**FINAL**
DEPARTMENT OF TRANSPORTATION v. JOE C. ROWE and wife, SHARON B. ROWE;
HOWARD L. PRUITT, JR. and wife, GEORGIA PRUITT; ROBERT W. ADAMS, trustee;
ALINE D. BOWMAN; FRANCES BOWMAN BOLLINGER; LOIS BOWMAN MOOSE; DOROTHY
BOWMAN ABERNETHY and husband, KENNETH H. ABERNETHY; MARTHA BOWMAN CAUDILL
and husband, JACK CAUDILL; APPALACHIAN OUTDOOR ADVERTISING CO., INC.
(formerly Appalachian Poster Advertising Company, Inc.), Lessee; and
FLORENCE BOWMAN BOLICK
No. 506A98-2
(Filed 20 July 2001)
1. Appeal and Error--preservation of issues--violation of Law of the Land
Clause--not argued at trial--no assignment of error--no Court of
Appeals argument
The Court of Appeals erred by considering whether N.C.G.S. § 136-
112(1) violates the Law of the Land Clause in the North Carolina
Constitution in an action arising from the taking of a part of defendants'
land where defendants did not argue to the trial court that the Law of the
Land Clause was an independent reason to strike down the statute, did not
assign error on those grounds in the Court of Appeals, and did not make
that argument before the Court of Appeals.
2. Eminent Domain--condemnation of part of tract for highway--measure of
damages--equal protection--strict scrutiny
The statute which concerns the measure of damages for condemnation of
a part of a tract for a highway, N.C.G.S. § 136-112(1), neither infringes
defendants' right to just compensation nor classifies persons on the basis
of a suspect characteristic and does not trigger strict scrutiny under the
Equal Protection Clauses of the North Carolina or United States
Constitution. Although defendant contends that the statute infringes upon
the fundamental right to just compensation by allowing consideration of
general benefits on the market value of the remaining land, allowing the
jury to consider those benefits is in accord with persuasive federal
precedent, the consistent practice of the North Carolina Supreme Court, and
the purposes underlying the requirement of just compensation.
3. Eminent Domain--condemnation of part of tract for highway--measure of
damages--Law of the Land Clause--general benefit to remaining property
The Law of the Land Clause of the North Carolina Constitution requires
only that a condemnee be indemnified and permits a factfinder to consider
general benefits accruing to a condemnee's remaining property; a benefit
is no less real when shared by a condemnee's neighbor.
4. Eminent Domain--condemnation of part of tract for highway--measure of
damages--equal protection--rational basis
The statute which concerns the measure of damages for condemnation of
a part of a tract, N.C.G.S. § 136-112(1), does not violate the Equal
Protection Clause of the United States or the North Carolina Constitution
on a rational-basis review even though N.C.G.S. § 40A-64(b) provides
property owners in other cases a choice of compensation measures which is
not available under N.C.G.S. § 136-112(1). The General Assembly could have
rationally believed that condemnors under Chapter 40A should pay damages
using either of the two measures in N.C.G.S. § 40A-64 because public andprivate condemnors can offset some of their costs through user
fees;
furthermore, Chapter 40A governs a huge range of use types, condemning
authorities, and circumstances, a drastically different situation from the
uniform practice of DOT.
Appeal pursuant to N.C.G.S. § 7A-30(2) from the decision of a dividedpanel of the Court of Appeals, 138 N.C. A
pp. 329, 531 S.E.2d 836 (2000), on
remand from this Court, 351 N.C. 172, 521 S.E.2d 707 (1999), finding error
in orders entered 8 May 1997 and 16 May 1997 by Baker, J., and in a
judgment entered 17 June 1997 by Hyatt, J., in Superior Court, Catawba
County, and ordering a new trial. Heard in the Supreme Court 12 February
2001.
Roy A. Cooper, Attorney General, by J. Bruce McKinney, Assistant
Attorney General, and T. Lane Mallonee and W. Richard Moore, Special
Deputy Attorneys General, for plaintiff-appellant.
Lewis & Daggett, Attorneys at Law, P.A., by Michael J. Lewis; and
Bell, Davis & Pitt, P.A., by Stephen M. Russell, for defendant-
appellees.
ORR, Justice.
This dispute arose from the North Carolina Department of
Transportation's (DOT) decision to build a road connecting U.S. Highway
70-321 to an interchange on Interstate 40 in Catawba County. To acquire
land for this project, the DOT exercised its authority under N.C.G.S. §
136-18 to condemn 11.411 acres of defendants' 18.123-acre tract. As
required by statute, the DOT acquired defendants' property by filing a
declaration of taking and asking for a determination of just compensation.
At trial, the presiding judge instructed the jury as to the requirements of
N.C.G.S. § 136-112(1), which provides that just compensation is
the difference between the fair market value of the entire tract
immediately prior to said taking and the fair market value of the
remainder immediately after said taking with consideration being
given to any special or general benefits resulting from the
utilization of the part taken for highway purposes.
N.C.G.S. § 136-112(1) (1999). The jury rendered a verdict that defendants
were not entitled to any financial compensation for the taking. The
verdict reflected that the jury agreed with DOT's argument that the
general benefits to defendants' remaining property from the project
exceeded the cost of the loss of acreage. The trial court entered judgmentconsistent with this verdict, and the defendants appealed.
After reviewing the errors alleged by defendants, the Court of
Appeals, inter alia, ordered a new trial on two grounds. First, the Court
of Appeals held that N.C.G.S. § 136-112(1) violated the Law of the Land
Clause of the North Carolina Constitution. Department of Transp. v. Rowe,
138 N.C. App. 329, 342-43, 531 S.E.2d 836, 845 (2000). The Court of
Appeals stated that by allowing general benefits to [set off] the fair
market value of the remaining land, the statute allows a compensation which
is unjust to the condemnee. Id. at 342, 531 S.E.2d at 845. Second, the
Court of Appeals held that the statute denied defendants equal protection
of the law under the North Carolina Constitution. The Court of Appeals
decision was based upon the different standards for compensation for
condemnees set out in two different statutes. Defendants' compensation was
determined under N.C.G.S. § 136-112(1) because the DOT condemned the
property. However, owners of property condemned under N.C.G.S. § 40A
would be entitled to compensation under N.C.G.S. § 40A-64(b), which
provides for a compensation system more favorable to condemnees than the
system provided for in N.C.G.S. § 136-112(1). The Court of Appeals
reasoned that [b]ecause there is no compelling governmental interest to
support [the classes created by N.C.G.S. § 136-112(1) and N.C.G.S. §
40A-64(b)] . . . a property owner's equal protection rights are violated by
allowing such a classification. Id. at 344, 531 S.E.2d at 846.
Judge Horton dissented on two grounds. He first contended that theCourt of Appeals lacked jurisdiction to
consider whether this statute violates the Law of the Land Clause
of the North Carolina Constitution because defendants neither
assigned error on those grounds nor argued that claim before the
trial court. He also dissented on the grounds that N.C.G.S. §
136-112(1) does not violate North Carolina's Equal Protection
Clause. We agree with Judge Horton on both grounds.
I.
[1]We first conclude that the Court of Appeals erred
because the question of whether this statute violates the Law of
the Land Clause was not properly presented. As Judge Horton
pointed out, Rule 10(c) of the North Carolina Rules of AppellateProcedure requires that an appellant state the legal basis for
all assignments of error. N.C. R. App. P. 10(c). We have also
held that arguments not made before the trial court are not
properly before the Court of Appeals. State v. King, 342 N.C.
357, 364, 464 S.E.2d 288, 293 (1995). Here, defendants in their
appeal to the Court of Appeals failed to assign error on the
grounds that N.C.G.S. § 136-112(1) violates the Law of the Land
Clause. Also, defendants did not argue to the trial court that
the Law of the Land Clause was an independent reason to strike
down the statute. Likewise, they did not even make this argument
before the Court of Appeals. Even though defendants argued and
assigned error to the effect that N.C.G.S. § 136-112(1) denied
defendants equal protection under the law, they never raised the
issue of a due process violation under our state Constitution's
Law of the Land Clause. Thus, the Court of Appeals erred in
considering the constitutionality of the statute on those
grounds, and we disavow their reasoning and reverse their
holding.
II.
We also agree with Judge Horton that N.C.G.S. §
136-112(1) does not deprive defendants the equal protection of
the law, although we agree on different grounds from those stated
in the dissent. Thus, for the reasons stated below, we reverse
the Court of Appeals' holding that N.C.G.S. § 136-112(1) violates
the Equal Protection Clause of the North Carolina Constitution.
We also hold that it comports with the United States
Constitution. The Equal Protection Clause of Article I, Section 19 of
the North Carolina Constitution and the Equal Protection Clause
of Section 1 of the Fourteenth Amendment to the United States
Constitution forbid North Carolina from denying any person the
equal protection of the laws. N.C. Const. art. I, § 19 (No
person shall be denied the equal protection of the laws.); U.S.
Const. amend. XIV, § 1 (No State shall . . . deny to any person
within its jurisdiction the equal protection of the laws.). To
determine if a regulation violates either of these clauses, North
Carolina courts apply the same test. Duggins v. N.C. State Bd.
of Certified Pub. Accountant Exam'rs, 294 N.C. 120, 131, 240
S.E.2d 406, 413 (1978). The court must first determine which of
several tiers of scrutiny should be utilized. Then it must
determine whether the regulation meets the relevant standard of
review. Strict scrutiny applies when a regulation classifies
persons on the basis of certain designated suspect
characteristics or when it infringes on the ability of some
persons to exercise a fundamental right. San Antonio Indep. Sch.
Dist. v. Rodriguez, 411 U.S. 1, 16-17, 36 L. Ed. 2d 16, 33
(1973); Texfi Indus., Inc. v. City of Fayetteville, 301 N.C. 1,
11, 269 S.E.2d 142, 149 (1980). If a regulation receives strict
scrutiny, then the state must prove that the classification is
necessary to advance a compelling government interest; otherwise,
the statute is invalid. San Antonio, 411 U.S. at 16-17, 36 L.
Ed. 2d at 33; Texfi, 301 N.C. at 11, 269 S.E.2d at 149. Other
classifications, including gender and illegitimacy, trigger
intermediate scrutiny, which requires the state to prove that theregulation is substantially related to an important government
interest. Clark v. Jeter, 486 U.S. 456, 100 L. Ed. 2d 465
(1988); Craig v. Boren, 429 U.S. 190, 50 L. Ed. 2d 397 (1976).
If a regulation draws any other classification, it receives only
rational-basis scrutiny, and the party challenging the regulation
must show that it bears no rational relationship to any
legitimate government interest. If the party cannot so prove,
the regulation is valid. Nordlinger v. Hahn, 505 U.S. 1, 10, 120
L. Ed. 2d 1, 12 (1992); Texfi, 301 N.C. at 11, 269 S.E.2d at 149.
In concluding that defendants were denied equal
protection under N.C.G.S. § 136-112(1), the Court of Appeals
applied strict scrutiny. Rowe, 138 N.C. App. at 344, 531 S.E.2d
at 846. We conclude that it was error to do so. In fact, as
explained below, N.C.G.S. § 136-112(1) does not trigger strict
scrutiny because it neither classifies on the basis of a suspect
classification nor infringes upon a fundamental right.
Furthermore, N.C.G.S. § 136-112(1) satisfies rational-basis
scrutiny because there are rational reasons for DOT and other
condemnors to use different systems to calculate just
compensation.
A.
[2]We begin our analysis by explaining why N.C.G.S.
§ 136-112(1) receives only rational-basis scrutiny. Strict
scrutiny applies only when a regulation classifies persons on the
basis of certain suspect characteristics or infringes the ability
of some persons to exercise a fundamental right. San Antonio,
411 U.S. at 16-17, 36 L. Ed. 2d at 33; Texfi, 301 N.C. at 11, 269S.E.2d at 149. Not even defendants contend that they are part of
a suspect class deserving the extraordinary protection provided
by strict scrutiny. They do, however, contend that N.C.G.S. §
136-112(1) infringes upon a fundamental right: the right to just
compensation.
Defendants argue that the Court of Appeals correctly
concluded that N.C.G.S. § 136-112(1) infringes upon a fundamental
right. They claim that the statute violates their right to just
compensation. We disagree. Just compensation is clearly a
fundamental right under both the United States and North Carolina
Constitution. It is specifically enumerated in the Fifth
Amendment to the United States Constitution and has been applied
to the states through the 14th. Chicago, Burlington & Quincy
R.R. Co. v. City of Chicago, 166 U.S. 226, 239, 41 L. Ed. 979,
985 (1897). The right to just compensation is not expressly
mentioned in the North Carolina Constitution, but this Court has
inferred such a provision as a fundamental right integral to the
'law of the land' clause. Finch v. City of Durham, 325 N.C.
352, 363, 384 S.E.2d 8, 14 (1989); see also Eller v. Board of
Educ. of Buncombe County, 242 N.C. 584, 586, 89 S.E.2d 144, 146
(1955) (When private property is taken for public use, just
compensation must be paid . . . . While this principle is not
stated in express terms in the North Carolina Constitution, it is
regarded as an integral part of the 'law of the land' . . . .).
Since a fundamental right is involved, we must
determine if that right is infringed upon by application of
N.C.G.S. § 136-112(1). If defendants' right to just compensationis impacted by the statute, then that impact would warrant a
review under the strict-scrutiny standard. If there is no
infringement, then the rational-basis standard would apply.
The Court of Appeals held that defendants did not
receive just compensation because the statute allows the jury to
consider general benefits when it calculates just compensation
for a partial taking. General benefits are defined as
increases in the value of land which arise from the fulfillment
of the public object which justified the taking [and] which
result from the enjoyment of the facilities provided by the new
public work and from the increased general prosperity resulting
from such enjoyment. Kirkman v. State Highway Comm'n, 257 N.C.
428, 434, 126 S.E.2d 107, 112 (1962) (citations omitted); see
also 3 Julius L. Sackman, Nichols on Eminent Domain § 8A.02[4][a]
(rev. 3d ed. 2000). Examples include the rise in property value
due to increased traffic flow, an aesthetic upgrading of a
neighborhood, or more convenient parking. 3 Nichols on Eminent
Domain § 8A.02[4][a]. In contrast, special benefits are
increases in the value of land which arise from the peculiar
relation of the land in question to the public improvement.
Kirkman, 257 N.C. at 433, 126 S.E.2d at 112; see also 3 Nichols
on Eminent Domain § 8A.02[4][b]. An example is the rise in
property value due to newly acquired frontage on a public street.
3 Nichols on Eminent Domain § 8A.02[4][b].
Both of these types of benefits may be considered by
the jury when calculating just compensation under N.C.G.S. §
136-112(1). That statute provides that when, as here, only partof a tract is condemned for the construction of a highway, just
compensation for the condemnation is
the difference between the fair market value
of the entire tract immediately prior to said
taking and the fair market value of the
remainder immediately after said taking with
consideration given to any special or general
benefits resulting from the utilization of
the part taken for highway purposes.
N.C.G.S. § 136-112(1). Because this statute allows a jury to
consider general benefits, the Court of Appeals held that it
allows a compensation which is unjust to the condemnee. Rowe,
138 N.C. App. at 342, 531 S.E.2d at 845.
We disagree. The Fifth Amendment to the United States
Constitution clearly allows Congress to empower the fact-finder
to consider general benefits. McCoy v. Union Elevated R.R.
Co., 247 U.S. 354, 366, 62 L. Ed. 1156, 1164 (1918). We are also
convinced that the Law of the Land Clause of the North Carolina
Constitution allows a jury to consider general benefits when it
calculates just compensation. Allowing the jury to consider how
general benefits affect the market value of the condemnee's
remaining land is in accord with persuasive federal precedent,
with the consistent practice of this Court, and with the purposes
underlying the requirement of just compensation.
It is clear that the Fourteenth Amendment to the United
States Constitution allows states to empower fact-finders to
consider general benefits when calculating just compensation.
The United States Supreme Court stated in McCoy v. Union Elevated
R.R. Co. that
we are unable to say that [a property owner]
suffers deprivation of any fundamental rightwhen a state . . . permits consideration of
the actual benefits -- enhancement in market
value -- flowing directly from a public work,
although all in the neighborhood receive like
advantages.
Id. at 366, 62 L. Ed. at 1166. This holding, however, was based
on the Fourteenth Amendment to the United States Constitution,
id. at 363, 62 L. Ed. at 1165, and although [d]ecisions by the
federal courts as to the construction and effect of the due
process clause of the United States Constitution . . . do not
control an interpretation by this Court of the law of the land
clause of our state Constitution[, they] are . . . persuasive
[authority], McNeill v. Harnett County, 327 N.C. 552, 563, 398
S.E.2d 475, 481 (1990) (citations omitted). Even though this
interpretation is only persuasive authority, we believe it
correctly explains the requirements of just compensation.
This interpretation of just compensation accords with
the long practice of our state. Although this Court has never
specifically addressed the constitutionality of allowing the
fact-finder to consider general benefits, allowing fact-finders
to do so has been the practice of this Court since at least 1893.
See, e.g., Robinson v. State Highway Comm'n, 249 N.C. 120, 105
S.E.2d 287 (1958); Proctor v. State Highway & Public Works
Comm'n, 230 N.C. 687, 55 S.E.2d 479 (1949); Wade v. State Highway
Comm'n, 188 N.C. 210, 124 S.E. 193 (1924); Miller v. City of
Asheville, 112 N.C. 759, 16 S.E. 762 (1893); see also Department
of Transp. v. Mahaffey, 137 N.C. App. 511, 528 S.E.2d 381 (2000).
In 1893 in Miller v. City of Asheville, this Court addressed a
jury instruction issue arising out of the legislative changeapplying special benefits and general benefits in
condemnation proceedings. While no constitutional issues were
raised, Justice Clark stated for the Court:
Whether the [condemning authority] can reduce
damages by all the benefits accruing the
[condemnee], rests with the sovereign when it
confers the exercise of the right of eminent
domain. . . . [Thus] the present act, which
extends the assessment of benefits to all
received by the landowner, instead of a
restriction to the special benefits, is
valid. All the landowner can claim is that
his property shall not be taken for public
use without compensation. Compensation is
had when the balance is struck between the
damages and benefits conferred on him by the
act complained of. To that, and to that
alone, he has a constitutional and vested
right.
112 N.C. at 768, 16 S.E. at 764. This Court has also stated:
It is firmly established in this State
that Where only a part of a tract of land is
appropriated by the State Highway and Public
Works Commission for highway purposes, the
measure of damages in such proceeding is the
difference between the fair market value of
the entire tract immediately before the
taking and the fair market value of what is
left immediately after the taking. . . .
Proctor v. State Highway and Public Works
Commission, 230 N.C. 687, 691, 55 S.E.2d 479,
482. This rule has been approved many times
. . . .
Kirkman, 257 N.C. at 432-33, 126 S.E.2d at 111.
Allowing the fact-finder to consider general benefits
follows not only persuasive authority and long practice, it also
fulfills the purpose underlying the requirement of just
compensation: to ensure that persons being required to provide
land for public projects are put in the same financial position
as prior to the taking. Accord United States v. 50 Acres of
Land, 469 U.S. 24, 30, 83 L. Ed. 2d 376, 383 (1984) (referring tothe basic principles of indemnity embodied in the Just
Compensation Clause); cf. State Highway Comm'n v. Phillips, 267
N.C. 369, 374, 148 S.E.2d 282, 286 (1966) (In condemnation
proceedings our decisions are to the effect that damages are to
be awarded to compensate for loss sustained by the landowner.).
As the United State Supreme Court has stated, a condemnee is
entitled to be put in as good a position pecuniarily as if his
property has not been taken. He must be made whole but is not
entitled to more. Olson v. United States, 292 U.S. 246, 255, 78
L. Ed. 1236, 1244 (1934).
Here, the argument of defendants, which was accepted by
the Court of Appeals, would result in defendants being fully
compensated for the land lost and being additionally compensated
for general benefits accruing to their remainder and to the
surrounding property owners. While defendants may deem the
denial of such a result unfair, it in no way denies them just
compensation. As noted by Justice Clark in Miller, the
legislature has decided that the state can reduce damages by all
of the benefits accruing and that decision rests with the
legislature in conferring the right of eminent domain. Miller,
112 N.C. at 768, 16 S.E. at 764. Just compensation is had when
the balance is struck between the damages and benefits conferred.
To that, and to that alone, [defendants have] a constitutional
and vested right. Id. If defendants are dissatisfied with that
result, then their recourse is with the legislature.
[3]Furthermore, because the Law of the Land Clause
requires only that a condemnee be indemnified, it permits a fact-finder to consider general benefits accruing to a condemnee's
remaining property. For the purposes of just compensation,
damages are measured by the change in the fair market value of
the land. See 26 Am. Jur. 2d Eminent Domain § 298 (1996); accord
Olson, 292 U.S. at 257, 78 L. Ed. at 1244. A condemnee is thus
indemnified if she receives the difference between the fair
market value of her property before the condemnation and the fair
market value of her remainder after the condemnation. That
change in market value is clearly affected by general benefits
accruing to her remaining property; a benefit is no less real
simply because it is shared by a condemnee's neighbor.
Therefore, because the Law of the Land Clause requires only that
the state indemnify the condemnee, because a condemnee's loss is
measured by the change in the market value of her property and
because that market value is affected by general benefits, the
Law of the Land Clause allows a fact-finder to consider general
benefits when calculating just compensation. It follows that
N.C.G.S. § 136-112(1) satisfies that clause. Because N.C.G.S. §
136-112(1) neither infringes defendants' right to just
compensation nor classifies persons on the basis of a suspect
characteristic, it does not trigger strict scrutiny under the
Equal Protection Clauses of the North Carolina or United States
Constitution. Instead, that statute receives only rational-basis
scrutiny.
B.
[4]Defendants contend that N.C.G.S. § 136-112(1) fails
rational-basis scrutiny. We disagree. Rational-basis scrutinyrequires only that the classification made by the statute be
rationally related to a legitimate government objective.
Nordlinger, 505 U.S. at 10, 120 L. Ed. 2d at 12 ([U]nless a
classification warrants some form of heightened review . . . ,
the Equal Protection Clause requires only that the classification
rationally further a legitimate state interest.); Texfi, 301
N.C. at 149, 269 S.E.2d at 149 ([T]he lower tier of equal
protection analysis . . . merely requires that distinctions which
are drawn by a challenged statute or action bear some rational
relationship to a conceivable legitimate government interest.).
It gives wide latitude to the legislature; if there is any
plausible policy reason for the classification, the test is
satisfied. Nordlinger, 505 U.S. at 11, 120 L. Ed. 2d at 13 (In
general, the Equal Protection Clause is satisfied so long as
there is a plausible policy reason for the classification
. . . .); White v. Pate, 308 N.C. 759, 766, 304 S.E.2d 199, 204
(1983) ([I]n instances in which it is appropriate to apply the
rational basis standard, the governmental act is entitled to a
presumption of validity.).
In article 9, Condemnation, of chapter 36 of the
North Carolina General Statutes, the General Assembly has set out
the process for the acquisition of property by DOT using the
power of eminent domain. Within that article is N.C.G.S. §
136-112, Measure of Damages. That statute specifically sets
out, as previously noted, that just compensation is determined by
the fair market value of the property immediately before the
taking and immediately after the taking with consideration givento general benefits and special benefits. N.C.G.S.
§ 136-
112(1).
In contrast, article 1 of chapter 40A of the North
Carolina General Statutes provides that [i]t is the intent of
the General Assembly that the procedures provided by this Chapter
shall be the exclusive condemnation procedures to be used in this
State by all private condemnors and all local public condemnors.
N.C.G.S. § 40A-1 (1999). The statute further provides for the
repeal of all other provisions in laws, charters, or local acts
authorizing different procedures. Id. It is obvious that in
1981 the General Assembly chose to consolidate and make uniform a
myriad of laws pertaining to the exercise of eminent domain by
public and private condemnors.
Chapter 40A thus sets out both the procedure for
calculation of just compensation, N.C.G.S. ch. 40A, art. 3, and
the measure of just compensation, N.C.G.S. ch. 40A, art. 4, for
landowners affected by the exercise of eminent domain. The
statute covers: (a) Private Condemnors, such as corporations,
boards of trustees, and railroads; (b) Local Public Condemnors,
to include both municipalities and counties; and (c) Other
Public Condemnors, such as hospital authorities, housing
authorities, and watershed-improvement districts. Each section
also lists with some specificity the types of public uses that
these condemnors can undertake through the use of eminent domain.
In determining just compensation for a taking by one of
these local or private entities for any of the range of
permissible purposes, the General Assembly opted to provide ameasure of just compensation for the affected property owners
that ensures a choice in a partial taking. N.C.G.S. § 40A-64(b)
allows a property owner to choose the greater of the fair market
value before and after the property is taken or the fair market
value of the property taken. It is this choice available under
N.C.G.S. § 40A-64 and not available under N.C.G.S. § 136-112 that
defendants contend violates their constitutional rights.
Defendants claim that this classification between
condemnees is not rationally related to any legitimate
governmental purpose. However, we agree with the DOT:
defendants have failed to carry their burden of proving that
there is no rational reason for this distinction. As the DOT
suggests, the General Assembly could have determined that public
and private condemnors can offset some of their costs through
user fees for the service installed through the condemnation,
services such as water or sewage facilities. Thus, the General
Assembly could rationally have believed that public and private
condemnors should pay damages using either of the two methods
allowed by N.C.G.S. § 40A-64.
Furthermore, it is perfectly reasonable for the General
Assembly to have determined that, having given the power of
eminent domain across this state to every municipality and
county; every housing authority; and every private corporation
involved in power generation, railroads, telephones, etc., the
best way to ensure that a citizen whose property was taken by
eminent domain would receive just compensation was by giving him
a choice. The circumstances under N.C.G.S. § 40A govern a hugerange of types of uses, condemning authorities, and circumstances
that would require just compensation. Such a situation is
drastically different from the uniform practice of the DOT, an
agency of the state, condemning property all across the state for
roads. Either of these justifications is sufficient to withstand
rational-basis review. Therefore, this classification does not
violate the Equal Protection Clause of the United States or North
Carolina Constitution.
N.C.G.S. § 136-112(1) is a valid exercise of the
legislative power of the North Carolina General Assembly. It
does not violate the Equal Protection Clause of the United States
or North Carolina Constitution. We therefore reverse the Court
of Appeals as to this issue.
Based upon the foregoing, we reverse the decision of
the Court of Appeals.
REVERSED.
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