Opinion ID: 1592917
Heading Depth: 1
Heading Rank: 4

Heading: Failure to negotiate.

Text: In condemning appellant's land, the DNR was required to comply with sec. 32.06, Stats. The first two subsections of that statute prescribe the necessary steps to be taken prior to making a jurisdictional offer: 32.06 Condemnation procedure in other than highway, etc., matters. The procedure in condemnation in all matters except streets, highways, storm or sanitary sewers, watercourses, alleys and airport acquisitions, acquisitions under chapter 275, laws of 1931, as amended (Kline Law), acquisitions under ch. 157, and acquisitions under ch. 197, shall be as follows: (1) DETERMINATION OF NECESSITY OF TAKING. The necessity of the taking shall be determined as provided in s. 32.07. (2) APPRAISAL. The condemnor shall cause at least one (or more in his discretion) appraisal to be made of the property proposed to be acquired. In making any such appraisal the appraiser shall confer with the owner or one of the owners, or his personal representative, if reasonably possible. (2a) AGREED PRICE. Before making the jurisdictional offer provided in sub (3) the condemnor shall attempt to negotiate personally with the owner or one of the owners or his personal representative of the property sought to be taken for the purchase of the same. In such negotiation the condemnor may contract to pay the items of compensation enumerated in ss. 32.09 and 32.19 where shown to exist. The issue presented is whether the board attempted to negotiate with appellant after a determination of necessity had been made. Ch. 32, Stats., provides the exclusive procedure in condemnation actions. The statutes are in derogation of the common law and therefore are to be strictly construed. Madison v. Tiedeman (1957), 1 Wis. 2d 136, 83 N. W. 2d 694; Schroedel Corp. v. State Highway Comm. (1967), 34 Wis. 2d 32, 148 N. W. 2d 691. A failure to negotiate, as required by the statute, has been held to be a jurisdictional defect. Kultgen v. Mueller (1958), 3 Wis. 2d 346, 88 N. W. 2d 687; Arrowhead Farms, Inc. v. Dodge County (1963), 21 Wis. 2d 647, 124 N. W. 2d 631. It is necessary, therefore, to consider the meaning of the term negotiate. In 6 Nichols, Eminent Domain (3d ed.), p. 85, sec. 24.62 [1], it is stated that: . . . unless there is a bona fide attempt on the part of the condemnor to induce the owner to sell the land at a reasonable figure, the condition under which the power is granted is not fulfilled, and in such case any attempted exercise of eminent domain is unauthorized and consequently void and of no effect. . . As to what constitutes a good faith attempt to purchase, the author states, at pages 92-96, sec. 24.621: . . . While no general rule can be set forth, it has been held that a reasonable effort must be made in good faith to reach an agreement. A merely formal or perfunctory attempt to purchase is not sufficient to comply with the requirement of the statute, nor is a formal offer and refusal necessary to lay a foundation for the suit. Prolonged negotiations are likewise unnecessary; compliance with the statutory requirement is had when the negotiations have proceeded sufficiently to demonstrate that agreement is impossible. Such impossibility to agree does not mean impossibility to agree upon any price, no matter how large, but impossibility due either to the owner's unwillingness to sell at any price or to sell only at a price which the condemnor deems excessive. However, mere difference in amount between the parties is not determinative of whether a bona fide attempt to agree has been made. If it becomes apparent that no agreement can be made at a price satisfactory to the condemnor, the effort to agree may be dropped. . . . If the corporation desiring the property submits an offer to the owner and upon his refusal to accept the same asks for a counter-offer from him, and he refuses to name any figures or names an unreasonable one, it is sufficient, and it has been held that the bare submission of an offer to the owner to buy the property at a certain price and his refusal is enough negotiation to satisfy the statute. Even when the owner does not definitely reject the offer, but says he will give his answer within a specified time, the condemnor need not wait, but may institute proceedings at once. . . In Wampler v. Trustees of Indiana University (1961), 241 Ind. 449, 456, 172 N. E. 2d 67, 71, it was stated: What constitutes a `good faith' or `bona fide' offer to purchase? Each case must be determined in light of its own particular circumstances. However, the authorities generally indicate that where there is disagreement regarding the value of property, if a reasonable offer is made honestly and in good faith and a reasonable effort has been made to induce the owner to accept it, the requirements of the statute for an offer to purchase have been met. 18 Am. Jur., Eminent Domain, sec. 319, p. 962; . . . In the instant case, Bleck was given authority by Voigt to present appellant with an offer of $135,000. The trial court correctly found Bleck had an honest belief as to the value of the property which was based on a competent appraisal. The trial court also found appellant rejected the offer and refused to make any counteroffer. On the basis of these facts, the court found the statutory requirement had been fulfilled. In our judgment the statute does not contemplate an impossibility to purchase at any price, however large, but merely an unwillingness on the part of the owner to sell only at a price which in the condemnor's judgment is excessive. In such an event, the attempt to agree need not be pursued further than to develop the fact that an agreement to purchase is not possible at any price which the condemnor is willing to pay. 27 Am. Jur. 2d, Eminent Domain, p. 256, sec. 388. In this case the board adopted the required resolution of necessity. The DNR then proceeded with the condemnation proceedings. It authorized Bleck to employ appraisers, and the executive officer of the DNR authorized the jurisdictional offer. We conclude that there was no unauthorized delegation of authority by the board or any action by employees of the DNR or the attorney general's office which would constitute any unauthorized usurpation of powers vested solely in the board. We further conclude that the negotiations carried on by Bleck were, under the circumstances present in this case, in good faith.