William N. Kellahan, Jr. and Alice H. Kellahan - Page 22




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          owners would be likely to pay anywhere near this amount, which              
          represents approximately 25 percent of the average purchase price           
          of the lots.  Under respondent's value, the lot owners would                
          collectively pay $5,950, or a little more than $200 each.  This,            
          we believe, represents a more realistic estimate of the nuisance            
          value of the Canal owner's speculative property rights.                     
               The Canal parcel only came into existence as a result of               
          inadvertence.  Any owner of the Canal could not restrict public             
          access to the Canal waters from Lake Marion.  As to a Canal                 
          owner's right to restrict the adjacent lot owners' water access             
          from their lots, the record amply demonstrates that any such                
          nuisance value was speculative and subject to a significant                 
          litigation hazard.  The Canal's first owner abandoned it, and               
          petitioners gave it away, rather than confront the litigation               
          almost certainly entailed in any effort to realize value from the           
          property rights conferred by Canal ownership.  Based on our                 
          review of all the evidence with respect to the Canal, we conclude           
          that respondent's determination of a value of $5,950 is better              
          supported than petitioners’ and that petitioners have failed to             
          prove that the value was any greater than the amount conceded by            
          respondent.  Accordingly, we sustain respondent's determination             
          of value.                                                                   








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