Opinion ID: 2521279
Heading Depth: 1
Heading Rank: 1

Heading: factual perspective

Text: ¶ 2 On May 15, 1998 the City of Tahlequah [City] offered to purchase all of Lake Region Electric Cooperative, Inc.'s [Lake Region] [1] electric facilities and service rights within City's corporate limits. [2] Three days later City instituted a proceeding in the District Court of Cherokee County, Oklahoma to condemn the sought  after interests from Lake Region under the applicable provisions of 18 O.S. 1991 § 437.2(k). [3] The United States of America, ex rel. Rural Electric Administration, [REA] was named as party-defendant because it owns a security interest in the property sought to be condemned. On June 19, 1998 REA removed the case to the United States District Court for the Eastern District of Oklahoma. ¶ 3 Upon removal Lake Region moved for the condemnation proceeding's dismissal asserting the statutory moratorium provided for by the terms of 11 O.S. 1998 § 21-222. The pertinent statutory language is: There is hereby declared a moratorium on all municipal condemnation proceedings instituted pursuant to Section 437.2 of Title 18 of the Oklahoma Statutes, initiated prior to July 1, 2002. The moratorium shall also apply to all municipalities or public trusts thereof which attempt to condemn the facilities of electric public utilities or rural electric cooperatives for the purpose of utilizing such facilities for the delivery of electric power and energy. If full consumer choice in the supply of electric power and energy is implemented in this state on or before July 1, 2002, the municipal condemnation provisions authorizing municipalities with electric utilities to condemn the facilities of rural electric cooperatives contained in Section 437.2 of Title 18 of the Oklahoma Statutes is hereby repealed. If retail consumer choice is not implemented in this state on or before July 1, 2002, this moratorium shall become null and void. The moratorium provided for herein shall have prospective and retroactive application. [Emphasis added.] The U.S. District Court denied Lake Region's motion, holding that because (1) the City-initiated condemnation proceeding is a cause of action brought before § 21-222's moratorium became effective and (2) OKLA.CONST. art V, § 52 [4] denies the Legislature power to abridge a cause of action once instituted, the retroactive moratorium could not be asserted to stop City's condemnation of Lake Region's facilities. ¶ 4 The U.S. District Court appointed commissioners to determine just compensation for the condemned electric facilities. The appointed commissioners made their determinations and filed a report. Although Lake Region objected to the report, the same was confirmed on April 23, 1999. Lake Region next appealed [unsuccessfully] to the U.S. Circuit Court of Appeals for the Tenth Circuit. Lake Region then sought a jury trial. On February 29, 2000 an award of $3,746,222.00 was entered by the federal district court as just compensation for City's taking of Lake Region's property.