Opinion ID: 1142953
Heading Depth: 1
Heading Rank: 3

Heading: the pavement damage issue

Text: Prior to trial of the Park Lanes, Inc. case, the owners indicated that they were going to present a substantial claim for pavement damage which they alleged occurred at the time that the water main was installed. Consequently, the City moved for a protective order which would prevent consideration of the pavement damage claim at the trial, on the ground that such a claim alleged tort, rather than condemnation, damages. Alternatively, the City contended that the owners should at least be required to file a counterclaim, in tort, for such pavement damage. The court denied the City's application for the protective order. At the subsequent jury trial, one of the owners testified that the pavement of property, not within the easements taken, was damaged in the amount of $4,000 as a result of the manner in which the water main was installed. The City objected on the ground that this testimony concerned tort rather than condemnation damages, and that the owners had not filed a counterclaim alleging such a tort cause of action. The court overruled the objection, allowing the testimony as to the pavement damage. The City was thus required to secure the services of experts. They testified that the cause of damage in the parking lot was its poor foundation and not the construction work involved in the placement of the water main. The jury returned a verdict of no damages as to this claim, and the City appeals from the denial of its motion for allowance of attorney's fees and its bill of costs as to the defense of this claim. In this area, the question of whether a certain incidental damage claim should be considered part of the special condemnation proceeding turns on the nature of the incidental damage. When the damage to the remaining portion of the condemnee's tract necessarily results from the imposition of the easement or the proper construction of the improvement, then the claim may properly be considered an element of the property owner's damage due to the condemnation. When the damage claim is based upon the allegedly negligent construction of the improvement, however, any loss incurred cannot properly be considered a part of the taking. This is so because the date set forth by statute [23] when the valuation of the owner's loss is to be measured is generally fixed at a time prior to the actual construction of the improvement. It is presumed that the condemnor will build the called for improvement without negligence and the just compensation award is to be determined based on that assumption. If, in fact, the condemnor's actions outside the inherent scope of the taking result in additional injury to the owner, he may be able to bring an action at law in tort against the condemnor. Nichols in The Law of Eminent Domain states: Ordinarily, allowance is made in a condemnation proceeding only for damage which will ensue as a result of the proper and legal construction and operation of the project. Thus, where damage will be inflicted as a result of necessary blasting during the course of construction, allowance therefor may be made in the condemnation proceeding. However, it is also assumed that the condemnor will take such necessary precautions in the construction of the project as to work a minimum of damage to adjoining property. Negligence. If the damage for which recovery is sought is the result of improper, unlawful or negligent construction or maintenance, recovery may not be had therefor in the proceeding. The owner is relegated in such case to a common-law action for damages. [24] The City correctly points out that the aforesaid well-settled rule excluding consideration of tortious injuries from condemnation damages is incorporated into AS 09.55.310(a). Subsection 2 of AS 09.55.310(a) provides that in cases where only a part of a larger parcel is being taken, the jury must assess the damages which will accrue to the portion not sought to be condemned by reason of its severance from the portion sought to be condemned, and the construction of the improvements in the manner proposed by the plaintiff. Obviously, the condemnor proposes or intends non-negligent construction in every case. The issue raised by the defendants concerning damages to the parking lot pavement was one involving a charge of negligent construction or negligent failure to properly repave the areas affected by the construction activity. Pursuant to the City's request, the trial court should have required the owners here to file a counterclaim in tort. In any event, the City emerged as the prevailing party in what proved to be a successful defense against an essentially common law action. Therefore, it violates neither the language nor the policy of Rule 72(k) if costs and attorney's fees relating to that defense are awarded to the City in accordance with the general civil rules allocating such expenses in an ordinary civil suit. [25] In Montana R. Co. v. Freeser [26] the Montana Supreme Court, interpreting statutes from which AS 09.55.310 and 330 were adopted, reached a result consistent with the City's present approach. That case involved a claim against a railroad by a landowner that improper construction of a road bed caused damage to his irrigation system. In reversing the trial court's allowance of condemnation damages on this claim, the court held: When damages are appraised prior to the construction of the improvements for which the land is condemned, the estimate should be made on the assumption that the improvements will be properly constructed; and, if they are constructed pending the condemnation proceedings, the rule under this statute should be the same. The actual effect of the properly constructed improvements in the manner proposed by plaintiff as to the larger parcels should control the appraisal. If the improvements are improperly or negligently constructed, no additional damage should be given for this reason. [27] Thus as to the successful defense of the negligence claim, the general civil rules pertaining to the award of costs and attorney's fees apply. The trial court should have awarded costs [28] to the City as to that claim. The court may, in its discretion, also award attorney's fees in a reasonable amount as a part of such costs. [29] The case is remanded for assessment of costs and the exercise by the trial court of its discretion as to the allowance of attorney's fees. Affirmed in part, reversed in part and remanded. ERWIN, J., not participating.