Dodson v. Anne Arundel County

451 A.2d 317, 294 Md. 490, 1982 Md. LEXIS 326
CourtCourt of Appeals of Maryland
DecidedOctober 14, 1982
Docket[No. 16, September Term, 1982.]
StatusPublished
Cited by16 cases

This text of 451 A.2d 317 (Dodson v. Anne Arundel County) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dodson v. Anne Arundel County, 451 A.2d 317, 294 Md. 490, 1982 Md. LEXIS 326 (Md. 1982).

Opinion

Couch, J.,

delivered the opinion of the Court.

In this case, we are presented with three issues: (1) whether there is authority for applying the legal rate of interest to judgments in conventional condemnation proceedings; (2) whether, in conventional condemnation proceedings, the application of the legal rate of interest rather than the prevailing market rate of interest denies the condemnee "just compensation” as constitutionally required; and (3) whether the 110-day "delay” by the County in paying the judgment was reasonable.

The appellants, Joseph Dodson et al., owned approximately 243 acres of undeveloped land, located in the 8th Election District of southern Anne Arundel County, in an area known as Jug Bay. They had successfully obtained a special zoning exception and the necessary permits to allow for development of the property as a campground for recreational vehicles. On September 15,1977, Anne Arundel County (County) filed condemnation proceedings in the circuit court in order to acquire this property. On September 26,1977, Joseph Dodson, unaware of the pending condemnation proceedings, went to the County Office of Inspections and Permits to obtain the grading permits which had been approved. At that time, one of the employees attempted to give Dodson written notice of the condemnation proceeding. However, Dodson refused to accept the letter, and it was subsequently mailed to him.

On December 14, 1978, the parties stipulated that the value of the property would be fixed as of December 19,1978, and the landowners’ out-of-pocket expenses for development ($30,000) would be included in the jury award. The matter proceeded to trial, and, on March 12,1980, the jury returned its inquisition in the amount of $500,000. Judgment nisi was entered by the circuit court on March 13, 1980. Final judgment was entered on March 18, 1980, and the inquisition *493 was recorded in the judgment index the same day. Although it was forwarded to the Land Records office, the inquisition was not recorded because a certificate of payment had not been filed as required by Maryland Rule U22 a.

Neither party appealed the judgment. Therefore, pursuant to Maryland Code (1974, 1981 Repl. Vol.), Real Property Article, § 12-109 (d) (2), and Maryland Rule U26 c 2, the County had "120 days after the entry of final judgment” to determine whether to take the property or abandon the proceedings. On June 30, 1980, 110 days after entry of the judgment, the County elected to take the property and paid the appellants a total of $508,958.93, the amount of the award plus interest at the legal rate of six percent 1 from the date of entry of judgment to the date of payment. The certificate of payment was filed by the County and the jury inquisition was recorded in the Land Records office that same date, effectively vesting title in the County.

Subsequently, the property owners filed a two-count declaration asserting I) that the 110-day delay in payment of the award was unreasonable, and II) that the payment of the prevailing legal rate of interest (six percent) on the award was unconstitutional. On March 10, 1981, the trial court sustained, without leave to amend, the County’s demurrer to Count II, on the basis that while there is no constitutional right to receive interest on a condemnation award, there is a statutory right to such interest; and, pursuant to Md. Rule 642, the legal rate of interest applied. The order was stayed pending a trial on the merits of Count I. On June 10, 1981, the landowners’ motion for summary judgment as to Count I was denied. At the trial of the merits, the circuit court, sitting without a jury, found that the County’s delay in paying the award was reasonable. Judgment was rendered for the County on November 6, 1981, and the property owners appealed both rulings. We granted certiorari in order to finally put to rest the controversy surrounding the *494 payment of the legal rate of- interest on condemnation awards.

(1)

The appellants argue, first, that there is no statutory authority for application of a six percent interest rate in a conventional condemnation case. Even if such interest rate does apply, the appellants further contend that it is unconstitutional because it violates the just compensation clauses of the United States and Maryland Constitutions.

We hold that the trial court properly sustained the County’s demurrer to Count II. It is elementary that the sovereign may not take private property for public use without payment of "just compensation” to the property owners. See U.S. Const, amend. V and Md. Const., art. Ill, § 40. The Supreme Court has interpreted "just compensation” to be the "full and perfect equivalent in money of the property taken” from the landowner. United States v. Miller, 317 U.S. 369, 373, 63 S.Ct. 276, 279, 87 L.Ed. 336, 342 (1943), reh’g denied, 318 U.S. 798, 63 S.Ct. 557, 87 L.Ed. 1162 (1943). This compensatory award is no more than indemnity for the loss caused by the taking and is intended to put the landowner in as good a pecuniary position as if no taking had occurred. Toward this end, the Supreme Court did not lay down a general formula applicable to all cases. Instead, since the monetary award is dependent on the facts of each case, the fair market value of the property, at the time of the taking, serves as a practical guide and standard. 2

This Court has traditionally equated "just compensation” with "fair market value of the land at the time of the taking.” State Roads Comm. v. Warriner, 211 Md. 480, 485, 128 A.2d 248, 251 (1957). For purposes of condemnation proceedings, the legislature has defined "fair market value” as:

"the price as of the valuation date 3 for the highest and best use of the property which a vendor, willing *495 but not obligated to sell, would accept for the property, and which a purchaser, willing but not obligated to buy would pay,...” Code (1974,1981 Repl. Vol.), Real Property Article, § 12-105 (b).

The jury may properly consider various elements that influence market value at the time of the taking in its determination of damages. For example, we have held that "consideration may be given to any utility to which [the land] is adapted and for which it is immediately available!;]” as well as the condition of the land, improvements on the land, and the effect, if any, on the remainder of the land where only a portion is taken. Pumphrey v. State Roads Comm., 175 Md. 498, 506, 2 A.2d 668, 671-72 (1938). The jury may also take into account the sales of comparable lands, State Roads Comm, of Maryland v. Wood, 207 Md. 369, 373, 114 A.2d 636, 638 (1955); evidence of reasonable probability of rezoning, Warriner, supra,

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Bluebook (online)
451 A.2d 317, 294 Md. 490, 1982 Md. LEXIS 326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dodson-v-anne-arundel-county-md-1982.