In Condemnation Actions,Trial Court Is Gatekeeper to Expert Valuation Testimony

In a condemnation valuation trial, the court exercises a gatekeeping function to screen out potentially unreliable evidence. Where a trial court is confronted with a motion in limine to bar expert valuation testimony, it steps into this “gatekeeper” role established in State v. Caoili, 135 N.J. 252 (1994). Based upon a recent review by the Appellate Division of a trial court’s exercise of the gatekeeping function in State Comm’r of Transp. v. 200 Route 17, L.L.C., 421 N.J. Super 168 (App. Div. 2011), and the reversal of a jury verdict based on the admission of expert testimony, attorneys who rely upon expert testimony may now need to take extra care to ensure that their proffer of expert testimony satisfies this reliability prong.

The case involved a partial taking of private property formerly improved with a Sears store located on Route 17 southbound, in Maywood and Rochelle Park. At the time of the taking, the property consisted of a one-story, 31,775-square-foot building on 2.86 acres, with direct access to Route 17. The building contained a merchandise and service center, parts counter, warehouse and offices, and was supported by a 112-car paved parking lot. On May 23, 2005, the New Jersey Department of Transportation filed its condemnation complaint and declaration of taking, which transferred ownership of a 1.65-acre piece (more than half) of defendant’s 2.86-acre property. The taking required removal of all improvements on the property, and the property owner was left with 1.21 acres of vacant land without direct access to Route 17. The case proceeded to a valuation trial after the parties exchanged expert engineering and appraisal reports.