Waddell v. Arizona State Land Department

873 P.2d 646, 178 Ariz. 308
CourtCourt of Appeals of Arizona
DecidedAugust 26, 1993
DocketNos. 1 CA-CV 91-0452, 1 CA-CV 91-0460
StatusPublished

This text of 873 P.2d 646 (Waddell v. Arizona State Land Department) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waddell v. Arizona State Land Department, 873 P.2d 646, 178 Ariz. 308 (Ark. Ct. App. 1993).

Opinion

OPINION

JACOBSON, Judge.

The central issue in these appeals is whether a 1985 sale of state school trust property1 is void because the constitutional and statutory limitations on the number of acres of agricultural trust property that can be sold to a single purchaser were exceeded by that sale.

The parties agree that there are no disputed issues of material fact. This court, therefore, reviews the issues in these cases as issues of law. Havasu Heights Ranch & Dev. Corp. v. State Land Dep’t, 158 Ariz. 552, 555, 764 P.2d 37, 40, amended on reconsideration, 173 Ariz. 159, 840 P.2d 1024 (App. 1988). The property that is the subject of this dispute was acquired by the Arizona State Land Department as the result of an exchange of school trust property and consists of approximately 618 acres of land located near the prison complex near Perryville, Arizona (hereafter, the “property”). The parties agree that the property acquired the status of school trust property and, because of former A.R.S. § 37-604(0(10),2 also acquired a commercial classification because the land for which it was traded had a commercial classification.

Following the exchange, the Land Department leased the property to the Department of Corrections for the purpose of a correctional training facility. The Department of Corrections then subleased the land for an agricultural use.

Although the purpose of the exchange was to acquire property for the Perryville Prison, the legislature in 1980 directed the Land Department to sell the land it had acquired in excess of that needed for the prison. See 1980 Ariz.Sess.Laws, ch. 23 at 26-29. Based on this legislative directive, the Land Department issued notice of a public auction sale of the property in April 1985. Prior to the sale, the Land Department had appraised the property at $4741 per acre and had determined that the highest and best use of the land was “investment with an interim agricultural use.”

Three bidders appeared at the auction; as a result of fifteen separate bids, the property sold for $7200 per acre. Appellant Waddell3 was the successful bidder.

[311]*311Evidence was presented to the trial court that, based on a 5% return on investment if the land was used for agricultural purposes, the most the property could have sold for as agricultural land was $2100 per acre. An agricultural appraiser stated by way of affidavit:

The price that was paid cannot be justified by the income to be anticipated from agricultural operations on the property. The additional value is the result of land investment.

At the time of the auction, Waddell knew the property was actually used for agricultural purposes pursuant to the agricultural subleases, and he farmed the property following his purchase of the property. In addition, Waddell was aware, prior to his purchase, that the Land Department was not following the statutory limitations on the sale of agricultural land, but he assumed that the Land Department had made a determination that the sale was proper.

Pursuant to the terms of the certificate of purchase for the 1985 sale, Waddell made a down payment, with the balance to be paid in five yearly installments. Waddell requested and received extensions for the principal payments due in 1988 and 1989. In April 1990, however, Waddell’s counsel wrote a letter to Commissioner Hassell of the Land Department, requesting the Commissioner to void the sale on the ground that the sale was made in violation of the Arizona Constitution and statutes. The Commissioner denied Waddell’s request, and refused to return the monies Waddell already paid. Waddell requested reconsideration of this decision and an evidentiary hearing. The Commissioner also denied this request. Waddell failed to make the payment due in June 1990, and the Land Department deemed the certificate of purchase forfeited.

This factual background spawned the litigation that is the subject matter of this appeal. Waddell first filed a complaint in Maricopa County Superior Court, cause number CV 90-20689 (hereafter, “administrative review action”), requesting a review of the Commissioner’s decision denying his request to void the property sale. This request was made pursuant to the Administrative Review Act, Title 12, chapter 7, article 6, Arizona Revised Statutes Annotated (“A.R.S.”). In its answer and in a separate motion to dismiss, the Land Department claimed the superior court lacked jurisdiction under the administrative review statutes because the actions of the Commissioner did not constitute a “decision.”

In response to this objection, Waddell filed a separate complaint for declaratory judgment and injunctive relief, cause number CV 90-31231 (hereafter, “declaratory judgment action”), requesting the court to declare the 1985 sale of the property void for violations of the Arizona Constitution and statutes, and to require the Land Department to reimburse Waddell for all monies paid, plus interest at the legal rate from the date of payment. The declaratory judgment action was transferred to the judge considering the administrative review action, and the two cases were considered together in the superior court. The parties filed cross-motions for summary judgment in both cases.

In her judgment granting Waddell’s motion for summary judgment in the administrative review action, the trial judge found that the superior court had jurisdiction over both the administrative review action and the declaratory judgment action, but that primary jurisdiction over the issues in both actions vested in the Land Department, and, therefore, primary jurisdiction was in the administrative appeal. For this reason, the trial judge issued its judgment in the administrative review action and dismissed the declaratory judgment action. Although the trial judge did not resolve the Land Department’s counterclaim in the declaratory judgment action for reasonable rental of the property for the years Waddell farmed the property, the judge found no just reason for delay of the entry of judgment for purposes of allowing the appeals in both cases to be considered concurrently. The Land Department appealed from the judgment in the administrative review action, and cross-appealed the findings of fact and conclusions of law contained in the judgment in the declaratory judgment action. Waddell appealed from the judgment in the declaratory judg[312]*312ment action. This court consolidated the appeals.

PROCEDURAL ISSUES

The Land Department first argues that the Commissioner’s letters did not constitute an appealable “decision” because the Land Department had no authority to administratively void the 1985 sale of the property, and, therefore, the trial court had no jurisdiction to grant relief in the administrative review action.

This argument is somewhat academic, for, as Waddell points out, the trial judge, anticipating that the relief requested might not properly be given in the administrative review action, gave the identical alternative relief in its ruling in the declaratory judgment action.

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Bluebook (online)
873 P.2d 646, 178 Ariz. 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waddell-v-arizona-state-land-department-arizctapp-1993.