This document outlines the key topics covered in a course on condemnation appraisals, including: retaining expert witnesses and the attorney-expert relationship; discovery considerations; preparing valuation reports; reviewing other parties' reports; and using rebuttal reports. The course discusses the anatomy of appraisal reports, ensuring compliance with standards, analyzing highest and best use and valuation approaches, and techniques for cross-examining opposing experts.

1. January 2020
Condemnation 101: The Anatomy of an Appraisal
Brandee L. Caswell, Esq.
Faegre Baker Daniels, LLP
Denver, Colorado
Anthony F. DellaPelle, Esq., CRE®
McKirdy, Riskin, Olson & DellaPelle, P.C.
Morristown, New Jersey

2. COURSE OUTLINE
•Working with your appraiser on the creation of the
expert report
•Understanding the basic anatomy of an appraisal
report
•Reacting to and reviewing the appraisal from the
other party/parties
•Using rebuttal reports
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3. RETENTION AND WORKING RELATIONSHIP BETWEEN
LAWYER AND EXPERTS
A. Retention of the Experts
1) What information is shared with the potential expert witness?
2) What position has the expert taken in the past?
3) Other considerations
a) Testifying v. Non-testifying
b) Does jurisdiction permit recovery of fees?
c) Retained by client or lawyer?
d) What work product will expert provide during the course of the case?
e) What exhibits will be needed?
B. The Relationship between Attorney and Expert(s)
1) The attorney is the quarterback of the client’s team.
a) Coordinate meetings within client’s team
b) Coordinate communications
c) Attendance at meetings with adversary
d) Review comparable sales information with experts

4. DISCOVERY, PRIVILEGE AND PRACTICAL CONSIDERATIONS
A. Understand your jurisdiction’s rules regarding experts and discovery.
B. Cases
1) Some courts have held that this requirement mandates that all documents provided to
an expert, even work-product revealing the mental impressions of the attorney, be
produced regardless of whether the expert relied upon that information in forming
his/her opinion.
a) Synthes Spine Co. v. Walden, 232 F.R.D. 460 (E.D.Pa. 2005) (collecting cases).
b) American Fidelity Assurance Co. v. Boyer, 225 F.R.D. 520 (D.S.C. 2004).
c) TV-3, Inc. v. Royal Insurance Company, 194 F.R.D. 585 (S.D. Miss. 2000) (collecting
cases on both sides).
2) Other courts have continued to protect opinion work-product in the hands of the
expert.
a) Ladd Furniture, Inc. v. Ernst & Young, 1998 WL 1093901 (M.D.N.C. Aug. 27, 1998);
Chopper v. R.J. Reynolds Tobacco Co., 195 F.R.D. 648 (N.D. Iowa 2000).
C. Given the evolving case law in this area, great care must be given to what an attorney
decides to physically provide and orally state to the testifying expert.
D. Drafts
E. Communications between expert and client.

5. PREPARATION OF REPORTS
A. You must be involved with experts.
1) Visit the property
2) Review theme and range of values
3) Make sure they know the applicable law
4) Consider whether legal instructions are appropriate
B. Valuation Data
C. Valuation Approach(es)
D. Review Draft Report
E. Report Communications
F. Final Report
G. Alternative Approaches
H. Client “On Board”

6. REVIEWING EXPERT REPORTS
A. You should review and verify the information set forth in every report. Review to for
missing or inaccurate information. Never accept at face value anything.
B. Compliance with state and local requirements
C. Compliance with USPAP -- Uniform Standards of Professional Appraisal Practice (USPAP):
• Adopted to promote and maintain a high level of public trust in appraisal practice
• Addresses the ethical and performance obligations of appraisers
• Different types of appraisal have different requirements/components
• Requires file and data retention for 5 years after preparation or 2 years after matter
concludes:
A. the name of the client and related information;
B. true copies of any written reports, documented on any type of media;
C. summaries of oral reports or testimony, or a transcript of testimony; and
D. all other data, information, and documentation necessary to support the
appraiser’s opinions and conclusions.
E. Must retain for at least five years after preparation or at least two years after final
disposition of any judicial proceeding in which the appraiser provided testimony
related to the assignment
.

7. REVIEWING EXPERT REPORTS
• Hypothetical conditions
• Examples
• Did the appraiser identify any?
• Are there hypothetical conditions used but not identified as required?
• Extraordinary Assumptions
• Examples
• Did the appraiser identify any?
• Are there any extraordinary assumptions not identified as required?
.

8. REVIEWING EXPERT REPORTS
Property appraised
• Larger Parcel
• Identified correctly by the appraiser?
• Three unities?
• Highest and Best Use
• Current use or some future use?
• If future use
• Did the appraiser analyze HBU criteria?
• Legally permissible
• Physically possible
• Financially feasible
• Maximally productive
• Did the appraiser conclude or rely upon a conclusion that re-zoning was reasonably probable?
.

9. REVIEWING EXPERT REPORTS
• Valuation approach
• There are three approaches to value:
• Sales comparison
• Cost approach
• Income
• Which did the appraiser use?
• Did the appraiser follow correct methodology?
• For example, using sales comparison approach, do all of the comparable sales have the same HBU
as the subject?
• Any forced sales? (foreclosures, sales to entities with condemnation power, etc)
• Did the appraiser use more than one approach to value?
• If so, which approach does the appraiser say is more reliable, and why?
• Partial Takings -- Before and After
• Did appraiser provide a complete appraisal in the before condition and another of the after
condition?
• How are severance damages measured?
• Consideration of special benefits/general benefits?
• Any change in HBU?
• Valuation data in before and after
.

10. PRIOR APPRAISALS
A. Prior reports prepared by the expert who testifies are admissible for use or
impeachment.
B. Must be produced for use on cross-examination.
A. Are “drafts” prior appraisals?
B. How to obtain prior appraisals
C. Cross-examination
A. The rules of evidence allow a party to impeach the credibility of his adversary’s
witness through the use of prior inconsistent statements.
B. Prior reports are to be produced only after the expert testifies.

11. REBUTTAL REPORTS
• Purpose(s)
• Reinforce original position
• Rebut adverse position
• Have the last word
• Permitted by local rule or specific case management
• Is a rebuttal report really required?
• How many?
• Same or different experts?
• Consider juror “fatigue”
.

12. Final Thoughts
Q&A?
Thank you!
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