State Ex Rel. State Highway Department v. Yurcic

511 P.2d 546, 85 N.M. 220
CourtNew Mexico Supreme Court
DecidedJune 22, 1973
Docket9537
StatusPublished
Cited by20 cases

This text of 511 P.2d 546 (State Ex Rel. State Highway Department v. Yurcic) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. State Highway Department v. Yurcic, 511 P.2d 546, 85 N.M. 220 (N.M. 1973).

Opinion

OPINION

STEPHENSON, Justice.

The State of New Mexico, through the State Highway Department (“the Department”) brought this eminent domain proceeding in the District Court of McKinley County against the owners of a number of tracts of land, including Mr. and Mrs. Joe Yurcic. The trial court dismissed the Yurcics’ claim for damages, although they were granted judgment for certain attorney’s fees. The Yurcics have appealed. The Department has not cross-appealed.

It appears that as early as 1964 the Department had evinced an intention, or at least a plan, to condemn the tracts of land with which we are concerned in connection with an interstate highway project. On the assumption that the condemnation would occur, the Yurcics entered into an option agreement with Western Securities in October 1965, in which they agreed to convey the land in question upon exercise of the option. They retained “all damages and other funds which may be payable from the State Highway Department” as part of the consideration. The option was exercised, and the transaction was consummated in June 1966. The land was ultimately conveyed to Phillips Petroleum Company subject to the same reservations as to any proceeds from the Department.

In August, 1968, the Department filed this action under the Special Alternative Procedure [§ 22-9-39 et seq. N.M.S.A. 1953 (1971 Pocket Supp.)] and on the same day the court issued a preliminary order of entry pursuant to Section 29-9-43. However, the Yurcics filed timely objections to the preliminary order of entry and it was never made permanent.

In June, 1969, the Department moved to dismiss these proceedings as to the Yurcic property, reciting that a relocation would make them unnecessary. The Yurcics responded by asserting that the tract had been taken; that they had acted in reliance on the Department’s action to their prejudice and further that the Department was estopped to dismiss. The court sustained the Department’s motion for dismissal, but its order was subject to “a determination of any damages which may have accrued and are properly recoverable by (the Yurcics) because of the actions of the (Department).” The order further required the Yurcics to file a pleading within a reasonable time specifying any damages they had suffered because of the Department’s action and provided for a responsive pleading.

In December, 1969, the Yurcics filed a claim for damages, which, as amended, sought damages said to have accrued by reason of the Department’s abandonment of the condemnation suit. The Department answered with admissions and denials and also apparently moved the dismissal of the claim. The court in its judgment, inter alia, ruled that insofar as the Yurcics sought to recover the fair market value of the property or damages resulting from the loss of the benefit of their bargain, the claim should be dismissed for failure to state a claim upon which relief could be granted.

After the court had orally announced what its ruling would be, evidence was taken in respect to the Yurcics’ claim for reasonable attorney’s fees which were allowed.

The Yurcics first contend that the Department could not unilaterally abandon its condemnation proceeding without compensation to them. This is premised upon the proposition that a “taking” had occurred. They say that under our law the “taking” occurs when the petition is filed.

Unfortunately for the Yurcics, after the judgment was entered in this case and, in fact, after the briefs were filed, we addressed ourselves to this question in State ex rel. State Hwy. Com’n. v. Hesselden Inv. Co., 84 N.M. 424, 504 P.2d 634 (1973). In that case we said:

“Clearly and logically the ‘date of taking’ was the date on which the condemn- or became vested with the legal right to possession, dominion and control over the real estate being condemned. This date was March 5, 1968, the date the Order Making Preliminary Order of Entry Permanent was made and entered. State ex rel. State Highway Commission v. Burks, 79 N.M. 373, 443 P.2d 866 (1968).”

Hesselden involved distinguishable facts, but the distinction is without substance. That case concerned the issue of whether § 22-9-9.1, N.M.S.A.1953 (1971 Pocket Supp.), pertaining to partial takings was in effect at the date of the “taking.” We see no reason why the time as of which a partial taking is fixed should be any different from the time when a complete taking occurs.

As we have said, the preliminary order of entry was never made permanent and there being no assertion that there was a physical entry or disturbance of the Yurcics’ possession, we hold that no “taking” occurred here.

The Yurcics next contend that they were entitled to damages either under Article II,' Section 20 of the New Mexico Constitution which provides that private property shall not be taken or damaged for public use without just compensation or under § 22-9-22, N.M.S.A.1953 (1971 Pocket Supp.), which provides for actions by those whose property has been taken or damaged without just compensation.

Here again, the argument is premised, in part at least, upon a taking having occurred, but we have held that none did. Insofar as it is asserted that damage to the land occurred, this is also without substance. The damage that may have occurred was to the Yurcics rather than to the land, and was only incidental.

On this subject Nichols on Eminent Domain, § 26.45 (3rd ed. 1972) states:

“When condemnation proceedings are discontinued, even when there has been no disturbance of the actual occupancy of the land, the owner often suffers pecuniary loss-during the pendency of the proceedings. * * * He is almost certain to have incurred an attorney’s fee. But it is held that in the absence of bad faith or unreasonable delay upon the part of the party which instituted the proceedings that the owner is not constitutionally entitled to recover such expenses and losses. When the statutes are silent on the subject, no damages will be awarded him.”

Our eminent domain statutes do not provide for recovery of such incidental damages.

Finally, the Yurcics contend that the Department was estopped to abandon the condemnation proceeding, relying upon such cases as McGee v. City of Los Angeles, 6 Cal.2d 390, 57 P.2d 925 (1936); Times-Mirror Co. v. Superior Court, 3 Cal.2d 309, 44 P.2d 547 (1935); and Piz v. Housing Authority, 132 Colo. 457, 289 P.2d 905 (1955).

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Bluebook (online)
511 P.2d 546, 85 N.M. 220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-state-highway-department-v-yurcic-nm-1973.