![]() ![]() The DOH asserted it was taking only about 30 of the 187 acres leased by Beacon, and that the remaining 157 acres of coal reserves would be unaffected by the construction of the highway. ![]() The first issue at trial concerned the amount of land affected by the DOH's take. Beacon objected to the DOH's valuation of the coal, specifically the value of Beacon's lease to extract and sell the coal beneath the surface.Ī three-day jury trial was held in July 2013 to establish the just compensation value for Beacon's leasehold interest in the coal taken by the DOH, as of July 25, 2012. However, the DOH also deposited $5,863,100 as the DOH's estimate of just compensation for the coal underlying the 30 acres of land taken. Around this same time, Beacon halted all mining operations on the entire 187 acres and began selling its equipment.Īs required by law, 6 on July 25, 2012, the DOH deposited $750,000 with the circuit clerk as its estimate of just compensation for the surface of the land taken Western Pocahontas later accepted that valuation of the surface. On July 25, 2012, the circuit court granted the DOH the right to take possession of the 30 acres of land. The DOH sought to take approximately 30 of the 187 acres owned by Western Pocahontas and leased to Beacon to construct a portion of the Corridor H highway. In April 2012, petitioner West Virginia Department of Transportation, Division of Highways (“the DOH”) filed a condemnation action against Western Pocahontas and Beacon. However, Beacon continued to mine and sell coal for several months thereafter. Beacon claims it did not renew the contract because it learned some of the land would be taken through condemnation to build a highway and did not believe it would be able to fulfill the contract. On August 15, 2011, Beacon signed a contract to sell coal to a neighboring mine 4 the contract expired by its own terms on March 31, 2012. ![]() 3 Shortly thereafter, in July or August, Beacon opened a surface mine on the land and began removing coal. The lease allowed Beacon to extract the coal in exchange for royalty payments to Western Pocahontas. On June 21, 2011, Western Pocahontas leased 187 acres of its land to respondent Beacon Resources, Inc. There is mineable coal 2 beneath this land. Respondents Western Pocahontas Properties, L.P., and WPP, LLC (collectively “Western Pocahontas”) own several tracts of land in Tucker County, West Virginia. Despite this evidence, the Circuit Court of Tucker County refused to instruct the jury to disregard lost business profits when calculating just compensation.Īs set forth below, we reverse the circuit court's judgment on the jury's verdict, and remand the case for a new trial. 1 However, in this appeal of a jury's $24 million verdict in a condemnation case, a litigant testified and valued his interest in a tract of condemned land using only the future lost profits of his business. It is a well-established rule in the law of eminent domain that a jury may not award just compensation for the lost profits of a business on land taken by condemnation. Zurbuch, Esq., Busch, Zurbuch & Thompson, PLLC, Elkins, WV, Counsel for Respondents Western Pocahontas Properties, LP and WPP, LLC. Turner, Esq., Steptoe & Johnson PLLC, Bridgeport, WV, Counsel for Respondent Beacon Resources, Inc. Dawkins, Esq., Steptoe & Johnson PLLC, Denver, CO, Lauren K. Chappell, Esq., Adams, Fisher & Chappell, PLLC, Ripley, WV, for the Petitioner. WESTERN POCAHONTAS PROPERTIES, L.P., a Delaware Limited Partnership WPP, LLC, a Delaware Limited Liability Company and Beacon Resources, Inc., Respondents Below, Respondents. WEST VIRGINIA DEPARTMENT OF TRANSPORTATION, DIVISION OF HIGHWAYS, a public corporation, Petitioner Below, Petitioner v. Supreme Court of Appeals ofWest Virginia. ![]()
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