City of Anchorage v. Scavenius

539 P.2d 1169, 1975 Alas. LEXIS 276
CourtAlaska Supreme Court
DecidedAugust 21, 1975
Docket2214, 2222
StatusPublished
Cited by42 cases

This text of 539 P.2d 1169 (City of Anchorage v. Scavenius) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Anchorage v. Scavenius, 539 P.2d 1169, 1975 Alas. LEXIS 276 (Ala. 1975).

Opinions

BOOCHEVER, Justice.

This appeal presents issues as to the award of costs and attorney’s fees to the condemning authority in eminent domain cases.1 In the Scavenius case, the City brought an action to condemn easements for the construction, use and maintenance of a sanitary sewer line. A master’s hearing resulted in an award of $516.00 from which the property owner appealed pursuant to Alaska R.Civ.P. 72(h)(5). Subse[1171]*1171quently, the City served on the property owner an offer of judgment for $581.47 in accordance with Alaska R.Civ.P. 68.2 The offer of judgment was not accepted, and, eventually, the jury returned a verdict awarding no compensation. The City applied for an award of costs and attorney’s fees which was denied by the trial judge. The property owner appealed from the judgment’s failure to award compensation,3 and the City cross-appealed from the denial of its motion for attorney’s fees and its application for a bill of costs.

In the Park Lanes, Inc. case, the City of Anchorage filed an action to condemn permanent seven-foot-wide utility easements and temporary thirty-foot-wide construction easements for the placement of a water transmission main on three parcels of property owned by Park Lanes, Inc., John Peterkin and Gladys R. Peterkin. In addition to contesting the amount to be awarded as just compensation for the property taken, the property owners contended that pavement on part of their property not within the area condemned was damaged by the manner in which the water main was installed. [R. 158-60, 162-63, 167-71]

As a result of a master’s hearing, the property owners were awarded a total of $2,915.21, without any sum being allowed for pavement damage. The property owner appealed, and the jury returned a verdict for a lesser amount totalling $1,726.56, which, incidentally, was the exact amount contended by the City to be fair compensation. Again, no sum was allowed for the pavement damage claim.

As in the Scavenius case, the trial court denied the City’s motion for an award of attorney’s fees and allowance of a bill of costs, and the City has appealed.

We are thus confronted with three basic issues:

1. Is a condemnor entitled to an award of costs and attorney’s fees when the property owner has unsuccessfully appealed a master’s award?
2. Does Rule 68 pertaining to offers of judgment apply to an eminent domain case so as to justify an award of costs and attorney’s fees to the City?
3. Is the City entitled to an award of costs and attorney’s fees for the successful defense of the Park Lanes, Inc. claim pertaining to pavement damage ?
I

THE RIGHT OF A CONDEMNOR TO ATTORNEY’S FEES IN AN APPEAL FROM A MASTER’S AWARD

On October 9, 1959, the newly-appointed Alaska Supreme Court ordered the adoption of Rules of Civil Procedure. Included [1172]*1172in those rules was Rule 72 dealing specifically with eminent domain.4 Section (a) specifies:

(a) The procedure for the condemnation of property under the power of eminent domain shall be governed by these rules, except as otherwise provided in this rule.

The phrase “these rules” has been construed to refer to all the other rules of the Alaska Rules of Court Procedure and Administration. The phrase “except as otherwise provided in this rule” means that

. Civil Rule 72 shall govern eminent domain proceedings. Where a specific procedure is not provided by Civil Rule 72, then any of the other rules of practice and procedure are available, to the extent that they may be applicable.5

Section (k) of Rule 72 provides that costs and attorney’s fees incurred by the defendant (the property owner) shall not be assessed against the plaintiff (the con-demnor) unless:

(1) the taking of the property is denied, or
(2) the award of the court was at least ten (10) percent larger than the amount deposited by the condemning authority or the allowance of the master from which an appeal was taken, or
(3) the action was dismissed under the provisions of subdivision (i) of this rule, or
(4) allowance of costs and attorney’s fees appears necessary to achieve a just and adequate compensation of the owner.
Attorney’s fees allowed under this subdivision shall be commensurate with the time committed by the attorney to the case throughout the entire proceedings.

The section thus allows the award of costs and attorney’s fees to the property owner subject to certain exceptions. It makes no provision for such an award to the con-demnor.

It is the City’s position first, that the general civil rules providing for an award of costs and attorney’s fees to the prevailing party apply when the condemnor is successful in its defense of an appeal from a master’s award. It argues that since no provision is made in Rule 72 for such an award to the condemnor, the procedure is covered by Civil Rule 54(d) 6 as to costs and Civil Rule 82 7 as to attorney’s fees. Alternatively, the City contends that Civil Rule 72 (k), by negative implication, authorizes an award of costs and attorney’s fees to the condemnor when the con-demnee on appealing a master’s award is unsuccessful in securing an increase of at least 10 percent.

[1173]*1173It is contended that public policy favors an approach whereby initially the property owner receives a free determination of just compensation, but that upon appeals, costs and attorney’s fees are assessed in favor of the prevailing party.

In Stewart & Grindle, Inc. v. State,8 we were confronted with an analogous problem. We, there, reversed a lower court’s order denying an award of attorney’s fees and appraiser’s fees to a property owner— not a condemnor. We discussed the costs provision of Rule 72 as it could be invoked against the sovereign. The owners argued that, since the final settlement (after commencement of a master’s hearing in one case and the master’s award in the other) exceeded the state’s initial offer by 10 percent, attorney’s fees were proper under subsection (k)(2). Subsection (k) (2) specifies, however, that the court’s award must exceed by 10 percent the amount deposited by the condemning party. Since the state had made no deposit, the amount awarded could not be 10 percent larger then the amount deposited. In rejecting this contention of the owners, we stated:

Just as they have refused to assess interest against the state, courts have also traditionally declined to tax litigation expenses and attorney’s fees against the sovereign in the absence of express statutory authority. Civil Rule 72(k)(2) specifies the conditions under which costs and attorney’s fees are to be awarded; where these conditions remain unfulfilled the common law rule continues to govern.9

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Cite This Page — Counsel Stack

Bluebook (online)
539 P.2d 1169, 1975 Alas. LEXIS 276, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-anchorage-v-scavenius-alaska-1975.