State Ex Rel. Department of Transportation v. Cedars Group, L.L.C.

2017 OK 12, 393 P.3d 1095, 2017 WL 696814, 2017 Okla. LEXIS 14
CourtSupreme Court of Oklahoma
DecidedFebruary 22, 2017
DocketCase Number: 113135
StatusPublished
Cited by4 cases

This text of 2017 OK 12 (State Ex Rel. Department of Transportation v. Cedars Group, L.L.C.) 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
State Ex Rel. Department of Transportation v. Cedars Group, L.L.C., 2017 OK 12, 393 P.3d 1095, 2017 WL 696814, 2017 Okla. LEXIS 14 (Okla. 2017).

Opinion

COMBS, C.J.:

FACTS AND PROCEDURAL HISTORY

¶ 1 Prior to filing the condemnation proceedings the Appellee, Oklahoma Department of Transportation (ODOT), offered the Appellants, Cedars Group, L.L.C., an Oklahoma limited liability company; Centoma, an Oklahoma limited partnership; A. Sam Coury (Coury); and Bush, Ltd. d/b/a Deer Creek Texaco, (collectively, Coury Defendants), $562,500.00 for the acquisition of certain real property. The offer was not accepted and ODOT commenced two condemnation proceedings on October 3, 2007. In CJ-2007-8484, Oklahoma County, Oklahoma, the commissioners’ report was filed April 8, 2008, estimating the value of just compensation for the property to be $285,000.00. This case was consolidated with the other condemnation proceeding, CJ-2007-8485, Oklahoma County, Oklahoma, on May 1, 2009. The commissioners’ report for CJ-2007-8485 was filed on April 3, 2008, estimating the value of just compensation for the property to be $177,500.00. The combined value of the two commissioners’ awards totaled $462,500.00.

¶ 2 On May 2, 2008, the Coury Defendants hired Gregg Renegar’s law firm to provide representation in the condemnation proceedings. Section 2 of the written attorney-client agreement provided:

Section 2. Attorney’s Fees. Client shall pay to Attorney, as Attorney’s fees for the representation as provided in this Agreement, forty percent (40%) of the difference between the Commissioner’s award and the jury verdict or settlement amount with respect to the above-described claim. If attorney’s fees are statutorily allowed and awarded by the court, these will be added to the recovery and the above percentage taken of the total.

The written attorney-client agreement also provided that any modifications would have to be in writing.

¶ 3 A jury trial was held on February 14, 2011. The jury awarded just compensation in the amount of $525,000.00 for the two tracts. This amount exceeded the commissioners’ award ($462,500.00) by at least ten percent and therefore the Coury Defendants were entitled to be paid a sum in the opinion of the court which will reimburse their reasonable attorney, appraisal, engineering, and expert witness fees actually incurred because of the condemnation proceedings pursuant to 27 O.S. 11 (3) (added in 1975) and 66 O.S. 55 (D) (added in 1980).

3. If the award of the jury exceeds the award of the court-appointed commissioners by at least ten percent (10%), the owner of any right, title or interest in such real property may be paid such sum as in the opinion of the court will reimburse such owner for his reasonable attorney, appraisal and engineering fees, actually incurred because of the condemnation proceedings. Such determination by the court shall be appealable to the Supreme Court in the same manner as any other final order. The final award of such sums will be paid by the person, agency or other entity which sought to condemn the property.
Title 27 O.S. 11 (3).
(D) Where the party instituting a condemnation proceeding abandons such proceeding, or where the final judgment is that the real property cannot be acquired by condemnation or if the award of the jury exceeds the award of the court-appointed commissioners by at least ten percent (10%), then the owner of any right, title or interest in the property involved may be *1098 paid such sum as in the opinion of the court will reimburse such owner for his reasonable attorney, appraisal, engineering, and expert witness fees actually incurred because of the condemnation proceeding. The sum awarded shall be paid by the party instituting the condemnation proceeding.
Title 66 O.S. 66 (D).

¶ 4 On May 20, 2011, the Coury Defendants filed an application for attorney fees and a motion for costs. The trial court held the requests were untimely filed and denied the requests; the Coury Defendants appealed. On November 23, 2013, we issued our opinion finding the requests were timely and upon application we awarded $100.00 in costs to the Coury Defendants and awarded appeal-related attorney fees which were to be determined by the trial court upon remand.

¶ 6 On March 7, 2014, the Coury Defendants filed a second supplemental application for attorney fees in the trial court. In ODOT’s response brief filed April 14, 2014, it mentions Renegaris law firm had just recently informed ODOT that the original written attorney-client agreement had been orally modified. The Coury Defendants’ reply brief, filed April 23, 2014, explained the written attorney-client agreement had been abrogated prior to the February 14, 2011, trial. The reply states:

Second, the original Contingency Fee Agreement between Renegar’s law firm and the Defendants no longer exists as it was abrogated by the parties to the contract prior to the beginning of the trial of the case. A. Sam Coury (“Coury”) was deposed on April 21, 2014 by ODOT’s counsel and his testimony confirmed that the parties abrogated the Contingency Fee Agreement prior to the beginning of the trial of the ease. Coury will be presented as a witness at the healing on this matter. In addition, as pointed out by ODOT on page 6 in its Response Brief, “... Coury, to date, has not paid his attorney any money for any fees’.,.” which is a clear indication, by virtue of the parties’ behavior, that the contract was abrogated, i.e., the parties’ actions are indicative of the abrogation of the contract.

The same document also provides:

ODOT acknowledges on page five of its Response Brief that Corny “has not paid his attorney any money for any fees; .... ” Of course, the reason for this is that Coury and his attorney abrogated the original contingency fee agreement and Coury is acting in accordance with his agreement with his attorney, that being that Coury would get all of the proceeds from the jury verdict and that his attorney would get what is awarded by the court for attorney’s fees.

¶ 6 Along with the reply, the Coury Defendants filed a third application for attorney fees and costs. It sets out the following table showing the requested fees, costs and expenses:

*1099 [[Image here]]

These numbers did not include anticipated future attorney fees and litigation expenses. The Coury Defendants anticipated there would be another $13,400.00 in attorney fees plus some additional Westlaw charges.

¶ 7 On June 11, 2014, the trial court held an evidentiary hearing concerning the requested fees, costs and expenses. At the hearing Gregg Renegar and A. Sam Coury testified. The testimony provided the May 2, 2008, written attorney-client agreement was abrogated soon after it was executed and it was replaced with an oral agreement. This was done after they realized ODOT would be liable for attorney fees if the verdict exceeded the commissioners’ award by at least ten percent. 1 Renegar testified the abrogation occurred sometime in 2009. 2 Under the oral agreement the Coury Defendants would keep the jury award and would support Renegar in applying for fees, costs and expenses.

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Cite This Page — Counsel Stack

Bluebook (online)
2017 OK 12, 393 P.3d 1095, 2017 WL 696814, 2017 Okla. LEXIS 14, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-department-of-transportation-v-cedars-group-llc-okla-2017.