UTILITY CENTER, INC. v. City of Fort Wayne

960 N.E.2d 824, 2012 Ind. App. LEXIS 12, 2012 WL 112294
CourtIndiana Court of Appeals
DecidedJanuary 13, 2012
Docket90A04-1101-PL-15
StatusPublished
Cited by1 cases

This text of 960 N.E.2d 824 (UTILITY CENTER, INC. v. City of Fort Wayne) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
UTILITY CENTER, INC. v. City of Fort Wayne, 960 N.E.2d 824, 2012 Ind. App. LEXIS 12, 2012 WL 112294 (Ind. Ct. App. 2012).

Opinion

OPINION

ROBB, Chief Judge.

Case Summary and Issues

Utility Center, Inc. (the “Company”) operates a public utility in Northeast *826 Indiana. The City of Fort Wayne (the “City”) condemned a portion of the Company’s property, for which the City of Fort Wayne Board of Public Works (the “Board”) determined the amount due to the Company. The Company appealed the Board’s determined amount to the trial court. Ruling on motions by the City, the trial court ordered that it will review the Board’s determined amount under the abuse of discretion standard and that the Company is not entitled to a jury trial. In this interlocutory appeal, the Company raises the issues of whether, under the United States Constitution, the Indiana Constitution, and Indiana statutory law, the trial court may decline to hold a jury trial and limit its review to the abuse of discretion standard. Concluding that the trial court can and should decline to hold a jury trial and limit its review as such, we affirm.

Facts and Procedural History 1

The Company operates a public water and sewer utility in and around Fort Wayne under the assumed name of Aqua Indiana, Inc. At some point, the City perceived operational problems with the Company’s service and decided to condemn the Company’s North System. 2 In June 2002, the Board resolved to initiate condemnation proceedings pursuant to Indiana Code chapter 32-24-2, which concerns eminent domain procedures for cities and towns. 3 In December 2003, the Board resolved to compensate the Company for the North System in the amount of $17,202,499.50, which was the average of two appraisals.

Following a delay due to parallel judicial proceedings, the Board resolved in September 2004 to update the December 2003 appraisals. In December 2004, based upon updated appraisals, the Board resolved to compensate the Company for the North System in the revised amount of $14,759,500. In December 2005, this Court issued a stay on the Board’s condemnation proceedings pending resolution of the Company’s related judicial challenge.

Specifically, in July 2002, the Company filed a complaint for declaratory judgment against the City, alleging that the City failed to follow the proper eminent domain or condemnation statute. In 2004 the trial court granted summary judgment in favor of the City. This Court issued an opinion in 2005, and the supreme court granted transfer and issued an opinion in June 2007. Util. Ctr., Inc. v. City of Fort Wayne, 834 N.E.2d 686 (Ind.Ct.App.2005), vacated and trans. granted by 868 N.E.2d 453 (Ind.2007). A majority of the supreme *827 court affirmed the trial court’s summary judgment in favor of the City, essentially holding that the City was authorized to acquire the North System and did so in accordance with the proper statute.

Following the supreme court decision in June 2007, the Board received another updated appraisal and, in October 2007, resolved to compensate the Company in the amount of $16,910,500. The Company submitted remonstrances but did not present its own valuation of the property. At the oral argument before this Court, the Company explained that it did not present its own valuation to the Board for a combination of reasons, including: 1) litigation strategy; 2) the high cost of valuing its own property; 3) the “complexity” of valuing its own property because it is underground; and 4) presenting the value to the Board would be-futile because the Board served as “both prosecutor and judge,” and was párt of the body which would “write the check.” The Board confirmed its October 2007 resolution.

The Company appealed the Board’s determined amount to the trial court and requested a jury trial. The City moved to strike the Company’s request for a jury trial and for partial judgment on the pleadings and sought to limit the trial court’s review of the Board’s determined amount to the abuse of discretion standard. Following a hearing, the trial court granted these motions. The Company now brings this interlocutory appeal. Additional facts will be supplied as appropriate.

Discussion and Decision

I. Standard of Review

We apply a de novo standard of review to a trial court’s decision on a motion for judgment on the pleadings. We will affirm the trial court’s grant of a T.R. 12(C) motion for judgment when it is clear from the face of the pleadings that one of the parties cannot in any way succeed under the operative facts and allegations made therein. In making this determination we will accept as true the well-pleaded material facts alleged, and we will not affirm if there are any genuine issues of material fact. The moving party is deemed to have admitted well-pleaded facts in favor of the nonmovant, and this court will draw all reasonable inferences in favor of the nonmovant.

Burkett v. Am. Family Ins. Group, 737 N.E.2d 447, 456 (Ind.Ct.App.2000) (internal quotations and citations omitted). Similarly, we review de novo a trial court’s determination of whether certain claims are entitled to a trial by jury. Lucas v. U.S. Bank, N.A., 953 N.E.2d 457, 460 (Ind.2011).

II. Trial Court Review of an • Administrative Determination

A. De Novo Review

1. Indiana Code Chapters 32-24-1 and -2

Indiana Code chapter 32-24-1 concerns general procedures for eminent domain, and Indiana Code chapter 32-24-2 concerns procedures for cities’ and towns’ exercise of eminent domain powers. At the outset, we must determine which chapter applies. Section 32-24-2-6(a) states “this chapter does not apply if a municipality wants to acquire the property of a public utility (as defined in IC 8-1-2-1),” the section which defines “public utility” in the context of utility regulation. But chapter 32-24-1 describes public utilities’ exercise of the power itself, which is irrelevant here. In addition, both the Company and the City agree on appeal that chapter 2 applies and chapter 1 does not, because condemnation proceedings here began with the Board and not at the circuit court. Indeed, because the City conducted con *828 demnation proceedings with the Board as provided by chapter 32-24-2 and not with the circuit court as described in chapter 1, we determine this case under chapter 2.

Under chapter 1, the trial court makes the initial determination as to the value of the property and just compensation owed. If an aggrieved property owner files written exceptions to the assessment, the case proceeds to trial and judgment as in civil actions. Ind.Code § 32-24-1-11.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
960 N.E.2d 824, 2012 Ind. App. LEXIS 12, 2012 WL 112294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/utility-center-inc-v-city-of-fort-wayne-indctapp-2012.