W. Va. Department of Transportation, Division of Highways v. CDS Family Trust, LLC

At issue was the admissibility of expert testimony valuing wetland property for the purpose of just compensation in a condemnation proceeding where the highest and best use of the wetlands was determined to be the development of a wetlands mitigation bank. The Supreme Court held (1) the highest and best use of the wetland property as a mitigation bank may be considered in a condemnation proceeding to the extent that such a factor would be weighed in negotiations between private persons participating in a voluntary sale and purchase of the land at the time it was taken; (2) however, the market price of mitigation credits that ultimately may be produced from the property cannot be the sole basis for measuring the land’s value in determining just compensation; and (3) because the expert testimony at issue in this case provided a value that was based solely upon the market price of mitigation credits that could be developed from the land, as opposed to the fair market value of the land itself in a voluntary transaction between a knowledgeable buyer and seller, the circuit court erred in admitting that testimony. The court remanded the case for a new trial. View "W. Va. Department of Transportation, Division of Highways v. CDS Family Trust, LLC" on Justia Law