Excelsior Union High Sch. Dist. of L.A. Cty. v. Lautrup

269 Cal. App. 2d 434, 74 Cal. Rptr. 835, 1969 Cal. App. LEXIS 1663
CourtCalifornia Court of Appeal
DecidedFebruary 5, 1969
DocketCiv. 31717
StatusPublished
Cited by10 cases

This text of 269 Cal. App. 2d 434 (Excelsior Union High Sch. Dist. of L.A. Cty. v. Lautrup) 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
Excelsior Union High Sch. Dist. of L.A. Cty. v. Lautrup, 269 Cal. App. 2d 434, 74 Cal. Rptr. 835, 1969 Cal. App. LEXIS 1663 (Cal. Ct. App. 1969).

Opinions

HERNDON, J.

Excelsior Union High School District of Los Angeles County, the plaintiff in this eminent domain proceeding, appeals from the trial court’s order awarding defendants and respondents a total of $77,265 for attorneys’ fees following plaintiff’s abandonment of the proceeding. The award was made pursuant to the provisions of section 1255a of the Code of Civil Procedure.

For the purpose of facilitating the reader’s understanding of the relevance of the facts to be recited in our statement of the ease, we shall first set forth this brief summary of appellant’s basic contentions, namely:

(1) That the trial court erroneously based its award in part either upon an implied finding that respondents’ attorneys “caused the abandonment” of the proceeding or upon the provisions of contracts between respondents and their attorneys wherein respondents agreed to pay counsel not less than $100,000 in the event of abandonment.
(2) That in fixing the amount to be allowed respondents for the services of their attorneys, the trial court could not properly take into consideration any of the services of counsel which influenced appellant’s governing board to abandon the proceeding.
(3) That the award made by the trial court was based in substantial part upon services involving “political representation,” which services, notwithstanding their propriety and [437]*437their value to respondents, are not properly compensable under the provisions of section 1255a.

For reasons we shall develop in the course of this opinion, we have concluded that none of these assignments of error is well taken and that the order should be affirmed.

On February 1, 1963, appellant filed its complaint seeking to acquire for use as a high school site approximately 27.7 acres of land owned by respondents and located at the southwest corner of Imperial Highway and Valley View Avenue in the City of La Mirada, California. The land constituted one of the last remaining large parcels of land in this rapidly developing area and respondents earnestly desired to retain it as they indicated by their vigorous and continued efforts to persuade the school district to abandon the project.

George E. Atkinson, Jr., was acting as attorney for Norman Lautrup, executor of the estate of Niels P. H. Lautrup, who had died shortly before the filing of this action. The estate owned a one-half interest in the property and Minnie Margaret Lautrup owned the remaining one-half interest. Although Mr. Atkinson notified appellant that he represented the owners, and received its permission to withhold filing answers to the complaint until notified so to do, he allowed appellant to negotiate directly with the owners for several months without his participation to the end that an amicable settlement might be achieved if possible.

When settlement negotiations failed he, in effect, ‘-‘associated” Mr. Thomas G. Baggot to assist him in the defense of appellant’s action. Minnie Lautrup executed an employment contract with Mr. Baggot on November 21, 1963, in which it was agreed that in accordance with a certain schedule, Mr. Baggot was to receive a contingent fee based upon a percentage of all sums received by Minnie Lautrup in excess of the amount offered her by appellant for her interest in the property. On the same date an identical contract was executed by Mr. Atkinson and Norman Lautrup, as executor. This latter contract was approved by the probate court. Each of these contracts contained the following provision:

“That in the event of an abandonment, either express or by operation of law, by the said School District of said action, the undersigned will pay to [attorney] a reasonable attorney’s fee, not less than $50,000.00 for his services performed up to the time of abandonment and for any service performed with relationship to said abandonment, including, but not [438]*438limited to the securing of said fee upon abandonment from said School District. ’ ’

Appellant offered the owners $864,000, or approximately $.72 per square foot, for their property. This figure apparently represented the opinion of value of one of appellant’s appraisers who had used a valuation date substantially earlier than would have been used at the trial if the proceeding had not been abandoned. The owners’ two appraisers opined that the property was worth $1,900,000 and $1,700,000, respectively, as of the correct valuation date. The property had been appraised in the probate proceeding by the inheritance tax appraiser at $1,363,700 although he had used an even earlier valuation date than had appellant’s appraisers.

Appellant’s complaint also sought to condemn another smaller parcel of allegedly less valuable property owned by persons other than respondents. Appellant purchased this property during the pendency óf this proceeding for $170;000, or approximately $1.28 per square foot. In addition, on January 29, 1964, respondents allegedly received a bona fide offer of $1,900,000 for the property contingent upon the condemnation action being abandoned. This offer was rejected.

• We need not, and do not, speculate as to the amount the trier of fact might have awarded respondents as compensation for the subject property if the action had been tried. The foregoing recital, however, sufficiently indicates the extent and value of the subject matter of the litigation and its importance to the parties.

The pleadings filed herein were of a terse and standard variety but as in any case, and particularly in a condemnation action, these formal records usually reflect only a very small portion of the attorney’s work product in the proceeding. Initially, the only matters in issue were the date of value, the fair market value of the property, and the question of severance damages, if any. However, on August 3, 1964, the initial -pretrial conference order was amended, and amended answers were filed, to eliminate the issue concerning severance damages and to present another issue, namely, whether or not the property was, in fact, being taken for a public use.

While the instant action was pending, on or about October 6, 1964, an election was held by the electors of appellant Excelsior Union High School District upon propositions presenting the question whether or not the whole territory of the district should be formed into two unified school districts. These proposals ultimately were adopted and on June 30, [439]*4391965, appellant ceased to exist as a legal entity. We need not consider the question whether or not the newly created unified district in which the subject property was located might have continued the action for the reason that its governing board unanimously resolved on February 18,1965, “that the County Counsel’s Office be requested to drop the present condemnation suit pending on the Lautrup property and to negotiate with the property owners on a settlement of the suit. ’ ’

On April 30, 1965, the appellant’s governing board also unanimously resolved to “authorize the County Counsel’s office to proceed to abandon condemnation action on Lautrup Dairy site and proceed with necessary steps to pay abandonment costs.” As respondents’ attorneys pointed out to the trial court, the members of the board who moved and seconded this resolution were the two members thereof whose depositions had been taken by respondents in preparation for trial on the issue of public use.

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Excelsior Union High Sch. Dist. of L.A. Cty. v. Lautrup
269 Cal. App. 2d 434 (California Court of Appeal, 1969)

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Bluebook (online)
269 Cal. App. 2d 434, 74 Cal. Rptr. 835, 1969 Cal. App. LEXIS 1663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/excelsior-union-high-sch-dist-of-la-cty-v-lautrup-calctapp-1969.