Village of Gates Mills v. Jones

642 N.E.2d 444, 95 Ohio App. 3d 341, 1994 Ohio App. LEXIS 2992
CourtOhio Court of Appeals
DecidedJuly 18, 1994
DocketNo. 65753.
StatusPublished
Cited by5 cases

This text of 642 N.E.2d 444 (Village of Gates Mills v. Jones) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Village of Gates Mills v. Jones, 642 N.E.2d 444, 95 Ohio App. 3d 341, 1994 Ohio App. LEXIS 2992 (Ohio Ct. App. 1994).

Opinion

Weaver, Judge.

Appellant and cross-appellee, the village of Gates Mills appeals from the order of the trial court awarding attorney fees and interest in favor of appellee and cross-appellant David R. Jones et al. (“Jones”). Jones’s appeal challenges the amount of the award ordered by the trial court. For the reasons set forth below, we affirm in part and reverse in part.

I

Gates Mills commenced appropriation proceedings against Jones on August 24, 1989, pursuant to its authority under. R.C. Chapter 163. The trial court awarded the Jones property to Gates Mills, and a jury determined Jones’s compensation to be $280,000. On February 11, 1993, Gates Mills timely abandoned the appropriation pursuant to R.C. 163.21.

On March 11, 1993, Jones moved, pursuant to R.C. 163.21, for a judgment against Gates Mills for costs, jury fees, pre- and postjudgment interest, liability insurance, property taxes and various other expenses.

On June 1, 1993, the trial court conducted a hearing to determine Jones’s damages. At the commencement of this hearing, and pursuant to Gates Mills’ *344 motion in limine, the trial court ruled that evidence of Jones’s property taxes and liability insurance premiums paid on the premises would not be admitted. Thereafter Jones presented evidence that his attorney fees and expenses were $111,303.43 through April 16, 1993, and an additional $15,355.15 from April 16 to May 28,1993. The evidence further demonstrated that Jones’s lead counsel, Jose Feliciano, spent 307.75 hours on the case at rates varying from $170 to $225 per hour and that Feliciano’s associate counsel Loretta Garrison spent 483.25 hours .on the case at rates varying from $85 to $115 per hour. In addition, Jones presented evidence that several other attorneys worked on the case, primarily under Feliciano and Garrison. Jones’s expert witness testified that after reviewing the entire matter he felt that the attorney fees were reasonable.

Gates Mills established that the hourly rate it paid its attorneys was at times $50 to $110 per hour less than what Jones paid. Gates Mills further presented evidence, and Jones’s expert witness agreed, that its counsel is the preeminent firm in the area for appropriation cases. In addition, Gates Mills demonstrated that it is customary for a private landowner to pay a contingency fee rather than fixed fee in an appropriation case.

The parties stipulated to $14,195.72 of Jones’s counsel’s expenses, leaving several items in dispute.

On June 2, 1993, the trial court made the following ruling:

“The Court finds that the defendants [Jones] are entitled to expenses in the amount of $16,601.53.

“The Court further finds after taking into consideration all the factors set forth in DR 2-106 of the Code of Professional Responsibility that the Defendants are entitled to attorney fees in the amount of $93,393.75. This finding is based upon an allowance of 307.75 hours'of services performed by Attorney Jose C. Feliciano at the rate of $170.00 per hour and 483.25 hours of work performed by Attorney Loretta H. Garrison at the rate of $85.00 per hour.

“The Court further finds that the defendants are entitled to interest from the date of judgment of January 3, 1991 through May 7, 1993 at the statutory rate of 10%.”

This appeal and cross-appeal timely follow that judgment.

II

For its sole assignment of error Gates Mills contends that:

“The trial court erred in awarding postjudgment interest on an appropriation judgment which was subsequently abandoned by the Village since the statute specifically governing abandonment of appropriation actions, R.C. 163.21, does *345 not provide for judgment interest when a judgment is abandoned and R.C. 163.21 is an exception to the general statutory interest provision in R.C. 1343.03(A).”

R.C. 163.21(A)(2) provides for the award of expenses when a municipality abandons an appropriation action, as follows:

“(2) In all cases of abandonment as described in division (A)(1) of this section, the court shall enter a judgment against the agency for costs, including jury fees, and shall enter a judgment in favor of each affected owner, in amounts that the court considers to be just, for each of the following that the owner incurred:

“(a) Witness fees, including expert witness fees;

“(b) Attorney’s fees;

“(c) Other actual expenses.”

In Columbus v. Rugg (Franklin C.P.1953), 69 Ohio Law Abs. 573, 575, 126 N.E.2d 613, 615, the court had the opportunity to analyze the former statute analogous to R.C. 163.21, G.C. 3697, and determined that interest on an appropriation award subsequently abandoned was “by no stretch of the imagination” a “proper expense.” This decision was affirmed by the Tenth District Court of Appeals at (1954), 97 Ohio App. 26, 27, 123 N.E.2d 299, 300.

Furthermore, in construing provisions of R.C. 163.17 that provide for interest on an appropriation that has not been abandoned, courts have ruled that interest is not to be awarded while the landowner retains possession of the property. Norwood v. Cannava (1989), 45 Ohio St.3d 238, 543 N.E.2d 802; Athens v. Warthman (1970), 25 Ohio App.2d 91, 54 O.O.2d 123, 266 N.E.2d 583. In the case sub judice, Gates Mills never took possession of the property. In addition, R.C. Chapter 163, which became effective after R.C. Chapter 1343, does not incorporate R.C. Chapter 1343 for purposes of awarding interest. We find no basis for an award of postjudgment interest under R.C. Chapter 163.

Under R.C. 1343.03(A) a court is granted general authority to award post-judgment interest under the following circumstances:

“[Wjhen money becomes due and payable upon any bond, bill, note, or other instrument of writing, upon any book account, upon any settlement between parties, upon all verbal contracts entered into, and upon all judgments, decrees, and orders of any judicial tribunal for the payment of money arising out of tortious conduct or a contract or other transaction * * * .” (Emphasis added.)

Jones contends that the statutory appropriation proceedings are an “other transaction” under R.C. 1343.03(A), and asks this court to follow the Supreme Court of Washington in Seattle v. Seattle First Natl. Bank (1972), 81 Wash.2d 652, 504 P.2d 292, and affirm the award of postjudgment interest. In Seattle, a condemnation award was ruled to accrue interest from the date of the verdict. *346 Under the Ohio law as set forth in Norwood and Athens, supra,

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642 N.E.2d 444, 95 Ohio App. 3d 341, 1994 Ohio App. LEXIS 2992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/village-of-gates-mills-v-jones-ohioctapp-1994.