2001

Lamar Corp. v. Commonwealth Transp. Comm’r of Va.

Supreme Court of Virginia

262 Va. 375, 552 S.E.2d 61

Commonwealth condemned a portion of landowners’ property for highway improvements. On the taken property, the landowners had leased a portion to Lamar for a four-panel billboard. Lamar sought to intervene in the valuation hearing and was allowed to do so as a tenant, but could not participate in nominating commissioners. Lamar was also excluded from presenting expert testimony as to the fair market value of the billboard and Lamar would not get a separate valuation of its improvements. Of the $150,000 awarded by the commissioners, Lamar was allocated $6,462, even though its expert would have testified the value of the condemned billboard was $60,600. Supreme Court reversed and remanded. As between a condemnor and lessee, a structure like a billboard that is affixed to the land but owned by the lessee is realty. This does not entitle lessee to a separate valuation hearing, but it can intervene in valuation hearing between condemnor and landowner. A tenant is entitled to introduce its own valuation evidence concerning the value of the property taken or damaged. The fair market value of the billboard is included in just compensation as though the property all belonged to one person. The commissioners’ determination of just compensation was wrong as it did not include compensation for the fair market value of the billboard.

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