2002

City of Va. Beach v. Oakes

Supreme Court of Virginia

263 Va. 510, 561 S.E.2d 726

City initiated condemnation proceeding to acquire real property and easements for purposes of constructing road and utility improvements. The City’s plan included a permanent drainage easement with a detention pond to collect storm water runoff, which runoff usually included pollutants. Witnesses for landowner testified that the best use of the unimproved land was light industrial, such as storage units, and the damage to the residue from the detention pond was $120,000, because of lost space and rent from potential commercial improvements. City argued that landowners’ damages figure was speculative and based on hypothetical development. Trial court found damage to the residue at $120,000. Supreme Court reversed and remanded. In the case of a partial taking, the measure of damages to the residue is the fair market value of the residue immediately before and immediately after taking. Future circumstances which actually affect the value of the property at the time of the taking can be considered, but remote and speculative damages may not be allowed. Here, the landowners’ evidence of possible future use and profits was pure speculation. Landowners are entitled to recover damages flowing directly from the taking, including consideration of the highest and best use of the property. Landowner could not use evidence that was speculative or remote.

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