Texas Supreme Court Vacates $21M Condemnation Award Holding that it Violated the Value-to-the-Taker Rule
In an opinion issued August 31, 2012, Enbridge Pipelines (East Texas) L.P. v. Avinger Timber, LLC, the Supreme Court of Texas considered an unusual condemnation case in which the condemnor was already leasing and using the land it sought to take and condemn after negotiations to renew the lease failed. The Court reiterated that the value to the taker cannot be considered in determining the fair market value, but also confirmed that the existing use of the land should be taken into account in determining the highest and best use of the property. Because the condemnor’s expert ignored the current use, the Court affirmed the exclusion of his testimony. But because the landowner’s expert violated the “value-to-the-taker” rule, the Court held that the trial court abused its discretion by admitting that testimony and remanded the case for further proceedings.