County of Los Angeles v. Lorbeer

323 P.2d 542, 158 Cal. App. 2d 804, 1958 Cal. App. LEXIS 2438
CourtCalifornia Court of Appeal
DecidedMarch 28, 1958
DocketCiv. 22639
StatusPublished
Cited by6 cases

This text of 323 P.2d 542 (County of Los Angeles v. Lorbeer) 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
County of Los Angeles v. Lorbeer, 323 P.2d 542, 158 Cal. App. 2d 804, 1958 Cal. App. LEXIS 2438 (Cal. Ct. App. 1958).

Opinions

ASHBURN, J.

Appellants were awarded $97,700 as compensation for taking their property in this eminent domain proceeding. The interlocutory judgment was entered on January 11, 1957, and payment of the award was made 45 days later, without interest. Appellants claim they were and are entitled to interest at 7 per cent from the entry of the judgment to the date of payment, a sum of $843.30. A motion was made to that end; the plaintiff county opposed it, taking the position that appellants were entitled to interest for only the last 15 days of the period of delay in making payment. The trial judge ruled with plaintiff, holding that it is liable for no interest for the first 30 days after entry of the interlocutory but is obligated to pay interest for the succeeding 15 days, and the county was ordered to pay same in the sum of $281.10. The parties have raised no objection to the procedure adopted in the lower court and there is no occasion to inquire into its sufficiency.

[807]*807The defendant owners have appealed from said order, arguing that error inheres in that portion determining that “plaintiff is not liable for the payment of any interest on said interlocutory judgment in condemnation for the first thirty days after the entry thereof.” Counsel for both sides agree that the propriety of that ruling presents the only question for review.

Appellants argue that an interlocutory decree of condemnation has all the qualities of an ordinary money judgment and hence interest begins to run at once, regardless of any statutory or other stay of execution. Respondent takes the position that an award in eminent domain is not an adjudication which is presently enforceable, but is a conditional pronouncement which gives the condemner 30 days within which to decide whether the price set by the court is too high and whether it will pay that price or abandon the proceeding; that until that decision has been made or the time therefor has elapsed, there is no money due the landowner, no enforceable obligation resting upon the condemner and no withholding of money from the defendant, hence no legal basis for an award of interest. Respondent concedes that where, as here, there has been no abandonment and no payment of the damages within 30 days, an obligation becomes fixed and carries interest thenceforth.

This case is not complicated by any question arising out of the taking of possession by the condemner or by any showing that defendants’ continued possession yielded any rents or profits, or by any delay due to an appeal or by any affidavit for extension of time for payment pursuant to section 1251, Code of Civil Procedure.1 An award was made; it was not paid for 45 days. Does it draw interest from date of judgment or from the date marking the lapse of 30 days after judgment? That is the question propounded by both sides. However, this statement of the problem involves an oversight concerning the time allowed the condemner for payment [808]*808or abandonment, as will appear from the following discussion.

The immediately pertinent sections of the code contain the following provisions: Section 1251. “The plaintiff must, within thirty days after final judgment, pay the sum of money assessed. ...” Section 1255a. “Plaintiff may abandon the proceedings at any time after filing the complaint and before the expiration of thirty days after final judgment, . . .” Section 1264.7. “The term ‘judgment’ as used in this title means the judgment determining the right to condemn and fixing the amount of compensation to be paid by the plaintiff. The term ‘final judgment’ as used in this title means such judgment when all possibility of direct attack thereon by way of appeal, motion for a new trial, or motion to vacate the judgment has been exhausted.” It is now established that the last quoted section refers to the interlocutory decree, and that: “The term ‘final judgment’ as used in section 1255a of the Code of Civil Procedure means a judgment when all possibility of direct attack thereon by way of (1) appeal, (2) motion for a new trial, or (3) motion to vacate the judgment, has been exhausted. (Code Civ. Proc., § 1264.7.) ” (Southern Public Utility Dist. v. Silva, 47 Cal.2d 163, 165 [301 P.2d 841].) It was also held in that case that

the filing of an affidavit under section 1251 declaring the issuance of bonds to be necessary to provide money for payment of the award, although it extends the time for payment to include a full year, does not affect the limitation upon the right to abandon, which is 30 days after final judgment as defined in section 1264.7; that an attempted abandonment made more than 30 days after the lapse of time to review the judgment was abortive because too late. Normally the condemner has 60 days (rule 2(a) of Rules on Appeal) plus 30 days prescribed by section 1251, within which to pay the award, that period being enlarged in case of intervention of a motion for new trial (rule 3). In the absence of an appeal or a bond affidavit under section 1251, the time for payment and that for abandonment are coincident. If an abandonment is not made within the period prescribed, payment of the award becomes immediately due (absent appeal or the like) and the judgment takes on all the qualities of an ordinary money judgment; the obligation to take the property and to pay the adjudged value has become fixed and is no longer subject to any condition. The condemner’s “obligation to pay is fixed and is not subject to diminution or modi[809]*809fication by the lapse of time.” (Southern Public Utility Dist. v. Silva, supra, p. 166.) Prior to the expiration of 30 days computed according to section 1264.7 there is no withholding of money legally due to the owners, but after that time there is a retention which starts interest to running under generally recognized legal principles. In the instant ease the time for appeal had not expired before payment and hence interest had not started to accrue upon the award.

While the general rule seems to be that a condemnation award draws interest, either as part of just compensation or as an incident to withholding of the damages after their adjudication (see anno, in 36 A.L.R.2d at 413 et seq.), the California law has not evolved into a dogmatic rule that interest immediately follows the making of the award. During the 30 days afforded the condemner (§§ 1251 and 1255a) for contemplation of the award and the advisability of paying that amount for the property or of abandoning the project, there is no cognizable right or duty resting upon it; the award cannot be collected in any manner, nor can the plaintiff be compelled to take or pay for the property.

The Supreme Court of the United States in Danforth v. United States, 308 U.S. 271 [60 S.Ct. 231, 84 L.Ed. 240], considered the question of interest upon damages fixed in an eminent domain proceeding which was controlled by a federal statute. At page 286 it said: “Where the condemnation is free from statutory direction, as here, there would be no interest before the taking.” And at 284: “No interest is due upon the award. Until taking, the condemnor may discontinue or abandon his effort. The determination of the award is an offer subject to acceptance by the condemnor and thus gives to the user of the sovereign power of eminent domain an opportunity to determine whether the valuations leave the cost of completion within his resources.

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County of Los Angeles v. Lorbeer
323 P.2d 542 (California Court of Appeal, 1958)

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Bluebook (online)
323 P.2d 542, 158 Cal. App. 2d 804, 1958 Cal. App. LEXIS 2438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/county-of-los-angeles-v-lorbeer-calctapp-1958.