Sipe v. Kalitowski

390 N.W.2d 910, 1986 Minn. App. LEXIS 4570
CourtCourt of Appeals of Minnesota
DecidedJuly 29, 1986
DocketC6-86-288
StatusPublished
Cited by3 cases

This text of 390 N.W.2d 910 (Sipe v. Kalitowski) 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
Sipe v. Kalitowski, 390 N.W.2d 910, 1986 Minn. App. LEXIS 4570 (Mich. Ct. App. 1986).

Opinion

OPINION

CRIPPEN, Judge.

After the trial court consolidated two cases, the first an environmental action brought by appellant landowners against respondent City of Greenfield, and the second a condemnation action brought by the city against the owners, the city discontinued the condemnation action. The parties then stipulated to the dismissal of all claims except for the amount of attorneys’ fees appellants could recover. The trial court awarded fees incurred in defense of the condemnation action but denied recovery of fees incurred in pursuit of the environmental action. We reverse.

FACTS

On June 5, 1984, respondent City of Greenfield passed a motion to proceed by eminent domain to take real estate owned by appellants Nyle and Marian Sipe and Dale Barlage, vendors and vendee of the parcel. Respondent planned to build a sewage treatment facility on the property.

One week later, appellants brought suit in district court to enjoin respondent from proceeding with the taking. Appellants alleged that respondent failed to comply with environmental regulations as required by the Minnesota Environmental Rights Act (MERA). See Minn.Stat. §§ 116B.01 —116B.13 (1984).

Respondent formally petitioned the court to order the taking of appellants’ land by eminent domain in October 1984. A few weeks after this petition was filed, the trial court ordered the consolidation of the two cases “for all purposes.”

In early 1985, respondent learned that it could utilize an existing sewer line and thus obviate its need for the new treatment facility. The city discontinued the eminent domain proceeding against appellants in March 1985. The parties then stipulated to a dismissal with prejudice. The stipulation did not address either the merits of appellants’ challenge under the MERA or whether that challenge was an additional factor in respondent’s decision to abandon the eminent domain proceedings.

The parties stipulated to facts on all claims in both cases except for the amount of attorneys’ fees appellants could recover. They agreed that appellants incurred $59,-414.53 in attorneys’ fees in pursuit of their environmental action and $7500 in defense of the condemnation action. On the grounds that the relevant statute provides only for the recovery of attorneys’ fees in eminent domain proceedings, the trial court disallowed recovery of the $59,414.53 and entered judgment for the landowners in the amount of $7500. The landowners appeal.

ISSUE

Did the trial court err in denying attorneys’ fees incurred in the environmental action?

ANALYSIS

Attorneys’ fees are allowed in eminent domain proceedings only where authorized by statute. County of Freeborn v. Bryson, 294 N.W.2d 851, 852 (Minn.1980). The relevant statute provides:

When the proceeding is dismissed for nonpayment or discontinued by the petitioner, the owner may recover from the petitioner reasonable costs and expenses including attorneys’ fees. In the discretion of the court, the owner may also recover from the petitioner reasonable costs and expenses, including attorneys’ fees, if a condemnation proceeding is dismissed because a court has held that condemnation shall not lie based on a challenge made under the Minnesota Environmental Rights Act.

Minn.Stat. § 117.195, subd. 2 (1984).

In denying recovery of the attorneys’ fees incurred by appellants in the environmental action, the trial court used a two-step analysis. First, it took note of the statute’s provision for attorneys’ fees when *913 a condemnation proceeding is dismissed by the court because of a successful challenge under the MERA. Second, the trial court reasoned that the authorization for recovery of fees would not cover a case where the merits of the MERA challenge remained undecided. In support, the trial court cited City of Thief River Falls v. Swick, 296 Minn. 508, 207 N.W.2d 356 (1973).

Prior to 1982, landowners could only recover attorneys’ fees in eminent domain actions when the proceeding was dismissed due to nonpayment or when the petitioner voluntarily discontinued the action. In 1980, the supreme court expressed concern

over perceived unfairness in allowing attorneys fees where a condemnor itself chooses to abandon the proceeding but not where the court is the one that stops the condemnation. Such a policy does seem to place a burden on the landowner who successfully challenges a condemnation petition on the basis of the state’s interest in the conservation of its natural resources.

Bryson, 294 N.W.2d at 853. The court further held that it could not go beyond the clear limitations of the controlling statute and that even though reform in the area was “long overdue,” arguments for change must be directed to the legislature, not the courts. Id. (citing State, by Spannaus v. Carter, 300 Minn. 495, 499, 221 N.W.2d 106, 108 (1974)). In response, the legislature added the language now found in the second sentence of Minn.Stat. § 117.195, subd. 2 to permit recovery of attorneys’ fees when a landowner raises a successful defense against an eminent domain action under the MERA. See 1982 Minn. Laws, ch. 601, § 1.

We agree with the trial court’s analysis of appellants’ rights to attorneys’ fees under the provision added by the 1982 amendment. The trial court had made no holding that appellants’ separate environmental action was a basis for the eventual dismissal of the condemnation action. Without a successful challenge to the condemnation proceedings under MERA, appellants may not invoke the second clause of section 117.195 subdivision 2.

Moreover, the trial court properly gave serious attention to Swick. 1 There are several factual similarities between Swick and the present case. In both cases the city began condemnation proceedings to acquire land for a sewage treatment facility but ultimately abandoned the condemnations. In both cases-the landowners incurred additional attorneys’ fees because they initiated separate actions against the city in response to the condemnation proceedings. The applicable statutes in both cases permit recovery of fees when the petitioner discontinues the eminent domain proceeding. Finally, the dismissal of the condemnation proceedings in both cases also resulted in dismissal of the ancillary actions.

In Swick, the landowners sought mandamus relief in an inverse condemnation action to recover for damage to property adjacent to parcels sought in an earlier condemnation action. The court in Swick first noted that the relevant statute applied only to direct condemnation proceedings.

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Related

Anderson v. City of Cokato
631 N.W.2d 121 (Court of Appeals of Minnesota, 2001)
Opus Northwest, L.L.C. v. Minneapolis Community Development Agency
599 N.W.2d 582 (Court of Appeals of Minnesota, 1999)
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570 A.2d 373 (Court of Special Appeals of Maryland, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
390 N.W.2d 910, 1986 Minn. App. LEXIS 4570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sipe-v-kalitowski-minnctapp-1986.