UDOT v. Coalt Inc.

2020 UT 58
CourtUtah Supreme Court
DecidedAugust 17, 2020
DocketCase No. 20161062
StatusPublished
Cited by6 cases

This text of 2020 UT 58 (UDOT v. Coalt Inc.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
UDOT v. Coalt Inc., 2020 UT 58 (Utah 2020).

Opinion

This opinion is subject to revision before final publication in the Pacific Reporter

2020 UT 58

IN THE

SUPREME COURT OF THE STATE OF UTAH

UTAH DEPARTMENT OF TRANSPORTATION, Petitioner and Cross-Respondent, v. COALT, INC., Respondent and Cross-Petitioner.

No. 20161062 Heard February 12, 2018 Filed August 17, 2020

On Certiorari to the Utah Court of Appeals

Second District, Farmington The Honorable John R. Morris No. 080700367

Attorneys: Sean D. Reyes, Att’y Gen., Stanford E. Purser, Deputy Solic. Gen., David M. Quealy, William H. Christensen, Asst. Att’y Gens., Salt Lake City, for petitioner and cross-respondent Michael R. Carlston, Rodney R. Parker, Salt Lake City, for respondent and cross-petitioner

JUSTICE PETERSEN authored the opinion of the Court in which CHIEF JUSTICE DURRANT, ASSOCIATE CHIEF JUSTICE LEE, JUSTICE HIMONAS, and JUSTICE PEARCE joined.

JUSTICE PETERSEN, opinion of the Court: INTRODUCTION ¶1 The Utah Department of Transportation (UDOT) condemned property owned by Coalt, Inc. in connection with the Legacy Parkway Project. The Legacy Parkway runs near the eastern shore of the Great Salt Lake and its wetlands. Before construction could begin, federal law required study of the UDOT v. COALT Opinion of the Court

project’s potential environmental impact and approval from federal agencies. In 2000, a Final Environmental Impact Statement was released. This statement did not rely on the specific property at issue in this case (Parcel 84) to mitigate the environmental impact of the Parkway. The federal agencies gave the required approvals. But the Salt Lake City mayor and numerous public interest groups disputed the adequacy of the environmental impact statement and argued that UDOT was not doing enough to protect the environment. ¶2 After years of litigation in federal court, during which the project was at a standstill, UDOT entered into a settlement agreement with the public interest litigants. As part of the settlement, UDOT agreed to a number of new conditions, including acquisition of an additional 121 acres of mitigation property that would be managed in connection with the Legacy Nature Preserve. This property included Parcel 84. Because the federal agencies did not require this additional mitigation for their approval of the project, the United States Army Corps of Engineers (Corps) agreed to allow UDOT to credit the 121 acres (including Parcel 84) toward mitigation of future transportation projects in the area that required the Corps’ approval. ¶3 In light of this background, Coalt argues that UDOT did not take Parcel 84 for the Legacy Parkway, but to pay a “ransom” demanded by the public interest litigants to settle the federal litigation and to mitigate future unspecified transportation projects. Based on these assertions, Coalt argues that UDOT does not have the authority to condemn its property because these are not valid “state transportation purposes”1 or “public use[s]”2 as required by state law. ¶4 In the alternative, Coalt asserts that if we conclude UDOT does have authority to condemn property for these purposes, then Coalt’s compensation for the taking should include any increased market value caused by Parcel 84’s proximity to the Legacy Parkway. The applicable statute states that “any decrease or increase of the fair market value of real property prior to the date of valuation caused by the public improvement for which such

1 See UTAH CODE § 72-5-103(1). 2 See UTAH CONST., art. I, § 22; UTAH CODE § 78B-6-504(1)(d).

2 Cite as: 2020 UT 58 Opinion of the Court

property is acquired or by the likelihood that the property would be acquired for such improvement . . . will be disregarded in determining the compensation for the property.” UTAH CODE § 57-12-13(3) (1972).3 Coalt argues that “the public improvement for which the property was acquired” was not the Legacy Parkway but the future unspecified transportation projects referenced in the settlement agreement. On this basis, Coalt argues that the market value of Parcel 84 should include any increase or decrease caused by the property’s proximity to the Legacy Parkway. ¶5 The court of appeals affirmed the district court’s determination that UDOT has the authority to condemn Coalt’s land. However, it reversed the district court and held that just compensation should include any enhanced value caused by the Legacy Parkway. This was primarily due to the court of appeals’ determination that UDOT had inadequately briefed the valuation issue. The court of appeals did not analyze whether the district court was correct on the merits. ¶6 We agree with the court of appeals that UDOT has authority to condemn Parcel 84. So we affirm that part of the court of appeals’ decision. And while we also agree that UDOT’s briefing on valuation was minimal, the adequacy of UDOT’s briefing is not ultimately dispositive. This is because we conclude that Coalt has not provided a plausible basis for reversal of the

3 During the relevant time period, the statute read, Before the initiation of negotiations for real property, an amount shall be established which is reasonably believed to be just compensation therefor, and such amount shall be offered for the property. In no event shall such amount be less than the lowest approved appraisal of the fair market value of the property. Any decrease or increase of the fair market value of real property prior to the date of valuation caused by the public improvement for which such property is acquired or by the likelihood that the property would be acquired for such improvement, other than that due to physical deterioration within the reasonable control of the owner, will be disregarded in determining the compensation for the property. UTAH CODE § 57-12-13(3) (1972) (emphases added)).

3 UDOT v. COALT Opinion of the Court

district court’s valuation decision. Accordingly, we reverse this portion of the court of appeals’ opinion. BACKGROUND ¶7 Parcel 84 is an approximately 65-acre piece of undeveloped land in Davis County owned by Coalt. It is part of a larger 121-acre property that UDOT condemned to mitigate the environmental impacts of the Legacy Parkway Project. The Legacy Parkway Project and Related Litigation ¶8 In the 1990s, the State of Utah determined that traffic congestion in southern Davis County had become a problem. UDOT began to meet with relevant federal and state agencies, political subdivisions, private parties, and members of the public to discuss potential solutions. One option included the construction of a highway west of Interstate 15. Early in the process, UDOT began to acquire property for the future construction of the highway and to mitigate its environmental impacts. ¶9 Before construction could begin, federal law required the completion of an environmental impact statement (EIS),4 approval

4 The National Environmental Policy Act requires federal agencies to “include in every recommendation or report on proposals for legislation and other major Federal actions significantly affecting the quality of the human environment, a detailed statement” that includes: (i) the environmental impact of the proposed action, (ii) any adverse environmental effects which cannot be avoided should the proposal be implemented, (iii) alternatives to the proposed action, (iv) the relationship between local short-term uses of man’s environment and the maintenance and enhancement of long-term productivity, and (v) any irreversible and irretrievable commitments of resources which would be involved in the proposed action should it be implemented. 42 U.S.C. § 4332(C).

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2020 UT 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/udot-v-coalt-inc-utah-2020.