City of North Sacramento v. Citizens Utilities Co.

218 Cal. App. 2d 178, 32 Cal. Rptr. 308, 1963 Cal. App. LEXIS 1764
CourtCalifornia Court of Appeal
DecidedJuly 11, 1963
DocketCiv. 10532
StatusPublished
Cited by7 cases

This text of 218 Cal. App. 2d 178 (City of North Sacramento v. Citizens Utilities Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of North Sacramento v. Citizens Utilities Co., 218 Cal. App. 2d 178, 32 Cal. Rptr. 308, 1963 Cal. App. LEXIS 1764 (Cal. Ct. App. 1963).

Opinion

PIERCE, P. J.

Respondent City of North Sacramento (hereinafter the “city”) instituted condemnation proceedings, under the Public Utilities Code (§ 1401 et seq.) to acquire the water system supplying its, citizens. This system was owned by appellant, Citizens Utilities Company of California (hereinafter sometimes the “utility”).' The proceedings ultimately reached a “final” 1 order of condemnation under which the city was declared to be the owner of, and was granted possession to, the properties condemned, after it had deposited with the clerk of the court the sum of. $2,206,000 plus costs. This sum .was the amount originally 'fixed as “just compensation” by the Public Utilities Commission and thereafter included by the superior court in the interlocutory judgment of condemnation.

The question on this appeal from said “final” order of condemnation is whether the trial court erred in issuing said order and in putting the city into possession without exacting, as a condition precedent thereto, payment of 7 per cent interest on the $2,206,000 from the, date of said interlocutory judgment (November 5, 1959) to the date when possession was taken. (It was agreed by the parties during oral argument that the question of the allowance of interest on any judgment which may hereafter be made for a possible supplemental award for “betterments” to be made by the com *181 mission hereafter is not before us for decision.) ' An incidental question "is whether "a declaration in the order appealed from declaring" the city to be the owner of the water system was premature.

In our opinion the trial court ruled correctly on the questions at issue.

The utility’s contention is that interest must be added because of the provisions of article XX, section 22, of the California Constitution adopted in 1934 (that provision which relates to interest) 2 and of Code of Civil Procedure section 1255b. The latter section will be discussed below. The constitutional provision provides in part that the rate of interest on any “judgment rendered in any court" of the State shall be 7 percent per annum. ’ ’

Since an interlocutory judgment in a general condemnation proceeding has been held (in Bellflower City School Dist. v. Skaggs, 52 Cal.2d 278 [339 P.2d 848] and other cases) to be a “judgment” under said constitutional provision, therefore, the utility argues, so must the interlocutory judgment in a special proceeding brought under the Public Utilities Code where the property -of a public- utility is being condemned. We believe that an analysis of the constitutional provision and laws applicable to condemnation proceedings under the Public Utilities Code and the steps here taken under them will demonstrate otherwise. We now undertake this analysis.

In 1956 when, as stated above, the city decided it wanted to acquire the water system owned by appellant utility which served its citizens, two methods of acquisition were available. One method was by general eminent domain proceedings under the provisions of Code of Civil Procedure, part 3, title 7, section 1237 et seq. (See Citizens Utilities Co. v. Superior Court, 59 Cal.2d 805 [31 Cal.Rptr. 316, 382 P.2d 356].) Under this method, constitutionally-guaranteed “just compensation” is fixed by a jury or by the court if a jury is waived. (Cal. Const., art. I, § 14.) Respondent city adopted here a second alternative method, to wit: that set forth in the Public Utilities, Code, section 1401 et seq.

Under this method a petition by the public ageriey is made *182 to the Public Utilities Commission to “fix the just compensation” (Pub. Util. Code, § 1404), the petition is heard (id., § 1409) and just compensation, including severance damages, if any, is fixed (id., § 1411). In the event the condemneeutility does not accept the amount so fixed, eminent domain proceedings are- instituted. (Id., § 1413.) These are not the general proceedings of the Code of Civil Procedure. Just compensation is not fixed by a jury. The finding of the Public Utilities Commission as to compensation is final. The court’s initial and primary function is to determine only whether the political subdivision has the right and power to take the property sought to be condemned and if the court determines it does have-such right “it shall enter a judgment in favor of the complainant in the action, fixing as the just compensation which shall be paid for the taking of the lands, property, and rights, the just compensation fixed by the commission. . . . The judgment of the court insofar as it refers to the just compensation to be paid for the lands, property, and rights, shall be final and shall not be subject to modification, alteration, reversal, or review by any court except as specified in this chapter.” (Id., § 1416.) (See Citizens Utilities Co. v. Superior Court, supra, footnote 3 at p. 809.)

In these proceedings, the Public Utilities Commission made its findings on September 15, 1958, fixing just compensation, including severance damages at $2,206,000. The utility did not accept the sum fixed and a complaint was filed by the city in the superior court on November 6, 1958. A trial was held on the question of the right to condemn and on November 5, 1959, the court entered its interlocutory judgment of condemnation in the sum of $2,206,000. This judgment recites, in compliance with Public Utilities Code, section 1416, that it is “subject to modification by reason of such increase or decrease in the just compensation to be paid as may thereafter be certified to the court by the commission. ...” This qualifying clause was inserted because, under Public Utilities Code, section 1417, the owner may file a petition for an increase in the award, claiming betterments in the system after the original award. Also the condemner, under said section, is given the right to petition, praying that the just compensation should be decreased by the commission, alleging a loss or destruction by reason of depreciation or deterioration thereof subsequent to the date of the filing of the original *183 petition. (Pub. Util. Code, § 1417.) (See Citizens Utilities Co. v. Superior Court, supra, footnote 3 at p. 809.)

Petitions were filed here by both parties under this section. These petitions are still pending. (Stipulation has been made that the commission’s supplementary finding shall be made as of the date when the city took possession of said water system.)

Meanwhile the utility had appealed to this court from the interlocutory judgment. The only question raised on that appeal was the power of the city to condemn the water system, part of which is located outside the city limits.

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Bluebook (online)
218 Cal. App. 2d 178, 32 Cal. Rptr. 308, 1963 Cal. App. LEXIS 1764, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-north-sacramento-v-citizens-utilities-co-calctapp-1963.