CORE Electric Cooperative v. Freund Investments ( 2022 )


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  •      The summaries of the Colorado Court of Appeals published opinions
    constitute no part of the opinion of the division but have been prepared by
    the division for the convenience of the reader. The summaries may not be
    cited or relied upon as they are not the official language of the division.
    Any discrepancy between the language in the summary and in the opinion
    should be resolved in favor of the language in the opinion.
    SUMMARY
    June 9, 2022
    2022COA63
    No. 20CA2013, CORE Electric Cooperative v. Freund
    Investments, LLC — Eminent Domain — Condemnation —
    Evidence Concerning Value of Property; Evidence — Hearsay
    Exceptions — Public Records and Reports
    In this condemnation case, a division of the court of appeals
    determines that comparable sales that are not verified in
    compliance with section 38-1-118, C.R.S. 2021, may be admissible
    under the subsequently adopted hearsay exceptions under CRE
    803. Section 38-1-118 provides for the admission of evidence of
    property values in eminent domain proceedings where the witness
    “has personally examined the record and communicated directly
    and verified the amount of such consideration with either the buyer
    or seller.” As a matter of first impression, the division concludes
    that nothing in the language of section 38-1-118 directly addresses
    the exclusion of evidence of comparable sales. Thus, the hearsay
    exceptions under CRE 803 are independent and alternative
    methods to section 38-1-118 for the admission of hearsay evidence
    of the value of comparable sales.
    COLORADO COURT OF APPEALS                                          2022COA63
    Court of Appeals No. 20CA2013
    Arapahoe County District Court No. 18CV32213
    Honorable Elizabeth Weishaupl, Judge
    CORE Electric Cooperative, a Colorado cooperative electric association and
    nonprofit corporation, f/k/a Intermountain Rural Electric Association,
    Petitioner-Appellee,
    v.
    Freund Investments, LLC, a Colorado limited liability company,
    Respondent-Appellant.
    JUDGMENT AFFIRMED
    Division V
    Opinion by JUSTICE MARTINEZ*
    Fox and Gomez, JJ., concur
    Announced June 9, 2022
    Alderman Bernstein LLC, Jody Harper Alderman, Carrie S. Bernstein, Amanda
    A. Bradley, Denver, Colorado, for Petitioner-Appellee
    Campbell Killin Brittan & Ray, LLC, Bruce E. Rohde, Margaret R. Pflueger,
    Denver, Colorado, for Respondent-Appellant
    *Sitting by assignment of the Chief Justice under provisions of Colo. Const. art.
    VI, § 5(3), and § 24-51-1105, C.R.S. 2021.
    ¶1    In this condemnation case, respondent, Freund Investments,
    LLC (Freund), appeals the trial court’s judgment entered on a jury
    verdict after a valuation trial. Freund contends that the trial court
    erred by (1) finding its appraiser’s valuation based on the
    subdivision development method inadmissible; and (2) excluding
    evidence of multiple comparable sales pursuant to section 38-1-
    118, C.R.S. 2021. We affirm.
    I.   Background
    ¶2    Petitioner, CORE Electric Cooperative (CORE), formerly known
    as Intermountain Rural Electric Association, filed a petition in
    condemnation to acquire a nonexclusive permanent easement over
    26.07 acres on the western-most edge of Freund’s 2,722-acre
    property (the Property) to construct and operate a 115kV
    transmission line and ancillary distribution facilities extending from
    CORE’s Kiowa substation to its Brick Center substation. CORE
    also petitioned for a temporary construction easement over smaller
    portions of the Property. At the time of the petition, the Property
    was primarily used for agricultural purposes.
    ¶3    The parties stipulated to CORE’s immediate possession of the
    land subject to the easements and the case proceeded to a
    1
    valuation determination. On receiving their appraisers’ reports, the
    parties agreed that the highest and best use of the Property was to
    divide the Property into thirty-five- and forty-acre residential lots for
    future sale.
    ¶4    In determining the fair market value of the condemned
    property and any diminution to the fair market value to the residue,
    Freund’s appraiser, Gregory Owen, used two methods of valuation
    — the sales comparison approach and the subdivision development
    method.
    ¶5    First, using the sales comparison approach, Owen relied on
    seven similar properties to arrive at a per-acre value of $2,000.
    Based on this per-acre value, he concluded that the permanent
    easement’s value was $50,000. He also concluded that the
    temporary construction easement’s value was $5,000 based on
    similar temporary land leases. Next, to calculate the loss in value
    to the Property caused by the condemnation, Owen adjusted the
    per-acre value by 5% and arrived at a per-acre value of $1,900 after
    condemnation. After subtracting the post-condemnation value from
    the pre-condemnation value, he estimated the value of just
    2
    compensation under the sales comparison approach to be
    $330,000.
    ¶6    Second, using the subdivision development method, Owen first
    divided 1,766.27 acres of the Property into forty-four hypothetical
    forty-acre lots, each designated as premium or nonpremium lots
    based on the appeal and terrain of the lot (i.e., unobstructed views,
    creek access, trees), with a surplus of 955.68 acres. Owen relied on
    ten similar properties to estimate the retail value of the twenty-eight
    premium lots to be $240,000 and the sixteen nonpremium lots to
    be $200,000. Before condemnation, he projected that four to six
    lots would be sold each year over a ten-year period, with an
    increase in value to each lot by 3% annually to account for
    inflation, and then added the estimated value of all the lots
    together. Next, relying on market data, he deducted the estimated
    costs of selling the lots, the estimated development costs, the
    estimated developer profit, and the estimated entrepreneurial
    incentive/discount rate from the total estimated value of the lots.
    After adding the value of the surplus with an estimated value of
    $2,000 per acre, Owen arrived at a total pre-condemnation value of
    $5,650,000 for the entire property.
    3
    ¶7    After condemnation, Owen opined that six and one-half
    premium lots changed to nonpremium lots because the scenic view
    on those lots was obstructed by the transmission lines. Due to the
    increase in nonpremium lots, Owen projected that two to six lots
    would be sold each year over an eleven-year period. Using the same
    method to determine the pre-condemnation value, he arrived at a
    post-condemnation value of $5,380,000 for the entire Property. He
    then subtracted the post-condemnation value from the
    pre-condemnation value to arrive at an estimated just
    compensation value under the subdivision method of $270,000.
    ¶8    Owen’s final estimation for just compensation was $300,000,
    the median value of the two valuation methods.
    ¶9    CORE filed a motion in limine to exclude Owen’s expert
    opinion and appraisal report in its entirety, arguing that his
    appraisal methodology was inadmissible under Department of
    Highways v. Schulhoff, 
    167 Colo. 72
    , 
    445 P.2d 402
     (1968), and
    Board of County Commissioners v. Vail Associates, Ltd., 
    171 Colo. 381
    , 
    468 P.2d 842
     (1970). The trial court found Owen’s opinion
    using the subdivision development method inadmissible, reasoning
    that “the Colorado Supreme Court expressly forbids the method of
    4
    hypothetically carving a land into smaller tracts, estimating the
    value of each site and then adding the estimated values of all the
    sites together.” See Schulhoff, 167 Colo. at 79, 
    445 P.2d at 406
    .
    But the court found Owen’s opinion using the sales comparison
    approach admissible.
    ¶ 10   Before trial, CORE objected to the admission of Owen’s
    opinion based on the sales comparison approach because Owen did
    not directly communicate with the buyer or seller of the seven
    comparable sales to verify the amount of consideration as required
    by section 38-1-118. Freund argued that Owen was able to verify
    the amount of consideration for one comparable sale with the
    buyer. Thus, the trial court noted that Owen’s opinion on the
    remaining unverified sales would be admissible under the public
    records hearsay exception, CRE 803(8), because Owen confirmed
    the comparable sales’ prices with the assessor’s records and
    cross-checked the prices with the clerk and recorder records.
    ¶ 11   Nonetheless, the trial court excluded six out of the seven
    comparable sales as inadmissible under section 38-1-118.
    Applying “the statute as written,” the court found that Owen
    personally examined the record for all seven comparable sales, but
    5
    he verified the amount of consideration for only one comparable
    sale with the buyer. Because the statute required both steps, only
    the one comparable sale that was verified with the buyer was
    admissible.
    ¶ 12   In light of the court’s rulings, Owen’s testimony at trial was
    limited to his valuation of the Property using the comparable sales
    approach based on one comparable sale. Owen also testified that
    the transmission lines impacted the view corridor of the Property
    and decreased to zero the value of the twenty-six acres on which the
    lines are located. Freund also called a second appraiser, W. West
    Foster, who was hired by CORE to appraise the Property. Foster
    used the comparable sales method to determine a per-acre value of
    $2,500. Because the nonexclusive easement was within the
    building setback area, Foster arrived at a 50% condemnation value
    of $32,588. He also valued the temporary easement at $693 with a
    10% rental rate. The total compensation estimate based on Foster’s
    appraisal was $33,300, with no damage to the residue.
    ¶ 13   In rebuttal, CORE’s appraiser, Michael Earley, using the
    paired sales analysis approach to compare similar thirty-five-acre
    residential sites with and without transmission lines, testified that
    6
    the existence of transmission lines did not impact the fair market
    value of the residential sites. Earley did not, however, conduct a
    valuation of the Property as a whole.
    ¶ 14   The jury awarded Freund $33,300 in damages for the
    condemned property and $50,000 in damages to the residue.
    II.     Subdivision Development Method
    ¶ 15   Freund first contends that the trial court erred by finding
    Owen’s valuation using the subdivision development method
    inadmissible under Schulhoff and Vail Associates, Ltd. Specifically,
    it argues that Owen’s subdivision development method was not too
    speculative and that his methodology went to the weight of his
    testimony, not the admissibility. We disagree.
    A.         Standard of Review and Applicable Law
    ¶ 16   We review a trial court’s evidentiary rulings for an abuse of
    discretion. Palizzi v. City of Brighton, 
    228 P.3d 957
    , 962 (Colo.
    2010). A trial court abuses its discretion only if its decision was
    manifestly arbitrary, unreasonable, or unfair, or based on an
    erroneous understanding or application of the law. Bd. of Cnty.
    Comm’rs v. DPG Farms, LLC, 
    2017 COA 83
    , ¶ 34. “Whether the
    7
    court misapplied the law in making evidentiary rulings is reviewed
    de novo.” 
    Id.
    ¶ 17   “Private property shall not be taken or damaged, for public or
    private use, without just compensation.” Colo. Const. art. 2, § 15.
    “Just compensation is measured by the actual fair market value of
    the property, taking into consideration its most advantageous use
    at the time of the condemnation.” Palizzi, 228 P.3d at 962.
    ¶ 18   The purpose of a valuation proceeding is to replicate the
    market. Id. at 963. In such a proceeding, the fact finder must
    determine how much a willing buyer would pay for the property if
    the owner had voluntarily offered the property for sale. Id. In doing
    so, the fact finder is permitted to consider the reasonable
    probability of a future use of a property to the extent that it relates
    to the value of the property. Vail Assocs., Ltd., 171 Colo. at 388,
    
    468 P.2d at 845
     (“It is fundamental that evidence of the highest and
    best use to which the property may reasonably be applied in the
    future . . . is admissible to assist the commission or jury in arriving
    at the present cash market value of the property being taken.”).
    Although the scope of admissible evidence of the value of the
    property is expansive, the trial court will not admit evidence of the
    8
    property’s highest and best use that is too speculative. DPG Farms,
    LLC, ¶ 14 (citing Schulhoff, 167 Colo. at 77, 
    445 P.2d at 405
    ).
    ¶ 19   One accepted method for proving the amount a willing buyer
    would pay for the property is the comparable sales approach (also
    referred to as the market data approach). Denver Urb. Renewal
    Auth. v. Berglund-Cherne Co., 
    193 Colo. 562
    , 565, 
    568 P.2d 478
    ,
    480 (1977). Under that approach, the value of condemned property
    is determined, in part, by prices paid for similar property:
    Evidence of the price paid for similar property
    in a voluntary sale is admissible on the
    question of value of the property condemned,
    provided the properties sold are similar in
    locality and character to the property in
    question and not so far removed in point of
    time to make a comparison unjust or
    impossible.
    Schulhoff, 167 Colo. at 80, 
    445 P.2d at 406
    .
    ¶ 20   It is also permissible and proper to show that a tract of land is
    suitable for subdivision into lots. Id. at 77, 
    445 P.2d at 405
    .
    However, it is improper to show the number and value of lots as
    separated parcels in an imaginary subdivision as an accomplished
    fact. 
    Id.
    9
    ¶ 21   For example, it is speculative, and therefore improper, to
    hypothetically carve up a tract of land into residential building
    sites, estimate the value of each site, and then add the values
    together. Vail Assocs., Ltd., 171 Colo. at 388-89, 
    468 P.2d at
    846
    (citing Schulhoff, 167 Colo. at 74, 
    445 P.2d at 403
    ). Under this
    method of valuation, the cost of improvement is conjectural and,
    thus, reflects prospective value rather than present fair market
    value.
    B.    Analysis
    ¶ 22   Our supreme court’s decisions in Schulhoff and Vail
    Associates, Ltd. generally prohibit use of the subdivision
    development method of valuation to determine the value of property
    that has not been subdivided. Owen valued the Property by
    dividing the Property into forty-four hypothetical residential lots,
    estimated the value of the individual lots, and then added the
    estimated values of all the lots sold over a ten- and eleven-year
    period with an annual inflation rate of 3%. Owen went another step
    further and deducted costs associated with developing the Property
    based on current market estimates.
    10
    ¶ 23   Still, Freund contends that Owen’s subdivision development
    method was admissible under Board of County Commissioners v.
    Evergreen, Inc., 
    532 Colo. App. 171
    , 
    532 P.2d 777
     (1974), because
    the valuation was based on predictable market values, making the
    subdivision “probable.” Freund’s reliance on Evergreen, however, is
    misplaced. The condemned property in that case was already
    platted and “already subdivided and presently for sale for
    residential purposes.” 
    Id. at 174
    , 532 P.2d at 779. Thus, the
    valuation of individual lots on the condemned property using the
    sale price of comparable lots was admissible. Id. at 176, 532 P.2d
    at 780. Here, at the time of condemnation, the Property was
    undeveloped land on which no measures had been taken to prepare
    for subdivided lots. Nor is there any evidence in the record that
    there was a timeframe for commencement of any work. Therefore,
    any valuation of hypothetical lots within a hypothetical subdivision
    on the Property is highly speculative, even if Owen’s valuation was
    based on easily ascertainable market data. See Vail Assocs., Ltd.,
    171 Colo. at 389, 
    468 P.2d at 846
     (“The measure of compensation is
    not the aggregate of values of individual plots into which the tract
    taken could best be divided, but rather the value of the whole tract
    11
    as it exists at the time of the condemnation, taking into
    consideration its highest and best future use.”). This is particularly
    true given that Owen assigned different, prospective values to the
    lots based on their premium status, estimated the number of lots
    sold each year over a ten- and eleven-year period, and increased the
    value of the lots by 3% each year for inflation.
    ¶ 24   To the extent that Freund contends that Owen was precluded
    from testifying about the impact the transmission lines had on
    particular portions of the Property, the record belies this
    contention. Owen testified that the twenty-six acres of condemned
    property, previously valued at $50,000, was valueless. Moreover,
    during cross-examination, CORE used Owen’s grid of the
    hypothetical subdivision to confirm that Owen opined that six and
    one-half of the forty-four hypothetical lots would be directly
    impacted by the transmission lines.
    ¶ 25   Finally, contrary to Freund’s contention, Earley did not use a
    similar methodology when creating his rebuttal report. Our
    supreme court has concluded that the use of the paired sales
    analysis approach is a proper method of valuation. Herring v. Platte
    River Power Auth., 
    728 P.2d 709
    , 712-13 (Colo. 1986). Earley used
    12
    the same paired sales analysis approach the appraiser in Herring
    employed to determine whether the presence of transmission lines
    on a property reduced the value of the thirty-five-acre residential
    property within a subdivision when compared to the value of a
    neighboring residential property without transmission lines. From
    his “paired analyses,” Earley opined that the presence of
    transmission lines did not affect the value of the properties. See id.
    at 711-12 (“[T]he appraiser compared sales of properties within
    each of the subdivisions, properties that were generally similar in
    all respects except, according to the appraiser, that one parcel of
    each pair was visually and aesthetically affected by the presence of
    an electrical substation.”). Similarly, he did not compare the sales
    prices of the properties within the subdivisions to the value of
    Freund’s property, nor did he make a valuation of the Property as a
    whole. See id. at 712.
    ¶ 26   Accordingly, the trial court did not err by finding Owen’s
    valuation using the subdivision development method inadmissible.
    III.   Comparable Sales
    ¶ 27   Freund next contends that the trial court erred by excluding
    evidence of the unverified comparable sales because the comparable
    13
    sales prices were admissible under the hearsay exceptions for
    public records, CRE 803(8), and for records of documents affecting
    an interest in property, CRE 803(14). Although we agree that the
    hearsay exceptions apply to the admissibility of comparable sales in
    a condemnation case and that the trial court erred, we discern no
    reversible error.
    A.      Standard of Review and Applicable Law
    ¶ 28   Generally, trial courts have broad discretion to determine the
    admissibility of evidence. Bocian v. Owners Ins. Co., 
    2020 COA 98
    ,
    ¶ 64. Here, however, this issue involves the court’s interpretation
    and application of section 38-1-118, a question of law reviewed de
    novo. See E-470 Pub. Highway Auth. v. 455 Co., 
    3 P.3d 18
    , 22
    (Colo. 2000).
    ¶ 29   “Our primary objective is to effectuate the intent of the General
    Assembly by looking to the plain meaning of the language used,
    considered within the context of the statute as a whole.” Bly v.
    Story, 
    241 P.3d 529
    , 533 (Colo. 2010). When construing eminent
    domain statutes, “[w]e construe such statutes narrowly and resolve
    ambiguities in favor of the condemnee landowner.” 
    Id.
    ¶ 30   As relevant here, section 38-1-118 provides that
    14
    [a]ny witness in a proceeding under articles 1
    to 7 of this title, in any court of record of this
    state wherein the value of real property is
    involved, may state the consideration involved
    in any recorded transfer of property, otherwise
    material and relevant, which was examined
    and utilized by him in arriving at his opinion,
    if he has personally examined the record and
    communicated directly and verified the amount
    of such consideration with either the buyer or
    seller. Any such testimony shall be admissible
    as evidence of such consideration and shall
    remain subject to rebuttal as to the time and
    actual consideration involved and subject to
    objections as to its relevancy and materiality.
    (Emphasis added.)
    B.    Analysis
    ¶ 31   Before the Colorado Rules of Evidence were adopted, section
    38-1-118 was enacted to allow witnesses to testify about the value
    of real property based on evidence that would have been
    inadmissible under the hearsay rule in effect at that time. Denver
    Urb. Renewal Auth. v. Huyatin, 
    40 Colo. App. 559
    , 562, 
    583 P.2d 296
    , 299 (1978); see also City of Denver v. Quick, 
    108 Colo. 111
    ,
    116-17, 
    113 P.2d 999
    , 1002 (1941) (concluding that an appraisal
    witness’s testimony in a condemnation case on comparable sales
    data was inadmissible hearsay evidence). The plain language of
    section 38-1-118 provides for the admission of testimony on the
    15
    value of comparable sales in a condemnation case when (1) the
    witness personally examined the record of the recorded transfer of
    the subject property; and (2) the witness directly communicates
    with the buyer or seller of that property to verify the amount of
    consideration. However, as discussed further below, nothing in the
    language of section 38-1-118 directly addresses the exclusion of
    evidence of comparable sales even though the section is not a
    vehicle for the admission of evidence of comparable sales unless the
    conditions are met.
    ¶ 32   A division of this court considered the admissibility of
    comparable sales that were not verified in compliance with section
    38-1-118. In Huyatin, the division found that four out of the
    appraiser’s six comparable sales were inadmissible because the
    appraiser did not personally verify the sale price with either the
    buyer or seller and the court’s decision to admit the unverified sales
    was reversible error. 40 Colo. App. at 562, 
    583 P.2d at 299
    . Thus,
    the division held that comparable sales not verified in compliance
    with section 38-1-118 are inadmissible hearsay evidence. See 
    id.
    ¶ 33   However, Huyatin was decided before the Colorado Rules of
    Evidence were adopted in 1979 and liberalized the admission of
    16
    hearsay evidence. We must, therefore, determine whether the
    hearsay exceptions under CRE 803 apply to the admission of
    comparable sales that were not verified in compliance with section
    38-1-118. We conclude, for two reasons, that the hearsay
    exceptions in the rules of evidence apply to the admission of real
    property values in a condemnation case.
    ¶ 34   First, hearsay is inadmissible except as provided by the rules
    of evidence or by statute. CRE 802. Thus, section 38-1-118 is not
    the only method of admitting comparable sales data. For example,
    CRE 803(8) provides that,
    [u]nless the sources of information or other
    circumstances indicate lack of
    trustworthiness, [the admission of] records,
    reports, statements, or data compilations, in
    any form, of public offices or agencies, setting
    forth (A) the activities of the office or agency, or
    (B) matters observed pursuant to duty imposed
    by law as to which matters there was a duty to
    report [is permitted].
    ¶ 35   CRE 803(8) is, therefore, a subsequently adopted independent
    and alternative method to section 38-1-118 for the admission of
    hearsay evidence. See Margenau v. Bowlin, 
    12 P.3d 1214
    , 1217
    (Colo. App. 2000) (finding C.R.C.P. 32 as another method for
    admitting deposition testimony in addition to former testimony
    17
    exception to the rule against hearsay). Where, as here, a witness’s
    testimony on the value of real property is based on public records
    from an agency that has a duty to record and report transfers of a
    real property, evidence of the value of that property is admissible
    under CRE 803(8).
    ¶ 36   Second, “[w]e acknowledge that in the event of a conflict
    between a statute concerning a matter of substantive import and a
    rule of evidence, the statute will prevail over the rule.” Montoya v.
    People, 
    740 P.2d 992
    , 996 (Colo. 1987); see also Town of Red Cliff v.
    Reider, 
    851 P.2d 282
    , 284 (Colo. App. 1993) (“[T]o the extent that
    the statutory procedures [in eminent domain proceedings] differ
    from the procedures under the civil rules, the statute, not the rules,
    govern [sic].”). However, we do not read section 38-1-118 and CRE
    803(8) as conflicting with each other.
    ¶ 37   Nothing in section 38-1-118 directly precludes the admission
    of evidence. Section 38-1-118 does not provide that the evidence is
    admissible only if the witness has personally examined the record
    and communicated with the buyer or seller to verify the amount of
    the sale. Nor does section 38-1-118 provide that it is the exclusive
    method of admitting evidence of comparable sales. Rather, similar
    18
    to the hearsay exceptions under the rules of evidence, the statute
    provides for the admission of evidence that might otherwise be
    inadmissible hearsay. Thus, we conclude from the plain language
    that the General Assembly did not intend for section 38-1-118 to
    have preclusive effect notwithstanding an alternative method of
    introducing evidence of comparable sales.
    ¶ 38   CORE contends, however, that CRE 1101(e) precludes the
    application of the rules of evidence to admit evidence of comparable
    sales. Under CRE 1101(e), the Colorado Rules of Evidence apply in
    special statutory proceedings to the extent that matters of evidence
    are not provided for in the statute governing procedures in the
    statutory proceeding. In cases applying CRE 1101(e), our supreme
    court has found that rule pertains only to the extent that the rules
    of evidence are in conflict with the statutory proceedings. See
    Pruett v. Barry, 
    696 P.2d 789
    , 794 (Colo. 1985) (The rules of
    evidence “apply in ‘special statutory proceedings’ . . . to the extent
    that they are not in conflict with statutory requirements for such
    proceedings.”) (emphasis added). Further, a division of this court
    applied CRE 1101(e) because a statutory provision explicitly
    prohibited the admission of evidence. See Uptain v. Huntington Lab,
    19
    Inc., 
    685 P.2d 218
    , 221 (Colo. App. 1984) (“The Colorado Rules of
    Evidence, however, are not applicable if there is a specific statutory
    provision under a special statutory proceeding in effect which
    prohibits the admission of evidence.”) (emphasis added), aff’d, 
    723 P.2d 1322
     (Colo. 1986). We have concluded, for the reasons stated
    above, that CRE 803(8) and section 38-1-118 are not in conflict
    with each other and that section 38-1-118 does not directly prohibit
    the admission of evidence.
    ¶ 39   Accordingly, we conclude that the trial court erred by
    excluding evidence of the comparable sales that Owen did not
    directly verify with the buyer or seller based on its erroneous
    finding that comparable sales data in a condemnation case are only
    admissible under section 38-1-118.
    C.    Harmless Error
    ¶ 40   Having concluded that the trial court erred by excluding the
    unverified comparable sales, we must determine whether the error
    warrants reversal. We conclude that it does not.
    ¶ 41   We review errors in evidentiary rulings in civil cases for
    harmless error. C.R.C.P. 61. Under this standard, we will not
    disturb a judgment unless a court’s error affected the substantial
    20
    rights of the parties. 
    Id.
     An error affects a substantial right only if
    “it can be said with fair assurance that the error substantially
    influenced the outcome of the case or impaired the basic fairness of
    the trial itself.” Bly, 241 P.3d at 535 (quoting Banek v. Thomas,
    
    733 P.2d 1171
    , 1178 (Colo. 1987)).
    ¶ 42   Freund contends that the exclusion of the unverified
    comparable sales was not harmless because Owen’s credibility was
    diluted. However, based on the record before us, we conclude that
    the exclusion of this evidence did not substantially influence the
    outcome of the case.
    ¶ 43   Owen, like the other appraisers, testified about his experience
    and qualifications as an appraiser and he was qualified as an expert
    in appraisal work. Both Owen and Foster used the comparable
    sales method but they arrived at different per-acre values. The jury
    awarded Freund $33,300 for compensation of the condemned
    property. The award matches Foster’s estimated value for
    compensation of the condemned property, which was based on a
    higher per-acre value than Owen’s estimated value. Thus, it does
    not appear that excluding comparable sales offered to support
    21
    Owen’s estimated value of the condemned property disadvantaged
    Freund.
    ¶ 44   In addition, the jury heard testimony from both Foster and
    Owen about the percentage of lost value to the condemned
    property. Owen disagreed with Foster’s 50% loss of value and
    opined that the condemned property lost 100% of its value even
    though, as he acknowledged, Freund could still use the condemned
    property because the nonexclusive easement was located within the
    county’s building setback. It is doubtful the excluded comparable
    sales would have bolstered Owen’s opinion about the percentage
    loss of value.
    ¶ 45   Finally, Foster and Earley opined that there were no damages
    to the residue, while Owen believed that the biggest impact of the
    condemnation was on the residue. The jury’s award of $50,000 in
    damages to the residue suggests Owen’s opinion that there was
    damage to the residue was persuasive.
    ¶ 46   Under these circumstances, we conclude that the trial court’s
    evidentiary error was harmless.
    IV.    Conclusion
    ¶ 47   The judgment is affirmed.
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    JUDGE FOX and JUDGE GOMEZ concur.
    23