Opinion ID: 1219556
Heading Depth: 1
Heading Rank: 5

Heading: condemnation proceeds

Text: Malnar next contends that the trial court erred in charging her with the $35,-075 net condemnation award as if it had been paid by the buyer as principal on the contract. When the condemnation action was filed, Elder held equitable title to the land. That title was forfeited before the award of compensation was made. After forfeiture and before the award, Elder and his assignees stipulated that any proceeds should go to Malnar. Malnar argues that where forfeiture occurs before a condemnation award is made, the vendor takes the land back burdened by the condemnation and is therefore entitled to the proceeds since they are in payment of damages to the lands he repossesses. We agree. The trial judge found that on October 18, 1982, an order of immediate occupancy was entered and a required cash deposit paid into the court by [condemnor] for the landowner. Utah Code Ann. § 78-34-9 provides in pertinent part: The rights of the just compensation for the land so taken or damaged shall vest in the parties entitled thereto ... and the said judgment shall include ... interest... from the date of taking actual possession thereof by the plaintiff or order of occupancy, whichever is earlier.... (Emphasis added.) The court's authority in protecting the vested interests of both parties was explained in Jelco, Inc. v. Third Judicial District Court, 29 Utah 2d 472, 475-76, 511 P.2d 739, 742 (1973). The condemnor deposits money in court. Upon proper application, the court orders it paid to the parties in interest. However, the vendee is normally entitled to the condemnation award as he is the equitable owner. The court can therefore make orders with respect to encumbrances and liens to safeguard the security interest of the vendor. Justice, equity, and practicality are considered by the court in protecting the interests of the parties. In the instant case, however, before any disbursements were ordered from the funds deposited by the condemnor, default occurred. Both equitable and legal title vested in Malnar, with the concomitant right to receive the eminent domain proceeds. It was a practical solution for the parties to stipulate that the proceeds would go to Malnar. The proceeds stood in lieu of the right-of-way taken. The defaulting vendee is thus credited with returning the condemned land undamaged. It follows that the proceeds are not also payments toward the contract price; to so regard them would be double-counting.