Summary
The North Dakota Supreme Court affirmed a judgment condemning the Ericksons’ properties for a flood-control project and awarding $48,200 in just compensation. The Court held that the district court’s valuation was not clearly erroneous and that the court properly applied the project-influence rule. The Court also held that attorney fees and costs may be awarded in the court’s discretion under N.D.C.C. § 32-15-32 even when the compensation award is less than the condemnor’s offer, overruling contrary language in Thom.
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Practice areas
Questions Presented
- Whether the district court clearly erred in determining that the fair market value of the two condemned lots on the date of taking was $48,200.
- Whether the district court violated the project influence rule by considering evidence concerning the physical condition and soil stability of the properties.
- Whether North Dakota law barred an award of attorney fees and costs because the compensation awarded was less than the condemnor's offer.
- Whether the district court abused its discretion by awarding the Ericksons attorney fees, appraiser fees, engineering fees, and other costs.
Holdings
- The district court did not clearly err in valuing the two properties at $48,200 as of the May 14, 2015 taking date.
- The project influence rule prohibits consideration of increases or decreases in value caused by the public project, but it does not prohibit consideration of evidence obtained through the project that concerns preexisting physical conditions unrelated to the project.
- N.D.C.C. § 32-15-32 does not limit attorney-fee and cost awards to cases in which the condemnation recovery exceeds the condemnor's offer. To the extent City of Bismarck v. Thom can be read to impose that requirement, it is overruled.
- The district court did not abuse its discretion in awarding $114,346.47 in attorney fees and costs, including fees for the Ericksons' appraiser and engineer.
Key quotations
“The plain language of the statute does not limit the authority of the court to award costs and fees only to cases in which the award is greater than the offer.” (¶ 28)
“To the extent Thom can be read to require that the compensation awarded in an eminent domain action must be greater than the amount offered before attorney fees and other costs may be awarded under N.D.C.C. § 32-15-32, it is overruled.” (¶ 28)
Factual background
The Ericksons owned two adjoining lots near the Red River in Oxbow Country Club and Estates. After significant flooding in 2009, the District developed a flood-control project requiring acquisition of the lots for construction of the Oxbow Hickson Bakke Ring Levee. The parties agreed that the date of taking was May 14, 2015, but disputed the properties' fair market value and the Ericksons' entitlement to attorney fees and costs.
Procedural history
The District brought an eminent domain action after the parties failed to agree on compensation for two properties needed for construction of a flood-control ring levee. Following a bench trial, the district court awarded the Ericksons $48,200 in compensation and $114,346.47 in attorney fees and costs. The North Dakota Supreme Court affirmed the judgment.