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Exxon Pipeline Company v. Zwahr

The appraisal expert impermissibly relied on project enhancement and the trial court therefore abused its discretion in admitting that expert testimony.

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Argued on January 30, 2002

Justice O’Neill and Justice Rodriguez did not participate in the decision.

In this case, we determine whether an appraisal expert’s opinion regarding the value of land taken by eminent domain satisfies the requirements for admitting expert testimony under the Texas Rules of Evidence. Exxon Pipeline Company condemned a 50-foot-wide pipeline easement on Daniel and Sandra Zwahrs’ 49-acre tract of land. The parties disputed Exxon’s right to condemn the land, and following the grant of summary judgments confirming that right, tried the case on the value of the land taken. At trial, Exxon objected to the testimony of the Zwahrs’ expert, arguing that he impermissibly relied on project enhancement to calculate the land’s value and that he improperly determined the property’s highest and best use. The trial court admitted the testimony over Exxon’s objections, and after receiving the jury’s verdict, rendered judgment for the Zwahrs. Exxon argued a number of points on appeal, including that the trial court erred by admitting the testimony of the Zwahrs’ expert. The court of appeals concluded that the trial court properly admitted the testimony, but reduced the amount awarded in the judgment on other grounds. 35 S.W.3d 705. We conclude that the Zwahrs’ expert impermissibly relied on project enhancement and the trial court therefore abused its discretion in admitting that expert testimony. Because this error is harmful, we reverse the court of appeals’ judgment and remand this cause to the trial court for further proceedings.

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