eastern portion of Simon's tract, connecting Tilton Road with the Black
Horse Pike. After the taking, the Simon parcel's available frontage on the Black
Horse Pike was reduced from 953 feet to 553 feet and the available
frontage on Tilton Road was diminished from about 477 feet to about 100
feet. In addition, the elimination of Cardiff Circle and the creation of the
Uibel Avenue intersection reduced the possible use of the remaining Tilton Road frontage
as a means of ingress to and egress from the tract by effectively
eliminating sufficient distance from the tract to the intersection for safe ingress or
egress of vehicles onto the roadway.
In September 2000, after the taking, Simon entered into a land purchase option
agreement to sell the remainder of his tract to WAWA Incorporated ("WAWA"), for
$325,000 per acre. The option agreement included a provision giving WAWA the right
to terminate the agreement if the required permits and approvals it would need
to develop the parcel for its purposes could not be obtained within 450
days. The permits and approvals WAWA needed related to creating a means of
ingress to and egress from Tilton Road either by way of permit or
additional property acquisition. WAWA and Simon entered into a new option agreement, however,
when WAWA could not arrange for the required approvals within the allotted time.
That option extension fixed the price of the parcel at $322,000 per acre
and included three additional option periods extending through December 15, 2002. The extension
agreement, however, also obligated WAWA to take the parcel at the full price
even if it could not obtain approval for a means of ingress to
and egress from Tilton Road or purchase an adjacent property to provide that
access. Prior to the trial on the condemnation complaint, WAWA obtained the development
approvals from Egg Harbor Township and it purchased an adjacent tract of land
from its owner, Mr. Barr, which provided it with full ingress to and
egress from the site and Tilton Road. In the interim, on March 21,
2001, the court-appointed commissioners issued their report declaring just compensation for the taking.
The commissioners considered the evidence presented by both parties and fixed compensation at
$360,000 representing both the fair-market value of the taken portion of the tract
and damages to the remaining property.
At the beginning of the trial, the judge ruled that evidence relating to
the WAWA option contract was admissible in spite of the contingencies that contract
contained but he excluded evidence relating to the Barr transaction and its effect
on the value of the remaining tract. At trial, the jury heard both
parties present expert testimony with respect to the highest and best use of
the property and concerning the potential development proposals for the tract before and
after the taking and they heard expert testimony about the fair market value
of the property. The State's expert calculated just compensation to be $400,000, while
Simon's expert arrived at a figure of $2,122,000. After a six-day trial, the
jury returned a verdict of $1,710,000 consisting of $850,000 in compensation for the
land that was taken and $860,000 representing damages to the remainder of the
tract. The State's motion for a new trial was denied for reasons the
judge expressed on the record on July 3, 2002.
On appeal, the State contends that the trial court erred in its analysis
of the admissibility of evidence relating to the WAWA contract and the acquisition
of the Barr property. The State argues that the trial court abdicated its
role as the gatekeeper of evidence by improperly permitting Simon's expert to testify
about a highest and best use of the property that was not financially
feasible and in keeping from the jury evidence that would have demonstrated that
the taking did not diminish the value of the remainder. Moreover, the State
urges us to conclude that the jury's award was against the weight of
the evidence. We address these issues in turn.
Each of the issues raised in this appeal relates to the admissibility of
evidence and to the uses to which evidence may properly be put in
the context of expert opinions offered in condemnation matters. Each, therefore, requires us
to address not only the evidence in issue, but its role in the
opinions offered by each of the experts and the uses of that evidence
by those experts in the condemnation context.
The first issue on appeal, relating to the WAWA contract, raises an issue
first addressed by our Supreme Court in State by Comm'r of Transp. v.
Caoili,
135 N.J. 252 (1994), namely, the role of the trial judge as
the gatekeeper of evidence to be considered by the jury in condemnation trials.
The essential issue raised by the State in this regard is whether the
WAWA contract could be essentially repudiated by Simon's experts as being irrelevant to
any of the elements of the proofs in the condemnation proceeding.
See footnote 1 In the
State's analysis, this attempted repudiation of the post-taking contract by Simon's experts should
have been kept from the jury as a part of the judge's gatekeeping
function. We consider this novel question at some length.
We begin by reviewing the governing principles relevant to condemnation proceedings. A private
property owner is entitled to just compensation when his property is taken by
the State for public use.
N.J.S.A. 20:3-1 to -50; State by Comm'r of
Transp. v. Silver,
92 N.J. 507, 513 (1983) (citing N.J. Const. art. I,
¶ 20). Where the entire property is taken, just compensation is "the fair market
value of the property as of the date of the taking determined by
what a willing buyer and willing seller would agree to, neither being under
any compulsion to act." Silver, supra, 92 N.J. at 513-14. The fair-market value
of a property, however, "is not limited to the actual use of the
property on the date of taking but is, rather, based on [the property's]
highest and best use." County of Monmouth v. Hilton,
334 N.J. Super. 582,
587 (App. Div. 2000), certif. denied,
167 N.J. 633 (2001). Thus, although courts,
in determining a property's fair-market value, consider all reasonable uses of the property,
the appropriate analysis rests upon its highest and best use. Caoili, supra, 135
N.J. at 260; see State v. Gorga,
26 N.J. 113, 116 (1958).
Where only a portion of one's private property is taken by the State,
the analysis is more complex. In that circumstance, the property owner is not
only entitled to just compensation for the fair-market value of the portion that
has actually been taken, but also for the diminution in the value, if
any, of the remaining land, referred to as "severance damages." City of Ocean
City v. Maffucci,
326 N.J. Super. 1, 18 (App. Div.), certif. denied,
162 N.J. 485 (1999).
In the present case, the State condemned only a portion of the Simon
property. Hence, Simon is entitled to just compensation for the portion taken together
with any "severance damages" to the remaining land. The jury's award of $1,710,000
in damages represents $850,000 in compensation for the land taken and $860,000 in
severance damages to the remaining portion. The State on appeal attacks both parts
of the jury award.
First, the State contends that the award for the portion taken was based
on Simon's expert architect, Thomas Sidrane's "three pad site" plan that was not
financially feasible, and therefore was not based on the highest and best use
of the property. Second, the State contends that, based on the terms of
the WAWA agreement, Simon did not suffer any "severance damages" to the remaining
property as a result of the partial taking, an argument that focuses on
the testimony of Simon's appraisal expert, John P. Brody.
The first issue, then, is whether the trial judge erred in discharging his
gatekeeping function respecting Simon's experts' evidence. In Caoili, supra, the Supreme Court formulated
a two-step procedure against which the trial judge must test the admissibility of
certain evidence. There, the Court addressed the question of whether and under what
circumstances evidence of a potential future zoning change that could materially affect the
value of condemned property would be admissible. The Court, recognizing that fair-market value
is fundamentally based on an analysis of the property's highest and best use,
and recognizing that the use must be analyzed in accordance with applicable zoning
restrictions, 135 N.J. at 260, held that it might nevertheless be appropriate for
the jury to consider a potential zoning change that would affect the uses
to which the property could be put. Id. at 265. Before such evidence
may be considered by the jury, however, the Court cautioned that the trial
judge is required to determine whether the evidence "is sufficient to warrant a
determination that such a change is reasonably probable." Ibid. In short, therefore, the
Court required the trial judge to serve as the gatekeeper, screening the proffered
evidence to ensure that the jury is not presented with speculative or remote
possibilities that no reasonable prospective buyer would consider. Id. at 264. The role
of the jury, thereafter, is to evaluate the effect that such a probability
would have on the fair-market value of the property. Id. at 265.
We have, subsequent to the decision in Caoili, had the opportunity to consider
the scope of the trial court's gatekeeper function in condemnation trials. We have
applied the Caoili two-step procedure in circumstances where development impediments, including an existing
sewer moratorium, necessitated governmental approvals, the absence of which limited the use of
the property. See Jersey City Redev. Agency v. Mack Prop. Co.,
280 N.J.
Super. 553, 566-67 (App. Div. 1995). More recently, we have considered the application
of the Caoili rule in the context of the potential for a future
assemblage of property contiguous to the condemned property and its concomitant effect on
the fair-market value of the subject tract. Hilton, supra, 334 N.J. Super. at
592-94. We there held that because the expert for the property owner valued
the property as if the proposed assemblage of the adjacent parcels had already
occurred, the opinion was speculative, particularly in light of the trial court's failure
to properly charge the jury concerning the correct means of weighing the expert's
opinion. In so holding, we reiterated the Caoili rule, and its predecessor opinion
in Gorga, supra, 26 N.J. at 116-17, and explained the two-step process as
follows:
Thus, as we understand Caoili, the first step in the two-step trial process
is for the judge to make an initial, gatekeeping determination of whether an
assemblage was probable in the near future as measured from the date of
taking based on the evidence before him relating to market conditions and the
circumstances particular to the property.
. . . .
If the judge determines that an assemblage including defendant's property was reasonably probable
at a near-future time from the date of taking, then, according to the
prescription of both Gorga and Caoili, the jury must be instructed to consider
in its determination of fair market value the premium a willing buyer would
pay for the probability of a future assemblage over and above the fair
market value as represented by the existing use of the property. In making
this determination, we are persuaded that a jury would have to determine the
degree of probability of the assemblage since, as we have noted, the more
probable the desired event is, the more valuable that probability is to a
buyer and the greater the premium he would therefore be willing to pay.
In this regard, we understand that what Caoili meant in the above quoted
language respecting "an impact on the value of the property regardless of the
degree of probability" was addressed to the court's gatekeeping function and not to
the jury's determination. That is to say, the judge, in determining probability, need
not determine degree of probability so long as there is reasonable probability, but
the jury may consider the degree of probability, as indeed it must, in
determining the extent of the premium the buyer would be willing to pay.
[Hilton, supra, 334 N.J. Super. at 593-94.]
While we agree that, in general, trial judges are required to exercise gatekeeping
functions to screen from the jury opinions of experts that are speculative, see,
e.g., Rubanick v. Witco Chem. Corp.,
125 N.J. 421, 436 (1991), and to
keep from the jury opinions that are not based on facts or standards,
see, e.g., Buckelew v. Grossbard,
87 N.J. 512, 524-25 (1981), we are not
persuaded that the expert opinions challenged here required a analysis within the Caoili
framework. The State asserts that the owner's proofs were fatally flawed because the
owner's analysis of the highest and best use for the property prior to
the taking was represented by a three-pad site commercial development plan. Sidrane, in
consultation with Brody and with Simon's attorney, devised a proposed development plan for
the site that would have included three pad sites, two located on the
lesser-traveled Tilton Road frontage, and that would have created sufficient parking and ingress
and egress routes, all of which would have been both permitted by all
applicable zoning ordinances and technically feasible had the reconfiguration of the traffic circle
not reduced the site's size and frontage. Brody then based his appraisal of
the pre-taking fair-market value on that plan, resulting in his estimate of the
loss to the owner. The State asserts that the trial judge erred in
permitting Sidrane to opine that the three-pad site development was the highest and
best use because the plan was not financially feasible and that the judge
further erred by permitting Brody to rely on that plan while ignoring the
actual post-taking development plan as represented by the WAWA option contract. We disagree.
Property owners are to be compensated for the property taken at "the fair
market value of the property as of the date of the taking determined
by what a willing buyer and willing seller would agree to, neither being
under any compulsion to act." Silver, supra, 92 N.J. at 513-14. However, "the
inquiry [into the fair market value] is not limited to the actual use
of the property on the date of taking but is, rather, based on
its highest and best use." Hilton, supra, 334 N.J. Super. at 587. Highest
and best use is "'the use that at the time of the appraisal
is the most profitable, likely use' or alternatively, 'the available use and program
of future utilization that produces the highest present land value' provided that 'use
has as a prerequisite a probability of achievement.'" Ibid. (quoting Ford Motor Co.
v. Township of Edison,
127 N.J. 290, 300-01 (1992)). Thus, the highest and
best use is the use that is (1) legally permissible, (2) physically possible,
(3) financially feasible, and (4) maximally profitable. Hilton, supra, 334 N.J. Super. at
588; see Ford Motor Co., supra, 127 N.J. at 304-05.
The State's challenge here focuses on financial feasibility, the third prong of the
four-part test for determining highest and best use. The definition for financial feasibility
adopted by the courts arises from the use of that concept by the
Tax Court in its assessment determination. The relevant criteria are as follows:
To determine the financial feasibility of potential income-producing uses, the appraiser estimates the
future gross income that can be expected from each [use]. Vacancy and collection
losses and operating expenses are then subtracted from each gross income to obtain
the likely net operating income (NOI) from each use. A rate of return
on the invested capital can then be calculated for each use. If the
net revenue capable of being generated from a use is sufficient to satisfy
the required rate of return on the investment and provide the requisite return
on the land, the use is financially feasible.
[Entenmann's Inc. v. Totowa Borough,
18 N.J. Tax 540, 546 (Tax 2000)(quoting Appraisal
Institute, The Appraisal of Real Estate 305 (11th ed. 1996)).]
While it is plain that the Caoili two-step analysis for admissibility of expert
opinions is the appropriate mechanism for evaluating opinions as to highest and best
use that themselves are based on a future zoning change, a future approval
of a subdivision or a site plan, see Caoili, supra, 135 N.J. at
267, or a future assemblage of properties, that analysis does not apply directly
to all expert opinions as to highest and best use. Although an expert's
opinion as to highest and best use must include an evaluation of financial
feasibility, nothing in the Caoili analysis requires the judge to independently determine that
the proposed development plan, otherwise permitted by the zoning ordinance, is also a
plan reasonably probable to occur. Rather, as long as the opinions offered are
not speculative or unreliable and do not fail as net opinions, see Buckelew,
supra, 87 N.J. at 524-25, they should be presented to the jury and
tested through rigorous cross-examination.
Respecting the Sidrane and Brody opinions, we see no evidence in this record
that the judge was unaware of his general gatekeeping role or that he
failed to adequately discharge it. The essence of the State's argument is that
Sidrane's proposal for three pad sites on the property as the measure of
the pre-taking value was based on a plan that was not financially feasible,
that his configuration of the proposed three pad sites was designed to create
the illusion that the taking reduced the development potential of the site from
three pad sites to one, and that Brody's opinion of just compensation, which
was based on the Sidrane configuration, was effectively a repudiation of the WAWA
contract's post-taking valuation of the site for a different development option. The State
contends that in this way, Simon manipulated the evidence presented to the jury
to create the false impression of a significantly higher loss due to the
taking than the true loss, measured by the WAWA contract, to which Simon
had knowingly and willingly agreed. We have carefully considered this argument and have
concluded that it rests upon a fundamental misperception of the evidence, its admissibility,
and the role of the judge as the gatekeeper.
First, there is no ground on which to conclude that Sidrane's opinion about
the pre-taking development possibilities for the property was inadmissible. While the State contends
that he lacked the qualifications necessary to offer the opinions represented by his
three-pad site proposal and that the proposal itself was intentionally designed to create
a false impression of the development possibilities for the tract, we do not
agree. To the extent that Sidrane had relatively less professional experience with pad
site developments or with the development of tracts near this one, nothing in
this record demonstrates that Sidrane lacked the knowledge, training, education or experience required
to offer the opinion respecting potential development. N.J.R.E. 702. Rather, Sidrane's supposed shortcomings
were fully explored in cross-examination and relate, in the end, only to the
weight that the jury might give to his opinions.
Nor did the judge err in the admission of Sidrane's opinions into evidence
as relevant to the highest and best use of the property. To begin
with, all of the experts recognized that the property was essentially vacant land,
as to which any proposed development was merely a proposal. Each of the
experts addressed the ways in which the property might be developed consistent with
the existing zoning requirements and Sidrane's three-pad proposal was simply one conceptual plan
intended to demonstrate development that might have been undertaken. More to the point,
his testimony concerning that proposal was specific with respect to the conceptual nature
of the plan.
Respecting financial feasibility, the prong of the highest and best use test that
the State asserts the trial judge failed to adequately address, the potential for
and feasibility of development of the property in accordance with the three-pad site
plan was addressed by Brody in his appraisal of the tract. While the
State contends that there was no evidence of the financial feasibility of the
three-pad site plan, and while the State in particular contends that the decision
by Sidrane to locate two of those sites on Tilton Road was a
fiction designed to maximize the loss due to the effect of the taking
on access from Tilton Road, the record does not support either contention. Unlike
Caoili and Hilton, there was no zoning or other impediment to the plan
as envisioned by Sidrane. As a result, the judge was not required to
engage in the analysis of whether the plan was based on reasonable probabilities.
Rather, the decision concerning the admissibility of the opinions was in the nature
of the usual gatekeeping functions performed by the trial judge. Moreover, respecting financial
feasibility, there was sufficient evidence in this record that the development plan would
have been feasible to permit the evidence to be presented to the jury.
Nor are we persuaded that Simon in any sense ignored or repudiated the
contrary evidence about the property's highest and best use as represented by the
WAWA contract. The State contends that the WAWA contract proves that the highest
and best use of the property after the taking was more valuable than
the post-taking analysis based on the Sidrane configuration would have led the jury
to believe. The State therefore argues that Simon should not have been permitted
to argue that the highest and best use of the property was anything
other than the use represented by the WAWA contract and that the jury
should not have been permitted to consider the other conceptual analysis offered by
Sidrane. We disagree. Far from repudiating the WAWA contract, Simon's expert directly addressed
the relevance of that contract as a part of his opinion. More to
the point, the WAWA contract was, at the time of the trial, only
an option which WAWA had the right to exercise under certain conditions and
the relevance of which for purposes of establishing fair-market value was indirect at
best. Notwithstanding that limitation on the evidence, the simple fact is that the
WAWA contract was admitted into evidence and its terms and effect were considered
by the jury as a part of the evidence bearing on the issues
of the highest and best use of the property and its value post-taking.
The State next contends that the trial judge erred in excluding the evidence
relating to the so-called Barr contract. One of the principal effects of the
partial taking on the Simon tract was that the usable frontage on Tilton
Road was greatly reduced. The reduction in frontage, coupled with the creation of
the new intersection, virtually eliminated the possibility of creating a means of ingress
to and egress from the site onto that roadway. The first WAWA contract
recognized the effect of that reduction by including the contingency which would permit
WAWA to void the contract if a means of ingress and egress could
not be arranged. Two possible solutions were considered. One option would have required
the negotiation with the township and the State for permission to position a
driveway leading onto the site from Tilton Road which would be closer to
the intersection than ordinarily permitted. The alternative option would have required the acquisition
of an easement or the purchase of a portion of a tract of
land adjoining the Simon tract then owned by Barr which would be used
to create the means of ingress and egress without further permission. Prior to
the trial, WAWA acquired the Barr tract, which, the State argued, should have
been evidence admitted for consideration by the jury in mitigation of the damages
Simon claimed.
We first note that the trial court's determinations concerning the admission of evidence
are not to be disturbed in the absence of a showing of a
clear abuse of discretion. Green v. N.J. Mfrs. Ins. Co.,
160 N.J. 480,
492 (1999). In addition, although a broad scope of cross-examination is permitted in
connection with the determination of the highest and best use of a property
in a partial taking, the precise parameters of cross-examination are similarly left to
the trial court's discretion and are reviewed under the same standard. Casino Reinvestment
Dev. Auth. v. Lustgarten,
332 N.J. Super. 472, 492 (App. Div.), certif. denied,
165 N.J. 607 (2000).
The State relied on N.J.S.A. 2A:83-1 in support of its argument that the
Barr transaction should be admitted. We disagree with this analysis. The cited statute
merely abolished the hearsay rule to allow admission into evidence of comparable sales
through a witness who did not participate in the sales and who otherwise
could not adduce direct proof of such sales. White v. State Bd. of
Tax Appeals,
123 N.J.L. 350 (1939). The statute does not, however, require the
court to admit any and all contracts into evidence. In particular, as the
Barr contract was not offered for consideration as a comparable sale, the statute
is irrelevant to its admissibility.
The State, nevertheless, contends that the nature of this statute is remedial and
that it must therefore be construed liberally to reflect the spirit of the
law in circumstances not contemplated by the drafters. See City of Newark v.
Township of Hardyston,
285 N.J. Super. 385 (App. Div. 1995), certif. denied,
143 N.J. 518 (1996). We see, however, nothing in the purpose or meaning of
this statute so broad as to permit proof of mitigation of damages due
to an owner by way of the acquisition of land by a third
party who purchased the remaining property after a partial taking. Therefore, the argument
that the Barr transaction should be admitted based on N.J.S.A. 2A:83-1 is without
merit and the trial judge acted within his discretion in excluding that evidence.
N.J.R.E. 403.
Nor do we agree with the State's contention that the Barr transaction could
negate the damages to the remaining Simon property. First of all, the purchase
of the Barr property was undertaken by a third party, WAWA, whose option
contract with Simon to purchase Simon's remaining land had not been completed. The
severance damages at issue in this case were for Simon, not WAWA. Therefore,
WAWA's acquisition of the Barr property is irrelevant and cannot serve as evidence
in mitigation of damages to Simon's remaining property.
Second, the State took slightly over 400 feet of the 953-foot frontage along
the Black Horse Pike and left between 90 and 95 feet of frontage
out of the original 477.24 feet fronting on Tilton Road. Therefore, after the
taking, Simon's property lost 42% of its frontage on the Black Horse Pike
and 81% of its frontage on Tilton Road. Loss of access is among
the elements we have recognized as compensable severance damages. Maffucci, supra, 326 N.J.
Super. at 20. The Barr property could not serve as "replacement frontage" for
the Tilton Road side of the Simon property in any event. All of
the experts agreed that after the taking there was very limited potential for
commercial development on the Tilton Road side of the tract. WAWA's plan for
the remainder of the Simon land involved development of a Gas-N-Go on the
Black Horse Pike side of the property. The addition of the Barr property,
which was used only to create an alternate access route to the remaining
property from Tilton Road, could not affect the value of the Simon land
because it would not create any flexibility for the WAWA design and its
internal traffic circulation.
Third, a part of the judge's reasoning for excluding the Barr contract from
evidence was his concern that there was a relationship between Barr and WAWA
such that the agreement might not be an arms-length transaction. All of that
being undisputed, we agree with the trial judge that the evidence of the
Barr transaction was "without . . . relevance . . . unduly prejudicial,
and potentially confusing." See N.J.R.E. 403.
Finally, the State argues that the verdict should be overturned on the ground
that it is against the weight of the evidence. Again, we disagree. In
evaluating this issue, we generally defer to the trial court's determination of the
"intangibles" not evident from the trial record, including the court's assessment of the
credibility of the witnesses and the so-called "feel of the case," but we
undertake to make our own independent evaluation of the ultimate issue of whether
a miscarriage of justice has occurred. See Carrino v. Novotny,
78 N.J. 355,
360-61 n.2 (1979); Baxter v. Fairmont Food Co.,
74 N.J. 588, 597-98 (1977);
Dolson v. Anastasia,
55 N.J. 2, 6-8 (1969). The record before us demonstrates
that the trial judge carefully considered the arguments urged upon us by the
State in the context of the motion for a new trial and that
he explained the reasons for his decision to reject them. Our independent evaluation
of the record compels us to do likewise.
The jury heard and considered the competing views of the experts called by
the State and Simon, each of them tested through vigorous cross-examination. In that
process all of the evidence concerning the potential development, the highest and best
use of the property, and the valuations pre- and post-taking were weighed and
considered and the determination of the jury is based on ample evidence in
the record. Far from the conclusion urged upon us by the State that
the verdict was the product of manipulation of data, confusion or prejudice, we
perceive, as did the trial judge, a verdict carefully based on the evidence
and testimony and we will not therefore disturb it.
Affirmed.
Footnote: 1
The WAWA contract was first offered by the State's expert for the purpose
of demonstrating that the remainder of the site could still be profitably developed,
that the post-taking value per acre of the remainder was essentially undiminished and
that the highest and best use of that tract was for a particular
type of commercial development.