Strange Bros. Hide Co. v. Iowa State Highway Commission

93 N.W.2d 99, 250 Iowa 450, 1958 Iowa Sup. LEXIS 399
CourtSupreme Court of Iowa
DecidedNovember 18, 1958
Docket49573
StatusPublished
Cited by11 cases

This text of 93 N.W.2d 99 (Strange Bros. Hide Co. v. Iowa State Highway Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Strange Bros. Hide Co. v. Iowa State Highway Commission, 93 N.W.2d 99, 250 Iowa 450, 1958 Iowa Sup. LEXIS 399 (iowa 1958).

Opinion

Peterson, J.

November 13, 1956, the Iowa Highway Commission filed with the sheriff of Woodbury County an application for appointment of a commission to appraise damages as to certain parcels of land in Sioux City. December 21, 1956, the commission returned an award of $208,500 in favor of appellee as to its tract. The award was deposited with the sheriff on January 10, 1957, and appellant took immediate possession of the property. January 11, 1957, Highway Commission filed an appeal to the District Court as to the amount of the award.

*452 Two other condemnations had been made with reference to abutting tracts of property. The tracts were smaller and awards of $13,667 and $28,397 respectively were made to' the owners. The Highway Commission also' appealed as to' these awards.

On January 17, 1957, appellee filed cross-appeal as to the award in the case at bar. The other two' property owners also filed appeals.

January 14, 1958, by order of court, the three cases were consolidated for trial. The jury returned three separate verdicts.

In the case at bar the jury returned a verdict of $187,321; $21,179 less than the award. The awards were increased in the other two verdicts; one from $28,397 to- $40,632 and the other from $13,667 to $15,960.

February 5, 1958, the trial court filed its record of the trial, verdicts and judgments in the three eases. The judgments were for the respective amounts above-stated, together with interest at statutory rate from January 10, 1957, and costs. March 14, 1958', the Highway Commission paid the full amount of the judgments with interest and costs in the two actions consolidated with this action. In this action the commission paid the principal sum of $187,321, but did not pay the interest computed in the amount of $11,031.23, and did not pay the costs amounting to $303.57.

The Highway Commission filed appeal as to the items of interest and costs. Whether or not appellant should pay these items is the only question in the case.

I. The contention of appellant is that since appellee also appealed, and secured a less amount through the verdict of the jury than the award of the commission, no interest should be paid on appellee’s verdict.

If landowner alone appeals and the verdict of the jury is less than the award then the condemnor should not pay interest on the award. The theory is the eondemnee created the situation, failed, and should not be rewarded with interest. Beal v. Iowa State Highway Comm., 209 Iowa 1308, 230 N.W. 302; Hayes v. Chicago, R. I. & P. Ry. Co., 239 Iowa 149, 30 N.W.2d 743; Harris v. Green Bay Levee and Drainage District, 246 Iowa 416, 68 N.W.2d 69.

*453 When the condemnor appeals, interest should be allowed from the date condemnor takes possession of the property, whether the verdict is larger or smaller than the award. Noble v. Des Moines & St. L. Ry. Co., 61 Iowa 637, 17 N.W. 26; Chamberlain v. Des Moines, 172 Iowa 500, 154 N.W. 766; Gibson v. Des Moines, 156 N.W. 374; Hartshorn v. Burlington, C. R. & N. R. Co., 52 Iowa 613, 3 N.W. 648; Langdon v. Loup River Public Power Dist., 144 Neb. 325, 13 N.W.2d 168; Hollingsworth v. Des Moines & St. L. R. Co., 63 Iowa 443, 19 N.W. 325; Hayes v. Chicago, R. I. & P. Ry. Co., supra; 96 A. L. R. 18, 150, 159-161, 202, 203; 29 C. J. S., Eminent Domain, section 176a.

This doctrine is based on the premise that the condemnor secured possession of landowner’s property immediately after the condemnation, and by reason of its appeal prevented condemnee from securing use of the award until after the case was tried in the District Court. Section 472.28, 1958 Iowa Code. In the ease at bar the Highway Commission took possession of the property on January 10, 1957. The condemnee did not get its money until March 14, 1958. Before thei trial of the case the Highway Commission had practically completed the extensive interchange highway project which was built on the property in the three cases. By Highway Commission action appellee lost the use and possession of its property on January 10, 1957, and lost the use of its money for more than fourteen months.

In case of Noble v. Des Moines & St. L. Ry. Co., supra, the award was $1500. Upon trial of the ease the jury rendered a verdict for $1300 plus the interest. Although the amount was less, the court said at page 640 of 61 Iowa: “But the plaintiff, while deprived of his land, was obliged to lie" out of the use of all money awarded, and follow the appeal in order to get anything. * * * It appears- to us that plaintiff’s damage, estimated at the time of the- verdict, had two- elements in it — the injury sustained originally, and the delay in making compensation; and the latter is to- be measured by the amount of interest which the original sum due would have borne during the time of delay.”

In Harris v. Green Bay Levee and Drainage District, supra, we said (pages 421 and 423 of 246 Iowa) : “The trial court should determine the date possession was acquired by the *454 defendants herein, and award plaintiffs interest from that date at the legal rate of 5% per annum until paid. * * * It would be unfair, unjust and, we believe, unlawful to deprive the plaintiffs herein of both the land and the use of their money. We have condemned such results since our early cases of Daniels v. C., I. & N. R. Co., 41 Iowa 52, and Hartshorn v. B., C. R. & N. R. Co. [supra].”

96 A. L. R. 150 states, in general terms: “In the great majority of the jurisdictions interest is allowed as part of the damages or compensation to which one whose property has been taken under the power of eminent domain is entitled as part of the just compensation required by the Constitution.”

In Hayes v. Chicago, R. I. & P. Ry. Co., supra, we said at page 156 of 239 Iowa: “* * * interest is usually allowed when recovery upon appeal exceeds the original award * * * or where the appeal is by the condemnor, even though it may result in a smaller recovery.”

Appellant does not challenge the above decisions, but contends this case is different because the iandowner cross-appealed. Appellant filed its notice of appeal on January 11, 1957. Appellee perfected its appeal on January 17. This is a new question before this court. Appellant cites only one case in support of its position. Baltimore & O. R. Co. v. Brown’s Heirs, 74 W. Va. 149, 81 S.E. 731. In that case both parties appealed and the eoirnt held the condemnee was- not entitled to interest. The decision was rendered in 1914. We cannot accept this old, out-of-state decision as a basis for reversing the ease at bar.

Our position is that since the Highway Commission appealed first, this alone ¿prevented the landowner from securing its money from the sheriff for a period of fourteen months. Appellee’s cross-appeal does not destroy the effect of appellant’s appeal. If appellee had not cross-appealed the money would still be impounded, awaiting trial.

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Bluebook (online)
93 N.W.2d 99, 250 Iowa 450, 1958 Iowa Sup. LEXIS 399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/strange-bros-hide-co-v-iowa-state-highway-commission-iowa-1958.