200 So. 3d 977
La. Ct. App.2016Background
- LSU Board filed quick-take/expropriation proceedings in 2010 to acquire Dixie Brewing property in New Orleans; Board initially deposited $52,285 as its estimate of just compensation.
- Dixie sued to enjoin the taking and litigated constitutional and procedural challenges; most injunctive efforts were dismissed and multiple appeals/writs followed.
- In March 2015 the parties reached a settlement: State to pay $4,350,000; Dixie could withdraw the $52,285 deposit; City to cancel a tax judgment (valued $2,162,477.06) and forgo enforcement of tax liabilities (valued $1,074,345.47); parties agreed the combined consideration constituted "just compensation."
- Settlement preserved the parties’ right to litigate attorneys’ fees; Dixie applied for fees based on the full settlement value and sought 40% of the recovery in excess of the Board’s offer; Board opposed, arguing fees should be based only on cash paid and that 40% was unreasonable.
- Trial court awarded Dixie $2,503,651.26 (33% of the $7,586,822 in additional compensation recovered beyond the $52,285 deposit) and costs of $173,000; Board appealed; Dixie moved to dismiss the appeal (denied).
- On appeal the court affirmed: the parties’ compromise defined just compensation to include the non‑cash tax concessions, and the trial court did not abuse its discretion in awarding 33% in attorneys’ fees after applying the Williamson factors.
Issues
| Issue | Plaintiff's Argument (Dixie) | Defendant's Argument (Board) | Held |
|---|---|---|---|
| Whether non‑cash settlement items (tax-judgment cancellation, tax-forgiveness) count as "just compensation" for purposes of awarding attorneys’ fees | Settlement expressly defined just compensation to include the City’s cancellation/forgiveness; fees may be based on the agreed total recovery | "Just compensation" must be a money equivalent; non‑monetary concessions cannot be included in the monetary basis for fee awards | Held for Dixie — the parties’ compromise defined the $7,639,107 as just compensation, so non‑cash items were part of the compensation base for fees |
| Whether the 33% attorneys’ fee award is reasonable | 33% of the excess recovery reflects the result, work performed, complexity, experts, depositions, and value obtained | 33% is excessive compared to prior cases; some work was unsuccessful; lack of detailed billing makes award unsupported | Held for Dixie — trial court properly applied Williamson factors; no abuse of discretion in awarding 33% |
| Whether the Board’s appeal should be dismissed because it did not reserve the right to appeal fees in the settlement | (N/A) Dixie moved to dismiss, arguing no reservation of appeal right | Board argued parties intended fee issue to be litigated through appeal | Held for Board on this point — settlement carved out fees for later litigation; motion to dismiss denied |
| Whether Dixie’s request for appellate fees for a frivolous appeal was procedurally timely | Dixie argued Board’s appeal was frivolous and sought fees on appeal | Board had appealed; Dixie’s answer/fee request was filed late beyond rules for seeking sanctions | Held for Board — Dixie’s answer seeking frivolous-appeal damages was untimely and not considered |
Key Cases Cited
- Marathon Pipe Line Co. v. Pitcher, 368 So.2d 994 (La. 1979) (historical statement that compensation for expropriation ordinarily must be a money equivalent)
- State, Dept. of Transp. & Dev. v. Williamson, 597 So.2d 439 (La. 1992) (factors for assessing reasonable attorneys’ fees in eminent domain/expropriation cases)
- Bd. of Supervisors of La. State Univ. v. Boudreaux’s Tire & Auto Repair, L.L.C., 133 So.3d 1262 (La. App. 4th Cir.) (affirming fee award and application of Williamson factors)
- Bd. of Supervisors of La. State Univ. v. Villavaso, 183 So.3d 757 (La. App. 4th Cir.) (discussing fee awards where recovery substantially exceeded authority’s offer)
- City of Shreveport v. Standard Printing Co. of Shreveport, Inc., 427 So.2d 1304 (La. App. 2d Cir.) (example of a prior percentage fee award in expropriation context)
- City of New Orleans v. Condon, 600 So.2d 78 (La. App. 4th Cir.) (recognizing that fees may be awarded when compensation exceeds highest pretrial offer)