City of Benton v. Alcoa Road Storage, Inc.
2017 Ark. 78
Ark.2017Background
- City of Benton initiated eminent-domain proceedings against Alcoa Road Storage, depositing $197,100 and securing ex parte possession; jury later awarded Alcoa $317,550.
- Alcoa moved for assessment of attorneys’ fees ($9,285.39) and expert-witness fees ($22,314.76) after the verdict.
- The circuit court awarded attorneys’ fees to Alcoa but denied expert-witness fees.
- Appeal: City argued no statutory authority permits awarding attorneys’ fees against a municipality in condemnation; Alcoa cross-appealed denial of expert fees.
- Central statutory text: Ark. Code Ann. § 18-15-307(c) — “The costs occasioned by the assessment shall be paid by the corporation, and, as to the other costs which may arise, they shall be charged or taxed as the court may direct.”
- Supreme Court reversed the award of attorneys’ fees and affirmed denial of expert-witness fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether “costs occasioned by the assessment” includes attorneys’ fees | Alcoa: "costs" includes attorneys’ fees necessary to obtain just compensation under the Constitution | City: attorneys’ fees are not taxable costs absent explicit statutory authorization (American rule) | Reversed award of attorneys’ fees — attorneys’ fees are not included absent statutory authorization |
| Whether “costs occasioned by the assessment” includes expert-witness fees | Alcoa: expert fees are necessary litigation costs to prove just compensation and thus are ‘‘costs occasioned by the assessment’’ | City: expert fees are not among ordinary taxable costs under the long-standing statutory scheme | Affirmed denial of expert-witness fees — expert fees are not allowable costs under §18-15-307(c) absent statutory authority |
Key Cases Cited
- Love v. Smackover Sch. Dist., 946 S.W.2d 676 (Ark. 1997) (attorneys’ fees are not taxable costs unless statute permits)
- Med. Liability Mut. Ins. Co. v. Alan Curtis Enters., 285 S.W.3d 233 (Ark. 2009) (historical recognition of American rule in Arkansas)
- Ellis v. Ark. State Highway Comm’n, 363 S.W.3d 321 (Ark. 2010) (attorneys’ fees are not a component of just compensation in eminent-domain context)
- Ark. Dep’t of Human Servs. v. Kistler, 898 S.W.2d 32 (Ark. 1995) (statutory use of ‘costs’/‘expenses’ does not ordinarily include attorneys’ fees)
- Sutton v. Ryder Truck Rental, Inc., 807 S.W.2d 905 (Ark. 1991) (expert witness fees are not taxable costs absent statutory authority)
- Wood v. Tyler, 877 S.W.2d 582 (Ark. 1994) (statutory construction and limits on recoverable costs)