The opinion of the court was delivered by
This invеrse condemnation appeal comes before us on the landowner s petition for review of the decision by the Kansas Court of Appeals in
Estate of Kirkpatrick v. City of Olathe,
The facts giving rise to this action and its disposition are accurately recounted in the Court of Appeals opinion:
“Archie Kirkpatrick owned and resided in property that sits on the northwest comer of the intersection at Ridgeview Road and Sheridan Avenue when the City approved a plan to improve that intersection with the construction of a roundabout. As part of the intersection improvement, the City took by eminent domain 355 square feet of Kirkpatrick’s property for a permanent road right-of-way and 426 square feet for a temporary construction easement. Kirkpatrick did not appeal the compensation awarded in the eminent domain proceeding.
“The City began construction of the roundabout in early 2000 and completed it in July 2001. According to the district court, the City became aware of‘potential drainage problems’ soon after it began construction and concluded the water problems would subside after construction was complete. In late June 2001, [Wayne DuVall,] a friend of Kirkpatrick’s, excavated near the house to determine the cause of the basement water problems at Kirkpatrick’s residence. During excavation, DuVall noticed that the hole he dug was dry from the surface down 4 feet, but from there, wet to the bottom of the approximately 9-foot hole. DuVall installed a second sump pump but apparently did not fix the basement water problems, and water continued to enter the house after it rained. Kirkpatrick hired the May Development Company (May) to do additional foundation repair to his house in the summer of 2003. Over the course of the summer, May installed another sump pump in the house, jacked up the house, and installed piers and steel supports along the back foundation. During early August 2003, the basement floor cracked.
“In September 2003, Kirkpatrick filed a claim under the Kansas Tort Claims Act (KTCA), K.S.A. 75-6101 et seq., against the City. Kirkpatrick alleged the City had damaged or taken his property ‘due to [the] change of grade or disruption of natural underground barriers as a result of the construction оf public improvements located at the intersection of Ridgeview Road and Sheridan Avenue . . . .’ Recause the City did not respond to Kirkpatrick’s claim within 120 days, Kirkpatrick filed his petition against the City on January 21, 2004, and later amended to include the project engineer, the construction contractor, and the project inspector as defendants after these parties were brought in through third-party actions. After Kirkpatrick’s death in September 2005, Kirkpatrick’s estate (Kirkpatrick or Estate) was substituted as plaintiff.
“The City filed two summary judgment motions in which it argued that it was immune from liability for the tort claims under the KTCA and that the property Kirkpatrick alleged was taken without compensation was acquired in the City’s condemnation proceeding. It does not appear that it ruled on the first summary judgment motion, but the district court denied the second motion. The district court rejected the City’s second motion for summary judgment after сoncluding that whether the City’s diversion of groundwater into Kirkpatrick’s property was a natural consequence of the improvement or resulted from a negligent deviation from the approved design was a substantial material fact that precluded summary judgment.
“The court later held a bench trial on Kirkpatrick’s action. In its journal entry of judgment, the district court concluded that the City conformed to the necessary standard of care in designing the roundabout. Further, the court concluded that no party had negligently deviated from the approved plan, and thus no party negligently caused damage to Kirkpatrick’s property. The court then analyzed the inverse condemnation claim and concluded that the City partially took Kirkpatrick’s property by damaging it without paying just compensation for its taking.
“Based on the court’s findings, Kirlqpatrick orally moved for attorney fees and offered to give the court a copy of Bonanza, Inc. v. Carlson,269 Kan. 705 ,9 P.3d 541 (2000). After considering the parties’ motions and arguments, the court awarded Kirkpatrick fees under K.S.A. 58-3502 over the City’s objections.”39 Kan. App. 2d at 163-65 .
The City appealed, arguing that its actions in constructing the roundabout did not constitute a compensable taking of the Estate’s property. The Court of Appeals agreed and reversed.
Court of Appeals Decision
In reaching its decision, the Court of Appeals considered the Kansas Eminent Domain Procedure Act (EDPA), K.S.A. 26-501
et
seq., as well as Kansas case law regarding inverse condemnation. The Court of Appeals noted a “fundamental tension” between the statutory language of the EDPA, which recognizes that a compensable taking includes “property damaged” during the course of a public improvement project, and this court’s case law, which has held that damage is only compensable if it is “necessary” to the completion of such a project.
Estate of Kirkpatrick,
39 Kan. App.
“the City excavated adjacent land and changed the grade in constructing the roundabout, but no property or property right was taken. Moreover, the City may have caused more water to invade Kirkpatrick’s property than before the construction, but any such invasion or diversion of water was not necessary to the public improvement.”39 Kan. App. 2d at 169 .
We granted the Estate’s petition for review to clarify the apparent discrepancy between the plain language of the EDPA and our case law.
Discussion and Analysis
This court has long recognized that “the right to take private property for a public use is inherent in the state.”
State, ex rel. v. Urban Renewal Agency of Kansas City,
Since the enactment the EDPA in 1963, procedures governing the exercise of eminent domain in Kansas have been defined by statute. See L. 1963, ch. 234, sec. 13. Notable to our discussion here, K.S.A. 26-513 commences with a codification of the Fifth Amendment, providing that “[p]rivate property shall not be taken or damaged for public use without just compensation.” K.S.A. 26-513(a).
Ordinarily, eminent domain proceedings are initiated by the condemning authority to determine the extent of the property
To succeed on a claim for inverse condemnation, a party must establish that he or she has an interest in real property affected by a public improvement project and that a taking has occurred. The question of whether there has been a compensable taking is one of law.
Korytkowski v. City of Ottawa,
Actions Requiring Compensation under Kansas Law
K.S.A. 26-513(a), which defines the actions for which compensation is required under Kansas eminent domain law, states: “Private property shall not be taken or damaged for public use without just compensation.” (Emphasis added.) This language has remained unchanged since the EDPA’s original enactment in 1963. See L. 1963, ch. 234, sec. 13. Under the plain language of the statute, compensation is required for both physical takings of property interests and “damage” to private property that results from a public improvеment project.
The statutory recognition that compensation may be required for damage to property — in the absence of a physical taking — is consistent with decisions of the United States Supreme Court, which hold that compensation under the Fifth Amendment must be provided for damage to property that is the “direct result” of the governmental authority’s action and “constitute^] an actual, permanent invasion of the land.” See
Sanguinetti v. United States,
Despite the plain language of K.S.A. 26-513, however, the Court of Appeals correctly noted that this court’s case law has in most instances precluded recovery for damage to property in inverse condemnation actions. Instead, this court has limited recovery for property damage in inverse condemnation tо cases where the “damage was . . .
necessary
to the taking of the property for public use” and has narrowly interpreted this “necessity” requirement to mean that the condemning authority “needed” the damage to occur in order to complete the project. (Emphasis added.) See
Deisher,
The conclusion that compensation is only required where a transfer of property rights has occurred or where property damage is needed to complete a public improvement project is not based in the language of the EDPA, however. Rather, the definitiоn comes from this court’s case law predating the adoption of the eminent domain statutes.
One of the first cases to define a compensable taking in this way was
Sester v. Belvue Drainage District,
“The right to sue a public body under the constitutional guaranties does not extend to cases where land is not actually taken but is only indirectly or consequentially damaged. There is a great difference between intentional taking of land in the exercise of governmental power and injury resulting to land as a consequence therefrom. A consequential injury is not a taking of private property for public use within the meaning of the Fifth Amendment.”162 Kan. at 6 .
Despite this statement, the
Sester
court recognized that its analysis might differ if the Kansas Legislature were to enact a statutе making property damage compensable.
This exclusion of property damage from die definition of a compensable taking was repeated 2 years later in
Foster v. City of Augusta,
“A study of our statutes and decisions discloses the word ‘take’ or ‘taken,’ as used in our law of eminent domain, means the acquiring of possession and the right of possession and control of tangible property to the exclusion of the former owner, with such title in fee or easement as the statute under which the proceeding is had provides.”165 Kan. at 690 .
The
Foster
court again emphasized that “[o]ur legislature is free ... to determine . . . what is meant by the word ‘taking,’ and what shall be compensated for by reason of the taking.”
Justice Hoch, joined by Justice Wedell, dissented from the majority’s conclusion in Foster that property damage is not compensable in eminent domain, writing:
“I am not prepared to say that therе can be no ‘taking’ in the constitutional sense except as to properly the title of which is acquired under eminent domain. And more particularly am I not willing to say now that in the absence of specific statutory provision therefor, ‘owners of other property nearby or adjoining that which is taken (by condemnation under eminent domain) are not entitled to receive any compensation though in fact they may sustain some loss or injury, such being regarded as consequential and damnum, absque injuria.’ I am not unmindful of the many cases in which recovery has been denied for damages denominated ‘consequential.’ Without quibbling as to the appropriateness of the term ‘consequential’ as used in some cases, I think it may fairly be said that such cases relate in most instances to damages incidental and more or less remote in character, as for example, the added inconvenience for ingress and egress resulting tо other property owners. But where land is substantially damaged direcdy as the planned or inevitable result of a project such as flood control or diversion, I do not subscribe to a broad and unqualified rule that in no case can there be recovery in the absence of a statute specifically providing therefor.” Foster,165 Kan. at 694-96 (Hoch, J., dissenting in part).
This court’s decisions following the adoption of the EDPA — and most significantly, of K.S.A. 26-513(a) — for the most part have not acknowledged this statutory language, however. See
Kau Kau Take Home No. 1,
For example, in
Sanders v. State Highway Commission,
This court reversed the district court’s decision on apрeal, finding that the removal of lateral support constituted a taking under Kansas law.
A few years after deciding
Sanders,
the court employed a similar analysis in
Ventures in Property I v. City of Wichita,
Because the discussion of compensation for property damage in
Ventures
is limited to the court’s analysis of approaches taken by other jurisdictions rather than the EDPA’s binding statutory language, this court’s subsequent decisions limited the
Ventures
court’s holding to its facts: namely, that pervasive zoning may so limit the use of property as to constitute a taking. See
Lone Star Industries, Inc. v. Secretary, Kansas Dept. of Transp.,
Instead of recognizing the statutory language of K.S.A. 26-513(a), which plainly states that compensation must be paid for
Deisher
presented the question of whether an action for damage incurred during a public improvement project is subject to the 15-year statute of hmitations for eminent domain proceedings or the 2-year hmitations period for negligence. See
Deisher
began its analysis with a discussion of condemnation actions in Kansas. Unlike many of the cases decided after the adoption of the EDPA in 1963, the
Deisher
court quoted all of K.S.A. 26-513 in its opinion, including the language stating that “[pjrivate property shall not be taken or damaged for public use without just compensation.” K.S.A. 26-513(a); see
Deisher,
Turning to the area of tort liability,
Deisher
concluded that under this court’s previous decision in
Olson,
actions for damages to real property must be raised in tort, not inverse condemnation.
Deisher,
Ultimately,
Deisher
concluded that damage to real property is not compensable in eminent domain if “the property damage was not necessaiy to the taking of the property for public use.”
Inverse condemnation claims stem from the recognition that the government from time to time fails to initiate a traditional eminent domain proceeding but nevertheless takes actions that require compensation. K.S.A. 26-513 deals entirely with the compensation requirement — whethеr in a traditional eminent domain proceeding or in inverse condemnation — and with the logistics of calculating a compensation award. Our review of the plain language of K.S.A. 26-513 demonstrates that the legislature has made a determination that in order to protect the constitutional and statutory rights of Kansas citizens, it is necessary for the State or other condemning authority to provide “just compensation” for property that is “taken or damaged for public use.” K.S.A. 26-513(a). The term “[necessity” as a subheading within K.S.A. 26-513(a) refers to this statutory and constitutional requirement for just compensation.
We note that the
Deisher
holding has an additional ramification in the case before us. Here, the district court concluded that the workers employed by the City who constructed the roundabout did not act negligently. The court also found, however, that the change in grade associated with the new roundabout directly caused the alteration in groundwater flow thаt damaged the Kirkpatrick’s (and subsequently, his Estate’s) property. If we were to apply the holding in
Deisher
to this case, even though the Estate’s property damage was caused by the condemning authority in con
The plain language of K.S.A. 26-513(a) states that a condemning authority must provide just compensation for real property that is “taken or damaged for public use.” The most basic principle of statutory interpretation is that “the intent of the legislature governs if that intent can be ascertained.”
Williamson v. City of Hays,
We note, however, that not all property damage is compensable in eminent domain. For example, this court has long held that although rental income produced by the land itself may be used to determine the value of the real property subject to a condemnation action, a decrease in profits from a business conducted on the real estate is not compensable. See
City of Bonner Springs v. Coleman,
For this reason, the majority of jurisdictions that require compensation for property damaged in association with public improvement projects exclude
consequential
damages, finding instead that damage must be the direct, natural, or inevitable result of the governmental action to be compensable. See,
e.g., Sanguinetti,
“Although there are certain indirect or consequential damages which may arise from a condemnation for which there can be no recoveiy, many states provide for compensation where property has been damaged through eminent domain. The constitutional provisions requiring compensation for damage have been given a liberal construction, and a landowner is entitled to compensation for damages to property whether or not there is direct physical injury to property.” 26 Am. Jur. 2d, Eminent Domain § 128, p. 536.
These authorities are fully in accord with the standard set forth by Justice Hoch in his
Foster
dissent over 60 years ago, where he distinguished between cases involving property damage “incidental [to a governmental undertaking] and more оr less remote in character” — which he would find do not require compensation — and cases where “land is substantially damaged directly as the planned or inevitable result” of a public improvement project.
Foster,
In order for damage to real estate to be compensable under K.S.A. 26-513(a) and the other provisions of the EDPA, that damage must be substantial and must be the planned or inevitable result of government action undertaken for public benefit. Such a standard is in keeping with the legislature’s statutory enactments as well as our well-established rule that tangential or consequential damages do not require compensation in condemnation actions. Damage that is tangential or consequential to a government action is more appropriately addressed in the realm of tort law. See
Sanguinetti,
In the case before us, the district court concluded based on the evidence that the alteration in the flow of groundwater on the Estate’s property was the direct result of the City’s actions in constructing the roundabout adjacent to the Estate’s property. The district court also found that the City was aware of the alteration in the groundwater during its construction of the roundabout, but the City decided to take no action to remedy that change. These findings are supported by substantial evidence in the record. Because the damage sustained by the Estate’s real property was the inevitable result of the change in groundwater level, the district court correctly found that this damage was compensable in an inverse condemnation action.
The City argues that even if this court determines that compensation may be required for damage to property in some cases, no compensation should be required here because, according to the City’s brief on appeal, the damage to the Estate’s property was temporary and subject to abatement. The City asserts that the damage to the Estate’s property could have been alleviated by the installment of a foundation drain. Nevertheless, the City recognizes that “the trial court’s findings of fact clearly reflect the court’s belief that
the City
should have installed a foundation drain ($15,000.00 to $18,000.00) for Plaintiff in 2001.” (Emphasis added.) For support of its argument, the City relies primarily on
Bowen v. City of Kansas City,
This claim fails for a number of reasons. First, we note that
Bowen
involved an action for nuisance — not for inverse condemnation — where different principles govern recovery. Moreover, contrary to the City’s assertions, this court has not limited compensation in eminent domain to cases where a taking or other governmental encroachment has been permanent. For example, we have long recognized the need for compensation for temporary easements required to complete public improvements. See
Shipe v. Public Wholesale Water Supply Dist. No. 25,
We pause to emphasize the scope of our decision in this case relating to the district court’s condemnation award. In its brief on appeal, the City claimed that the court’s condemnation award to the Estate was erroneous because damage is not compensable in Kansas under eminent domain. Today, we clarify that under the plain language of K.S.A. 26-513(a), compensation was required for damagе to the Estate’s properly that was the substantial, direct, and inevitable result of the construction of the roundabout in question.
At no time during the pendency of this appeal does the City or the Estate argue error in the amount of the compensation award itself or in the appropriateness of the manner in which the district court assessed that award. Issues not raised on appeal are deemed abandoned and are not before us for review.
Roy v. Young,
The district court correctly determined that the City was required to provide just compensation for damage to the Estate’s property directly caused by the City’s construction of a roundabout. The district court’s award of $17,000 to the Estate in this inverse condemnation action is therefore affirmed.
Attorney Fees
Because we affirm the district court’s condemnation award in favor of the Estate, we must also review the court’s decision to award the Estate its attorney fees and litigation expenses. After the court announced its judgment in favor of the Estate on its inverse condemnation claim at trial, the Estate moved for costs and attorney fees. The district court took this request under advisement and asked the parties to submit written argument on the issue. In its
The district court ultimately awarded the Estate attorney fees in the amount of $37,375 and costs in the amount of $13,291.75.
On appeal, the City claims that the district court was without statutory authority to award attorney fees in this case. The City also argues that the Estаte’s posttrial request for attorney fees was unfair and caught the City by surprise; that the attorney fee amount was unreasonable; and that the award was not supported by substantial competent evidence.
Standard of Review
In Kansas, a party’s request for attorney fees cannot be granted absent statutory authority or agreement applicable to the parties.
Hawkinson v. Bennett,
Discussion
The district court based its award of attorney fees in this case primarily on our decision in
Bonanza, Inc. v. Carlson,
In the case before us, the district court concluded — purportedly based on Bonanza — that because the City received federal funding for the underlying public improvement project (which involved, among other items, the construction of the roundabout in question), it was required to comply with the provisions of the Federal Act. The district court noted, as Bonanza also recognized, that the Federal Act requires agencies that receive federal funding for improvement projects to make assurances that they will reimburse attorney fees and other litigation expenses for successful inverse condemnation actions.
The City argues that the district court’s reliance on Bonanza was unfounded, as that decision was based primarily on the language of the KDOT regulation authorizing attorney fees in condemnation actions. The City correctly points out that KDOT is not a party to this case and was not associated with the construction of the roundabout in question.
It is true that our decision in
Bonanza
was based primarily on the KDOT regulation in that matter. Contrary to the City’s arguments on appeal, however, this fact does not alone establish that the district court was without authority to award attorney fees. The landowners in
Bonanza
limited their argument regarding attorney fees to the state statutes and regulations governing that case, and our decision did not exceed the scope of their claims. See
The provision of the Federal Act that guided the district court’s decision in this case is 42 U.S.C. § 4655(a)(2) (2006), which states in relevant part:
“(a) Notwithstanding any other law, the head of a Federal agency shall not approve any program or project or any grant to, or contract or agreement with, an acquiring agency under which Federal financial assistance will be available to pay all or part of the cost of any program or project which will result in the acquisition of real property on and after January 2, 1971, unless he receives satisfactory assurances from such acquiring agency that—
“(2) property owners will be paid or reimbursed for necessary expenses as specified in sections 4653 and 4654 of this title.”
Notable to our discussion, 42 U.S.C. § 4654(c) (2006) states that condemning authorities must “reimburse” successful plaintiffs in inverse condemnation actions for their “reasonable costs, disbursements, and expenses, including reasonable attorney, appraisal, and engineering fees, actually incurred because of such proceeding.”
In 1973, the Kansas Legislature adopted the Relocation Assistance for Persons Displaced by Acquisition of Real Property Act (Kansas Act), K.S.A. 58-3501 et seq., for the specified purpose of “authorizing] compliance with” the Federal Act. K.S.A. 58-3501. K.S.A. 58-3502 states that the State of Kansas, its agenсies, or its political subdivisions “shall” comply with the requirements of the Federal Act in order to receive “federal financial assistance ... to pay all or part of the cost” of a public improvement program. K.S.A. 58-3502(4) requires the State and its agencies and political subdivisions involved in affected projects to “pay or reimburse property owners for necessary expenses as specified in” 42 U.S.C. §§ 4653 and 4654 (2006).
There is no question that the City received federal funding to complete the public improvement project at the heart of this case, including the construction of the roundabout adjacent to the Estate’s property. The only way that the City could have received this funding under the Federal Act was to make “satisfactory assurances” that the affected property owners would be reimbursed their attorney fees and other litigation costs associated with successful claims for inverse condemnation. See 42 U.S.C. § 4654. The City had the authority to make these assurances to the federal government under the Kansas Act. See K.S.A. 58-3506.
The City argues that even if it did receive federal funding, the district court was without authority to award attorney fees and lit
This court has long recognized that attorney fees may be awarded pursuant to a statute
or agreement.
See
Hawkinson,
A number of other jurisdictions have come to similar conclusions that the agreement between the federal government and the condemning state, state agency, or state political subdivision — defined by the Federal Act and evidenced by the acceptance of federal funding — gives state courts authority to award attorney fees and other litigation expenses. See
McCarran Int’l Airport v. Sisolak,
We agree with the reasoning articulated in these cases and conclude that the district court had authority to award the Estate attorney fees and litigation expenses for its successful inverse condemnation claim in this case.
The City argues that even if the district court had the authority to award attorney fees and costs, it abused its discretion when it did so here because (1) the manner in which the request for at
These arguments are without merit. Because the City had made prеvious assurances to the federal government that it would reimburse attorney fees and other litigation expenses in order to receive federal funding at the outset of the public improvement project, it cannot now claim surprise when a request for such reimbursement was made. Furthermore, the district court arrived at the amount in question after receiving considerable briefing and argument by the parties, coupled with lengthy and detailed descriptions of the claimed legal expenses. The district court was careful to explain how it arrived at the award amount in question, which was roughly $50,000 less than the amount originally requested by the Estate. We cannot say that the attorney fees and litigation expenses awarded are unreasonable in light of the complexity and duration of this case.
The district court’s award of $37,375 in attorney fees and $13,291.75 in other litigation expenses is affirmed.
For the reasons stated in this opinion, the decision of the Court of Appeals reversing the district court is reversed. The decision of the district court is affirmed.
