Summary
The Supreme Court of Kentucky addressed consolidated appeals concerning former landowners’ statutory right to repurchase property acquired through condemnation under KRS 416.670. The court held that applying the amended statute depended on whether the eight-year development period expired after the 1980 amendment, that claims under the statute were subject to a five-year limitations period, and that the period did not begin until the Transportation Cabinet provided the required notice. The court affirmed the Court of Appeals, including the judgment against the Vandertolls because their redemption right accrued before the amendment.
Topics
Practice areas
Questions Presented
- Whether applying the 1980 amendment to KRS 416.670 to condemnations occurring more than eight years before the amendment would be impermissibly retroactive.
- What statute of limitations applies to claims arising under KRS 416.670.
- Whether the Transportation Cabinet's failure to provide actual notice of the right to repurchase tolls or delays the limitations period.
- Whether the Cabinet's unpreserved contention that it had begun design on highway projects required consideration on appeal.
Holdings
- The 1980 amendment to KRS 416.670 may be applied to condemnations for which the statutory eight-year development period expired after the amendment, but it may not be applied to condemnations for which the eight-year period expired before the amendment. Accordingly, the Thompsons and Martins had statutory claims, while the Vandertolls did not.
- The five-year limitations period in KRS 413.120(2), governing actions upon a liability created by statute, applies to claims arising under KRS 416.670.
- The notice required by KRS 416.670(2) is a condition precedent to accrual of a condemnee's cause of action, and the Cabinet's failure to provide the required notice delays commencement of the five-year limitations period.
- The court would not consider the Cabinet's contention that it had begun design on highway projects because the Cabinet did not establish that the issue was preserved in the record.
Key quotations
“It is the failure of the condemning authority to begin development within eight years, and not the condemnation, which entitles the current owner the opportunity to repurchase such surplus property.” (794)
“Shall means shall.” (796)
“The statutorily mandated notice requirement is a condition precedent to the accrual of the landowners' cause of action under KRS 416.670.” (796)
“The clear and unequivocal language of the statute states that the Cabinet is charged with making the condemnees aware of their rights under KRS 416.670; therefore, its failure to effect such notice delays the running of the statute of limitations on claims arising pursuant to the statute until notice is properly given.” (797)
Factual background
The Transportation Cabinet condemned the Thompsons' land in 1978, the Martins' land in 1979, and the Vandertolls' land in 1967 for highway projects. Portions of the condemned properties were not developed for the purposes for which they were acquired and were later treated as surplus. The Thompsons and Martins sought to repurchase their property under KRS 416.670, while the Vandertolls sought to repurchase a surplus parcel but had experienced the statutory eight-year development period before the statute was amended in 1980.
Procedural history
The Thompson and Martin matters proceeded from circuit-court decisions concerning the applicability, limitations period, and notice requirements of KRS 416.670; the Court of Appeals reversed or affirmed in favor of the former landowners on the common legal issues. In Vandertoll, the Jefferson Circuit Court dismissed the claim, and the Court of Appeals ultimately affirmed after remand in light of Kelly v. Thompson. The Supreme Court of Kentucky granted discretionary review and consolidated the appeals, affirming all three Court of Appeals decisions.