The Oklahoma Bar Journal November 2022

an analysis of the other side’s appraisal. Appraisers may have dif fering opinions based on differing professional standards, supported or unsupported damage conclu sions or the lack of competence in eminent domain appraisals. The appraiser will assist the attorney in reviewing the other side’s appraisal to see whether the appraiser is using direct market evidence or unsupported speculation for their conclusions. An appropriately developed appraisal should have market support for each and every conclusion made by the appraiser. After either party demands trial, an eminent domain case pro ceeds identically like all other civil litigation except for one change: The burden of proof is on the land owner, the defendant in the case, to prove the value of the property being acquired. All discovery tools of the Oklahoma Discovery Code are available to both sides. From either the condemnor or condemnee’s perspective, requesting any appraisal of the property is a useful resource. The condemnor’s acquisition appraisal is admissible against the condem nor at trail. 63 If the landowner is claiming the property as an income-generating resource, copies of previous tax returns can verify the landowner’s claim. Depositions are a valuable tool to have a complete understanding of the opposing side’s opinion of just compensation. At the deposi tion, obtaining a full and complete copy of the opposing appraiser’s report and work file is necessary in understanding their opinion of value. The workfile will contain all the supporting information for the appraiser’s findings and conclu sions. The contents of the work file, or more importantly what is MOVING THE CASE THROUGH DISCOVERY

use, contiguity and ownership. The identification of the larger parcel will have a significant impact on the property’s market value. Next, the subject’s highest and best use is developed. Highest and best use of the property must be reasonable, probable, physi cally possible, legally permissible, financially feasible and maximally productive. An accurate determi nation of the highest and best use is critical to proper valuation. When developing the market value of the property, it is essen tial for the appraiser to use proper data to support their conclusions. In eminent domain cases, unique damage issues arise. In those instances, special studies are needed to develop an opinion of market value. Those can include studies such as a proximity study, damage study, tree analysis, regres sion analysis, trending analysis, location quotient and hedonic price modeling. Each of these analyses will support the appraiser’s ulti mate conclusion of just compensa tion owed to the landowners. Another vital service the appraiser provides is making

professional designations such as the MAI or SRA designation from the Appraisal Institute. These pro fessional designations exceed the knowledge, training and experi ence of the minimal state licensure requirements. The MAI designa tion is for appraisers who evaluate all property types, while the SRA designation is focused on residen tial properties. The MAI and SRA designations from the Appraisal Institute are optimal for the appraiser who provides opinions of value, consulting, review apprais als and investment advice. 61 Both designations require the appraiser to have either a bachelor’s degree or be a licensed certified general appraiser, pass intensive apprais al-specific classes, pass a final comprehensive examination, have good moral character and continu ing education requirements. 62 One of the first steps an appraiser takes is performing an analysis of the larger parcel. Identification of the larger parcel also plays into the highest and best use conclusion that will be developed later. The larger parcel theory is defined by the property’s

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THE OKLAHOMA BAR JOURNAL