1923

Appalachian Power Co. v. Johnson

Supreme Court of Virginia

137 Va. 12, 119 S.E. 253

Power Company sought perpetual right of way for electric transmission lines. Commissioners heard case and awarded $2,500 for land taken, and no damage to residue. Company excepted to the award as grossly excessive. Commissioners were examined and stated that the award was based on potential future accidents and harm that electric lines might cause, and that the land might be worth more in the future if the Town of Narrows were to build out in that direction. Trial court confirmed the report. Supreme Court reversed and remanded. The just compensation to which the landowner was entitled was the fair market value. Fair market value did not include possible future development in the area, nor future damages from negligent construction or operation. While those could be potential considerations, the award must be for fair market value. As the commissioners misapplied the correct legal principles, the case was remanded back for hearing by new commissioners.

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