1991

Lamar Corp. v. Richmond

Supreme Court of Virginia

241 Va. 346, 402 S.E.2d 31

Landowners leased a portion of their property to both Lamar and Whiteco for the erection of billboards. In pursuing a floodwall project, City condemned property, and pursuant to 42 U.S.C. §§ 4601, et seq., City would pay actual expenses for relocation of billboards. When issue of removal could not be resolved, City sought court order authorizing removal of the billboards. Lamar and Whiteco argued that the City must initiate a separate condemnation proceeding for the billboards. Owners reached a settlement with the City for just compensation. When order was entered to remove billboards, Lamar and Whiteco moved to intervene, and requested appointment of commissioners to determine just compensation for their leasehold interests. Trial court denied motion, holding that they did not have a condemnable interest. Lamar and Whiteco appealed, asserting that their property had been taken without just compensation or due process. Supreme Court held that when City filed condemnation petition and paid funds into court, all interests in the property were transferred to the deposited funds. Where the condemned property is subject to a lease, the proper course is to determine compensation as though the property belonged to one person, then apportion the sum among the different parties according to their respective rights. A lessee does not have a separate condemnable interest entitling it to a separate condemnation proceeding. Further, as between the condemnor and the lessee, structures attached to the condemned estate, but owned by the lessee, are realty. Title to the structures passes to the condemnor, and the lessee becomes entitled to a share of the total award, and a hearing to determine that share. Trial court’s decision affirmed.

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