State v. Whataburger, Inc

In State v. Whataburger, Inc., 60 S.W.3d 256 (Tex. App--Houston 14th Dist. 2001, pet. denied), the Court dealt with the State's condemnation of a strip of land for a highway-widening project. In Whataburger, the loss of the condemned strip made it necessary for the restaurant on the property to be demolished and relocated on the remainder property. See 60 S.W.3d at 260. In addition to compensation for the statutory condemnation, the trial court awarded the landowner lost profits arising from the State's "impairment of access." See id. The court of appeals affirmed the trial court's judgment on the landowner's inverse condemnation claim, holding that the landowner was entitled to recover lost profits during the time the restaurant was being rebuilt. The court noted: "Accordingly, while no physical barrier prevented ingress or egress upon the remaining land, we find Whataburger was effectively denied access to the improvements thereon." Id. at 261. In State v. Whataburger, Inc., the State condemned a strip of land to widen a highway. Both parties agreed that, in order to comply with setback requirements, the taking required that the existing building be demolished and rebuilt on another part of the property. Id. at 260. They also agreed a reasonable time for reconstruction of the building would be nine months. Id. at 263. Whataburger argued the taking caused a total temporary denial of access for the nine months required to rebuild the building. Id. at 261. The State argued that physical access to the property remained, but the court agreed with Whataburger, stating, "A building that has been razed and no longer exists cannot be entered. Accordingly, while no physical barrier prevented ingress or egress upon the remaining land, we find Whataburger was effectively denied access to the improvements thereon." Id.