Oklahoma Turnpike Authority v. New Life Pentecostal Church of Jenks

1994 OK 9, 870 P.2d 762, 65 O.B.A.J. 283, 1994 Okla. LEXIS 3, 1994 WL 10239
CourtSupreme Court of Oklahoma
DecidedJanuary 18, 1994
Docket79185
StatusPublished
Cited by42 cases

This text of 1994 OK 9 (Oklahoma Turnpike Authority v. New Life Pentecostal Church of Jenks) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oklahoma Turnpike Authority v. New Life Pentecostal Church of Jenks, 1994 OK 9, 870 P.2d 762, 65 O.B.A.J. 283, 1994 Okla. LEXIS 3, 1994 WL 10239 (Okla. 1994).

Opinions

OPALA, Justice.

Two issues are tendered by the condem-nor, Oklahoma Turnpike Authority [Authority]: [1] Did the trial court err in assessing against the condemnor attorney’s, expert witness, jury, and court reporter fees as well as a witness’ travel expense? and [2] If an attorney’s fee may be allowed, is the landowner’s contract for a 40% contingency interest reasonable? We answer the first question in the negative as for the attorney’s, expert witness and jury fees, and in the affirmative as to the court reporter fee and witness’ travel expense. We respond to the second question in the affirmative. The landowner’s counter-appeal presents an additional question: Are the nisi prius rejected litigation expenses allowable against the Authority? Our answer is in the negative.

The Oklahoma Turnpike Authority [Authority] brought this condemnation action to acquire a tract of land owned in fee simple by New Life Pentecostal Church of Jenks [landowner]. The property is necessary for the construction of the Tulsa South Bypass known as the Creek Turnpike. The Authority sought to condemn the property when the landowner declined its $350,000.00 offer. The landowner retained legal counsel on a contingent-fee basis. The court-appointed commissioners determined the land to be valued at $471,000.00. The verdict was in the amount of $535,4-00.00. The landowner then pressed for an attorney’s fee of $77,-275.18 based on its obligation to the lawyer under the contingent-fee contract.1 Also sought was $20,315.26 in costs and litigation [764]*764expenses. The trial court awarded the landowner $77,275.18 in attorney’s fee and $12,-771.20 in costs incurred for expert witness, jury and court reporter fees and a witness’ travel expense. It rejected landowner’s quest for litigation expenses of $3,483.06. The Authority assigns error in the trial court’s award of an attorney’s fee, expert witness fees and costs. If a counsel-fee award is the landowner’s due, the Authority challenges the reasonableness of the 40% contingent-fee contract. The landowner’s counter-appeal is for corrective relief from the disallowance of litigation fees.

I

THE TEACHINGS OF NEW

The trial court approved an assessment against the condemnor for expert witness fees ($12,000), jury fee ($70), court reporter fee ($691.20) and a witness’ travel expense ($10.00); it disallowed $3,483.06 for copies, exhibit enlargements and mounting, photographs, model of church building, trial supplies, enlargements and maps.

Oklahoma Turnpike Authority v. New2 settles a similar issue. New teaches that in condemnation proceedings the Authority qua condemnor is subject to an assessment of attorney’s, appraisal, and engineering fees (27 O.S.1991 §§ 9, 11),3 expert witness fees (66 O.S.1991 §§ 55, 57)4 and of court costs (66 O.S.1991 §§ 55, 56).5 But New rejects the allowability of other litigation expenses — i.e., copying, mileage, telephone and telefax expenses, and postage. The latter items constitute components of the lawyer’s overhead,6

Applying the teachings of New to today’s case, we hold that the trial court was correct in (a) awarding against the Authority counsel fee, expert witness fees and a jury fee and (b) disallowing the claimed litigation expenses. Because there is no warrant in our statutory or decisional law for assessing against a condemnor (1) court reporter fee [$691.20] and (2) a witness’ travel expense [$10.00], we reverse the trial court’s allowance of these items of expense.

II

REASONABLE ATTORNEY’S FEES IN CONDEMNATION PROCEEDINGS

The Authority asserts the landowner’s 40% contingent-fee agreement with the lawyer is [765]*765unreasonable. Our first task is to determine the extent of the landowner’s contractual obligation to its counsel in the event the jury award exceeds the condemnor’s initial offer by the statutorily mandated minimum of 10%.

A.

The Employment Agreement Obligated The Landowner To a 40% Attorney’s fee

If an ambiguity arises from language used in a contract for the employment of legal counsel, which is not caused by extrinsic facts, construction of a provision presents a question of law for initial resolution of the nisi prius court.7 Based on our four-corners’ examination of the disputed document, we hold that its terms are clear and unambiguous.

The pertinent text of the agreement provides that if the case goes to a verdict, the landowner is obligated to pay an attorney’s fee based on a formula of “forty ... per cent of the difference between the amount of the verdict [$535,400] plus interest less costs [$7,787.94] and the amount of the final offer of the condemnor [$350,000] before suit was filed.”8 The trial court’s award of $77,-275.18 to the landoimer for its counsel-fee obligation is based on this formula.

The Authority asserts that the landowner’s counsel-fee obligation is governed by another provision in the contract which states that “[i]n no event will ... [the landowner] owe more than fifteen ... per cent of the difference between the Court appointed Commissioner’s award [$471,000] and the offer [$350,000] in addition to any fee awarded by the court to be paid by the Condemnor.”9 We deem the quoted provision inapposite here. When read in conjunction with the entire paragraph in which it is found, the pertinent text is applicable only if, during the period between the date of the agreement and the jury award, two events should occur: (a) there is a “change in interpretation” of the court-awarded fees or (b) a “change in legislation.” Neither of these events has occurred in this case. Moreover, assuming the contested contract provision were invocable here, we must construe its terms to mean that if the court-awarded fee is less than 40% (computed according to the prescribed formula), the landowner is obligated to supply the deficit up to 15%.

We hence conclude that the dispositive issue is whether the trial court’s 40% award for landowner’s counsel-fee. obligation — set for the only amount that could fully relieve the landowner of its contractual duty to its lawyer — is in fact or in law excessive. If so, the landoimer may then legitimately be expected to supply a part of the fee out of its own recovery.

B.

The KAMO-Liability Standard For Attorney’s Fees

Root v. KAMO Elec. Coop., Inc.10 teaches that in condemnation proceedings a landowner’s quest for an attorney’s fee to be awarded against the condemnor is measured by the extent of the landowner’s obligation to its lawyer unless, of course, the obligation is excessive.11 When there is any doubt as to the quantum of the fee we look to the limits on reasonableness or excessiveness of the owner-incurred obligation. If the fee obligation is not excessive, the landowner must be relieved of counsel-fee liability and its burden may be shifted to the defeated con-demnor.

[766]*766This court should never be unmindful that a landowner

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Bluebook (online)
1994 OK 9, 870 P.2d 762, 65 O.B.A.J. 283, 1994 Okla. LEXIS 3, 1994 WL 10239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oklahoma-turnpike-authority-v-new-life-pentecostal-church-of-jenks-okla-1994.