State Ex Rel. Department of Transportation v. Clark
2011 SD 20
| S.D. | 2011Background
- DOT condemned Clark's land on West 12th Street via quick-take; final offer before trial was $277,550; jury awarded $320,000 for just compensation; prejudgment interest of $21,074.91 was added; total award to Clark was $341,074.91; SDCL 21-35-23 allows attorney fees and expert fees if final judgment exceeds final offer by 20% and exceeds $700; trial court included prejudgment interest in the comparison to the final offer; DOT appeals arguing prejudgment interest should not be included in the compensation comparison.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether prejudgment interest is included in the ‘compensation’ for SDCL 21-35-23 | Clark: prejudgment interest is part of compensation under the statute. | DOT: prejudgment interest is not part of compensation for the comparison. | Yes; prejudgment interest must be included in the compensation amount for the 20% comparison. |
| What constitutes the 'final judgment' and 'compensation' under SDCL 21-35-23 | Clark: plain language includes prejudgment interest as part of final judgment compensation. | DOT: compensation refers to jury verdict; interest is decided separately. | The phrase ‘awarded to the defendant by final judgment’ includes prejudgment interest in the comparison. |
Key Cases Cited
- City of Sioux Falls v. Kelley, 513 N.W.2d 97 (S.D. 1994) (purpose of 21-35-23 to discourage unfair offers; includes interest when comparing to final offer)
- City of Sioux Falls v. Johnson (Johnson III), 670 N.W.2d 360 (S.D. 2003) (SDCL 21-35-23 overview; ‘compensation’ term interpreted in context)
- State v. Miranda, 776 N.W.2d 77 (S.D. 2009) (statutory interpretation guidance for plain language analysis)
- State Hwy. Comm’n v. Am. Mem. Parks, 144 N.W.2d 25 (S.D. 1966) (definition of ‘just compensation’ and market value context)
- Border States Paving v. Dept. of Revenue, 437 N.W.2d 872 (S.D. 1989) (statutory interpretation by examining related provisions)
