5. Pursuant to the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies for Federal and Federally Assisted Programs Property Acquisition Act, 42 U.S.C. §§ 4601 - 4655 (2000), the event triggering the award of attorneys' fees in a proceeding involving inverse condemnation, as set forth in Title 49, Section 24.107 of the Code of Federal Regulations, is when [t]he court having jurisdiction renders a judgment in favor of the owner.
Albright, Chief Justice:
The defendant below, Dodson Mobile Homes
Sales and Services, Inc. (hereinafter referred to as Appellant),
appeals the denial by the Circuit Court of Berkeley County of an award of attorneys'
fees in the context of an eminent domain action pursuant to provisions of the
Uniform Relocation Assistance and Real Property Acquisition Policies for Federal
and Federally Assisted Programs Act (hereinafter referred to as Property
Acquisition Act or Act), 42 U.S.C. §§ 4601 - 4655
(2000). Appellees, the Department of Transportation, Division of Highways, and
Fred VanKirk in his capacity as Commissioner of Highways (See
footnote 1) (hereinafter referred to as State or State
agency), essentially contend that the lower court correctly denied the
request for attorneys' fees because the statutory authority for making such award
extends only to situations where a State agency has not initiated condemnation
proceedings and has specifically found that the property taken was an uneconomic
remnant. After careful consideration of the briefs of the parties, oral arguments,
the record certified to this court and applicable law, we find the denial of
attorneys' fees to be in error and so reverse the ruling of the court below.
Special Interrogatory
1: Is the .73 acre tract an uneconomic remnant?
Jury answered Yes.
Special Interrogatory
2: If you have answered Yes to Special Interrogatory 1 above,
state the sum that the State is to pay to Dodson Mobile Home Sales and Service,
Inc. for the purchase of the .73 acre parcel.
Jury answered $73,000.
As a direct result of these specific jury findings, the court below ordered
the State to purchase the uneconomic remnant from Appellant for $73,000. (See
footnote 5) Subsequent to the verdict and entry of judgment, Appellant
brought a motion seeking award of attorneys' fees as permitted by the federal
regulations promulgated under authority of the Property Acquisition Act. The
court below denied Appellant's motion by order dated April 15, 2004. In a further
effort to obtain the award of attorneys' fees, Appellant filed a motion to
alter or amend judgment pursuant to Rule 59 of the West Virginia Rules of Civil
Procedure. This motion was likewise denied by order dated July 14, 2004. The
denial of the requested attorneys' fees is the basis for the instant appeal.
[t]he standard of review applicable
to an appeal from a motion to alter or amend a judgment, made pursuant to W.Va.
R. Civ. P. 59(e), is the same standard that would apply to the underlying judgment
upon which the motion is based and from which the appeal to this Court is filed.
Syl. Pt. 1, Wickland v. American Travellers Life Ins., 204 W.Va. 430,
513 S.E.2d 657 (1998).
(8) If any interest in real property is to be acquired by exercise of the power of eminent domain, the head of the Federal agency concerned shall institute formal condemnation proceedings. No Federal agency head shall intentionally make it necessary for an owner to institute legal proceedings to prove the fact of the taking of his real property.
(9)
If the acquisition of only a portion of a property would leave the owner with
an uneconomic remnant, the head of the Federal agency concerned shall offer to
acquire that remnant. For the purposes of this chapter, an uneconomic remnant
is a parcel of real property in which the owner is left with an interest after
the partial acquisition of the owner's property and which the head of the Federal
agency concerned has determined has little or no value or utility to the owner.
Id. These policies have been incorporated in the objectives set forth
in the federal regulations promulgated to implement the Act. See 49
C.F.R. §24.1 (1989). The import of these various statutory and regulatory
provisions is that they apply equally to state agencies carrying out responsibilities
detailed in the federal law.
The Act further provides for award of specific
litigation expenses in certain limited circumstances. 42 U.S.C. §4654. The
type of expenses and the circumstances in which the award may be made are detailed
in the regulations in the following manner:
The
owner of the real property shall be reimbursed for any reasonable expenses, including
reasonable attorney, appraisal, and engineering fees, which the owner actually
incurred because of a condemnation proceeding, if:
(a)
The final judgment of the court is that the Agency cannot acquire the real property
by condemnation; or
(b)
The condemnation proceeding is abandoned by the Agency other than under an agreed-upon
settlement; or
(c)
The court having jurisdiction renders a judgment in favor of the owner in an
inverse condemnation proceeding or the Agency effects a settlement of such proceeding.
49 C.F.R. §24.107.
Responding to the apparent ambiguity in these
provisions of federal law, the lower court, through its April 15, 2004, and July
14, 2004, orders, concluded that the court was without authority to award attorneys'
fees pursuant to the Act. (See
footnote 6) The lower court found that the federal provisions only
required an award of actual attorneys' and other specified fees directly related
to an inverse condemnation action when a property owner is forced to initiate
the inverse condemnation claim against the State in order to obtain compensation
for the owner's property which the State has taken for a public purpose. We believe
this interpretation of the applicable law _ in effect requiring the landowner
to initiate a second action rather than raise a counterclaim _ severely discounts
the intent of Congress in enacting this legislation, and instead serves to elevate
form over substance to reach a preferred outcome. We perceive the intent of Congress
to be that a landowner not be required to pay fees for attorney services and
other litigation expenses when the landowner, and not the government, has initiated
a claim for just compensation and has successfully prosecuted that claim to judgment.
That is what happened here.
We note that [j]udicial interpretation
of a statute is warranted only if the statute is ambiguous. . . . Syl.
Pt. 1, in part, Ohio County Comm'n v. Manchin, 171 W.Va. 552, 301 S.E.2d
183 (1983). The statutes and regulations before us are ambiguous in that they
are susceptible of two or more constructions or [are] of such doubtful
or obscure meaning that reasonable minds might be uncertain or disagree as to
. . . [their] meaning. Hereford v. Meek, 132 W.Va. 373, 386, 52
S.E.2d 740, 747 (1949). In order to resolve such ambiguity we are ever mindful
that our primary object in construing a statute is to ascertain and give
effect to the intent of the . . . [legislating body]. Syl. Pt. 1, in part, Smith
v. State Workmen's Compensation Comm'r, 159 W.Va. 108, 219 S.E.2d 361 (1975).
The general intent of Congress in enacting
this federal legislation is embodied in the purpose statement of the Act itself: [T]o
encourage and expedite the acquisition of real property by agreements with owners,
to avoid litigation and relieve congestion in the courts, to assure consistent
treatment for owners in the many Federal programs, and to promote public confidence
in [] land acquisition practices. 42 U.S.C. § 4651. It clearly has
broader implications than just encouraging a government entity to take the first
step in determining just compensation for a taking of property by initiating
condemnation proceedings. The State has maintained that because it initiated
the eminent domain proceeding in order to compensate Appellant for damage to
its property that Appellant had no reason to file an inverse condemnation counterclaim
in this case. However, Appellant's
purpose in filing the counterclaim was not merely to seek compensatory damages
but to compel the purchase of the uneconomic remnant which was of little
or no value or utility to Appellant as the owner of the property, for
which the State had not offered any compensation at all. 42 U.S.C. §4651.
It is clear from the testimony of the State's appraiser that no inquiry was
made of the landowner about the former or future uses of the .73 acre tract
to determine whether it had any continued value or utility to the business.
Additionally, the appraiser said that she did not separately evaluate the amount
of damage which was caused to the .73 acre parcel due to its severance from
the main property by the new road because at the time she examined the smaller
tract it was not being used. If Appellant had not raised the counterclaim regarding
purchase of the .73 acre tract as an uneconomic remnant, the only way Appellant
could have sought to be relieved of the continuing tax burden of the unusable
land was to petition the circuit court in a separate proceeding for a writ
of mandamus to compel the State to take action. (See
footnote 7) While the use of a counterclaim to reach the question
of compensation for the .73 acre tract may be unusual, we see no defensible
reason to require the initiation of a second suit by a landowner in light of
the clear Congressional intent to avoid litigation and relieve congestion
in the courts, to assure consistent treatment for owners in the many Federal
programs, and to promote public confidence in [] land acquisition practices. 42
U.S.C. § 4651. Additionally, the regulations
governing award of attorneys' and other enumerated fees make no distinction
with the method by which a party raises inverse condemnation.
The regulations unambiguously direct that
attorneys' fees are to be awarded when a landowner prevails in an inverse condemnation
proceeding. 49 C.F.R. §24.107(c). There is no question that Appellant prevailed
on the inverse condemnation counterclaim in a court having jurisdiction and,
therefore, qualifies for reimbursement for any reasonable expenses, including
reasonable attorney, appraisal, and engineering fees . . . actually incurred in
prosecuting the inverse condemnation matter. 49 C.F.R. §24.107. Accordingly,
we hold that pursuant to the provisions of the Uniform Relocation Assistance
and Real Property Acquisition Policies for Federal and Federally Assisted Programs
Property Acquisition Act, the event triggering the award of attorneys' fees in
a proceeding involving inverse condemnation, as set forth in Title 49, Section
24.107 of the Code of Federal Regulations, is when [t]he court having jurisdiction
renders a judgment in favor of the owner. 49 C.F.R. § 24.107(c). For
the reasons assigned, we reverse the orders of the lower court which served to
deny award of applicable attorneys' fees.
The lower court's orders conveyed concern
that allowing the award of attorneys' fees under the circumstances of this case
would set a precedent which would unduly encourage future Defendants in
condemnation proceedings . . . [to] file inverse
condemnation counterclaims to . . . [obtain an] award of attorney's fees. Indeed,
the State forcefully argued before this Court that allowing attorneys' fees
when a property owner raises an inverse condemnation counterclaim in a condemnation
proceeding would deplete the highway fund. We fully appreciate this concern.
However, we suspect the circumstances of this case are unlikely to arise frequently
in the future. In similar cases, it may reasonably be expected that the landowner
would be fully compensated by payment for damages to the residue or the State
highway officials will carefully consider the economic value of a fully severed
remnant of land before ever initiating a condemnation proceeding. That did
not happen here and the landowner was compelled to act to recover the value
of an unusable remnant of its land. We believe we are bound by the expressed
intent of Congress to allow the award of attorneys' and other defined fees
actually incurred in the inverse condemnation proceeding.
As previously noted, the award of fees is
not without limitation. The award is restricted to reimbursement of reasonable
attorney, appraisal and engineering fees actually incurred because of the inverse
condemnation proceeding. See 42 U.S.C. §4654; 49 C.F.R. §24.107.
The lower court on remand should proceed to determine what award is reasonable
under the circumstances of this case and its appeal.