Lawson v. State ex rel. Secretary of the Department of TransportationLawson v. State ex rel. Secretary of the Department of Transportation
INTRODUCTION
By Oрinion dated July 22, 2013, this Court ordered the dismissal without prejudice of a condemnation proceeding instituted in the Superior Court by the plaintiff-below/appellee, the State of Delaware Department of Transportation (“DelDOT”), against the defendants-below/appellants, Jack and Mary Ann Lawson (the “Law-sons”). Thereafter, the Lawsons moved in the Superior Court proceeding for an award of litigation expenses and costs, which the Superior Court denied by order dated Septеmber 25, 2013. The Lawsons appeal from that order. They claim entitlement to reimbursement for the litigation expenses they incurred by virtue of the condemnation proceeding, under both the Real Property Acquisition Act, and the
This appeal requires us to construe, for the first time, certain language in
We therefore affirm in part, reverse in part, and remand the case to the Superior Court to determine the litigation expenses and costs to which the Lawsons are statutorily entitled.
FACTUAL BACKGROUND AND PROCEDURAL HISTORY
The Lawsons own approximately ten acres of' real property located at 323 Strawberry Lane in Middletown, Delaware.
Beginning in 2010, DelDOT sought to acquire approximately 1.51 acres of the Lawsons’ property
In December 2010, DelDOT obtained an appraisal of the Lawsons’ property that valued the fee interest at $130,000.
In September 2011, DelDOT offered the Lawsons $133,100 for the property acquisition and the temporary construction easement.
On January 18, 2012, DelDOT filed a condemnation action in the Superior Court.
By Opinion dated July 22, 2013, this Court reversed the Superior Court judgment, vacated the Superior Court orders, and remanded with instructions to dismiss the condemnation action without prejudice.
On September 12, 2013, the Lawsons moved, in the Superior Court, for an award of litigation expenses, claiming that they were entitled to reimbursement for their expenses under both
The Lawsons appealed to this Court from the Superior Court’s September 25 order. For the reasons next discussed, we reverse in part the Superior Court judg-' ment and remand the case for further proceedings.
THE PARTIES’ CONTENTIONS AND THE STANDARD OF REVIEW
The Lawsons advance three claims of error on this appeal. First, they claim that the Superior Court erred by denying the Lawsons’ motion for an award of litigation expenses under
This Court reviews a trial court’s interpretation of a statute de novo.
When construing a statute, Delaware courts must first determine whether the statute is ambiguous.
ANALYSIS
We first hold that the plain meaning of
A. The Plain Meaning of
The Superior Court held that the reimbursement provision of the Act had not been triggered, because the August 7, 2013 dismissal of the condemnation action was not a “final judgment” that the “property [was] not subject to condemnation for the purpose stated by [DelDOT].”
Where a condemnation proceeding is instituted by the agency to acquire real property for such use and the final judgment is that the real property cannot be acquired by condemnation or the proceeding is abandoned, the owner of any right, title or interest in such real property shall be paid such sum as will, in the opinion of the court, reimburse such owner for reasonable attorney, appraisal and engineering fees, actually incurred because of the condemnation proceedings. The awards of such sums will be paid by the agency.32
The Lawsons do not claim that DelDOT “abandoned” the proceedings. Accordingly, whether
The Delaware General Assembly’s statutory use of thе term “condemnation” clear
Here, the condemnation proceeding instituted by DelDOT was dismissed because this Court found that DelDOT had inexcusably failed to comply with the Act’s requirements when DelDOT attempted to take the Lawsons’ property. That is, Del-DOT had improperly exercised its substantive eminent domain power. For purposes of the reimbursement statute, that dismissal constituted a final judgment in the Superior Court proceedings commenced on January 18, 2012. That the dismissal was “without prejudice” served only to preserve DelDOT’s right to attempt, in a later, separate proceeding, to acquire the Lawsons’ property through a proper exercise of its eminent domain power. That the dismissal was “without prejudice” did not alter the finality of the judgment entered in that particular condemnation proceeding.
We therefore reverse the Superior Court judgment that the Lawsons were not entitled to be reimbursed for their litigation expenses under
DelDOT’s Contrary Arguments
DelDOT advances three arguments to support the Superior Court’s interpretation of
To reiterate, DelDOT argues that the plain meaning of the reimbursement provision of the Act is that it is triggered only where a court has entered a final judgment that the subject property cannot be acquired in any condemnation proceeding. In essence, DelDOT is urging that the relevant language means “cannot be acquired by eminent domain,” ie., where thе governmental agency is found to lack the substantive power to condemn the property. That argument is unavailing. As Delaware’s particular statutory usage and the dictionary definitions of “condemnation” and “eminent domain” show, those two terms are neither analogous nor interchangeable.
DelDOT next argues that this Court should adopt the interpretation used by courts of other jurisdictions (particularly federal courts) when construing similar statutes. This argument is colorable. The Real Property Acquisition Act was adopted in 1972 in response to the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970,
Even so, DelDOT’s argument fails. Del-DOT relies primarily upon the Ninth Circuit decision in United States v. 4.18 Acres of Land.
Finally, DelDOT argues that because
B. The Bad Faith Exception to the American Rule
The Lawsons’ second claim of error is that the Superior Court abused its discretion by denying their motion for litigation expenses under the bad faith exception to the American Rule that each party pays its own litigation expenses.
The Lawsons argue that DelDOT brought its condemnation action in subjective bad faith, based on the finding in this Court’s July 2013 Opinion that DelDOT clearly violated the Act when it failed to establish a purchase price amount “reasonably believed” to be just compensation.
C. The Application for Costs
The Lawsons’ final claim of error is that the Superior Court erred by not awarding costs or even addressing the issue. We are constrained to agree. It is well established that a trial judge must state the reasons for his or her decision on an adjudicated matter.
The Lawsons contend that they are entitled to reimbursement for costs under
CONCLUSION
. For the foregoing reasons, we affirm in part and reverse in part the Superior Court judgment. We remand the case to the Superior Court for further proceedings in accordance with this Opinion. Jurisdiction is not retained.
Notes
. The factual background is drawn from this Court's earlier July 2013 Opinion in this case, Lawson v. State ex rel. Sec’y of the Dep't of Transp.,
. Lawson,
. Id. at 85-86.
. Id.
. DelDOT also sought to acquire a temporary construction easement covering 0.14 acres. Id. at 86.
. Id.
. Id.
. Id.
. Id. The appraisal valued the temporary construction easement at $3,080. Id.
. Id.
. Id.
. Id.
. Id. Thereafter, DelDOT informed the real estate representative that "the appraisal covered all his questions.” Id.
. Id. at 87. On January 13, 2012, DelDOT’s counsel informed the Lawsons’ attorney that DelDOT disagreed with the Lawsons' position, but was still considering the appraisal issue. Id.
. Id. On February 7, 2012, DelDOT deposited $133,100 with the Superior Court — its good faith estimate of just compensation. Id.
. On February 28, 2012, DelDOT moved for a protective order to preclude certain discovery requests from the Lawsons. The Lawsons responded with a motion to compel discovery on the basis that DelDOT had not сomplied with its discovery obligations and no stay of discovery had been entered or requested.
. State ex rel. Sec’y of the Dep’t of Transp. v. Lawson, C.A. No. N12C-01-128 (Del.Super. May 15, 2012) (ORDER).
. State ex rel. Sec’y of the Dep’t of Transp. v. Lawson, C.A. No. N12C-01-128 (Del.Super. May 17, 2012) (ORDER).
. Lawson,
. Id. at 91-92 (quoting
. Lawson,
. State ex rel. Sec'y of the Dep't of Transp. v. Lawson, C.A. No. N12C-01-128 (Del.Super. Aug. 5, 2013) (ORDER).
.
Where a condemnation proceeding is instituted ... to acquire real property ... and the final judgment is that the real property cannot be acquired by condemnation ... the owner of any right, title or interest in such real property shall be paid such sum as will ... reimburse such owner for reasonable attorney, appraisal and engineering fees, actually incurred because of the condemnation proceedings.
. State ex rel. Sec’y of the Dep’t of Transp. v. Lawson, C.A. No. N12C-01-128 (Del.Super. Sept. 25, 2013) (ORDER).
. Id.
. Smith v. Guest,
. Versata Enterprises, Inc. v. Selectica, Inc.,
. Sussex Cnty. Dep't of Elections v. Sussex Cnty. Republican Comm.,
. Id. (quoting CML V, LLC v. Bax,
. CML V, LLC,
. Lawson, C.A. No. N12C-01-128, at 2 (Del.Super. Sept. 25, 2013) (ORDER).
.
. See
. Black’s Law Dictionary 332 (9th ed. 2009). The full definition reads, "[t]he determination and declaration that certain property (esp. land) is assigned to public use, subject to reаsonable compensation; the exercise of eminent domain by a governmental entity.”
. Id. at 601.
. "Where a condemnation proceeding is instituted by the agency ... and the final judgment is that the real property cannot be acquired by condemnation or the proceeding is abandoned....”
. Id.
. “Condemnation” is defined as "[t]he determination and declaration that certain property (esp. land) is assigned to public use, subject to reasonable compensation; the exercise of eminent domain by a governmental entity." "Eminent domain” is defined as ”[t]he inherent power of a governmental entity to take privately owned property ... and convert it to public use, subject to reasonable compensation for the taking.” Black’s Law Dictionary 332, 601 (9th ed. 2009) (emphasis added).
. See
. 58 Del. Laws ch. 413 (1972). The federal statute specified that federal funding would be withheld from a state unless that state provided for reimbursement of "necessary expenses” as specified in the federal reimbursement provisions (
. See
.
. Id. at 788-89. Moreover, the dismissal of the underlying condemnation action was precipitated by the government’s failure to com
. See, e.g., Sorensen v. Lower Niobrara Natural Res. Dist.,
. See Colonial Sch. Bd. v. Colonial Affiliate, NCCEA/DSEA/NEA,
. The Lawsons contend that under the bad faith exception to the Americаn Rule they are entitled to reimbursement for more expenses than under
. Dover Historical Soc'y, Inc. v. City of Dover Planning Comm'n,
. Auriga Capital Corp. v. Gatz Properties, LLC,
. Versata Enterprises, Inc. v. Selectica, Inc.,
. Lawson,
. Indeed, this Court found that just days before the condemnation action was filed, DelDOT’s counsel informed the Lawsons that DelDOT disagreed with the Lawsons’ position on the appraisal. Id. at 87.
. B.E.T., Inc. v. Bd. of Adjustment of Sussex Cnty.,
.
In a court of law, whether of original jurisdiction or of error, upon a voluntary or involuntary discontinuance or dismissal of the action, there shall be judgment for costs for the defendant. Generally a party for whom final judgment in any civil action, or on a writ of error upon a judgment is given in such action, shall recover, against the adverse party, costs of suit, to be awarded by the court.
Section 5104 provides that ”[i]f final judgment is given for the defendant in a civil action, which is in the name of the State for the use of any person or corporation, judgment for costs shall be given against such person or corporation.”
.
. See Turnbull v. Fink,