City of Gulfport, Mississippi v. Dedeaux Utility Company, Inc.

187 So. 3d 139, 2016 Miss. LEXIS 130, 2016 WL 1165447
CourtMississippi Supreme Court
DecidedMarch 24, 2016
Docket2014-CA-00556-SCT
StatusPublished
Cited by3 cases

This text of 187 So. 3d 139 (City of Gulfport, Mississippi v. Dedeaux Utility Company, Inc.) is published on Counsel Stack Legal Research, covering Mississippi 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 Gulfport, Mississippi v. Dedeaux Utility Company, Inc., 187 So. 3d 139, 2016 Miss. LEXIS 130, 2016 WL 1165447 (Mich. 2016).

Opinion

LAMAR, Justice, for the Court:

¶ 1. This is the third appeal from the City of Gulfport’s taking of the Dedeaux Utility Company via eminent domain. De-deaux appealed after the first two trials, and this Court reversed and remanded both times. The parties have since engaged in a third trial, and now Gulfport appeals and Dedeaux cross-appeals. We affirm the final judgment, but we reverse and remand for the trial judge to determine the rate of interest to be applied to the final judgment and to enter an order requiring payment of that interest.

FACTS AND PROCEDURAL HISTORY

¶ 2. Dedeaux — a privately owned, public utility company — possessed a Certificate of Public Convenience and Necessity from the Mississippi Public Service Commission to provide certain water and sewer services within a 2.6 square mile area of Harrison County. Dedeaux Utility Co., Inc. v. City of Gulfport (“Dedeaux II”), 63 So.3d 514, 518 (Miss.2011). Gulfport annexed that area in 1994, and in 1996, Gulf-port filed a complaint of eminent domain against Dedeaux in the Special Court of Eminent Domain, Harrison County, First Judicial District. Id. According to this Court in Dedeaux Utility Co., Inc. v. City of Gulfport (“Dedeaux I”), 938 So.2d 838 (Miss.2006), “[ujnder Miss.Code Ann. § 77-3-17 (Rev.2000),[ 1 ] Gulfport had the right to condemn such utility districts and incorporate them into its municipal system.” Id. at 840.

¶ 3. Dedeaux continued to operate the utility for the next eight years, as Gulfport did not physically take the utility until December 20, 2004, after a jury awarded Dedeaux $3,634,757. Dedeaux II, 63 So.3d at 518. Dedeaux appealed the verdict, and Gulfport cross-appealed. Id.

¶4. We discuss Dedeaux I more in depth below as necessary, but ultimately this Court reversed and remanded for a new trial, and the parties tried the case again. The second jury awarded Dedeaux $5,131,676 for the taking. Dedeaux II, 63 So.3d at 518. Dedeaux again appealed the verdict, and Guliport again cross-appealed. In Dedeaux II, this Court addressed many more issues than it did in Dedeaux I, and again, we address the relevant analysis more in depth below as necessary. But the Dedeaux II Court also reversed and remanded for a new trial, and the parties tried the case for a third time.

¶ 5. This Court appointed Senior Status Judge William R. Barnett to preside over the third trial. 2 Judge Barnett ultimately *141 held nine hearings on pretrial motions, beginning March 5,2012, until the date the case was tried, and he entered" several orders on those motions. 3 The parties tried the case in December 2013, and the third jury awarded Dedeaux a total of $8,063,981. for the taking. Specifically, the verdict form read:

1. What is the fair market value of the tangible assets owned by [Dedeaux] as measured by the “depreciated replacement costs” of those assets, the intangible assets, Certificate of Public Convenience and Necessity for both water and sewer services owned by [Dedeaux], the land, easements and transitional assistance as of the date the petition was filed, December 3,1996?
$7,082,778.00
2. What is the. fair market value pf.the tangible assets added to [Dedeaux] from . the date the Petition was filed on December 3, 1996, and the date the assets of [Dedeaux] were taken by the. City, on December 20, 2004?
$981,203.00 ’ • ;1;.

¶ 6. Added together, those numbers total $8,063,981.00. The trial judge’s Final Judgment took into account the previous judgments entered against Gulfport • and the setoff amount (which Dedeaux II mandated. and is discussed more in depth below), providing:

' A. The amount set forth in Special' Interrogatory 1., $7,082,778.00, shall be credited by the previous October 7, 2008 judgment amount of $5,131,676.00 [the amount awarded by the jury after the second trial], .leaving an additional award due to [Dedeaux] in the amount of $1,951,102.00, with legal interest from the date of the filing of the Complaint, December 3, 1996 through July 25, 2004, and from December 6, 2004 through March 23, 2008, and from June 2, 2008 until the date payment is actually made, pursuant to [the Court’s' prior orders], B. The amount set forth in Special Interrogatory 2., $981,203.00, shall be credited by the sum of $253,086.00, pursuant to the Court’s Order of December 16, 2013, leaving an award of $728,117.00, with legal interest from the date the City took possession, December 20, 2004 until the date payment is actually made.

Gulfport filed two-post trial motions, which the trial judge denied after hearings. Gulfport now appeals to this Court, and Dedeaux cross-appeals. ■

¶ 7. Gulfport raises thirteen issues on appeal. And while we have given' careful consideration to each of Gulfport’s .arguments, we find that only five of them warrant discussion. We discuss these issues in the order in which Gulfport presented them and recite them verbatim below in our analysis. As for its" cross-appeal, De-deaux specifically requests that this Court not consider those issues if it finds that none of Gulfport’s issues requires reversal.

ANALYSIS

1. Whether the trial court erred as a matter of law by requiring the parties to use different dates for valuing the assets existing on the date the Petition was filed (December 3, 1996) and valuing the assets added between the date the Petition was filed and the date the utility system was actually transferred to the City (December 20, 2004).

¶8. Prior to the third trial, De-deaux filed a “Motion for Partial Summary Judgment or Alternatively, Declaratory *142 Judgment on the Issue of Dates to be Used in Valuation of Dedeaux Utility Company,” Citing portions of this Court’s opinion in Dedeaux II, Dedeaux asserted that it intended “to evaluate the 1996 assets that existed at the time the Petition was filed, and further evaluate the additional assets accumulated between 1996 and 2004 as of the date of transfer in 2004.”

¶ 9. Dedeaux asserted that it had “requested Gulfport’s agreement” to this interpretation, but that Gulfport hud refused to disclose its intent regarding valuation dates.. As such, Dedeaux requested declaratory judgment and/or partial summary judgment “on the following matters: a) That any tangible assets that existed as of December 1996, the time of the filing of the Petition, should be valued as of that date [and] b) Any additional tangible assets accumulated between 1996 and 2004 should be valued as of December 2004, .the date of transfer.” Dedeaux also argued that the interpretation of Dedeaux II was a legal issue for the trial court, not for the parties’ respective expert witnesses.

¶10.

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Related

City of Gulfport, Mississippi v. Dedeaux Utility Company, Inc.
237 So. 3d 164 (Mississippi Supreme Court, 2018)

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Bluebook (online)
187 So. 3d 139, 2016 Miss. LEXIS 130, 2016 WL 1165447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-gulfport-mississippi-v-dedeaux-utility-company-inc-miss-2016.