IN THE SUPREME COURT OF APPEALS OF WEST
VIRGINIA
September 1997 Term
____________
No. 24019
____________
DR. JAMES C. MCCOY,
Plaintiff below, Appellant,
v.
FRED VANKIRK, in his official
capacity as the Commissioner of the
West Virginia Division of Highways,
Defendant below, Appellee,
AND
RITE AID OF WEST VIRGINIA, INC.,
a West Virginia Corporation,
Intervenor below, Appellee.
______________________________________________________
Appeal from the Circuit Court of Kanawha County
Honorable Judge Paul Zakaib, Jr.
Civil Action No. 96-C-419
REVERSED AND REMANDED
______________________________________________________
Submitted:
October 8, 1997
Filed:
December 16, 1997
Joyce F. Ofsa,
Esq. Anthony
G. Halkias, Esq.
Trina L. Leone,
Esq. Jeff
Miller, Esq.
Mark A. Sadd,
Esq. West
Virginia Division of Highways
Spilman, Thomas &
Battle Charleston,
West Virginia
Charleston, West
Virginia Attorneys
for Appellee Fred VanKirk
Attorneys for Appellant McCoy
William
E. Hamb, Esq.
Christopher
L. Hamb, Esq.
Hamb
& Poffenbarger
Charleston,
West Virginia
Attorneys
for Appellee Rite Aid of
West
Virginia
JUSTICE STARCHER delivered the Opinion of the Court.
SYLLABUS BY THE COURT
1. "In
the absence of any definition of the intended meaning of words or
terms used in a legislative enactment, they will, in the
interpretation of the act, be given their common, ordinary and
accepted meaning in the connection in which they are used."
Syllabus Point 1, Miners in General Group v. Hix, 123
W.Va. 637, 17 S.E.2d 810 (1941), overruled on other grounds,
Lee-Norse Co. v. Rutledge, 170 W.Va. 162, 291 S.E.2d 477
(1982).
2. Under
W.Va. Code, 17-2A-19 [1994], an "abutting
landowner" is an individual who owns real property that
borders on or touches real property being offered for sale by the
Commissioner of the Division of Highways. A "principal
abutting landowner" is an individual who owns real property
that borders on or touches real property being offered for sale
by the Commissioner, and who is also an individual from whom the
real property being sold by the Commissioner was acquired or his
or her surviving spouse or descendant.
3. Under
W.Va. Code, 17-2A-19 [1994], all abutting landowners
(whether "principal abutting landowners" or not) must
receive preferential treatment when the Commissioner of the
Division of Highways chooses to sell state highways property that
the Commissioner has determined is not necessary for present or
future use. The statute directs that the Commissioner must offer
to sell property acquired after 1973 that has not substantially
changed since its acquisition to principal abutting landowners at
a cost equal to the amount paid in acquiring the real estate,
plus costs and interest. The Commissioner
may also first offer to sell right-of-way property to
principal abutting landowners without following the procedures
for a public auction. The Commissioner must offer all other
abutting property owners the first right to purchase the highways
property for fair market value.
4. "In
considering the constitutionality of a legislative enactment,
courts must exercise due restraint, in recognition of the
principle of the separation of powers in government among the
judicial, legislative and executive branches. Every reasonable
construction must be resorted to by the courts in order to
sustain constitutionality, and any reasonable doubt must be
resolved in favor of the constitutionality of the legislative
enactment in question. Courts are not concerned with questions
relating to legislative policy. The general powers of the
legislature, within constitutional limits, are almost plenary. In
considering the constitutionality of an act of the legislature,
the negation of legislative power must appear beyond all
reasonable doubt." Syllabus Point 1, State ex rel.
Appalachian Power Company v. Gainer, 149 W.Va. 740, 143
S.E.2d 351 (1965).
5. "'"Where
economic rights are concerned, we look to see whether the
classification is a rational one based on social, economic,
historic or geographic factors, whether it bears a reasonable
relationship to a proper governmental purpose, and whether all
persons within the class are treated equally. Where such
classification is rational and bears the requisite reasonable
relationship, the statute does not violate Section 10 of Article
III of the West Virginia Constitution, which is our equal
protection clause." Syllabus Point 7, [as modified,] Atchinson
v. Erwin, 172 W.Va. 8, 302 S.E.2d 78 (1983).' Syllabus Point
4, as
modified, Hartsock-Flesher Candy Co. v. Wheeling Wholesale
Grocery Co., 174 W.Va. 538, 328 S.E.2d 144 (1984)."
Syllabus Point 4, Gibson v. West Virginia Department of
Highways, 185 W.Va. 214, 406 S.E.2d 440 (1991).
6. "The
requirement of expressiveness contemplated by W.Va. Const. art.
VI, § 30 necessarily implies explicitness. A title must, at a
minimum, furnish a 'pointer' to the challenged provision in the
act. The test to be applied is whether the title imparts enough
information to one interested in the subject matter to provoke a
reading of the act." Syllabus Point 2, State ex rel.
Walton v. Casey, 179 W.Va. 485, 370 S.E.2d 141 (1988).
Starcher, Justice:
This appeal
concerns the interpretation and constitutionality of W.Va.
Code, 17-2A-19 [1994], which allows the Commissioner of the
Division of Highways, appellee Fred VanKirk,
("Commissioner") to dispose of certain unneeded
highways real estate. The dispute between the parties centers on
whether, under the statute, the Commissioner may constitutionally
give preferential treatment to an owner of land adjoining the
highways property being sold by offering the adjoining landowner
the right of first refusal to purchase the highways property for
"fair market value." Under the statute, the general
public (that is, persons who do not own adjoining property) must
buy surplus highways property at a public auction for the
"highest and best price therefor."
On September 10,
1996, the Circuit Court of Kanawha County entered an order
holding that W.Va. Code, 17-2A-19 violates the equal
protection guarantees of the United States and West Virginia
Constitutions by giving preferential treatment to abutting
landowners as opposed to non-abutting landowners. See U.S.
Const., amend. XIV; W.Va. Const., art. III, § 10. The
circuit court also found that the statute violates the West
Virginia constitutional requirement that the object of each act
of the legislature must be contained in its title. See W.Va.
Const., art. VI, § 30.
After reviewing
the complex language of the statute, we hold that the statute
requires the Commissioner to give preferential treatment to any
landowner who owns land adjoining highways property when selling
that property pursuant to W.Va. Code, 17-2A-19. We
conclude that the legislative creation of this distinction
between abutting landowners and
the general public is rationally related to a legitimate state
purpose, and does not violate equal protection. Additionally, the
title of the act as amended in 1994 was sufficient to apprise any
interested party of its nature, and the title thus meets
constitutional requirements. We therefore reverse the circuit
court's order, and remand the case for further proceedings.
I.
Facts and Background
The West Virginia Division of Highways owns a 4.65 acre plot of land in Jackson County, West Virginia, and has used the land since 1942 for its county maintenance garage. In 1995, the Commissioner determined that the property was no longer needed for present or future highways purposes and could therefore be sold pursuant to W.Va. Code, 17- 2A-19 [1994].See footnote 1 1 An appraiser valued the property at $925,000.00. The appellant, Dr. James
McCoy, owns (and has owned since approximately 1974) a plot of
land that abuts the highways property. The appellant also owns
several other nearby non-abutting plots that he has developed for
commercial use.
In February 1996,
the Commissioner announced that the aforementioned highways
property would be sold at a public auction. On February 26, 1996,
the appellant filed this declaratory judgment action against the
Commissioner to stop the auction, arguing that W.Va. Code,
17-2A-19 requires that highway property first be offered for sale
to abutting landowners at fair market value before being publicly
auctioned. On March 2, 1996, the appellant and the Commissioner
negotiated an agreed order that allowed the sale of the property
by public auction, subject to a right of first refusal in any
abutting property owners.
The
Commissioner held a public auction on April 19, 1996. Several
commercial interests placed bids on the property, but the highest
bid was made by the intervenor below and appellee, Rite Aid of
West Virginia, Inc. ("Rite Aid"), for $1.45 million.
The appellant was present at the auction but did not bid.
By letter dated
May 2, 1996, the Commissioner offered to sell the property to the
appellant according to his statutory right of first refusal;
however, the Commissioner determined the fair market value of the
property to be the auction bid of $1.45 million. On June 4, 1994,
the appellant wrote that he agreed to exercise his right to
purchase the property, but reserved the right to challenge the
manner in which the Commissioner determined the fair market value
of the property. Shortly thereafter, the appellant filed a motion
for the determination of fair market value with the circuit
court.
Appellee Rite Aid
filed a motion to intervene in this declaratory judgment action
on May 8, 1996, arguing that by giving preferential treatment to
abutting landowners such as appellant McCoy, W.Va. Code,
17-2A-19 violated the equal protection clauses of the United
States and West Virginia Constitutions. See U.S. Const.,
amend. XIV; W.Va. Const., art. III, § 10. Additionally,
Rite Aid argued that the statute was unconstitutional because,
when it was enacted in 1994, it failed to meet the West Virginia
constitutional requirement that the title of legislative
enactments reflect the purpose of the statute. See W.Va.
Const., art. VI, § 30, infra.
On September 10,
1996, the circuit court entered an order holding W.Va. Code,
17-2A-19 [1994] was not applicable to the appellant because he
was not a "principal abutting
landowner" as defined by the statute.
Furthermore, the circuit court found W.Va. Code, 17- 2A-19
[1994] to be unconstitutional on two grounds, concluding that it
violated the equal protection clauses of the United States
Constitution the West Virginia Constitution; and that
it violated the West Virginia constitutional requirement that
every statute enacted by the legislature express its objective in
the title. Accordingly, the circuit court concluded that the
Commissioner had no authority to offer the State property to the
appellant for first refusal, and ordered the Commissioner to
convey the property to Rite Aid. The appellant appeals the
circuit court's order.
II.
Discussion
A. Statutory Construction
The central
issue in this case is the interpretation of W.Va. Code,
17-2A-19, and the delineation of the different classes of
individuals under the statute who may purchase surplus State
highways property (property that the Commissioner has deemed
unnecessary for present or future State highways purposes) by
different means at different prices. We conclude that W.Va.
Code, 17-2A-19 creates three different groups of potential
purchasers of surplus highways property, and conclude that the
circuit court erred in its interpretation of the statute and its
conclusion that the appellant was not an "abutting
landowner" who possessed a right of first refusal to
purchase the property at fair market value.
"Interpreting
a statute presents a purely legal question subject to our de
novo review on which neither party bears the burden of
proof." Syllabus Point 1, West Virginia Human Rights
Comm'n v. Garretson, 196 W.Va. 118, 468 S.E.2d 733 (1996). We
have said
that "[a] statute that is ambiguous must be construed
before it can be applied." Syllabus Point 1, Farley v.
Buckalew, 186 W.Va. 693, 414 S.E.2d 454 (1992). The initial
step in construing an ambiguous statute is to ascertain the
legislative intent behind the statute. Syllabus Point 1, Ohio
County Comm'n v. Manchin, 171 W.Va. 552, 301 S.E.2d 183
(1983).
To determine the
intent of the Legislature, we must examine the statute in its
entirety:
In the
construction of a legislative enactment, the intention of the
legislature is to be determined, not from any single part,
provision, section, sentence, phrase or word, but rather from a
general consideration of the act or statute in its entirety.
Syllabus Point 1, Parkins v. Londeree, 146 W.Va. 1051, 124
S.E.2d 471 (1962).
When construing
an ambiguous enactment in light of the Legislature's intent,
courts are not free to read into the language of a statute what
is not there, but should apply the statute as written. Mills
v. Van Kirk, 192 W.Va. 695, 699, 453 S.E.2d 678, 682 (1994).
Undefined words and terms in a legislative enactment will be
given their "common, ordinary, and accepted meaning."
Syllabus Point 1, Miners in General Group v. Hix, 123
W.Va. 637, 17 S.E.2d 810 (1941), overruled on other grounds,
Lee-Norse Co. v. Rutledge, 170 W.Va. 162, 291 S.E.2d 477
(1982). Additionally, "when a statute's language is
ambiguous, a court often must venture into extratextual territory
in order to distill an appropriate construction." State
ex rel. McGraw v. Scott Runyan Pontiac-Buick, Inc., 194 W.Va.
770, 777, 461 S.E.2d 516, 523 (1995).
The
Commissioner and Rite Aid contend that there are only two classes
of purchasers under the statute: a "principal abutting
landowner," which is defined as "an individual from
whom the real estate was acquired" or their heirs, and who
have a right of first refusal to purchase surplus property from
the Commissioner; and the general public, who must purchase the
property at a public auction. The appellant contends there is a
third class: "abutting landowners" whose property
adjoins surplus highways property, who have a right of first
refusal to buy the property at fair market value. The appellant
further contends that he is in this last class and should be
allowed the first right of refusal to purchase the subject
property. We agree with the appellant's construction of the
statute.
We begin our
analysis in this case by examining the history of W.Va. Code,
17- 2A-19. The statute was first enacted by the legislature in
1963, and has been amended twice, in 1988 and 1994. With each
amendment, the Legislature expanded the powers of the
Commissioner to sell highways properties that the Commissioner
deemed unnecessary for present or future highways use. However,
as discussed below, the Legislature also increased the complexity
of the statute, and created internal inconsistencies that
underlie this case.
W.Va. Code,
17-2A-19 was first enacted in 1963 to allow for the disposal of
real property held by the then-State Road Commission. As with the
current statute, the 1963 statute allowed the Commissioner to
"sell . . . real property . . . held by the state road
commission[,]" which the Commissioner deemed no longer
necessary for present or future state road purposes; the 1963 act
required the Commissioner to sell the property "at public
auction . . . in the manner which will bring the highest and
best price therefor." Acts of the Legislature of West
Virginia (1963), chap. 160.
In 1988, the
Legislature amended W.Va. Code, 17-2A-19 to also allow the
Commissioner to sell or lease properties which were former
railroad rights-of-way or were formerly used as turnpikes, and as
is stated in the title of the statute, to permit "those
properties to be first sold to abutting landowners without the
necessity of public auction."See footnote 2 2 Acts of the
Legislature of West Virginia (1988), chapter 110. The
Legislature introduced two terms in the text of the 1988 statute:
"abutting landowners," and "principal abutting
landowners." Neither term was defined, and the terms were
used interchangeably.
The 1988 statute
preserved the Commissioner's right to sell unneeded highways
property at public auction. However, the 1988 amendments to the
statute gave the Commissioner the authority to sell former
railroad right-of-way properties and properties formerly used for
turnpike roads "by first offering the same to the principal
abutting
landowners without following the procedure for public auction
hereinbefore set forth in this section." W.Va. Code,
17-2A-19 [1988]. The statute also said that the Commissioner was
to adopt rules to "provide for granting a right of first
refusal to abutting landowners at fair market value in the sale
or lease of former railroad right-of-way properties and former
turnpike roads owned by the department of highways." Id.
The 1988 version
of W.Va. Code, 17-2A-19 clearly indicated a legislative
intent to create two classes of purchasers of State highways
properties: abutting or adjoining landowners, and individuals who
did not own adjoining property. An "abutting landowner"
or "principal abutting landowner" was to be given: (a)
a right of first refusal, without the use of a public auction, to
purchase a railroad right-of-way or former turnpike road, (b) at
fair market value. An individual who was not an adjoining
landowner could purchase the State property (a) at public auction
(b) for "the highest and best price therefor."
The instant case
arises from the amendment of W.Va. Code, 17-2A-19 in 1994,
where the Legislature added a definition for "principal
abutting landowner," while continuing to use the term
"abutting landowner." The 1994 amendments gave the
Commissioner the ability to sell any highways property -- not
just former railroad rights-of-way and former turnpike properties
-- which the Commissioner deemed unnecessary for future highways
purposes. Since we must give effect to each word of a statute,
and cannot read words into the statute, our reading of W.Va.
Code, 17-2A-19 [1994] leads us to the conclusion that there
are now three classes of purchasers of State highways
properties.
As the statute
now reads, W.Va. Code, 17-2A-19 [1994] allows the
Commissioner to "sell . . . real property . . . held by the
division of highways." The statute further states that
"every such sale of real property . . . shall be at public
auction[,]" and the property "shall be sold in the
manner which will bring the highest and best price
therefor."
However, under
the current statute the Commissioner "may . . . sell . . .
any right-of-way properties . . . by first offering the same to
the principal abutting landowners without following the procedure
for public auction hereinbefore set forth in this section."
A "principal abutting landowner" is defined as an
"abutting landowner" who is "an individual from
whom the real estate was acquired or his or her surviving spouse
or descendant." Additionally, if any type of real property
was acquired by the Commissioner after 1973 (through voluntary
acquisition or the exercise of the right of eminent domain), and
the primary use of the property has not substantially changed
since the time of the acquisition, then the Commissioner
"shall give preferential treatment to an abutting
landowner" if it appears that they are "principal
abutting landowners." That "preferential
treatment" is that the Commissioner "shall offer the
property for sale at a cost equal to the amount paid by the
division of highways in acquiring the real estate[,]" plus
interest and the cost of removing improvements.
The conflict in
this case arises over the statute's confusing requirement that:
The commissioner
. . . shall also provide for granting a right of first refusal to
abutting landowners at fair market value in the sale of any real
estate . . . owned by the division of highways.
W.Va. Code, 17-2A-19 [1994]. The Commissioner and Rite
Aid contend that this statutory provision is intended to apply to
"principal abutting landowners." We reject this
interpretation because the word "principal" is absent
from this statutory provision; we decline to read into the
statute a term that is conspicuously absent.
Our rules of
statutory construction constrain us from adding terms to a
statute, and require us to give undefined terms their common,
ordinary and accepted meaning. The appellant contends the
Legislature intended through this provision to allow any
adjoining property owner the right of first refusal to buy
highways property "at fair market value." We agree. Our
review of the history of W.Va. Code, 17-2A-19 leads us to
the conclusion that the Legislature intended to create a
preference for any adjoining landowners and not merely
adjoining landowners from whom the property was initially
acquired by the Division of Highways.
Under W.Va.
Code, 17-2A-19, we conclude that there are three classes of
potential purchasers of highways property that the Commissioner
has approved for sale. The first group is the general public,
individuals who do not own property adjoining highways property
approved for sale by the Commissioner, and who are accorded no
special rights under the statute. For this class of purchasers,
the Commissioner must (a) sell the property to individuals who do
not own adjoining property at a public auction (b) for the
highest and best price therefor.
The second and
third classes of purchasers are both types of abutting
landowners, and both are accorded preference under the statute. Webster's
Third New
International Dictionary (1970) defines
"abut" as "to touch at one end, border on . . . to
touch (as of contiguous estates) along a border or with a
projecting part." Hence, under W.Va. Code, 17-2A-19
[1994], an "abutting landowner" is an individual who
owns real property that borders on or touches real property being
offered for sale by the Commissioner of the Division of Highways.
A "principal abutting landowner" is an individual who
owns real property that borders on or touches real property being
offered for sale by the Commissioner, and who is also an
individual from whom the real property being sold by the
Commissioner was acquired or his or her surviving spouse or
descendant.
The second group
of purchasers, "abutting landowners," are individuals
who: (a) must be given a right of first refusal to purchase that
highways property from the Commissioner (b) at fair market value.
The third class
of purchaser (which is essentially a sub-class of "abutting
landowners") is a "principal abutting landowner."
A principal abutting landowner is an abutting landowner, and is
also a landowner from whom (directly or indirectly by descent)
the property being sold by the Commissioner was acquired. This
class of principal abutting landowners is accorded additional
rights to repurchase the real estate. The Commissioner
"may" (a)(1) offer to sell or transfer to a principal
abutting landowner any surplus right-of- way properties (2)
without following the procedure for public auction; or (b)(1) as
to property acquired by the Commissioner after 1973 which has not
been substantially changed, the property must be offered for sale
to principal abutting landowners (2) "at a cost equal to
the amount paid by the division of highways in
acquiring the real estate," plus interest and certain costs.
We therefore
conclude that the circuit court erred in its interpretation of
the statute. We hold that under W.Va. Code, 17-2A-19
[1994], all abutting landowners (whether "principal abutting
landowners" or not) must receive preferential treatment when
the Commissioner chooses to sell state highways property that the
Commissioner has determined is not necessary for present or
future use. The statute directs that the Commissioner must offer
to sell property acquired after 1973 that has not substantially
changed since its acquisition to principal abutting landowners at
a cost equal to the amount paid in acquiring the real estate,
plus costs and interest. The Commissioner may also first offer to
sell right-of- way property to principal abutting landowners
without following the procedures for a public auction. The
Commissioner must offer all other abutting property owners (i.e.,
not "principal abutting landowners") the first right to
purchase the highways property for fair market value.
Accordingly,
under the facts of this case, we conclude that the circuit court
erred, and hold that under W.Va. Code, 17-2A-19 [1994] the
Commissioner is required to offer to the appellant, an abutting
landowner, the right of first refusal to purchase the Jackson
County property at fair market value.
B.
Constitutional Analysis
1.
Equal Protection
The appellant
contends that the circuit court erred in its finding that the
statute's granting of special purchasing rights to abutting
landowners violated the equal protection guarantees found in U.S.
Const., amend. XIV,See
footnote 3 3 and W.Va. Const., art. III,
§10.See footnote 4 4
The appellant argues that our equal protection jurisprudence
does not contain a test of whether there is a "good and
valid reason" for economic legislation, as was used by the
circuit court. Instead, the appellant urges that the test is
whether there is a "rational relationship" to some
legitimate state purpose, and argues that there are legitimate
state goals that are rationally met by W.Va. Code,
17-2A-19. We agree.
We begin by
noting that the unconstitutionality of a statute must be shown
beyond a reasonable doubt. Our standard for reviewing the
constitutionality of statutes was set forth in Syllabus Point 1
of State ex rel. Appalachian Power Company v. Gainer, 149
W.Va. 740, 143 S.E.2d 351 (1965), where we stated:
In
considering the constitutionality of a legislative enactment,
courts must exercise due restraint, in recognition of the
principle of the separation of powers in government among the
judicial, legislative and executive branches. Every reasonable
construction must be resorted to by the courts in order to
sustain constitutionality, and any reasonable doubt must be
resolved in favor of the constitutionality of the legislative
enactment in question. Courts are not concerned with questions
relating to legislative policy. The general powers of the
legislature, within constitutional limits, are almost plenary. In
considering the constitutionality of an act of the legislature,
the negation of legislative power must appear beyond reasonable
doubt.
In accord, Syllabus Point 1, West Virginia Trust
Fund, Inc. v. Bailey, 199 W.Va. 463, 485 S.E.2d 407 (1997);
Syllabus Point 1, State ex rel. Blankenship v. Richardson,
196 W.Va. 726, 474 S.E.2d 906 (1996); Syllabus Point 4, State
ex rel. W.Va. Housing Development Fund v. Copenhaver, 153
W.Va. 636, 171 S.E.2d 545 (1969).
In examining the
constitutionality of legislation implicating economic rights
(such as W.Va. Code, 17-2A-19) under the West Virginia
equal protection clause, we apply a "rational basis"
test. We said in Syllabus Point 4 of Gibson v. West Virginia
Department of Highways, 185 W.Va. 214, 406 S.E.2d 440 (1991):
"'Where
economic rights are concerned, we look to see whether the
classification is a rational one based on social, economic,
historic or geographic factors, whether it bears a reasonable
relationship to a proper governmental purpose, and whether all
persons within the class are treated equally. Where such
classification is rational and bears the requisite reasonable
relationship, the statute does not violate Section 10 of Article
III of the West Virginia Constitution, which is our equal
protection clause.' Syllabus Point 7, [as modified,] Atchinson
v. Erwin, 172 W.Va. 8, 302 S.E.2d 78 (1983)." Syllabus
Point 4, as modified, Hartsock-Flesher Candy Co. v. Wheeling
Wholesale Grocery Co., 174 W.Va. 538, 328 S.E.2d 144 (1984).
Similarly, under
the United States Constitution, economic classifications created
by a legislature "need only be tested under the lenient
standard of rationality that [the United States Supreme Court]
has traditionally applied in considering equal protection
challenges to regulation of economic and commercial matters.
Under that standard a statute will be sustained if the
Legislature could have reasonably concluded that the challenged
classification would promote a legitimate state purpose." Exxon
Corp. v. Eagerton, 462 U.S. 176, 195-96, 103 S.Ct. 2296,
2308, 76 L.Ed.2d 497, 513 (1983) (citations omitted). Under this
highly deferential standard, economic legislation will be
affirmed "if there is any reasonably conceivable state of
facts that could provide a rational basis for the
classification." Federal Communications Comm'n v. Beach
Communications, Inc., 508 U.S. 307, 314, 113 S.Ct. 2096,
2101, 124 L.Ed.2d 211, 221 (1993).
Rite Aid argues
that there is no legitimate purpose to be rationally served by
granting a right of first refusal "indiscriminately" to
all individuals with land abutting Division of Highways property.
It argues that the circuit court's conclusion that there was
"no good or valid reason" for the distinction between
adjoining landowners and non- adjoining landowners is the same as
a finding that the classification lacks a rational relationship
to a legitimate state purpose. Rite Aid goes one step further,
and argues for a rule that "a challenged classification
should be sustained only if it is rationally related to the
achievement of an actual government purpose." Rite
Aid essentially argues that, because the Legislature did not
state the purposes of W.Va. Code, 17-2A-19 within the act
itself, we
cannot rely on common sense and deductive reasoning to infer
any state purpose for any piece of legislation. We reject this
argument.
We can conceive
of numerous legitimate state purposes to which the statute is
rationally related. For example, our jurisprudence recognizes
that real property is unique, and that a landowner will often
want to add to his or her land holdings by purchasing adjoining
property. Further, the value of property is often influenced by
the use of adjacent lands. In essence, a landowner has a vested
economic and social interest in the quality and character of his
or her land and the neighboring properties; strangers to a
neighborhood may not have the best interests of the neighborhood
in mind. Another significant and laudatory effect of the statute
is to prevent the acquisition of "spite strips" of
land, and to prevent pernicious speculation by those persons and
entities better able to afford to bid a higher price for the
property.
The Legislature
could certainly seek to preserve these interests by allowing
abutting landowners the first right to purchase surplus State
highways property from the Commissioner. Accordingly, we find
that the preferences granted to abutting landowners as opposed to
non-abutting landowners under W.Va. Code, 17-2A-19 are
rationally related to legitimate State interests, and hold that
the statute is constitutional under the equal protection clauses
of the United States Constitution and West Virginia
Constitution.
2.
Constitutionality of the Title of the Act
The third
issue raised by the appellant is whether the title of the bill
which enacted W.Va. Code, 17-2A-19 [1994] violated W.Va.
Const., art. VI, § 30 by not expressing objects which were
embraced in the bill. We conclude that W.Va. Const., art.
VI, § 30 was not violated.
W.Va.
Constitution, art. VI, §30 requires that the object of an
act passed by the Legislature must be expressed in the act's
title. It states, in pertinent part:
No act hereafter
passed, shall embrace more than one object, and that shall be
expressed in the title. But if any object shall be embraced in an
act which is not so expressed, the act shall be void only as to
so much thereof, as shall not be so expressed, and no law shall
be revived, or amended, by reference to its title only; but the
law revived, or the section amended, shall be inserted at large,
in the new act. . . .
We have held
that this constitutional provision serves two salutary purposes:
First, it is
designed to give notice by way of the title of the contents of
the act so that legislators and other interested parties may be
informed of its purpose. Second, it is designed to prevent any
attempt to surreptitiously insert in the body of the act matters
foreign to its purpose which, if known, might fail to gain the
consent of the majority.
Syllabus Point 1, in part, State ex rel. Walton v. Casey,
179 W.Va. 485, 370 S.E.2d 141 (1988).
When determining
whether an act of the Legislature violates W.Va. Const.,
Art. VI, § 30, we will construe the language and title of the
act in "the most comprehensive sense favorable to its
validity." Syllabus Point 2, State ex rel. Graney &
Ford v. Sims, 144 W.Va.
72, 105 S.E.2d 886 (1958). In Syllabus Point 2 of State ex
rel. Walton v. Casey, supra, we stated our test for
examining whether an act of the Legislature complies with the
Constitution:
The requirement
of expressiveness contemplated by W.Va. Const. art. VI, Sec. 30
necessarily implies explicitness. A title must, at a minimum,
furnish a "pointer" to the challenged provision in the
act. The test to be applied is whether the title imparts enough
information to one interested in the subject matter to provoke a
reading of the act.
In other words, "[i]f the title of an act states its
general theme or purpose and the substance is germane to the
object expressed in the title, the title will be held
sufficient." Syllabus Point 1, State ex rel. Graney v.
Sims, 144 W.Va. 72, 105 S.E.2d 886 (1958).
The relevant
portion of the title of the Act which amended W.Va. Code,
17-2A- 19 in 1994 reads as follows: "AN ACT . . . relating
to the sale, exchange or lease of real property by the
commissioner of highways; permitting adjoining landowners right
of first refusal in certain instances; determination of sale
price." Acts of the Legislature of West Virginia
(1994), chapter 145.
The title clearly
indicates that the Legislature was enacting a statute which would
allow for the sale of State highways properties, and that
adjoining landowners would be allowed the right of first refusal
to purchase those properties. The title of the statute imparts
enough information to provoke a reading by the Commissioner; by
any individual interested in purchasing property from the
Division of Highways; and by individuals whose land abuts
Division of Highways properties.
Accordingly,
we hold that W.Va. Const., Art. VI, § 30 was not violated
since the title of the bill amending W.Va. Code, 17-2A-19
[1994] should have provoked a reading of the act by the
appellees.
C.
Fair Market Value
In Mills v.
VanKirk, 192 W.Va. 695, 453 S.E.2d 678 (1994), we interpreted
the 1988 version of W.Va. Code, 17-2A-19, and evaluated
the Commissioner's decision to sell former turnpike property. In Mills
we addressed the definition of the term "fair market
value" under the statute, and concluded that "fair
market value does not necessarily equal the highest and best
price." 192 W.Va. at 701, 453 S.E.2d at 684. We reviewed the
Commissioner's valuation of property for sale in that case under
an abuse of discretion standard, and held that the Commissioner
had determined the fair market value of the subject property in
an unbiased manner consistent with the statute. 192 W.Va. at
701-02, 453 S.E.2d at 684-85.
In this case, the
circuit court concluded that Mills was not controlling
precedent "because the events and litigation involved in
that case occurred prior to the 1994 Amendment to W.Va. Code §
17-2A-19 and involved former rights of way property." The
circuit court also did not address the appellant's argument that
the Commissioner had abused his discretion in setting the fair
market value of the Jackson County property at the auction price
of $1.45 million. We disagree with the circuit court's conclusion
that Mills is not applicable, and order on remand that the
circuit court consider our holding in that case.
In general,
"[t]he market value . . . is the price for which the land
could be sold in the market by a person desirous of selling to a
person wishing to buy, both freely exercising prudence and
intelligent judgment as to its value, and unaffected by
compulsion of any kind." Syllabus Point 5, Wheeling Elec.
Co. v. Gist, 154 W.Va. 69, 173 S.E.2d 336 (1970). In Mills,
supra, we defined "fair market value" under W.Va.
Code, 17-2A-19 [1988] as "the price a willing party
would pay for the property when there is no compulsion on any of
the parties." 192 W.Va. at 697, 453 S.E.2d at 680. We
acknowledged that "[f]air market value is a rather elusive
concept," 192 W.Va. at 701, 453 S.E.2d at 684, but we went
on to suggest that "[u]sing an objective method to establish
value is a well recognized technique for establishing fair market
value." 192 W.Va. at 702, 453 S.E.2d at 685.
We stated in Mills
that "the language and structure of the statute [W.Va.
Code, 17-2A-19 [1988]] suggest that the Legislature used fair
market value instead of highest and best price in order to
differentiate the price that the Commissioner should obtain when
offering the property to abutting landowners as opposed to the
general public." 192 W.Va. at 702, 453 S.E.2d at 685. In
this case, the appellant has indicated he is willing to purchase
the property at an objectively determined "fair market
value;" the Commissioner has valued the property at the
highest and best price obtained at auction, or $1.45 million.
We agree with the
appellant that auction value should not be used by the
Commissioner as the exclusive measure of fair market value.
However, on remand we believe that the circuit court may rely
upon the auction value of the property as evidence of its fair
market value; however, the auction value is not its exclusive
measure. The
Commissioner must be able to show that the
auction process was fair, voluntary and free of duress, and that
the auction process was not subjected to influences which might
artificially inflate or reduce the auction bids. Essentially, the
circuit court should determine if the auction value is
substantially similar to that value which would be had by
individuals willing to buy and sell without compulsion.
III.
Conclusion
For
the foregoing reasons, the circuit court's order of September 10,
1996 is reversed and the case is remanded for a determination of
the fair market value of the property pursuant to Mills, supra.
Reversed and remanded.
Footnote:
1 1
W.Va. Code, 17-2A-19 [1994] states:
The division of
highways, subject to the conditions herein, may sell, exchange,
or lease real property, or any interest or right therein, held by
the division of highways.
When the real
property, or any interest or right therein, is being held for
future road purposes, it may be leased. When the real property,
or any part thereof, or any interest or right therein, is deemed
by the commissioner not necessary, or desirable for present or
presently foreseeable future highways purposes, it may be
exchanged for other real property, or any interest or right
therein, deemed by the commissioner to be necessary or desirable
for present or presently foreseeable future highways purposes, or
it may be sold. In addition the division may exchange real
property, or any part thereof, or any interest or right therein,
even though it may be necessary or desirable for present or
presently foreseeable future highways purposes, if the
exchange is made for other real property, or any
interest or right therein, in close proximity thereto which the
commissioner deems of equal or superior useful value for present
or presently foreseeable future highways purposes. In making
exchanges the division may make allowances for differences in the
value of the properties being exchanged and may move or pay the
cost of moving buildings, structures, or appurtenances in
connection with the exchange.
Every such sale
of real property, or any interest or right therein or structure
thereon, shall be at public auction in the county in which the
real property, or the greater part thereof in value, is located,
and the division shall advertise, by publication or otherwise,
the time, place, and terms of the sale at least twenty days prior
thereto. The property shall be sold in the manner which will
bring the highest and best price therefor. The division may
reject any or all bids received at the sale. The commissioner
shall keep a record, open to public inspection, indicating the
manner in which such real property, or any interest or right
therein or structure thereon, was publicly advertised for sale,
the highest bid received therefor and from whom, the person to
whom sold, and payment received therefor. The record shall be
kept for a period of five years and may thereafter be destroyed.
The commissioner
may transfer, sell, or otherwise dispose of any right-of-way
properties or any interest or right therein, owned by or to be
acquired by the division of highways which the commissioner in
his or her sole discretion shall determine are not necessary or
desirable for present or presently foreseeable future highways
purposes by first offering the same to the principal abutting
landowners without following the procedure for public auction
hereinbefore set forth in this section.
The commissioner
shall adopt and promulgate rules in accordance with the
provisions of article three, chapter twenty-nine-a of this code
governing and controlling the making of any leases or sales
pursuant to the provisions of this section, which rules may
provide for the giving of preferential treatment
in making leases to the persons from whom the
properties or rights or interests therein were acquired, or their
heirs or assigns and shall also provide for granting a right of
first refusal to abutting landowners at fair market value in the
sale of any real estate or any interest or right therein owned by
the division of highways.
Notwithstanding
any other provision of this section to the contrary, with respect
to real property acquired subsequent to the year one thousand
nine hundred seventy-three for highways purposes through
voluntary real estate acquisition or exercise of the right of
eminent domain, which real estate the commissioner has determined
should be sold as not necessary for highways purposes, the
commissioner shall give preferential treatment to an abutting
landowner if it appears that:
(1) A principal abutting landowner is an individual from whom the
real estate was acquired or his or her surviving spouse or
descendant. In order to qualify for preferential treatment, the
surviving spouse or descendant need not be a beneficiary of the
individual. The terms used in this subdivision are as defined in
section one, article one, chapter forty-two of this code; and
(2) The primary use of the abutting property has not
substantially changed since the time of the acquisition.
When the
foregoing conditions are met, the commissioner shall offer the
property for sale to the principal abutting landowner at a cost
equal to the amount paid by the division of highways in acquiring
the real estate: Provided, That if improvements on the property
have been removed since the time of the acquisition, the cost
shall be reduced by an amount attributable to the value of the
improvements removed: Provided, however, That the cost may be
adjusted to reflect interest at a rate equal to the increase in
the consumer price index for all urban consumers as reported by
the United States department of labor since the time of
disbursement of the funds.
The commissioner may insert in any deed or conveyance, whether it
involves an exchange, lease, or sale, the conditions as are in
the public interest and have been approved in advance by the
governor.
All moneys
received from the exchange, sale, or lease of real property, or
any right or interest therein, shall be paid into the state
treasury and credited to the state road fund.
Notwithstanding
the provisions of this section, property shall not be
transferred, sold or otherwise disposed of unless the
commissioner finds that the right-of-way or other property has no
significant value to the state as a hiking trail and does not
serve as a link between two or more state owned properties,
except that any such property that lies within six hundred feet
of any dwelling house may be transferred, sold or otherwise
disposed of without such a finding pursuant to the provisions of
this section.
Footnote:
2 2
The title to the 1988 enactment states (with emphasis added):
AN ACT to amend
and reenact section nineteen, article two-a, chapter seventeen of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, relating generally to the authority of the
commissioner of highways with respect to the sale, lease,
exchange or lease of certain real property acquired by the West
Virginia department of highways; sale, lease or use of former
railroad rights-of-way and those properties which were formerly
used as turnpikes and in which the department of highways has a
property interest; and permitting those properties to be first
sold to abutting property owners without the necessity of public
auction.
Acts of the Legislature of West Virginia (1988), chapter
110.
Footnote:
3 3
U.S. Const., amend. XIV, states in pertinent part, with
emphasis added:
All persons born
or naturalized in the United States, and subject to the
jurisdiction thereof, are citizens of the United States and of
the State where they reside. No State shall make or enforce any
law which shall abridge the privileges or immunities of citizens
of the United States; nor shall any State deprive any person of
life, liberty, or property, without due process of law; nor
deny to any person within its jurisdiction the equal protection
of the laws.
Footnote:
4 4
W.Va. Const., art. III, § 10 states:
No person shall
be deprived of life, liberty, or property, without due process of
law, and the judgment of his peers.
We stated in Syllabus Point 4 of Israel by Israel v. West
Virginia Secondary Schools Comm'n, 182 W.Va. 454, 388 S.E.2d
480 (1989) that our "constitutional equal protection
principle is a part of the Due Process clause" found in W.Va.
Const., art. III, §10.