Golden Foods, Inc. v. Louisville & Jefferson County Metropolitan Sewer District

240 S.W.3d 679, 2007 Ky. App. LEXIS 459, 2007 WL 4168447
CourtCourt of Appeals of Kentucky
DecidedNovember 21, 2007
Docket2006-CA-001645-MR
StatusPublished
Cited by6 cases

This text of 240 S.W.3d 679 (Golden Foods, Inc. v. Louisville & Jefferson County Metropolitan Sewer District) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Golden Foods, Inc. v. Louisville & Jefferson County Metropolitan Sewer District, 240 S.W.3d 679, 2007 Ky. App. LEXIS 459, 2007 WL 4168447 (Ky. Ct. App. 2007).

Opinion

OPINION

THOMPSON, Judge.

Golden Foods, Inc., Golden Brands, Inc., William A. Becker, and Karen K. Becker (collectively “Golden Foods”) appeal from an opinion and order of the Jefferson Circuit Court entered on July 11, 2006, denying its motion for attorney fees. Having concluded that the trial court did not abuse its discretion, we affirm.

The relevant facts of this case were stated by this Court in an unpublished opinion, No.2001-CA-001457-MR, which affirmed the trial court’s finding that the Metropolitan Sewer District (MSD) failed to negotiate in good faith for the acquisition of Golden Foods’ property prior to the initiation of condemnation proceedings. We adopt the facts as stated in No.2001-CA-001457-MR, as follows:

In the mid-1990’s residents of Harold Avenue, an unincorporated area of Jefferson County, experienced increasing storm water drainage problems. Several Harold Avenue residents contacted MSD about the need for storm water drainage improvements in the area. According to Mr. Loyiso Melisizwe, MSD’s Beargrass Creek Area team leader, a couple of the residents expressed an interest in also obtaining sewer service but the primary concern was storm water drainage. Because construction of storm water drainage improvements would entail extensive construction work in the area, MSD deemed it desirable to explore with the neighborhood residents the possibility of simultaneously constructing a sewer system.
On April 17, 1997, MSD held a public meeting for the Harold Avenue residents. At that meeting the residents were informed that a sewer project was being considered but that to receive sewers the majority (51%) of the voting property owners must vote in favor of it.
Residents were informed that the drainage improvements along Harold Avenue would be constructed regardless of the neighborhood vote on the sewer project. Residents were given until May 2, 1997, to return their ballots. Of the 112 property owners in the Harold Avenue neighborhood only 68 voted; 34 voted in favor of the sewer project and 34 voted against it. This tie vote was the third time Harold Avenue residents had been asked to consider a sewer project. The residents had rejected a sewer system on two prior occasions beginning sometime in the mid-1980’s.
On May 9, 1997, MSD Executive Director Gordon R. Garner recommended to the MSD Board that it proceed with the Harold Avenue project, noting that “of the 68 responses, 50% were in favor of the installation of sanitary sewers in the area.” Although the written recommendation in May 1997 accurately reflects that a majority of the residents did not approve sewers, when Mr. Gar *681 ner was deposed in this condemnation proceeding, he indicated repeatedly that the Harold Avenue project was undertaken because the majority of the residents had voted for a sewer system. Mr. Melisizwe testified that MSD generally does not build a sewer project unless (1) the Board of Health requires or a court orders construction due to health and environmental concerns; (2) MSD receives a request from a small city or other incorporated area; or (3) the majority of the residents in an affected area vote in favor of the project. Although Mr. Melisizwe said that typically this last option entails at least a 51% vote, he alluded to without elaboration, “a couple” of prior occasions where projects were undertaken without a majority vote. Carolyn Williams, MSD Project Manager for the Harold Avenue project, testified in conformity with her prior representations to Harold Avenue residents that for a project to proceed a majority of the voting residents must vote affirmatively.
Even though a majority of the Harold Avenue residents did not vote affirmatively, the MSD Board approved the project and moved forward. Although several options were considered for providing sanitary sewers to Harold Avenue residents, MSD ultimately focused on two alternatives. The so-called gravity alignment would connect to an existing 45-inch private sewer line which runs across the entire length of the Golden Foods property and a small portion of the Golden Brands and Becker properties and then connects to MSD’s existing system. The McCloskey Avenue pump station option involved building a pump station and pumping the Harold Avenue wastewater to a McCloskey Avenue sewer line owned by MSD.
[[Image here]]
In June or July of 1997, MSD first contacted Golden Foods to discuss the possible acquisition of the private sewer line. At that time MSD proposed that Golden Foods relinquish ownership of the existing sewer line in exchange for MSD’s installation of a new separate, parallel 8-inch sewer line to be constructed for the apparent exclusive use of Golden Foods. Under this proposal, the Harold Avenue residents and presumably Parallel Products (an upstream neighbor who was using the Golden Foods sewage line by virtue of ... [an] easement agreement) would be serviced by the existing sewer line. Because of the nature of Golden Foods and Golden Brands business, food processing, the companies expressed concern that MSD’s excavation and construction would interfere with their ability to service their clients who require timely deliveries. Golden Foods was particularly concerned because the proposed new sewer line and the existing sewer line would both run “right through the center of its (Golden Foods’) property where numerous utility lines and other connections exist, and where customers, suppliers, vendors and employees maintain their main ingress and egress for the conduct of Golden Food’s business.” Other concerns voiced by Golden Foods representatives included potential environmental problems with respect to any removed soil and the location of any sampling points for monitoring Golden Foods effluent and discharge.
For six and one-half months after this initial overture, the parties had no contact but they resumed discussions in January 1997, again discussing MSD assuming ownership of the existing 45-inch fine and constructing a new 8-inch line for Golden Foods’ use. The estimated cost of construction of the new smaller sewer line was approximately *682 $56,000-$60,000.00. Eventually attorneys for MSD and Golden Foods became involved in exchanging several draft agreements, a process which continued through the spring and summer of 1998 and into early 1999. On February 25, 1999, Camille Irwin, attorney for MSD, wrote Alan Linker, counsel for Golden Foods, to advise that MSD was withdrawing all prior offers and terminating negotiations. She identified substantial areas of disagreement which were paragraphs 7(G), 7(H) and 10 of Golden Foods’ proposed agreement of February 17, 1999. Paragraph 7(G) dealt with MSD’s abatement of testing of Golden Foods effluent until the new parallel sewer line was completed. Paragraph 7(H) required MSD to perform soil sampling of the easement area and if environmental contaminants were present, to either dispose of the soil or replace the soil in its original location rendering the parties’ agreement null and void. Paragraph 10 contained a provision for MSD obtaining adequate insurance coverage to indemnify Golden Foods against any losses or damages for business interruption caused by MSD’s construction or maintenance work on Golden Foods’ property.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
240 S.W.3d 679, 2007 Ky. App. LEXIS 459, 2007 WL 4168447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/golden-foods-inc-v-louisville-jefferson-county-metropolitan-sewer-kyctapp-2007.