People Ex Rel. Department of Water Resources v. Brown

STONE, J.

Appellant owners were awarded $12,225.25 for 28.93 acres of land covered by dredger tailings. The prop

[595]

erty was condemned for the avowed purpose of first removing the dredger tailings for use in the embankment of the Oroville Dam, and eventually for fish and wildlife preservation and recreation purposes.

The first ground of appeal relates to instructions concerning fair market value and rulings on evidence concerning this issue. Except for use in the project, the value of the rocks and gravel in the dredger tailings which covered the entire area was minimal, but when valued as material to be used in the project, they acquired a substantial value. The court, following the established rule of this state, refused to permit the trier of fact to consider the impact of the proposed project in determining the fair market value of the property being condemned.

A number of cases from other jurisdictions are cited in support of appellants’ contention that the trial court was wrong in its ruling, but we shall not discuss them as the California cases, which we as well as the trial court must follow, hold that property values arising from the improvement proposed by the condemnor can not be considered in determining fair market value. The rule, which has been stated in many cases in varying ways, is exemplified in

People

v.

La Macchia,

41 Cal.2d 738, 754 [264 P.2d 15], wherein the Supreme Court said: “Compensation is based on loss imposed on the owner, rather than on benefit received by the taker. [Citations.] The beneficial purpose to be derived by the condemnor’s use of the property is not to be taken into consideration in determining market values, for it is wholly irrelevant. ’ ’

In an earlier ease,

Spring Valley Water Works

v.

Drinkhouse,

92 Cal. 528 [28 P.2d 681], property was being condemned for reservoir purposes. The opinion holds that the market value of property “is not to be determined by the fact that the party seeking to condemn it has already determined to build a reservoir. To allow that element to enter into the computation would be to make the plaintiff’s necessity the owner’s opportunity.” (P. 537.)