City of Casa Grande v. Arizona Water Co.

20 P.3d 590, 199 Ariz. 547, 343 Ariz. Adv. Rep. 3, 2001 Ariz. App. LEXIS 54
CourtCourt of Appeals of Arizona
DecidedMarch 13, 2001
DocketNos. 2 CA-CV 00-0028, 2 CA-CV 00-0128
StatusPublished
Cited by32 cases

This text of 20 P.3d 590 (City of Casa Grande v. Arizona Water Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Casa Grande v. Arizona Water Co., 20 P.3d 590, 199 Ariz. 547, 343 Ariz. Adv. Rep. 3, 2001 Ariz. App. LEXIS 54 (Ark. Ct. App. 2001).

Opinion

OPINION

BRAMMER, Presiding Judge.

¶ 1 Plaintiff City of Casa Grande appeals from the trial court’s order dismissing its condemnation action by which it sought to [549]*549acquire a portion of defendant Arizona Water Company’s (AWC) public utility property in Pinal County. AWC appeals from the trial court’s subsequent order denying its motion for attorney’s fees. We have consolidated the two appeals. We affirm the trial court’s order dismissing the City’s condemnation action. We also affirm the order denying AWC attorney’s fees.

Facts and Procedural History

¶ 2 The facts in this case are undisputed. In May 1999, the City filed a condemnation action to acquire a portion of AWC’s public utility facility, service area, and real and personal property. Earlier that month, the City had adopted an ordinance it contended authorized it to condemn the property, the first section of which read:

That the City Manager and the City Attorney are hereby authorized and directed to procure professional services and to acquire and condemn said real property, [if] any; personal property, if any; system, if any; lines, if any; wells, if any; plants, [if] any; equipment, if any; franchises, if any; certificates of convenience and necessity, if any; contracts, if any; rights, if any; and other property whatsoever, if any; of Arizona Water Company located within that certain described area of Pinal County, Arizona as described in the attached Attachment “A” needed to provide water service to that area as well as any other area as determined by the City, including all rights, title and interest, if any it may have, in said certificate or certificates of convenience and necessity as above described, and to consummate the acquisition of such property under the power of eminent domain and to do all things necessary to accomplish this purpose.

Attachment A, which was entitled “Assets to be Condemned,” described in detail a substantial land area and stated that these assets included “any and all personal and real property necessary to provide water service to the area to be condemned” as well as “[a]ny and all tangible and intangible rights, privileges, and obligations of [AWC] attributable to [the] Subcontract ... between the United States Bureau of Reclamation, the Central Arizona Water Conservation District,” and AWC to deliver Central Arizona Project (CAP) water to the area described.1

¶ 3 Arguing that the City had not first held an election pursuant to A.R.S. § 9-514, AWC contested the City’s right to condemn the plant and property. Because the City had not first obtained voter approval of the acquisition, AWC claimed that the City lacked authority to proceed with the condemnation action.

¶4 Although AWC did not file a formal motion to dismiss the City’s complaint, the trial court entered an order dismissing it, stating that “[a]n election under § 9-514 is a prerequisite to a condemnation of this property under the City Charter.” The court considered the statutory scheme as a whole, interpreted the language of § 9-514 to require “voter approval of a particular project,” and concluded that general authority, such as that granted by the City’s charter, was insufficient to satisfy the statute.

¶ 5 AWC subsequently sought an award of its attorney’s fees and costs, pursuant to A.R.S. § 11-972, which mandates awarding fees under certain circumstances if a governmental body has failed in its attempt to condemn real property. AWC also argued that it was entitled to an award of fees pursuant to both the Arizona common law theory that fees are recoverable from a governmental body that does not initiate a condemnation action in good faith and A.R.S. § 12-349(A), which requires a court to assess reasonable attorney’s fees against a party if tnat party has brought or defended a claim “without substantial justification.” In the alternative, AWC requested a hearing for additional discovery on these issues. The trial court awarded AWC $86.00 in costs, but denied its request for attorney’s fees, finding that it had failed to meet the statutory requirements of § 11-972 and that there was no evidence the City had acted in “bad faith.”

[550]*550Condemnation Action

A. Does the City’s charter supersede A.R.S. § 9-5U?

¶ 6 We review de novo the interpretation of a statute. City of Tucson v. Pima County, 190 Ariz. 385, 949 P.2d 38 (App. 1997). In doing so, we attempt to determine and give effect to the legislature’s intent by first applying the plain and unambiguous language of the statute. Oaks v. McQuiller, 191 Ariz. 333, 955 P.2d 971 (App.1998). However, we must also consider the statute “in the context of the entire statutory scheme of which it is a part.” Id. at 334, 955 P.2d at 972; see also Grant v. Board of Regents, 133 Ariz. 527, 652 P.2d 1374 (1982). And, we strive to achieve consistency among related statutes. Goulder v. Arizona Dep’t of Transp., 177 Ariz. 414, 868 P.2d 997 (App. 1993).

¶ 7 As it did below, the City offers three alternative bases for its action. First, it argues that, because its charter, adopted in 1975, grants it general authority to engage in the public utility business, it -was not required to hold a public election pursuant to § 9-514 on whether it could acquire the portions of AWC’s assets it sought. Article XII, § 2, of the charter provides that the City “shall have the power to own ar.d operate any public utility ... and to lease or purchase any existing utility properties used or useful to public service.” It further provides that the City Council “may provide by ordinance for the establishment of such utility.” Article I, § 3, of the charter generally provides that the City may acquire property by condemnation.

¶ 8 At the time the City filed the condemnation action, § 9-514 stated:

Before construction, purchase, acquisition or lease by a municipal corporation, as authorized in §§ 9-511 to 9-513, inclusive, of any plant or property or portion thereof devoted to the business of or services rendered by a public utility shall be undertaken, the construction, purchase, acquisition or lease shall be authorized by the affirmative vote of a majority of the qualified electors who are taxpayers of the municipal corporation voting at a general or special municipal election duly called and held for the purpose of voting upon the question.

Relying on A.R.S. § 9-284(A), the City argues that, because its charter “expressly empowers the City to engage in the water utility business,” and because it had enacted an ordinance to do so by exercising its power of eminent domain, the charter’s authority “prevails over conflicting state law” requiring an election.

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Bluebook (online)
20 P.3d 590, 199 Ariz. 547, 343 Ariz. Adv. Rep. 3, 2001 Ariz. App. LEXIS 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-casa-grande-v-arizona-water-co-arizctapp-2001.