St. Bernard Port, Harbor & Terminal District v. Violet Dock Port, Inc.

St. Bernard Port, Harbor & Terminal District (the port) (plaintiff) was a state-operated public port in Louisiana. In 2010, the port initiated an expropriation proceeding to take 75 acres of land along the Mississippi River (the property) that belonged to Violet Dock Port, Inc. (Violet) (defendant). The property had been improved to accommodate Violet’s primary current use for layberthing with limited cargo operations. Violet had a contract with the United States Navy to layberth and service oceangoing ships. At trial, the parties produced the opinions of competing experts regarding the proper valuation of the property, either fair market value or replacement value, and the highest and best use of the property, either primarily for layberthing or primarily for cargo handling. The trial court approved the expropriation of the property and found $16 million to be just compensation based on a fair market valuation by the port’s experts. The court of appeal affirmed. The Louisiana Supreme Court granted review and concluded that the expropriation was authorized but that the trial court’s award was based on a misconception that the court was required to rely entirely on only one expert’s opinion. The Supreme Court remanded the matter with instructions for the court of appeal to conduct a de novo review of the evidence to arrive at just compensation.