In Re Relocation Benefits of James Bros. Furniture, Inc.

642 N.W.2d 91, 2002 Minn. App. LEXIS 400, 2002 WL 555144
CourtCourt of Appeals of Minnesota
DecidedApril 16, 2002
DocketC6-01-1359
StatusPublished
Cited by6 cases

This text of 642 N.W.2d 91 (In Re Relocation Benefits of James Bros. Furniture, Inc.) 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
In Re Relocation Benefits of James Bros. Furniture, Inc., 642 N.W.2d 91, 2002 Minn. App. LEXIS 400, 2002 WL 555144 (Mich. Ct. App. 2002).

Opinion

OPINION

G. BARRY ANDERSON, Judge.

Respondent terminated relator’s month-to-month lease. Relator applied for relocation benefits under Minn.Stat. §§ 117.50-56 (1998). Respondent denied relator relocation benefits. A hearing officer determined relator was entitled to relocation benefits. After consulting with relator, a relocation-benefits consultant determined that respondent was liable for $12,433 in relocation benefits. At a subsequent hearing, relator contested the $12,433 determination. The hearing officer denied relator’s claims for benefits in excess of $12,433. Respondent subsequently adopted a resolution denying that it was liable for any relocation benefits; but, respondent agreed that if it was hable for any such benefits, those benefits should be limited to $12,433. We reverse and remand.

FACTS

James Brothers Furniture, Inc., (relator) occupied retail property owned by Minneapolis Gold and Silver Corporation (MG & S), in Robbinsdale, Minnesota. It is unclear whether relator and MG & S ever entered into a formal lease agreement. 1 In April 1990, an adjacent McDonald’s restaurant informed respondent Robbinsdale Economic Development Authority (REDA) that it planned to raze its existing building and partially re-locate and re-build its restaurant. REDA contemplated re-development of the immediate area in conjunction with the McDonald’s project. Between April 1990 and September 1992, REDA held several meetings where redevelopment of the immediate area was discussed. REDA contemplated either purchasing or condemning the MG & S property and subsequently entered into a one-year option contract with MG & S that allowed REDA to purchase the property, but that also allowed MG & S to remain on the property for one year rent-free if REDA exercised its option to purchase.

REDA exercised its option to purchase the property and closed on the property in late June 1993. REDA concedes that part of the MG & S property was used to accommodate the McDonald’s project. MG & S and relator, however, continued to occupy the remaining REDA property for one year thereafter under the rent-free occupancy agreement. One year later, the occupancy agreement expired and relator and REDA subsequently entered into a written month-to-month lease agreement that required 90 days’ notice to terminate the lease and vacate the property.

*95 In May 1999, REDA granted development rights to a business to re-develop the area adjacent to and including the remaining REDA property. On May 12, 1999, to prepare for the re-development, REDA gave relator 90-days’ notice to vacate the property.

In response to REDA’s 90-days’ notice, relator initially contemplated moving its business to another retail location, but ultimately decided to liquidate most of its inventory and terminate its operations. Relator contracted with Monk Enterprises, Inc. (Monk), an inventory broker, to liquidate its inventory. Relator sold most of its inventory to Monk, and Monk conducted an inventory-liquidation sale at the property; James Senden, relator’s president, moved the balance of the unsold inventory to the homes of family and friends. In late October 1999, relator vacated the property.

By letters dated November 22 and December 30, 1999, relator requested relocation benefits from REDA. REDA denied relator benefits concluding that relator was not a “displaced person” as defined by Minn.Stat. § 117.50, subd. 3 (1998). Relator requested an administrative appeal and a hearing was held on the eligibility issue. The hearing officer concluded relator was a “displaced person” under the statute and, therefore, concluded that relator was entitled to relocation benefits. The hearing officer also concluded that MG & S did not waive relator’s right to relocation benefits as part of its purchase agreement with REDA.

REDA subsequently hired Conworth, Inc. (Conworth), a relocation-benefits consultant, to assist relator in preparing its relocation claims. After consulting with relator, Conworth determined relator was entitled to $12,433 in relocation benefits. Relator disputed that amount and alleged that it was entitled to additional relocation benefits.

On March 8 and May 15, 2001, another administrative hearing was held focusing on the amount of relator’s claims. By letter dated June 25, 2001, the same hearing officer denied relator’s claims in excess of $12,433. On July 10, 2001, REDA adopted a resolution that accepted the hearing officer’s factual findings made after the first hearing, but rejected the hearing officer’s legal conclusion that relator was a “displaced person” entitled to relocation benefits. In the alternative, REDA concluded' that if relator is a “displaced person,” it is entitled to no more than $12,433 in relocation benefits. This appeal followed.

ISSUES

I. What is the final administrative decision?

II. Is relator a displaced person?

III. Is relator entitled to additional relocation benefits?

IV. Were relator’s procedural due-process rights violated because the hearing officer was the city manager of a neighboring city, which was also represented by respondent’s attorney’s law firm?

ANALYSIS

In 1973, the legislature enacted the Minnesota Uniform Relocation Act (MURA). See generally Minn.Stat. § 117.50-56 (2000). The act intended to make public funds available to reimburse relocation costs incurred by households and businesses displaced by public acquisitions of property where there is no federal financial participation. See Minn.Stat. *96 § 117.52. Under MURA, an “acquiring authority” 2 must

as a cost of acquisition, * * * provide all relocation assistance, services, payments and benefits required by the [federal] Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 * * * and those regulations adopted pursuant thereto.

Id.

I.

Relator argues that the only decision that may be reviewed by this court is the hearing officer’s June 25, 2001 decision concerning the amount of relocation benefits due relator. Relator argues that the hearing officer’s June 5, 2000 decision concerning relator’s eligibility for relocation benefits may not be reviewed because it was a final decision and the time for appeal of that decision has expired. Moreover, relator argues that this court may not review REDA’s July 10, 2001 resolution because the hearing officer’s decision is the only final decision under MURA.

The Code of Federal Regulations discusses the procedure for appealing initial agency decisions denying certain relocation benefits under the federal act:

Any aggrieved person may file a written appeal with the Agency in any case in which the person believes that the Agency has failed to properly consider the person’s application for [relocation] assistance * * *.

49 C.F.R. § 24.10(b) (2000).

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Bluebook (online)
642 N.W.2d 91, 2002 Minn. App. LEXIS 400, 2002 WL 555144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-relocation-benefits-of-james-bros-furniture-inc-minnctapp-2002.