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SOUTHEAST TEXAS RECORD

Thursday, November 21, 2024

State of Texas loses $19 million appeal in easement case

Lawsuits
Money

HOUSTON – The state of Texas’ attempt to appeal a $19 million jury verdict in a property condemnation damage case was unsuccessful.

The Court of Appeals for the 1st District of Texas affirmed the original decision of the Harris County Civil Court at Law No. 3 on Aug. 30.

Appellee Gleannloch Commercial Development LP owned multiple tracts of land within master-planned community Gleannloch Farms in Harris County. The state asked the county court to condemn two parcels and easements from the land in order to construct a new segment for state Highway 99.  

Each side disagreed with the judgment of the court, which appointed a special commission to determine the value of the land. The parties requested a jury trial to settle their objections.  

The jury awarded Gleannloch significant damages because it found that the state easements decreased the value of the surrounding land.  

A witness for the appellee explained that: “Although its highest and best use did not change... the southern remainder became less valuable as a result of the taking of Parcel 208 and the change in character of the surrounding property,” the ruling stated.

The state countered that Gleannloch’s evidence depended on “non-compensable community or impairment-of-access damages,” the ruling states.

However, the appeals court disagreed, noting that the “evidence presented at trial establishes that Gleannloch’s remainder damages arise out of the State’s use of the condemned land and they are unique to the remainder properties, not shared by the community at large.” 

Both parcels of land were part of a larger community that has now been fractured.  

The State disagrees with both how much was awarded to cover the costs of the land and how much was awarded in damages. During the trial, the State argued that Gleannloch was exaggerating the damages and that the testimony of his expert appraiser included opinions that “were not reliable or relevant.”  

Ultimately, the jury awarded Gleannloch $19,486,940.  

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