Opinion ID: 1855224
Heading Depth: 1
Heading Rank: 4

Heading: Validity of Commission's Award Involving Personal Property.

Text: The County argues that the Commission was correct in awarding $51,065 to Aladdin for moving and relocation expenses and not awarding Aladdin the value of its personal property located on the real estate. Thus, the County argues, the district court erred in invalidating the Commission's award. We disagree. Whenever property is sought to be condemned, a compensation commission must be appointed to appraise the damages to all property taken by the condemnor. See Iowa Code §§ 472.3(5), 472.4. According to section 472.14: The commissioners shall, at the time fixed in the aforesaid notices, view the land sought to be condemned and assess the damages which the owner will sustain by reason of the appropriation; and they shall file their written report with the sheriff. .... In assessing the damages the owner or tenant will sustain, the commissioners shall consider and make allowance for personal property which is damaged or destroyed or reduced in value. (Emphasis added.) When the Commission filed its first report, it failed to divide the damages into parts, which is required by section 472.14 if requested by the condemnor or condemnee. See Aladdin I, 522 N.W.2d at 606. The Commission later filed a supplemental report to comply with the statute. In this report, the Commission provided an award of $235,415 for immovable fixtures and $51,065 for moving and relocation expenses. No award was made for the value of Aladdin's dry cleaning equipment located at the Waterloo facility. In its petition for a writ of certiorari, following notification of the award, Aladdin claims the Commission acted illegally in failing to consider and enter an award for damage, destruction, or reduction in value of its personal property, after the County represented it would purchase the personal property and, in fact, had obtained appraisals for that purpose. Therefore, Aladdin argues, the Commission violated the United States and Iowa Constitutions by failing to award it just compensation. On remand, the district court found evidence that the County requested Aladdin to be out of the building within four months and that the County would pay for the dry cleaning equipment in the building. The court stated: The allocation of $51,065 for moving and relocation expense ignores substantial testimony regarding the various appraisals of the personal property which did not distinguish between movables and immovables; the uncontroverted testimony of Aladdin's representative that they attempted to ascertain whether the dry cleaning equipment would be free to be moved prior to their detrimental reliance on County statements; and the business realities faced by those holding property which the county seeks to acquire. Under Iowa Code section 472.14, a compensation commission must consider three types of possible injury to personal property affected by condemnation of real estate: damage, destruction, or reduction in value. Forst, 209 N.W.2d at 6. Because this is a statute regulating the exercise of the power of eminent domain, it must be strictly complied with, and we will construe its provisions to protect the constitutional property rights of the owner. City of Des Moines v. Geller Glass & Upholstery, Inc., 319 N.W.2d 239, 242 (Iowa 1982). Aladdin argues the Commission acted illegally when it did not include an award for its dry cleaning equipment. The County argues that no award was due because it did not condemn the dry cleaning equipment and the condemnation did not damage or reduce the value of Aladdin's equipment, which was capable of being moved. The County also argues that even if its representatives did promise to buy the equipment, the Commission had no jurisdiction to consider such statements or enforce such an oral agreement. We believe the district court was correct in concluding that the Commission's award did not consider all possible damages and that the award itself lacked evidentiary support. It is the duty of a compensation commission to consider all items of damage relating to the condemnation of real estate. Wilkes v. Iowa State Highway Comm'n, 172 N.W.2d 790, 794 (Iowa 1969). In Aplin v. Clinton County, 256 Iowa 1059, 129 N.W.2d 726 (1964), we stated: there must be a full, intelligent, and competent inquiry into the question of the individual's loss or damage; and that if the inquisition is executed in a deficient, incompetent, or negligent manner, so as to show that the party's exposure to damages has not been properly inquired into, it does not meet the designs of the constitution and the law. Aplin, 256 Iowa at 1066-67, 129 N.W.2d at 730 (quoting Walters v. Houck, 7 Iowa 72, 73-74 (1858)). Therefore, a compensation commission has jurisdiction to consider evidence that relates to possible damage, destruction, or reduction in value of a property owner's personal property. If a commission fails to engage in such an analysis, it has not satisfied the constitutional and statutory requirements. Here, the record demonstrates that the Commission did not consider whether there was any damage, destruction, or reduction in value of Aladdin's dry cleaning equipment as a result of the condemnation. At the compensation commission hearing, the County stated it was condemning Aladdin's real estate and certain immovable fixtures, but that it believed $51,065 would adequately cover moving and relocation expenses for the dry cleaning equipment. However, the County obtained three separate appraisals of Aladdin's equipment and fixtures. The value or cost of the equipment ranged from $550,000 to over $1,000,000. Further, in two of the appraisals, there was no differentiation between movable equipment and immovable fixtures. There is evidence in the record that Aladdin was told on numerous occasions that the County would buy its dry cleaning equipment as a part of the condemnation. Those who told Aladdin this included two of the appraisers and two representatives of the County. Furthermore, there was also evidence that Aladdin relied on those statements in making its business decisions, which included the purchase of equipment to meet its customer needs. We conclude the Commission should have considered whether any damage to, or reduction in value of, Aladdin's dry cleaning equipment resulted from the condemnation of the real estate. Failure to do so deprived Aladdin of its right to just compensation, as required by Iowa Code section 472.14.