Arneson v. City of Fargo

331 N.W.2d 30
CourtNorth Dakota Supreme Court
DecidedMarch 3, 1983
DocketCiv. 10233, 10249 to 10251
StatusPublished
Cited by17 cases

This text of 331 N.W.2d 30 (Arneson v. City of Fargo) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arneson v. City of Fargo, 331 N.W.2d 30 (N.D. 1983).

Opinions

ERICKSTAD, Chief Justice.

This is an appeal by the City of Fargo, the Cass County Drain Board, and the North Dakota State Water Commission (the Defendants) from a judgment of the District Court of Cass County, entered April 28, 1982, in favor of the plaintiffs (the Arnesons). The Arnesons have filed a cross-appeal asserting that the district court abused its discretion in awarding an inadequate amount of attorney’s fees and expert witness fees. We affirm in part, reverse in part, and remand for a redetermination of expert witness fees.

The Sheyenne River Diversion Project, completed in 1972, was constructed to allow the transfer of water from the Sheyenne River into the Red River to be utilized by [33]*33the City of Fargo as an alternative water supply source. As part of this project, a dam was built approximately four miles south of West Fargo to impound a small quantity of water on the Sheyenne River. A pumping station was constructed to lift water from the impounded area into a diversion channel through which the water flows into Cass County Drain No. 27 (Drain 27) which is a partially man-made and partially natural drain. From Drain 27, the water flows into a natural drainage area known as Rose Coulee and from there into the Red River to the south of and upstream from the City of Fargo where the water ultimately flows downstream for use by the City of Fargo. At the point where water flowing in the diversion channel enters Drain 27, a small dam or weir was constructed to prevent the water from flowing south in Drain 27.

The Arnesons own land in Cass County with the following legal description:

“The Northwest Quarter (NW ¼) of Section Nine (9); The East Half (E ½) of the Northeast Quarter (NE ¼) of Section Eight (8); the West Half (W ½) of Section Four (4); and the Northeast Quarter (NE ¼) of the Southeast Quarter (SE ¼) of Section Five (5), all in Stanley Township, Cass County, North Dakota.”

Their farmland is located within the assessment district of Drain 27. Since the completion of the Sheyenne River Diversion Project, the pumping station has been used to divert water from the Sheyenne River for use by the City of Fargo during one period from August 30, 1976, until June 20, 1977.1 During the fall of 1976, water which was being diverted by the pumping station from the Sheyenne River rose to such a level in Drain 27 that it began to flow south over the top of the small dam located in the drain. Water in the drain south of the dam spilled over its banks and flooded the Arne-son farmland. The flooding inhibited attempts by the Arnesons to till the ground and plant crops during the 1977 and 1978 crop years.

During December, 1978, the Arnesons commenced a lawsuit against the Defendants for the damage caused by the flooding of their farmland. The district court entered a summary judgment dismissing the lawsuit on the ground that a timely notice of claim had not been filed, from which the Arnesons appealed. On appeal this Court, in Arneson v. City of Fargo, 303 N.W.2d 515 (N.D.1981), concluded that the district court had correctly dismissed the Arnesons’ cause of action based upon negligence for failure to properly file a notice of claim but that the Arnesons’ complaint also contained a cause of action based upon inverse condemnation which was not subject to dismissal. Accordingly, this Court remanded the case to the district court for trial on the inverse condemnation claim.

On remand the Arnesons elected to proceed on a theory that the Defendants, through the construction and use of the Sheyenne River Diversion Project, caused a permanent taking of a flood easement upon the Arneson farmland entitling the Arne-sons to compensation for the diminution in value of the farmland resulting from that taking. It was understood and agreed by all parties that the Arnesons would not seek compensation for nor introduce evidence of any temporary damage or loss of crops during 1977 and 1978 as a result of the flooding caused by use of the Sheyenne River Diversion Project during 1976 and 1977. The jury returned a verdict awarding the Arne-sons compensation in the amount of $140,-000.00 for diminution in the value of their farmland caused by the Defendants’ taking of a permanent flood easement upon the property. The Arnesons were awarded interest by the court at the rate of 6% per annum from the date of the taking2 in the amount of $46,200.00, and the court also [34]*34awarded the Arnesons costs and disbursements of $1,768.80 and attorney’s fees of $9,750.00 resulting in a total judgment of $197,718.80.

On appeal from the judgment, the Defendants have raised two primary issues:

(1) Whether or not the district court erred upon instructing the jury that it (the jury) must decide if the Defendants’ actions entitled the Arnesons to compensation for a permanent taking or diminution in the value of their property; and
(2) Whether or not there is substantial evidence in the record to support the jury’s verdict.

The Defendants assert that the court, not the jury, should have decided whether or not there was a compensable permanent taking or damaging of the Arneson property, and that the court erred in its instructions to the jury in this regard. In its instructions, the district court told the jurors that the Defendants “damaged and in effect took part of” the Arneson property and then instructed the jurors that they must determine whether the evidence supported an award of damages “of a permanent character”:

“The Defendants (one or more of them) damaged and in effect took part of, Plaintiffs’ property on November 1st of 1976, and the Plaintiffs have elected to treat the injury to their real property as permanent.
“The Court instructs the Jury, therefore, that the only question for the jury to determine in this case is the difference between the fair market value before and after the inflicting of the damage.
“The burden rests upon the owners or Plaintiffs in this case to prove to your satisfaction by a greater weight of the evidence, the compensation to which they are entitled.
* * tf¡ * sf; *
“Because the plaintiffs have elected to treat the injury to their real property as permanent, you must determine whether or not the actual condition created by Sheyenne River Diversion to which the plaintiffs property had been subjected is of a permanent character and whether or not continuing damages could be predicted with relative certainty or could be fairly perceived.
“The giving of instructions on damages shall not be taken as a recognition that those damages exist. Whether damages exist and whether they are proximately caused by the taking are questions of fact for you to determine.”

When the Defendants were given an opportunity to object to the instructions, the following relevant dialogue occurred between the court and counsel for the City of Fargo whose statements were concurred in by the attorneys for the other defendants:

“MR.

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Arneson v. City of Fargo
331 N.W.2d 30 (North Dakota Supreme Court, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
331 N.W.2d 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arneson-v-city-of-fargo-nd-1983.