Opinion ID: 895007
Heading Depth: 3
Heading Rank: 1

Heading: Dismissal for Introducing New Compensation Issues

Text: FKM contends that State v. Nelson, 160 Tex. 515, 334 S.W.2d 788 (1960), limits the trial court's appellate jurisdiction in condemnation cases to those compensation issues raised before the special commissioners. It asserts that when the University so drastically reduced the amount of property sought, it introduced materially different compensation issues  the value of the smaller tract and injury to the remaining tract  than those the special commissioners considered. See TEX. PROP.CODE §§ 21.041, 21.042. We recently rejected those arguments in PR Investments v. State, 251 S.W.3d 472, 479 (2008), although that case did not involve a change in the area of property taken. [3] In that case, we reviewed Nelson and the statutory framework for condemnation proceedings and rejected the view that the trial court can consider only the matters, evidence, and compensation issues presented to the commissioners. We explained that once a party files objections to the commissioners' findings and seeks de novo review in the trial court, pursuant to section 21.018(b), the case is to be tried in the same manner as other civil cases. That includes allowing amendments to pleadings. We held that the trial court's de novo proceeding is not limited to the exact compensation facts and issues presented to the commissioners. Id. at 475. In Nelson and earlier in Texas Power & Light Co. v. Cole, 158 Tex. 495, 313 S.W.2d 524 (1958), we recognized that a condemnor can, after the administrative phase, reduce the amount of property it seeks and that such a change does not divest the trial court of jurisdiction. Nelson, 334 S.W.2d at 790; Cole, 313 S.W.2d at 529-31; see also Thompson v. Janes, 151 Tex. 495, 251 S.W.2d 953, 954-55 (1952) ([T]he condemning agency is accorded the right to dismiss as to a portion of the land when it decides that its purpose may be accomplished with less land than was initially sought.). FKM contends that these cases only allow such an amendment if the landowner will not be prejudiced. We agree that Nelson and Cole contain language to the effect that amendment is allowed if it will not prejudice the landowner. [4] We do not think, however, that FKM established such prejudice as would preclude the University from amending its pleadings. First, a landowner ordinarily will not be harmed if a condemning authority decides to take less land since the landowner gets to keep the land it did not want to sell to begin with, and the landowner is entitled to be fully compensated for damages suffered as a result of whatever property is eventually taken. [5] Except for a small strip of land the University now seeks to condemn, FKM gets to keep the property it refused to sell the University. In regard to expenses FKM incurred in litigating because the University originally sought to take the larger tract, FKM may recover those expenses the Legislature has provided for, as we discuss below. [6] Even if recovery of expenses is unavailable, however, FKM does not persuade us that a condemnor may not amend its petition to seek a smaller tract. Such a rule would restrict the use of amended petitions in condemnation proceedings, contrary to section 21.018(b)'s specification that suit is to proceed in the same manner as other civil causes. As we noted in PR Investments, under a trial conducted `in the same manner as other civil cases,' the plaintiff is allowed to amend the petition, and we permitted in Nelson an agreed trial amendment made after the special commissioners' hearing. 251 S.W.3d at 476. The court of appeals in this case correctly noted that as in other civil cases, an eminent domain proceeding is subject to the rules of civil procedure, and these rules permit parties to amend their pleadings and also to dismiss some or all of their claims. 178 S.W.3d at 5 (citing Rose v. State, 497 S.W.2d 444, 445-46 (Tex.1973)); see also City of Houston v. Biggers, 380 S.W.2d 700, 705 (Tex.Civ.App.-Houston 1964, writ ref'd n.r.e.) (Attorneys fees, costs of experts and other expenses in preparation for trial are merely incidental expenses. . . . The incurring of them is not such prejudice as to require the condemnor to take property it decides it can do without.). We also disagree with FKM that it was prejudiced because the amended petition depriv[ed] FKM of the statutorily-mandated hearing before the special commissioners on the issues of compensation. PR Investments necessarily rejects this argument, by our holding that a change in compensation facts after the special commissioners' award generally does not destroy trial court jurisdiction over a properly-filed condemnation case. FKM separately argues that even if the trial court is not required to dismiss the case due to a change in compensation issues, it should have discretion to dismiss. We expressly rejected this argument in PR Investments, 251 S.W.3d at 479. There may be circumstances under which a landowner could establish prejudice of the sort that would preclude a condemning authority from seeking a smaller tract, such as if the condemnor had taken possession of the larger tract and irreparably altered it in a manner that would be injurious to the landowner. For example, in Cole, we distinguished an earlier case where the condemning authority was completing a dam and reservoir that would submerge the land in issue. 313 S.W.2d at 529 (discussing Brazos River Conservation & Reclamation Dist. v. Allen, 141 Tex. 208, 171 S.W.2d 842 (1943)). And in Thompson, we held that a landowner would be prejudiced if a condemnor reduced the amount of land sought to be condemned but did not relinquish the part no longer sought to be condemned. 252 S.W.2d at 955. This case does not present a similar situation. There is no allegation here that the University has physically changed the land, much less permanently or injuriously altered it. Further, since the University filed its second amended petition in 2001, FKM has had possession of the entire property except for the five foot strip.