Opinion
RATTIGAN, J.
This proceeding involves the problem of an apparent overlap between the eminent domain law and the relocation assistance law.
A person sued by a public entity in a condemnation action, brought
under the eminent domain law for the acquisition of his real property for a public use, may plead and recover the “just compensation” to which he is entitled for the loss of the property. (Cal. Const., former § 14 and present § 19 [see fn. 1,
ante];
Code Civ. Proc., §§ 1246, 1264.7.) If the acquisition has physically “displaced” him from the property, the relocation assistance law may entitle him to receive certain specified benefits from the condemning public entity. These benefits may include payment of his actual moving expenses or related losses caused by the acquisition of the property, or a “fixed relocation payment” in lieu of such moving expenses or losses.
The question presented here is whether he may seek to recover a “fixed relocation payment” in the public entity’s condemnation action itself, as part of—or in addition to—the “just compensation” which he is entitled to recover therein under the eminent domain law.
The question arises from the following procedural sequence: Petitioner, the City of Mountain View (hereinafter “the City”), commenced an action under the eminent domain law for the acquisition of certain described and enumerated parcels of land for street and related purposes. Thomas Barnes, real party in interest herein, was named among some 60 condemnee defendants in the action, by his true name and under his business name of “Daisy Diaper Service.”
Barnes filed an answer in which he alleged (or “admitted”), in paragraph II, that he was a lessee of parcel 18 as described in the City’s complaint; in paragraph III, that he owned “certain equipment designed for industrial purposes and installed for use in a fixed location,”
which equipment had a fair market value of $35,000; in paragraph IV, that the fair market value of his leasehold interest in parcel 18 was $15,000, and that the City was taking both the equipment and the leasehold interest in its condemnation action; and, in paragraph V, that “as a result of the taking of the property described as parcel 18, he has been compelled to discontinue his business, known as Daisy Diaper Service, and is therefore entitled to in lieu moving expenses in the sum of $10,000.00, which has been neither tendered nor paid....”
The City demurred to the answer upon the ground that paragraph V was uncertain for failure to allege any “basis” for Barnes’ “entitlement” to recover “$10,000.00 for ‘in lieu moving expenses,’ ” and moved to strike paragraph V for the same reason. The trial court granted the motion to strike upon the ground that Barnes had not alleged in paragraph V that he had “exhausted his administrative remedies” in connection with the “in lieu moving expenses” mentioned, but ruled in effect that such expenses were recoverable in the City’s condemnation
action and granted him leave to amend his answer.
Barnes then filed an amended answer in which he reiterated paragraphs II, III and IV of his answer and restated paragraph V as follows:
“V. This answering defendant alleges that as the result of the taking of the property described [in the City’s complaint] as Parcel 18, he has been compelled to discontinue his business, known as Daisy Diaper Service. Pursuant thereto, defendant requests
[sic]
plaintiff to pay to him in-lieu moving expenses, pursuant to Government Code, Section 7262(c), but plaintiff has refused, and continues to refuse to pay said benefits. Defendant requested a hearing, which was held on September 16, 1974, to review the decision of plaintiff to deny defendant’s request for in-lieu moving expenses. Defendant has exhausted his administrative remedy. Further, as part of the administrative procedure, defendant provided to plaintiff evidence of average annual net earnings, and defendant alleges that his business could not have been relocated without a substantial loss of patronage. Therefore, defendant alleges he is entitled to in-lieu moving expenses in accordance with Government Code Section 7262(c) in an amount to be determined by the Court, but not less than $2,500.00, nor more than $10,000.00.”
The City filed a general demurrer to the amended answer upon the ground that it did “not state facts sufficient to constitute a defense” to its action, and moved to strike paragraph V as amended. The trial court overruled the demurrer and denied the motion to strike.
The City thereupon commenced the present proceeding by filing with this court a “Petition For Writ of Prohibition And/Or, In The Alternative, Mandate” which would (1) restrain the trial court “from proceeding further on the relocation benefit issue in the eminent domain action” upon the ground that it lacks jurisdiction to do so, and, or in the alternative," (2) direct the court to set aside its order overruling the City’s general demurrer to paragraph V of Barnes’ answer, as amended, and denying the motion to strike the paragraph from the pleading.
For purposes of this proceeding, and within the meaning of the relocation assistance law in each instance, it is undisputed that the City is a “public entity” (Gov. Code, § 7260, subd. (a)); that the street and related purposes for which it is acquiring parcel 18 in its condemnation action involve a “public use” for which it may take private property
under the eminent domain law
(id.,
subd. (g); Sts. & Hy. Code, § 4090); that, in paragraph V of his answer as amended, Barnes has pleaded that he is a “displaced person” (Gov. Code, § 7260, subd. (c)); and that he has further pleaded that, as such, he is entitled to recover a “fixed relocation payment”
(id,
§ 7262, subds. (a) and (c)), which he styles “in-lieu moving expenses,” because the City’s acquisition of parcel 18 has compelled him to discontinue his business.
(Ibid)
The question thus presented, as previously stated in the abstract, is whether Barnes may seek to recover the “fixed relocation payment” in the City’s condemnation action. We hold that he may do this, but that he may and must proceed by way of cross-complaint rather than by the allegations of paragraph V of his amended answer alone; we accordingly grant peremptory relief as prayed, but qualify it as appropriate.
The City challenges the trial court’s action by arguing that Barnes may not seek to recover the payment, in the City’s condemnation action brought under the eminent domain law, because legislative intent to the contrary is indicated by the wholly separate formats in which the respective laws appear; because the benefits afforded by the relocation assistance law are fundamentally different from the “damages” which are recoverable by a defendant condemnee in an action brought under the eminent domain law; and because the judicial remedies available under each law are fundamentally different as well. These contentions are essentially correct, but they do not control here. They nevertheless require discussion, as follows:
The Separate Statutory Formats
Although the eminent domain law has existed in California for more than a century (see Cal. Const. (1849) art. I, § 8; Cal. Const. (1879) art. I, former § 14 and present § 19 [see fn. 1,
ante];
Code Civ. Proc. (1872) pt. 3, tit. 7 [“Of Eminent Domain”], commencing with § 1237), the relocation-assistance law was not enacted until 1969 (Stats. 1969, ch. 1489, § 1, p. 3043) and was then limited to acquisitions of real property for public use in Los Angeles County only. (See Gov. Code, § 7260, subd. (a), as added
ibid; Parking Authority
v.
Nicovich
(1973) 32 Cal.App.3d 420, 425-427 [108 Cal.Rptr. 137];
id.,
at pp. 432-433 [dissenting opinion].)
In 1970, the Congress enacted the federal Uniform Relocation Assistance And Real Property Acquisition Policies Act of 1970. (Pub. L.
91-646, tit. I [commencing with § 101]; 42 U.S.C. § 4601 et seq.) This enactment required that the federal government provide relocation advisory and financial assistance to affected persons, and that it follow uniform acquisition policies, whenever it acquired real property under its power of eminent domain. (Comment,
Relocation Assistance in California: Legislative Response to the Federal Program
(1972) 3 Pacific L.J. 114, 115.) By its terms, the federal enactment became binding upon all the states in any instance where, on or after July 1, 1972, a state acquired •land under its power of eminent domain in connection with a federal or federally assisted project. (Pub. L. 91-646, § 221, subd. (a); 42 U.S.C. §§ 4630, 4655; Comment,
supra,
3 Pacific L.J. at p. 115.)
Thereupon, in 1971, the California Legislature amended and augmented the relocation assistance law with the obvious intent to implement the 1970 federal enactment
and
to extend comparable benefits, statewide and payable by the state' and its political subdivisions, to persons disaffected by any acquisition of land under the eminent domain law after July 1, 1972. (Stats. 1971, ch. 1574, § 1 et seq., p. 3154. For a history of the 1971 legislation, in combination with a prior enactment in the same year, see Comment,
supra,
3 Pacific L.J. 114 at pp. 115-116. See also CEB, § 4.53, pp. 76-78.)
Despite its clear purpose in thus developing and enacting the relocation assistance law in its present form, the Legislature did not include in it any provision for judicial relief to a party who is denied relocation benefits claimed under it. Although the law is explicitly and repeatedly addressed to persons disaffected by a public entity’s exercise of the power of “eminent domain,” the Legislature did not integrate it with the eminent domain law in any way. The respective laws appear in separate codes (see fn. 1,
ante),
and the eminent domain law does not mention relocation benefits: specifically, it has never been amended to permit a condemnee defendant to allege his entitlement to them in answering a complaint in eminent domain, or to prove them at the trial of an eminent domain action. (See Code Civ. Proc., §§ 1246, 1248.)
In an exhaustive study of the eminent domain law which produced its repeal and reenactment this year (see Stats. 1975, ch. 1275, §§ 1 and 2, p.— et seq., as mentioned in fn. 1,
ante),
the California Law Revision Commission expressly pointed out to the Legislature that benefits made available by the relocation assistance law were not a part of the present eminent domain law, and recommended that they not be included, except to provide against overlapping and double recovery, in the new
one. (Cal. Law Revision Com. Rep., Recommendation Proposing The Eminent Domain Law (Dec. 1974) pp. 1653-1654.) In the new law, the Legislature complied with the commission’s overall recommendation in this respect and provided the single exception mentioned. (See Stats. 1975, ch. 1275, § 2 [adding Code Civ. Proc., § 1263.010, subd. (b)]. Compare the commission’s 1974 recommendation,
supra,
at p. 1820 [recommending enactment of the same section]; see also commission comment,
id.,
atp. 1821.)
The Difference Between “Just Compensation” and Relocation Benefits
The “just compensation” which a condemnee may recover from the condemnor when his property is acquired for a public use pursuant to the eminent domain law, as contemplated by the Constitution and that law alike, is the “value” (or “actual value,” or “fair market value”), measured at a pertinent time (Code Civ. Proc., § 1249) but
of the property being taken only. (Id.,
§ 1248, subd. 1;
Sacramento etc. R.R. Co.
v.
Heilbron
(1909) 156 Cal. 408, 409 [104 P. 979];
Rose
v.
State of California
(1942) 19 Cal.2d 713, 737 [123 P.2d 505];
Klopping
v.
City of Whittier
(1972) 8 Cal.3d 39, 43 [104 Cal.Rptr. 1, 500 P.2d 1345];
Redevelopment Agency
v.
Del-Camp Investments, Inc.
(1974) 38 Cal.App.3d 836, 843-844 [113 Cal.Rptr. 762], See Evid. Code, §§ 810-812, 814; 5 Witkin, Summary of Cal. Law (8th ed. 1974) Constitutional Law, §§ 586-588, pp. 3882-3886; CEB, §4.1,p.41.)
This means that, subject to his proof at the trial of the City’s condemnation action against him as such, Barnes may recover “just compensation” representing the value of his “equipment” (see fn. 3 and accompanying text,
ante)
and, subject to his proof and apportionment within the full value of the fee interest in parcel 18, the value of his leasehold interest in the parcel. (See Code Civ. Proc., § 1246.1; 5 Witkin, Summary of Cal. Law,
op. cit. supra,
§§ 595-596, pp. 3892-3895; CEB, §§ 4.54-4.60 [pp. 78-83], 10.3 [pp. 260-261].)
It has been consistently held, however, that actual moving expenses incurred by the owner of an interest in real property, as the result of its acquisition by a public entity under the eminent domain law, are
not
included within the constitutional requirement of “just compensation” which is recoverable under that law.
(Klopping
v.
City of Whittier, supra,
8 Cal.3d 39 at p. 54 [fn. 7];
Town of Los Gatos
v.
Sund
(1965) 234 Cal.App.2d 24, 25-28 [44 Cal.Rptr. 181];
Parking Authority
v.
Nicovich,
supra,
32 Cal.App.3d 420 at pp. 428-430; 3 Cal. Law Revision Com. Rep. (1961) pp. C-9—C-ll.) They are “compensable” by the public entity under the relocation assistance law (Gov. Code, § 7262, subds. (a) and (c)), but this result is wholly statutory and independent of the constitutional requirement of “just compensation.”
(Klopping
v.
City of Whittier, supra; Parking Authority
v.
Nicovich, supra; id.,
at p. 433 [dissenting opinion].)
The “fixed relocation payment” sought by Barnes is no more than a statutory alternative to the “[a]ctual and reasonable expense in moving” which he might elect to claim under' the section of the relocation assistance law which permits him to receive one or the other. (Gov. Code, § 7262, subds. (a) and (c).) The payment is limited in amount
(id.,
§ 7262, subd. (c)), while “just compensation” is not.
The relocation assistance law itself provides that “[n]othing contained in this chapter shall be construed as creating -
in any 'condemnation proceedings brought under the power of eminent domain any element of damages not in existence
on the date of enactment of the chapter.” (Gov. Code, § 7270 [italics added].) Substantially identical language appears in another section of the law with reference to its amendment in 1971.
(Id.,
§ 7272.5.)
The Difference Between the Judicial Remedies Involved
We have seen that the Legislature has not expressly provided, in either the eminent domain law or the relocation assistance law, a judicial remedy whereby a person entitled to relocation benefits, payable in money under the latter, may recover them if they are subject to dispute. However, the relocation assistance law is pervaded with language which (1) vests a condemning public entity with substantial discretion in making determinations relative to such benefits, (2) in a fact-finding process in which it must engage, fix the amounts of such benefits, and in some instances determine the claimant’s eligibility therefor.
In paragraph V of his amended answer (quoted
ante),
Barnes alleges—or fairly imports—that the “fixed relocation payment” he claims was denied him after a “hearing” at which the City’s governing body undertook a “review” of his claim pursuant to Government Code section 7266 (see fn. 5,
ante)
and denied it. In light of his allegations concerning this procedure, and the discretion vested in the City’s governing body in following it (see
ibid.),
it appears that he has a judicial remedy which he may pursue by petitioning the superior court for relief in administrative mandamus pursuant to Code of Civil Procedure section 1094.5.
A defendant in a condemnation action, who alleges in his answer the amount of “just compensation” to which he is entitled (Code Civ. Proc., §§ 1246, 1248), is essentially in the posture of pursuing an action
at law
because—despite his inverted position as a “defendant”—he is affirmatively seeking money damages which are to be assessed by a jury unless jury trial is waived. (2 Witkin, Cal. Procedure (2d ed. 1970) Actions, §§ 64-66, pp. 939-941; Cal. Const., art. I, former § 14 and present § 19 [see fn. 1,
ante].)
In contrast, a petitioner for relief in administrative mandamus is pursuing a remedy which fundamentally lies in equity (2 Witkin,
loe. civ, id.,
vol. 5, Extraordinary Writs, § 213, pp. 3969-3970) and in which, as Code of Civil Procedure section 1094.5 expressly
provides (see fn. 6,
ante),
he is not entitled to a jury trial. (4 Witkin,
op. cit. supra,
Trial, § 78, p. 2912.)
From the foregoing discussion and distinctions, we draw these conclusions: In an action brought under the eminent domain law for the acquisition of real property for a public use, a condemnee defendant may allege in his answer the amount of the “just compensation” which he claims, and he may undertake to prove that amount at the trial of the action.
In his answer in that action,
he may not allege the amount of any benefits claimed to be due him under the relocation assistance law, nor may he prove such benefits
at the trial of that action.
If he has been denied claimed relocation benefits, by adverse action of the condemning public entity upon its “review” of his claim by its governing body or other appropriate authority (Gov. Code, § 7266; see fn. 5,
ante),
so that he has exhausted his administrative remedy, his only judicial remedy lies in petitioning the superior court for relief in administrative mandamus pursuant to Code of Civil Procedure section 1094.5.
Because of the fundamental differences between “damages” which he may recover under the eminent domain law and “benefits” to which he may be entitled under the relocation assistance law, and between the two distinct judicial remedies involved, the “trial” of the administrative mandamus proceeding must be conducted separately from the “trial” of the condemnation action.
At the pleading stage of the City’s action in the present case, however (at which stage we are now), the sum of these conclusions is that Barnes may not assert his claim to relocation benefits
in his answer
to the City’s complaint in eminent domain. They do not mean that he may not
allege
a cause of action for affirmative relief against the City, if he has one, in a cross-complaint filed with—but separate from—his answer in the action. The problem, and its resolution, have virtually been anticipated by Code of Civil Procedure section 428.10, which was enacted in 1971 as part of a major substantive change in the law respecting counterclaims and cross-complaints (Stats. 1971, ch. 244 [p. 372], § 23, at p. 380; see 3 Witkin, Cal. Procedure,
op. cit. supra
(1975 Supp.) Pleading, §§ 1020A-1020B, pp. 125-126), and which was in effect when the City filed the condemnation action involved here.
The “Title 7 (commencing with Section 1237) of Part 3” of the Code of Civil Procedure, mentioned in subdivision (a) of section 428.10, is the eminent domain law. (See fn. 1,
ante.)
Subdivision (a) therefore does not authorize the filing of a cross-complaint in an action in eminent domain, but subdivision (b) does if the cause of action “asserted” in the cross-complaint “arises out of the same transaction” as the cause of action stated against the cross-complainant in the condemning entity’s i complaint. A clear statement of legislative intent to this effect appears in the legislative committee comment which accompanied the enactment of section 428.10.
Barnes’ constitutional entitlement to “just compensation” as a condemnee defendant in the City’s action, and his claim to a “fixed relocation payment” under the relocation assistance law, obviously arise from the same “transaction”: i.e., from the City’s acquisition of parcel 18 pursuant to the eminent domain law. (See 3 Witkin, Cal. Procedure,
op. cit. supra,
Pleading, § 993, pp. 2574-2575.) It therefore appears that he may plead a cause of action relative to the denial of the payment, and that he may do so
in
the City’s condemnation action, provided he states it for relief in administrative mandamus pursuant to Code of Civil Procedure section 1094.5 and in a cross-complaint filed pursuant to Code of Civil Procedure section 428.10, subdivision (b), as distinguished from his answer to the City’s complaint in eminent domain.
Since he stated at least a foundation for such cause of action in paragraph V of his amended answer (quoted
ante),
he should have been
granted leave to perfect its. statement in a eross-complaint as mentioned. The trial court said as much in the order in which it allowed him to amend his answer in the first instance (see fn. 4 and accompanying text,
ante),
but erred in permitting him to pursue recoveiy of the disputed payment, in his answer, as if it were provable at the trial of the condemnation action proper. We may correct the situation by granting qualified peremptory relief as follows:
In its action under review, the trial court erroneously overruled the City’s general demurrer as to paragraph V of the amended answer because it “does not state facts sufficient to constitute a defense” to the condemnation action as such. (Code Civ. Proc., § 430.20, subd. (a).) The court further erred in denying the City’s motion to strike paragraph V from the amended answer because, as we have seen, a condemnee defendant’s claim to benefits afforded by the relocation assistance law may not be alleged in his answer in the condemnation action involved.
These errors were not jurisdictional so as to sustain a writ of prohibition (5 Witkin, Cal. Procedure,
op. cit. supra,
Extraordinary Writs, § 39, pp. 3813-3814), but—although they were
pro forma
errors only—they may be regarded as abuses of discretion which will and should support a writ of mandate.
(Ibid.,
§ 80, pp. 3857-3858.) A writ of mandate will therefore issue as to both rulings, directing the trial court to vacate them, to sustain the City’s general demurrer as to paragraph V of the amended answer, and to grant its motion to strike the paragraph from the pleading.
Consistent with our holding that Barnes may properly attempt to proceed pursuant to Code of Civil Procedure section 1094.5 (relative to the denial of the relocation “payment” he seeks, and by way of administrative mandamus), the writ will direct the trial court to grant him leave to file an appropriate cross-complaint within a reasonable time to be fixed by that court.
If and when it is filed, such cross-complaint will be subject to. assessment on its own merits as a pleading. If it stands as such, and if the City responds to it, the “trial” of the issues thus joined must be severed from the trial of the City’s condemnation action itself. (Code Civ. Proc., § 1048;
id.,
§ 428.10, Legislative Committee comment, quoted in fn. 8,
ante.)
A peremptory writ of mandate will issue in the terms stated herein. Neither party shall recover costs in this proceeding.
Caldecott, P. J., and Keane, J.,
concurred.