Improvement of County Ditch No. 86, Branch 1, County of Blue Earth v. Phillips

614 N.W.2d 756, 2000 Minn. App. LEXIS 768, 2000 WL 1015821
CourtCourt of Appeals of Minnesota
DecidedJuly 25, 2000
DocketC7-99-2051, C4-99-2105
StatusPublished
Cited by4 cases

This text of 614 N.W.2d 756 (Improvement of County Ditch No. 86, Branch 1, County of Blue Earth v. Phillips) 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
Improvement of County Ditch No. 86, Branch 1, County of Blue Earth v. Phillips, 614 N.W.2d 756, 2000 Minn. App. LEXIS 768, 2000 WL 1015821 (Mich. Ct. App. 2000).

Opinions

OPINION

HALBROOKS, Judge.

In the context of a petition for improvement of County Ditch No. 86, Branch 1, appellants Blaine Phillips and Wayne Pest-ka contend that the district court erred by dismissing, first, their challenge to the adoption of the amended viewers’ report by respondent County of Blue Earth and, second, their separate action seeking a declaratory judgment and injunction to stop construction of the drainage project by respondent Krengel Brothers Construction, Inc. Appellants claim that (1) under Minn.Stat. § 103E.511 (1998), the original viewers’ report was final and the Blue Earth County Board lacked the authority to approve the amended report; (2) pursuant to MinmStat. § 103E.606, subd. 2 (1998), the construction contract could not be awarded until there was a final determination that benefits of the improvement exceeded the costs; (3) dismissal of the claim for injunctive relief was error without a factual determination as to whether or not appellants would suffer irreparable injury; and (4) the stipulation signed by the parties did not preclude appellants from subsequently appealing the effect of the drainage authority’s orders on non-owned parcels of land. We affirm.

FACTS

Two petitions, one for improvement of the lower part of Branch 1 of Blue Earth County Ditch No. 86 and one for the upper part, were consolidated by the Blue Earth County Board in its capacity as a drainage authority. The improvement was established by order dated December 23, 1997. No one appealed from the establishment order itself pursuant to MinmStat. § 103E.095 (1998). But Minn.Stat. § 103E.341 (1998) provides that:

The drainage authority must dismiss the proceedings and petition, by order, if it determines that:
(1) the benefits of the proposed drainage project are less than the total cost, including damages awarded * * *.

MinmStat. § 103E.341, subd. 1.

Appellants and some other affected individuals challenged the benefits-and-damages awards contained in the establishment order, pursuant Minn.Stat. § 103E.091 (1998). In total, the determination of benefits and damages for 13 parcels of land were appealed. Appellants, who each own four parcels of land, appealed only the benefits and damages allocated to parcels they own. Their consolidated appeals were tried to a jury in January 1999. During trial, the jury heard testimony from the viewers1 that they had made an error in the capitalization of the projected stream of income resulting from the anticipated enhanced productivity of [759]*759the land as a result of the improvement of Branch No. 1. As a result of the error, the benefit amounts originally calculated by the viewers were increased in each class of land. Appellants were first advised of this error two weeks before trial and appellants’ counsel rigorously cross-examined the viewers on this issue at trial.

On January 20,1999, the jury returned a verdict, finding benefits in the amount of $293,720 and damages in the amount of $29,438. • The net effect of the jury’s determination was that the cost of the improvement exceeded the benefits by $28,950. Appellants filed a motion for new trial. Before the entry of judgment, the parties drafted and signed .a stipulation of settlement dated March 26, 1999, the day the hearing on appellants’ post-trial motion was scheduled. The stipulation, relating to the 13 parcels then at issue, was subsequently incorporated into the trial court’s findings of fact, conclusions of law, and order for judgment.

The stipulation contained the following provisions, among others:

The above entitled parties hereby stipulate and agree to settle and resolve all issues between the parties relating to the determination of benefits and damages in the above proceeding as follows:
1. That the jury verdict as to benefits and damages will become the benefits and damages as determined for Appellants land in the improvement for County Ditch No. 86, Branch 1, Blue Earth County, Minnesota.
⅜ ⅜ ⅜ ⅜
5. By entering into this Stipulation, the Appellants are not estopped and do not waive their right to challenge the feasibility of the ditch if the estimated costs and damages exceed the benefits.

It was also agreed that (1) the appellants would be paid for loss of crops if easements were not flagged prior to planting; (2) contractors would remove and replace the topsoil on disturbed ground; (3) appellants would be paid their damages in cash up front rather than have them offset against benefits; and (4) appellant Phillips would get an extra field crossing. The total cost of these negotiated terms was about $10,000.

Prior to this stipulated settlement, the Blue Earth County Board had accepted bids for construction of the improvement project.. Assuming the amount of the lowest bid received for construction cost, appellants filed a petition with the county board seeking dismissal of the entire proceeding on the grounds that the total cost of the improvement exceeded benefits by $22,994.86, making the project unlawful.

On June 7, 1999, one of the original petitioners for improvement to the upper part of Branch 1, who had not been a party to appellants’ original lawsuit, filed a petition with the county board. The petition sought to amend the viewers’ report to correct the errors in the original report-. The amended report increased total benefits to $324,186, making the project lawful.

A hearing on separate petitions filed by appellants and respondents was held on August 9, 1999. Following the hearing, the county board issued an order adopting the amended viewers’ report determining the benefits to be $324,186 and the projected cost of the improvement to be $313,577. The August 9,1999 order did not affect the benefits or damages for appellants’ previously appealed parcels. Based on this order, the benefits of the project exceeded the cost.

Within 30 days after the entry of the county board’s order, appellants, although they do not own any of the affected parcels, served and filed their notices of appeal to the district court pursuant to Minn. Stat. § 103E.091 with respect to each parcel of land that had an increase in benefits resulting from the order. Respondents served a motion to dismiss the appeals on September 8,1999.

At an October 5, 1999 meeting of the county board, an order was entered, over appellants’ objections, awarding the con[760]*760struction contract to respondent Krengel Brothers Construction, Inc. The contract amount was $129,834.60. On October 15, 1999, appellants served a separate summons and complaint seeking declaratory and injunctive relief against respondents.

A combined hearing on the appellants’ motion for a temporary restraining order and respondents’ motion for dismissal was held on October 26, 1999. Respondents argued that dismissal was proper on the grounds that appellants had settled all their claims on March 26, 1999, and were precluded from appealing from an increase of the benefits on land owned by other people. Following the hearing, the district court dismissed appellants’- statutory appeal pursuant to Minn.Stat. § 103E.091. The court then dismissed appellants’ declaratory judgment and injunctive relief action as moot. No memorandum was filed. This appeal follows.

ISSUES

1.

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Related

Alliance for Metropolitan Stability v. Metropolitan Council
671 N.W.2d 905 (Court of Appeals of Minnesota, 2003)
Pestka v. County of Blue Earth
654 N.W.2d 153 (Court of Appeals of Minnesota, 2002)
Improvement of County Ditch No. 86, Branch 1 v. Phillips
625 N.W.2d 813 (Supreme Court of Minnesota, 2001)
Improvement of County Ditch No. 86, Branch 1, County of Blue Earth v. Phillips
614 N.W.2d 756 (Court of Appeals of Minnesota, 2000)

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Bluebook (online)
614 N.W.2d 756, 2000 Minn. App. LEXIS 768, 2000 WL 1015821, Counsel Stack Legal Research, https://law.counselstack.com/opinion/improvement-of-county-ditch-no-86-branch-1-county-of-blue-earth-v-minnctapp-2000.