In re Condemnation by the Redevelopment Authority

20 Pa. D. & C.5th 449
CourtPennsylvania Court of Common Pleas, Lawrence County
DecidedDecember 17, 2010
Docketno. 70083 of 2004, M.D.
StatusPublished

This text of 20 Pa. D. & C.5th 449 (In re Condemnation by the Redevelopment Authority) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lawrence County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Condemnation by the Redevelopment Authority, 20 Pa. D. & C.5th 449 (Pa. Super. Ct. 2010).

Opinion

PICCIONE, J.,

Before court for disposition is the condemnees’ motion for fees and costs pursuant to statute. Thomas R. Whittaker, Christy L. Whittaker, and the Estate of David C. Hamilton (hereinafter, the “condemnees”) seek payment of attorneys fees and costs in accordance with 26 Pa.C.S.A. § 306(g) of the eminent domain code. The relevant background of this case follows.

In March of 2003, Lawrence County established the Redevelopment Authority of Lawrence County (hereinafter, the “condemnor”), and through various measures taken in the following months, the condemnor demonstrated its intent to condemn the condemnees’ properties.1 During this period, the condemnees hired Attorney Michael K. Parrish of Goehring, Rutter & Boehm to represent them in the condemnation proceedings. Thomas R. and Christy Whittaker retained [451]*451attorney Parrish and his law firm on an hourly basis while David C. and Edna J. Hamilton entered into a contingency fee arrangement.2

On July 29, 2004, the condemnor filed separate declarations of taking, condemning the condemnees’ properties for the purpose of developing a business park.3 The condemnees filed preliminary objections to the declarations of taking pursuant to § 306 of the eminent domain code, and this court conducted a twelve-day hearing over the course of six months. On June 18, 2007, this court overruled the condemnees’ preliminary objection challenging the legality of the taking but sustained the preliminary objection claiming that the condemnor filed an insufficient bond with the declaration of taking. The condemnor was ordered to post bonds in the amount of $2,500,000.00 to secure the Whittaker property and in the amount of $200,000.00 to secure the Hamilton property. The parties were also ordered to apply for the appointment of a board of viewers to assess just compensation due in the instant condemnations.

The condemnees appealed to the Commonwealth Court of Pennsylvania, which found that the condemnation was not justified because no physical conditions of blight existed. In re Condemnation by Redevelopment Authority of Lawrence County, 962 A.2d 1257, 1265 (Pa. Commw. 2008). As a result, the Commonwealth Court reversed this court’s decision and sustained the [452]*452condemnees’ preliminary objections to the legality of the taking. Id. The Commonwealth Court also dismissed the condemnees’ preliminary objection to the adequacy of the posted security because the court’s ruling rendered the preliminary objection moot. Id. The condemnor then filed a petition for allowance of appeal in the Pennsylvania Supreme Court, which was denied on June 23,2009.0 In re Condemnation by Redevelopment Authority of Lawrence County, 973 A.2d 1008 (Pa. 2009).

After the Commonwealth Court issued its decision, the condemnees filed the instant motion for fees and costs pursuant to statute on July 17,2009. Hearings regarding the condemnees’ motion were held on January 28,2010, April 4, 2010, and April 23, 2010. Both parties offered expert testimony and submitted numerous exhibits detailing and analyzing the hours expended by attorney Parrish and other employees of Goehring, Rutter, and Boehm during the course of these proceedings. The condemnees claim that they incurred $1,129,555.74 in fees, costs, and expenses during the course of these proceedings.4 The condemnees argue that they are entitled to payment for the entire sum while the condemnor asserts that they are entitled to only a fraction of the $1,129,555.74.

The current dispute is governed by § 306(g) of the Eminent Domain Code. Section 306(g) states:

(1) If preliminary objections which have the effect [453]*453of terminating the condemnation are sustained, the condemnor shall reimburse the condemnee for reasonable appraisal, attorney and engineering fees and other costs and expenses actually incurred because of the condemnation proceedings.
(2) The court shall assess costs and expenses under this subsection. 26 Pa.C.S.A. § 306(g).

The statute “speaks in specific terms of ‘appraisal, attorney and engineering fees and other costs and expenses actually incurred’; it does not speak in terms of ‘general damages’ that may be sustained by a condemnee or provide that a condemnee must be made whole.” In re Condemnation by the Commonwealth, Department of Transportation, 709 A.2d 939, 944 (Pa. Commw. 1998) (interpreting 26 P.S. § 1-408).5 “When determining statutory costs and expenses to be awarded a condemnee, the trial court may not apply just compensation requirements.” Id. at 943 (citing Dohany v. Rogers, 281 U.S. 362 (1930)). Repayment of fees, costs, and expenses are permitted only if they are “actually incurred because of the condemnation proceedings.” 26 Pa.C.S.A. § 306(g)(1).

The condemnor does not dispute that costs, expenses, and reasonable attorney fees are owed under § 306(g). Rather, the issue before the court is how much of the total cost of the representation should the condemnees be awarded and, more specifically, how much of the fees, costs, and expenses were “actually incurred because of the condemnation proceedings.” 26 Pa.C.S.A. § 306(g)(1). [454]*454Preliminarily, the court notes that the underlying dispute in this case involved several unique and novel issues that undoubtedly necessitated considerable research and preparation for each stage of the condemnation proceedings. Furthermore, the court is aware that the condemnees carried a heavy burden both at the trial and appellate court level when challenging the certification of blight by preliminary objection. In re Condemnation by Redevelopment Auth. of Lawrence County, 962 A.2d at 1260; York City Redevelopment Authority of the City of York v. Ohio Blenders, Inc., 956 A.2d 1052, 1063 (Pa. Commw. 2008). As a result, the court is mindful of the difficulty of the task undertaken by the condemnees’ attorneys and will consider this in analyzing the amount of hours billed, the hourly rate charged, and the reasonableness of the total sum requested.

The first issue to be addressed is the amount of fees, costs, and expenses to be awarded for the Hamilton representation. The condemnees request an award of $323,459.73 for fees, costs, and expenses incurred on behalf of the Hamiltons, but the condemnor argues that the condemnees should receive no award for representing the Hamiltons. The condemnees’ figure of $323,459.73 was derived from their attorneys’ billing records, which document each task completed in connection with this matter, the amount of time expended on each task, the law firm employee that performed the task, the hourly rate of the employee, the amount charged, and the client that was billed. As a result, the Hamiltons’ proposed award was calculated in the same manner as that of the Whittakers, who were charged an hourly rate in accordance with their fee agreement.

[455]

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Related

Dohany v. Rogers
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Harborcreek Township v. Ring
570 A.2d 1367 (Commonwealth Court of Pennsylvania, 1990)
Gehris v. Com., Dept. of Transp.
369 A.2d 1271 (Supreme Court of Pennsylvania, 1977)
In Re Condemnation Redevelopment Authority of Lawrence Cty.
962 A.2d 1257 (Commonwealth Court of Pennsylvania, 2008)
Signora v. Liberty Travel, Inc.
886 A.2d 284 (Superior Court of Pennsylvania, 2005)
York City Redevelopment Authority v. Ohio Blenders, Inc.
956 A.2d 1052 (Commonwealth Court of Pennsylvania, 2008)
Gross v. City of Pittsburgh
741 A.2d 234 (Commonwealth Court of Pennsylvania, 1999)
In re Condemnation by the Commonwealth
709 A.2d 939 (Commonwealth Court of Pennsylvania, 1998)
In re Condemnation of Rights of Way & Easements Situate
544 A.2d 551 (Commonwealth Court of Pennsylvania, 1988)

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Bluebook (online)
20 Pa. D. & C.5th 449, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-condemnation-by-the-redevelopment-authority-pactcompllawren-2010.