Material Service Corp. v. Rogers County Board of Commissioners

2012 OK CIV APP 17, 273 P.3d 880, 2011 Okla. Civ. App. LEXIS 132
CourtCourt of Civil Appeals of Oklahoma
DecidedAugust 18, 2011
Docket108,020. Released for Publication by Order of the Court of Civil Appeals of Oklahoma, Division No. 3
StatusPublished
Cited by7 cases

This text of 2012 OK CIV APP 17 (Material Service Corp. v. Rogers County Board of Commissioners) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Material Service Corp. v. Rogers County Board of Commissioners, 2012 OK CIV APP 17, 273 P.3d 880, 2011 Okla. Civ. App. LEXIS 132 (Okla. Ct. App. 2011).

Opinion

KENNETH L. BUETTNER, Judge.

¶ 1 Defendant/Appellant/Counter-Appellee Rogers County Board of Commissioners (County) appeals from a jury verdict which found County liable for a temporary taking and awarded damages. Plaintiff/Appel-lee/Counter-Appellant Material Services *883 Corporation (MSC) appeals the amount of attorney fees and costs awarded, claiming the trial court erred in interpreting the contingent fee agreement. We find no reversible error in the trial record and the jury's decision is supported by competent evidence; we therefore affirm the judgment in favor of MSC. However, we find the trial court erred as a matter of law in interpreting the attorney fees contract and in denying certain costs to MSC. We therefore reverse the Order awarding fees and costs and remand for determination of a reasonable attorney fees award consistent with this opinion and an award of eligible costs.

¶ 2 This case is the third appeal in litigation between the parties over certain property. MSC entered a lease to mine limestone on property in County. In 2000, MSC sought a mining permit from the Oklahoma Department of Mines. MSC alleged that in response, County sought to prevent the mining by first annexing the property and then informing the Department of Mines that mining on the property was restricted by zoning. After MSC's declaratory judgment action on the validity of the annexation was unsuceessful in the trial court, another division of the Oklahoma Court of Civil Appeals reversed, finding that County's annexation was void for lack of statutory notice. See Material Service Corp. v. City of Claremore, 2003 OK CIV APP 51, 72 P.3d 63. After the appellate decision was final, MSC obtained a mining permit in 2003.

¶ 3 MSC filed its Petition in this case April 28, 2004. MSC contended that County's void annexation prevented MSC from mining on the property from May 2000 until August 2003, which constituted a temporary commercial taking of a property right. MSC made claims for intentional interference with contract, intentional interference with prospective business, and intentional taking. The trial court granted summary judgment to County on all of MSC's claims. Another division of the Oklahoma Court of Civil Appeals reversed summary judgment on the inverse condemnation claim and remanded the matter for trial. See Material Service Corp. v. Rogers County Com'rs, 2006 OK CIV APP 52, 136 P.3d 1063 (summary judgment on the tort claims affirmed based on County's immunity under the Oklahoma Governmental Tort Claims Act).

¶ 4 After remand, jury trial on the issue of inverse condemnation was held October 27-29, 2009. The jury found in favor of MSC and awarded $12,500,000 in compensation. The trial court entered judgment accordingly and later denied County's motions for judgment notwithstanding the verdict and for new trial. The trial court entered its Order June 30, 2010, in which it awarded MSC prejudgment interest of $7,089,041.10; post-judgment interest of $210,399.80; attorney fees of $8,125,000; and costs and other fees totaling $54,680.87.

¶ 5 We first address County's appeal from the jury verdict and award. In inverse condemnation cases, whether there is a taking and the amount of damages are questions of fact for the jury; therefore, we will affirm the jury's decision if it is supported by any competent evidence. Calhoun v. City of Durant, 1998 OK CIV APP 152, ¶ 5, 970 P.2d 608 (cert. denied). A taking may be found where land is physically taken and occupied, where government action substantially interferes with the use and enjoyment of property, or where government overtly exercises dominion and control over property. Williams v. State ex rel. Dept. of Transp., 2000 OK CIV APP 19, ¶ 24, 998 P.2d 1245. A leasehold interest may be subject to a taking and the leaseholder may have a cause of action in inverse condemnation. See Grand River Dam Authority v. Brogna, 1991 OK CIV APP 104, 827 P.2d 901 (leasehold interest in oil and gas is in nature of property right such that leaseholder had right to intervene in condemnation proceeding); State ex rel. Cartwright v. Dunbar, 1980 OK 15, 618 P.2d 900; 26 Am.Jur.2d Eminent Domain § 177 ("valid contracts are property which is protected ... by the Fourteenth Amendment against the taking by a state, unless just compensation is made to the owner.").

¶ 6 County's first claim is that the trial court erred in not dismissing this suit based on expiration of the limitations period. County asserts that the three year limitations period established in 12 O.S.2001 *884 § 95(2) applies to this case, and it claims that because the trial court determined the taking began in May 2000, MSC had three years from then to file its petition. MSC counters that the limitations period for inverse condemnation cases is 15 years, citing Drabek v. City of Norman, 1996 OK 126, 946 P.2d 658. 1 The basis for MSC's claim of inverse condemnation is that County's void annexation prevented MSC from mining the property for three years. MSC filed its action seeking to declare the annexation void within months of the annexation and it filed its petition in this case within one year of the mandate in that case. MSC's petition was timely filed. 2

¶ 7 It bears noting that County did not raise the limitations issue, beyond one line in its Answer listing affirmative defenses without argument, in the proceedings before summary judgment. 3 After remand of the inverse condemnation claim, County filed a Motion to Dismiss, in which one of its issues was expiration of the applicable limitations period. There County asserted that if the jury determined there was a taking, then the limitations period would be 15 years, and if the jury found no taking, the limitations period would be three years, citing Oklahoma City v. Daly, supra. 4 County asserted "(t)he trial court may not decide whether this action is barred by the statute of limitation until the issue of taking is resolved by the trier of facts under the prescribed condemnation procedures." (Record at 232). Of course, the limitations issue would have been waived by the time the question of a taking reached the jury. In this case, the limitations issue is waived for failure to raise it before a motion to dismiss following remand; furthermore, according to County's own argument in the motion to dismiss, the limitations period was 15 years because the jury ultimately found a taking had occurred.

¶ 8 County next asserts the trial court erred in granting MSC's motion in limine preventing County from showing that MSC failed to exhaust administrative remedies. County's claim is that after it annexed and zoned the property at issue, MSC should have sought to change the zoning to allow mining, rather than seeking a judgment declaring the annexation void. County equates seeking a variance or change of zoning before filing suit to an exhaustion of administrative remedies. The trial court noted in the record, and we agree, that MSC could not be expected to seek administrative relief from annexation and zoning which were later determined to be void. County has failed to cite to the transcript to show that it offered such evidence at trial or that such evidence was rejected by the trial court.

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Bluebook (online)
2012 OK CIV APP 17, 273 P.3d 880, 2011 Okla. Civ. App. LEXIS 132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/material-service-corp-v-rogers-county-board-of-commissioners-oklacivapp-2011.