GOVERNMENT OF THE VIRGIN ISLANDS v. 19.623 ACRES OF LAND, ETC., Aрpellant
No. 78-2063
United States Court of Appeals Third Circuit
Argued April 24, 1979. Filed July 17, 1979
587
ELBERT G. BENNETT, ESQ., Charlotte Amalie, St. Thomas, V.I., for appellee
Before ROSENN, MARIS and HUNTER, Circuit Judges
OPINION OF THE COURT
MARIS, Circuit Judge
The Government of the Virgin Islands initiated this condemnation proceeding under the authority of
Prior to the government‘s condemnation action, Steffey was the owner of Parcel No. 13, Vicorp Land Subdivision (Estate Bethlehem, New Works), approximately 28 acres of land zoned for light industry and situated in the area of the government‘s contemplated extension of the Christiansted-Frederiksted highway. In May 1975, the commissioner of the Department of Property and Procurement of the Virgin Islands offered Steffey for four portions of Parcel 13, namely, 13K (1.083 acres), 13L (0.174 aсres), 13M (1.374 acres) and 13N (0.031 acres), $29,800.00, $4,800.00, $37,800.00 and $1,000.00 respectively, a total of $73,400.00 for the four properties which the government estimated to be just compensation for them.
Steffey responded with a proposal that he would accept $90,000.00 in immediate settlement for the properties in question provided that the government guaranteed access to the adjoining land that would remain in Steffey‘s possession. The government rejected Steffey‘s counteroffer and on June 12, 1975, brought the present action to acquire the Steffey proрerties, among others, by condemnation under its power of eminent domain. An amended complaint adding several interested parties to the list of defendants was filed on August 27, 1975.
On June 19, 1975, the government, pursuant to
Steffey moved to vacate thе declaration of taking asserting that the government had failed to comply with the procedures mandated under
In October 1975, the government moved for the fixing of the time and terms for surrender of possession of the properties designated in the complaint for condemnation. In opposition, five of the condemnees, not including Steffey, moved for judicial review of the necessity for the taking. The government then filed a motion for judgment on the рleadings with respect to the validity of the taking of all of the properties described in the complaint.
On March 24, 1976, the district court rejected the challenge to the necessity for the taking but concluded that the taking was without legislative authority and that the landowners’ right to due process had been violated. The court, accordingly, denied the government‘s motion for surrender of possession, entered judgment for the condemnees, dismissed the complaint without prejudice and ordered that the portions of the deposit released to the condemnees and the portion still held by the clerk be returned to the government.
The government appealed from the district court‘s judgment that it was without authority to take the land in question and that it had, in the taking, violated the due process rights of the landowners. Several of the condemnees cross-appealed from various other provisions of the district court‘s order. This court vacated the district court‘s order and remanded the case with instructions to the district court to enter an order for surrender of possessiоn of the properties in question. 536 F.2d 566 (1976).
On remand the district court proceeded to appoint three independent appraisers as commissioners with the powers of a master as set forth in
The commissioners found that the value of the Steffey property subject to the government‘s condemnation action—which now included two additional properties on which the government hаd impressed easements, namely, Parcels Nos. 13D (0.092 acres) and 13E (0.070 acres)—to be $27,075.00 for Parcel No. 13K, $4,350.00 for No. 13L, $34,350.00 for No. 13M, $775.00 for No. 13N, $690.00 for No. 13D and $525.00 for No. 13E, a total value of $67,765.00 for the severed land and the easements. However, the commissioners found, in addition, that Steffey‘s remaining land was damaged by the severance in the amount of $62,908.00 and that the total just compensation due Steffey for the acquisition was $131,000.00.
Steffey petitioned the district court for confirmation of the part of the commissioners’ report relating to the valuation of the govеrnment‘s acquisition of its portions of Parcel 13 and for attorney fees and costs. The government stipulated to such confirmation by the court and the commissioners’ findings pertaining to Parcel 13 were confirmed
The government and Steffey thereafter entered into an agreement which was filed in the district court, Steffey agreeing to the conveyance to the government of Parcels No. 13P (0.128 acres) and No. 13W (2.252 acres), the value of which the commission had found to be totally lost by the severance, and both parties agreeing that the sum of $66,647.00 represented the government‘s total remaining liability to Steffey for the acquisition.
The district court‘s final judgment was entered on June 9, 1978. The court decreed that title to the condemned properties, consisting of Parcels Nos. 13K, 13L, 13M, 13N, 13D, 13E, 13P and 13W, was vested in the government, directed the government to pay the commissioners’ fees for services rendered, and ordered the parties to bear their own costs and attorney fees. It is from the portion of this judgment denying the appellant costs and attorney fеes that this appeal has been taken.
The district court held that costs are not allowable against the government in condemnation cases in the Virgin Islands citing its prior decision in Government v. 3.4 Acres of Land, 12 V.I. 469 (1975). That decision rested basically upon the court‘s conclusion that
We recognize at the outset that
(b) Except as provided in this chapter, the procedurе in such actions is governed by Rule 71A of the Federal Rules of Civil Procedure.
A close reading of
There would seem to be sound basis in logic for such a provision.
When
That law, we think is to be found in
The primary object of section 415(c)3 is to authorize the government to take immediate possession of the properties sought to be condemned by depositing with the court an amount to cover the final award. It is with regard to the final distribution of this deposited fund, whether upon the final award or in case no award is made or the proceeding is abandoned or in case the amount deposited is insufficient, that the references to the payment of the “costs
Both reason and authority dictate that costs should ordinarily be allowed to the prevailing party in civil litigation. See 10 Wright & Miller, Federal Practice and Procedure p. 142 (1973). As we have indicated, the determination of which party, if any, should fairly be regarded as prevailing may bе a difficult problem in a condemnation case and may well depend upon the particular facts and circumstances as well as the issue actually litigated. Thus, if the issue is the government‘s right to take the property as was the case in an earlier stage of this proceeding and the government is successful in establishing that right, the government could well be regarded as the prevailing party. See 1 Nichols’ Law of Eminent Domain § 4.132 (1976). But when, as here, the issue is the amount of just compensation to which the condemnee is entitled and where, as here also, the amount actually awarded by the court exceeds very substantially the amount of the government‘s original offer and deposit, it would seem not unreasonable to hold that the condemnee would be the prevailing party and, indeed, the district court so held in an earlier case.
One further point must be considered, namely, whether reasonable attorney fees may properly be allowed as part of the costs in the proceedings in the district court. In considering this question, we start with the proposition that for half a century and more attorney fees have been allowable by statute as an item of costs in civil actions in the Virgin Islands. See the municipal codes of 1920 and 1921, title III, chapter 50, section 15 and
We conclude that the district court has authority in its discretion to award costs including reasonable attorney fees against the government in the present case. Since the court was of the view that it had nо such authority, its action was not based upon an exercise of discretion. The case must, therefore, go back to the district court to enable that court to consider on its merits the appellant‘s claim for costs and attorney fees and to enter such judgment thereon as the court in the exercise of a sound discretion deems just and proper.
So much of the judgment appealed from as ordered that each party bear its own costs and attorney fees will be vacated as to the appellant, Chas. H. Steffey, Inc., and the cause will be remanded for further proceedings not inconsistent with this opinion.
ROSENN, Circuit Judge, Dissenting
I respectfully dissent because I am compelled to believe that
In ordinary civil cases, costs are awardable as a matter of course to the prevailing party unless otherwise directed by the court under
Indeed, there is good reason to view
Without attempting to state what the rule on costs is, the effect of subdivision (l) is that costs shall be awarded in accordance with the law that has developed in condemnation cases.
The majority, however, finds the requisite statutory authorization through the interaction of
Chief Judge Christian in Government of the Virgin Islands v. Approximately 3.4 Acres of Land, 12 V.I. 469, 471 (D.V.I. 1975), after reviewing the legislative history of
If
The common lаw clearly prohibited cost awards in condemnation actions in the absence of a special statute. It is an elementary canon of statutory construction that “[t]he legislature is presumed to know the common law before the statute was enacted....” 2A Sutherland, Statutory Construction, § 50.01 at 268 (4th ed. 1973). One must conclude that the legislature of the Virgin Islands only intended
This analysis is confirmed by the construction of an analogous provision allowing costs against the federal government in condemnation cases only in narrow circumstances. In 1966, Congress first provided for cost awards against the federal government.
