City of Chesapeake v. Clear Sky Car Wash, L.L.C.

89 Va. Cir. 27, 2014 Va. Cir. LEXIS 145
CourtChesapeake County Circuit Court
DecidedMarch 11, 2014
DocketCase No. (Civil) CL12-2185
StatusPublished

This text of 89 Va. Cir. 27 (City of Chesapeake v. Clear Sky Car Wash, L.L.C.) is published on Counsel Stack Legal Research, covering Chesapeake County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Chesapeake v. Clear Sky Car Wash, L.L.C., 89 Va. Cir. 27, 2014 Va. Cir. LEXIS 145 (Va. Super. Ct. 2014).

Opinion

By Judge Randall D. Smith

This matter is before the Court for a ruling on issues raised by notice for hearing on May 8, 2013, and briefs and responses filed subsequent to that hearing. The Court has reviewed the record and written submissions by counsel and my notes from the May 8, 2013, hearing and is ready to rule.

To clear up some confusion, the Court took this ruling under advisement' because it wanted to examine and be clear about the interplay between Title 25.1 and Title 33.1 of the Code of Virginia and their consistencies and differences as related to takings.

While respondent Clear Sky Car Wash, L.L.C. (“Clear Sky”) argues many issues and has raised them here and in the federal courts, my recollection is that what was left for ruling was Clear Sky’s position that it was entitled to what it refers'to as a “219” hearing (meaning a hearing under Va. Code § 25.1-219) to have issues raised by its Answer and Response to the City’s Petition for Condemnation determined.

The City responds that, because Clear Sky withdrew funds deposited pursuant to Va. Code § 33.1-124 and has used them to satisfy liens on the subject property, Clear Sky has waived and/or is estopped from asserting challenges to the certificate of take or this condemnation suit other than a determination of just compensation.

The parties’ positions have been stated in memoranda and arguments on the record and need not be restated here. The primary question is what, if [28]*28anything, is Clear Sky entitled to raise under Va. Code § 25.1 -219, given the facts and circumstances existing in this case?

Entities conferred with the power of eminent domain proceed on one or a combination of two methods of condemnation under Title 25.1 or Title 33.1 of the Code of Virginia. See generally W. Hamilton Bryson, Bryson on Virginia Civil Procedure, § 16.03 (4th ed. 2005). Chesapeake City Charter § 2.02 gives the City “quick take” authority set forth in Va. Code §§ 33.1-119 to 33.1-129, and provides:

Certificates issued pursuant to such sections may be issued by the city council, signed by the city manager and countersigned by the city treasurer. Such certificates shall have the same effect as certificates issued by the State Highway Commissioner under the aforesaid sections and may be issued in any case in which the city proposes to acquire property of any kind by the exercise of its powers of eminent domain for any lawful public purpose, whether within or without the city, provided that the provisions of such sections shall not be used except for the acquisition of lands or easements necessary for streets, water, sewer, or utility pipes or lines, or related facilities.

Pursuant to the provisions of Title 33.1, the City recorded in the Clerk’s office a certificate of take on March 22,2012. Upon recording the certificate of take, the City deposited with the Clerk the sum of $2.15 million for the benefit of the respondent, which amount the City estimated to be the fair market value of the property. Pursuant to Va. Code § 33.1-122, “upon such recordation, the interest or estate of the owner of such property shall terminate and the title to such property or interest or estate of the owner shall be vested in the [City] and such owner shall have such interest or estate in the funds held on deposit by virtue of the certificate as he had in the property taken.” This proceeding is a condemnation by the City for the purpose of (1) confirming absolute title to certain real property located in the City; and (2) determining the amount of just compensation to which the respondent is entitled by reason of such acquisition.

The City filed its Petition for Condemnation on September 14, 2012, initiating the instant case; respondent was served on September 24, 2012. On October 4, 2012, the respondent filed its Petition To Distribute Funds seeking to draw down and distribute the funds deposited by the City. On October 9, 2012, the Court entered an agreed order, which distributed said funds to pay off liens and taxes on the property with the balance paid to the respondent. The City asserts that respondent Clear Sky has waived all claims and objections in this proceeding, with the exception of the right to have a jury determine the full amount of just compensation due by reason of the taking of its property.

[29]*29Va. Code § 33.1-124 provides a procedure for allowing a property owner to draw down funds deposited with a certificate of take; subsection H provides, in part:

However, the acceptance of such payment shall not limit the amount to be allowed by a commissioner in a condemnation proceeding, nor limit the rights of any party or parties to the proceeding to appeal from any decision therein; nor shall any party to such proceeding be entitled to introduce evidence of any amount deposited with the court or represented by a certificate, nor of any amount which has been accepted by any party entitled thereto pursuant to this section.

Many differences exist between the two statutory methods for condemnation. For example, Va. Code § 25.1-219(E) provides that, “at such hearing, the court shall also determine whether the petitioner shall be granted a right of entry as provided in § 25.1-223,” whereas, Va. Code § 33.1-122 provides that title vests with the City and that the title is “defeasible until the reaching of an agreement between the Commissioner and such owner, as provided in § 33.1-129, or the compensation determined by condemnation proceedings as hereinafter provided.” Va. Code § 33.1-95 provides: “Except as to procedure, the Commissioner of Highways shall not be subject to any limitations in Title 25.1 in exercising the power of eminent domain pursuant to this title.” Va. Code § 33.1-124(F) provides in part: “[Ijnterest shall not accrue if an injunction is filed against the Department of Transportation that enjoins the taking of the property described in the certificate.”

Because of the obvious need to construct and complete road infrastructure in a timely manner and because most often a road is clearly a public purpose, Title 33.1 provides an immediate change in title to land in question to the condemnor and the former property owner’s interest shifts to the funds held on deposit by either certificate of take or deposit. A landowner would need to seek an injunction to prevent the condemnor from taking possession of the property. See Va. Code § 33.1-124(F). To balance this effect, the condemnor must place on deposit the estimated value of the property taken, but not less than the tax assessed value.

Jurisdiction

Clear Sky argues that the Court lacks jurisdiction for many reasons, as stated. Many of Clear Sky’s arguments have been addressed by the Court’s overruling of its demurrer. The Fourth Circuit Corut of Appeals affirmed the United States District Court for the Eastern District of Virginia’s dismissal of Clear Sky’s claims under the federal Uniform Relocation Assistance and Real Property Acquisitions Policies Act (“URA”), holding that “the URA, in imposing policies on the heads of federal and state agencies in [42 U.S.C.] [30]*30§§ 4651 and 4655, creates no individually enforceable rights. Therefore, Clear Sky lacks any basis for a private action to remedy violations of those sections.” Clear Sky Car Wash, L.L.C., et al. v. City of Chesapeake et al., No. 13-1492, 2014 U.S. App. lexis 3273, at *13-17 (4th Cir. Feb. 21, 2014) (unpublished decision).

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Related

Tiller v. Norfolk and Western Railway Company
110 S.E.2d 209 (Supreme Court of Virginia, 1959)
State Highway & Transportation Commissioner v. Herndon
302 S.E.2d 55 (Supreme Court of Virginia, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
89 Va. Cir. 27, 2014 Va. Cir. LEXIS 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-chesapeake-v-clear-sky-car-wash-llc-vaccchesapeake-2014.