Temple City Redevelopment Agency v. Bayside Drive Limited Partnership
Temple City Redevelopment Agency v. Bayside Drive Limited Partnership
Opinion of the Court
Code of Civil Procedure section 1268.610, subdivision (a)(1), provides for an award of litigation expenses to the defendant in an eminent domain action “whenever [t]he proceeding is wholly or partly dismissed for any reason”
FACTS
The relevant facts are undisputed. In November 2004, the Temple City Redevelopment Agency filed two eminent domain complaints, one to acquire property owned by Bayside Drive Limited Partnership, the other to obtain property owned by Pi Yun Hou Wang. Because Bayside owned an easement interest in Wang’s property, Bayside was named as a defendant in both complaints. In December, the agency deposited $1.25 million as the probable amount of compensation for the Bayside property (plus more for Wang’s property). Trial in both cases was set for October 2005.
In June 2005, Bayside’s appraiser valued the Bayside property at $2.04 million. Later the same month, Bayside sold its property to Wang for $2 million (which extinguished Bayside’s easement over Wang’s property).
In October, Bayside filed two memoranda of costs (one in each action) claiming about $43,000 for its litigation expenses (including about $35,000 in attorney fees).
Bayside appeals, limiting its challenge to the $22,523.64 disallowed under section 1268.610, subdivision (a)(1).
DISCUSSION
I.
Bayside contends section 1268.610 means what it says and that it is entitled to recover its litigation expenses. We agree.
A.
Section 1268.610 provides: “(a) Subject to subdivisions (b) and (c), the court shall award the defendant his or her litigation expenses whenever: [f] (1) The proceeding is wholly or partly dismissed for any reason. [][] (2) Final judgment in the proceeding is that the plaintiff cannot acquire property it sought to acquire in the proceeding. [][] (b) Where there is a partial dismissal or a final judgment that the plaintiff cannot acquire a portion of the property originally sought to be acquired, or a dismissal of one or more plaintiffs pursuant to Section 1260.020, the court shall award the defendant only those litigation expenses, or portion thereof, that would not have been incurred had the property sought to be acquired following the dismissal or judgment been the property originally sought to be acquired. []Q (c) If the plaintiff files a notice of abandonment as to a particular defendant, or a request for dismissal
“Litigation expenses” in the eminent domain context are defined by section 1235.140: “ ‘Litigation expenses’ includes both of the following: [][] (a) All expenses reasonably and necessarily incurred in the proceeding in preparing for trial, during trial, and in any subsequent judicial proceedings. [][] (b) Reasonable attorney’s fees, appraisal fees, and fees for the services of other experts where such fees were reasonably and necessarily incurred to protect the defendant’s interests in the proceeding in preparing for trial, during trial, and in any subsequent judicial proceedings whether such fees were incurred for services rendered before or after the filing of the complaint.”
B.
In statutory construction cases, our fundamental task is to ascertain the intent of the lawmakers so as to effectuate the purpose of the statute. To that end, we begin with the statutory language, giving the words their usual and ordinary meaning. “If the terms of the statute are unambiguous, we presume the lawmakers meant what they said, and the plain meaning of the language governs.” (Estate of Griswold (2001) 25 Cal.4th 904, 911 [108 Cal.Rptr.2d 165, 24 P.3d 1191].) It is only where there is ambiguity that we look to extrinsic sources, including the ostensible objects to be achieved and the legislative history, to determine the lawmakers’ intent. (Ibid.; see also Gray Cary Ware & Freidenrich v. Vigilant Insurance Co. (2004) 114 Cal.App.4th 1185, 1193-1194 [8 Cal.Rptr.3d 475]; Unzueta v. Ocean View School Dist. (1992) 6 Cal.App.4th 1689, 1698 [8 Cal.Rptr.2d 614] [the rule that the literal meaning may be disregarded to avoid absurd results should be used sparingly and only in extreme cases lest we violate the separation of powers doctrine].) We find no ambiguity in a provision that “the court shall award the defendant his or her litigation expenses whenever: [][] (1) The proceeding is wholly or partly dismissed for any reason.” (§ 1268.610, subd. (a)(1).)
First, “for any reason” is not the slightest bit equivocal. (California Teachers Assn. v. Governing Bd. of Rialto Unified School Dist. (1997) 14 Cal.4th 627, 632-633 [59 Cal.Rptr.2d 671, 927 P.2d 1175] [we have no
Second, the litigation expenses recoverable under subdivision (a)(1) of section 1268.610 are those incurred by a “defendant” in a condemnation proceeding, not by the “owner” of the property. (§ 1268.610, subd. (a)(1).) Had the Legislature intended the statute to apply only to owners, it would have referred to ownership as it did in subdivision (c) of the same statute— where the Legislature provided that the dismissal of a defendant who did not own or have any interest in the property is entitled to only those litigation expenses incurred up to the time of a plaintiff’s request for dismissal. (§ 1268.610, subd. (c).)
Third, the purpose of the statute is plain—to compensate a defendant who has been put to the task of defending a condemnation action when, for whatever reason, the action is dismissed. That the defendant might fortuitously be able to extricate itself from an expensive condemnation action by selling the property to a willing buyer may or may not mean the defendant has thereby recouped the litigation expenses incurred up to the time of sale. On the record before us, there is no more reason to believe in recoupment than to doubt it, and defendant would in any event be entitled to recover only those expenses incurred up to the time its ownership interest terminated. (§ 1268.610, subd. (c).) There is thus no basis in fact for the trial court’s supposition that an award of litigation expenses would result in a “windfall” to Bayside, or for the trial court’s further supposition that the application of section 1268.610 in this context “would allow an owner to reap a windfall of attorney fees simply by selling the property during condemnation, which would result in a dismissal of the owner.” A sale requires a willing buyer as well as a willing seller, and there is nothing in this record to suggest that Bayside did anything more than break even on its sale to Wang.
Fourth, the legislative scheme for the recovery of litigation expenses in eminent domain actions supports our conclusion. Although litigation expenses (except ordinary costs) are generally not awarded in eminent
Fifth, the trial court’s concern about the public fisc ignores the fact that the ultimate resolution of this case saved the agency both the cost of further litigation and the potential obligation to pay Bayside $2.04 million for its property (the value according to Bayside’s appraiser) rather than the agency’s opening bid of $1.25 million.
II.
Bayside contends it is entitled to costs of appeal, including attorney fees, as litigation expenses. We agree (and note that the agency has essentially conceded the point by failing to address this issue).
A party who prevails on appeal is entitled to recover its costs (Cal. Rules of Court, rules 8.276(c)(2), 3. 1702), and those costs include attorney fees where a statute provides for the recovery of fees in the trial court. (Akins v. Enterprise Rent-A-Car Co. (2000) 79 Cal.App.4th 1127, 1134 [94 Cal.Rptr.2d 448]; see § 1235.140 [defining “litigation expenses” to include reasonable attorney fees where they were incurred in preparation for trial,
DISPOSITION
The orders dated January 6 and January 12, 2006, are reversed; Bayside is awarded its fees and costs incurred on appeal, and the cause is remanded to the trial court with directions to determine (1) whether any part of the remaining $22,523.64 should be taxed, and (2) the amount due to Bayside for its reasonable appellate litigation expenses.
Rothschild, J., and Jackson, J.,
All section references are to the Code of Civil Procedure.
Wang’s acquisition of ownership of both the dominant and servient tenements extinguished the easement. (Leggio v. Haggerty (1965) 231 Cal.App.2d 873, 883 [42 Cal.Rptr. 400].)
Bayside actively defended the condemnation actions up to the time it sold its property to Wang—by removing the action against it to federal district court, opposing (albeit unsuccessfully) the agency’s remand efforts, answering both complaints and filing a cross-complaint in the action against it when the action was remanded to the Los Angeles Superior Court, and obtaining the required appraisal.
The fact that the agency valued the Bayside property at $1.25 million about six months before Bayside sold it to Wang for $2 million does not by itself establish that Bayside made a profit on the sale. The agency’s appraisal could have been way too low. Market conditions could have changed for the better in light of Wang’s decision to develop the combined properties in accordance with the redevelopment plan. There is nothing in the record on this issue.
Of course, Wang’s decision to purchase Bayside’s property and use the combined parcels himself in conformance with the redevelopment plan means the agency also did not have to pay Wang for his property, or Bayside for the value of its easement over Wang’s property. All things considered, it appears to us that the agency did just fine in this transaction.
We summarily reject the agency’s contention that Bayside has no right to its litigation expenses because it did not reserve its right to recover those expenses. No authority is cited to support this assertion and we know of none that would apply—particularly since Bayside refused the agency’s request to sign a waiver of its right to recover its litigation expenses.
Because the trial court determined that Bayside could not recover its fees at all, it never considered the agency’s challenge to the remaining $22,523.64 and thus must do so on remand—at which time it shall also determine the amount of reasonable appellate litigation expenses.
Judge of the Los Angeles Superior Court, assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.