County of Dakota v. Cameron

812 N.W.2d 851, 2012 WL 987299, 2012 Minn. App. LEXIS 27
CourtCourt of Appeals of Minnesota
DecidedMarch 26, 2012
DocketNo. A11-1273
StatusPublished
Cited by2 cases

This text of 812 N.W.2d 851 (County of Dakota v. Cameron) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
County of Dakota v. Cameron, 812 N.W.2d 851, 2012 WL 987299, 2012 Minn. App. LEXIS 27 (Mich. Ct. App. 2012).

Opinion

OPINION

LARKIN, Judge.

In this eminent-domain proceeding, appellant challenges the district court’s award of damages under Minnesota’s minimum-compensation statute, Minn. Stat. § 117.187. Appellant argues that the district court misconstrued section 117.187 in determining minimum compensation for the taking of his property and that the district court erred in refusing to award him all of the attorney fees that he requested. Because the district court properly construed section 117.187 and awarded appellant just compensation, and because the district court did not err in determining a reasonable award of attorney fees, we affirm.

FACTS

In 2008, respondent the County of Dakota commenced a condemnation action to acquire various properties in Inver Grove Heights and South St. Paul to provide a right-of-way for reconstruction of County State-Aid Highway 56, also known as Concord Boulevard. One of the properties was owned by appellant George W. Cameron IV. Cameron’s property was located at 6566 Concord Boulevard East in Inver Grove Heights (the taken property). The taken property consisted of approximately 13,000 square feet of land and a building that was constructed in 1885. The building had 4,444 square feet of space on the ground level, and a 1,756-square-foot, unfinished basement. The effective date of taking was July 25, 2008.

Cameron is the sole shareholder of Cameron’s Warehouse Liquors Inc. Prior to the taking, Cameron’s Warehouse Liquors occupied the taken property and sold beer, wine, and liquor under a liquor license issued by the city of Inver Grove Heights. According to Cameron, Cameron’s Warehouse Liquors’ trade area was on the west side of the Mississippi River within a three-mile radius of the property. After the taking, Cameron’s Warehouse Liquors relocated to a temporary location. Although sales have increased at the new location, Cameron’s Warehouse Liquors is losing money because expenses are significantly greater at the new location.

The county initially offered Cameron $560,400 for the taken property based on a real-estate appraisal. Cameron rejected the offer. The parties were unable to agree on an award of damages, and the dispute was heard by three court-appointed condemnation commissioners, on April 28-30, 2009. At the hearing, the county’s appraiser increased his estimate of the fair market value of the taken property to $580,400. The commissioners ultimately awarded Cameron $655,000 in damages. Cameron appealed the commissioners’ decision to the district court.

At the ensuing evidentiary hearing in district court, Cameron argued that he was entitled to minimum compensation under Minn.Stat. § 117.187, that is, an amount of money that would enable him to purchase a comparable property in the community. But Cameron’s expert testified that no comparable property was available for purchase in the community. Cameron therefore argued that he should be awarded funds sufficient to purchase vacant land and construct a new building comparable to the building on the taken property. Cameron presented a detailed estimate [856]*856showing that it would cost $2,175,000 to purchase the land and construct a comparable building. Cameron requested damages in that amount.

The county’s expert offered evidence regarding his minimum-compensation analysis, which was based on the value of a recently sold liquor store located on South Robert Trail in Inver Grove Heights. The expert opined that the South Robert Trail property was comparable to the taken property. The South Robert Trail property sold for $505,000 in June 2008. Of that amount, $155,000 was compensation for the business and the remaining $850,000 was compensation for the building and land. The expert concluded that because Cameron’s property had appraised for more than the South Robert Trail sale price, Cameron was not entitled to minimum compensation and should merely receive the appraised value of his property. Although the county did not advocate a specific amount of compensation at the hearing, it opposed Cameron’s request for damages in the amount necessary to purchase land and construct a new building.

The district court determined that the South Robert Trail property was comparable to the taken property. Next, the district court engaged in a market-value analysis based on the sale price of the South Robert Trail property and concluded that Cameron was entitled to $997,055.84 as just compensation. Later, the district court issued an amended order, awarding Cameron $161,964.50 in reasonable attorney fees and $62,006.63 in litigation expenses, appraisal fees, expert fees, and other related costs. Cameron had requested $217,991.45 in attorney fees, which was the actual amount of fees incurred under his attorney-fee agreement. This appeal follows, in which Cameron challenges the damages and attorney-fee awards.

ISSUES

I. Is Minn.Stat. § 117.187 ambiguous and therefore properly subject to judicial interpretation?

II. Did the district court err in its construction and application of the term “comparable property” under Minn. Stat. § 117.187?

III. Did the district court err in its construction and application of the term “community” under Minn.Stat. § 117.187?

IV. Did the district court err in using a market-value analysis to determine a minimum-compensation award under Minn.Stat. § 117.187?

V. Is the district court’s award of $997,055.84 just compensation?

VI. Did the district court err in awarding attorney fees?

ANALYSIS

I.

In this case of first impression, we are asked to review the district court’s award of minimum compensation under Minn. Stat. § 117.187 in an eminent-domain proceeding. Minn.Stat. § 117.187 states that:

When an owner must relocate, the amount of damages payable, at a minimum, must be sufficient for an owner to purchase a comparable property in the community and not less than the condemning authority’s payment or deposit under section 117.042, to the extent that the damages will not be duplicated in the compensation otherwise awarded to the owner of the property.

The. statute sets forth a measure of damages that must be utilized when an owner must relocate. “Owner” is defined as “the person or entity that holds fee title to the property.” Minn.Stat. § 117.187. The [857]*857parties agree that the minimum-compensation statute is applicable in this case because Cameron was the fee owner of the taken property, he suffered a total taking, and he had to relocate his business to continue its operation. Thus, the damages payable must, at a minimum, be sufficient for Cameron “to purchase a comparable property in the community.” Id.

The parties disagree regarding how minimum compensation is determined under the statute, arguing that the statute is ambiguous and urging this court to resolve the ambiguity through statutory interpretation. The county asserts that the statute “is so vague and ambiguous that reasonably minded persons cannot agree upon its meaning.” The district court recognized the purported ambiguity, observing that key terms were left undefined and understandably stating that it hoped “the legislature will revise the minimum-compensation statute to more directly and clearly define the concepts of ‘purchase,’ ‘comparable property,’ and ‘in the community.’ ”

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Related

Commissioner Of Transportation v. Krause
925 N.W.2d 30 (Supreme Court of Minnesota, 2019)
County of Dakota v. Cameron
839 N.W.2d 700 (Supreme Court of Minnesota, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
812 N.W.2d 851, 2012 WL 987299, 2012 Minn. App. LEXIS 27, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-of-dakota-v-cameron-minnctapp-2012.