Johnson Propane, Heating & Cooling, Inc. v. the Iowa Department of Transportation
2017 Iowa Sup. LEXIS 19
| Iowa | 2017Background
- Johnson Propane owned a .76-acre parcel in Correctionville; IDOT sought to condemn .16 acres for a highway project, leaving a .60-acre remainder.
- IDOT determined the remainder was not an "uneconomical remnant" and filed an application; the chief judge appointed a compensation commission.
- The commission received competing appraisals: Johnson Propane’s appraisal valued the whole parcel at $200,000 and argued the remainder was unusable for its propane business; IDOT’s appraisal valued the whole at $78,400 and the remainder at $66,900.
- The compensation commission awarded $11,100 for the .16-acre taking.
- Johnson Propane appealed the commission’s damages determination to district court (filed notice Nov. 21, petition Nov. 25), asserting the taking left an uneconomical remnant and sought $200,000 (fair market value of whole).
- IDOT moved for summary judgment arguing Johnson Propane’s challenge to the agency’s determination about an uneconomical remnant was untimely under Iowa Code § 6A.24(1); the district court granted summary judgment and dismissed the petition as untimely.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Johnson Propane’s claim that the taking left an "uneconomical remnant" could be raised on appeal from the compensation commission’s damages award | Johnson Propane argued the appeal of the commission’s damages award could include a claim that the taking left an uneconomical remnant and thus the whole parcel should have been condemned (seeking full fair-market value). | IDOT argued a challenge to the agency’s determination that the remainder is not an uneconomical remnant is a challenge to eminent-domain authority that must be filed as a separate action within 30 days of the notice of assessment under § 6A.24(1); it is not properly raised on a damages appeal. | Held: The uneconomical-remnant claim must be brought as a separate § 6A.24(1) action within 30 days of the notice; Johnson Propane’s filing was untimely, so the district court lacked authority to hear it. |
Key Cases Cited
- Sanon v. City of Pella, 865 N.W.2d 506 (Iowa 2015) (standard of review for summary judgment and statutory interpretation)
- Townsend v. Mid-Am. Pipeline Co., 168 N.W.2d 30 (Iowa 1969) (measure of damages in partial takings: difference between pre- and post-taking fair market value)
- State ex rel. Iowa State Highway Comm’n v. Read, 228 N.W.2d 199 (Iowa 1975) (appeal from compensation commission limited to amount of damages)
- In re Prop. Seized for Forfeiture from Williams, 676 N.W.2d 607 (Iowa 2004) (failure to timely file an action can deprive a court of authority)
