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Justices rule in favor of sewer facility operator in condemnation action

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A case involving a compensation award for condemnation initiated by Fort Wayne’s Board of Public Works that may appear at first blush as a “no brainer” is actually not as simple as it seems, the Indiana Supreme Court pointed out Thursday.

At issue in Thursday’s decision in Utility Center, Inc. d/b/a Aqua Indiana, Inc. v. City of Fort Wayne, Indiana, 90S04-1208-PL-450, is the scope of judicial review when a property owner challenges the compensation awarded for condemnation of its property by a city’s board of public works under an eminent domain statute applicable to cities and towns.

Utility Center Inc. owned and operated certain water and sewer facilities in Fort Wayne. In 2002, the city’s Board of Public Works passed a resolution to condemn the facility’s north system. Utility Center challenged the condemnation, which was ultimately affirmed by the Indiana Supreme Court in 2007.

Afterward, Utility Center filed a written remonstrance with the board challenging the $16.9 million assessment of damages, which the board confirmed. Utility Center appealed to the trial court and sought a jury trial. The city moved for partial judgment on the pleadings on the grounds that the trial court was limited to a review of the record before the board. The trial court ruled in favor of the city.

I.C. 34-24-1 and -2 deal with eminent domain procedures; Chapter 2 deals with proceedings initiated by a municipal works board. The board initiated the proceedings under Chapter 2 in this case.

“At stake in this case is what does it mean to say, in the context of a Chapter 2 eminent domain proceeding, that ‘[t]he court shall rehear the matter of the assessment de novo.’ More precisely: What did the Legislature intend in this context? The City argues the trial court is limited to a review of the record before the Board. Utility Center counters the trial court’s review includes a full evidentiary hearing before a jury,” Justice Robert Rucker wrote.

“In short our courts have long held that judicial review of administrative decisions is restrained and limited, even where statutory language suggests otherwise. However, the question remains whether the Legislature intended this limited review under the facts presented here,” he continued.

Rucker pointed out that eminent domain statutes must be strictly construed as to the extent of power and the manner of its exercise. Also, the inviolability of private property has been a central tenet of American life since before the country’s founding.

“Because the determination of just compensation is a judicial rather than a legislative function, … and recognizing the extent to which protecting the ownership of private property is woven into the fabric of our jurisprudence, we are not persuaded the Legislature intended a limited role of the judiciary when declaring that an aggrieved party may ‘take an appeal’ of the compensation awarded by an administrative municipal board and that ‘[t]he court shall rehear the matter of the assessment de novo . . . .’ I.C. § 32-24-2-11(a). Rather we are convinced the opposite is true,” he wrote.

The justices concluded that “rehear the matter of the assessment de novo” contemplates a new hearing with trial and judgment as in all other civil actions, and a trial by jury where a party so requests.

The case is remanded for further proceedings.

 

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  1. Justice has finally been served. So glad that Dr. Ley can finally sleep peacefully at night knowing the truth has finally come to the surface.

  2. While this right is guaranteed by our Constitution, it has in recent years been hampered by insurance companies, i.e.; the practice of the plaintiff's own insurance company intervening in an action and filing a lien against any proceeds paid to their insured. In essence, causing an additional financial hurdle for a plaintiff to overcome at trial in terms of overall award. In a very real sense an injured party in exercise of their right to trial by jury may be the only party in a cause that would end up with zero compensation.

  3. Why in the world would someone need a person to correct a transcript when a realtime court reporter could provide them with a transcript (rough draft) immediately?

  4. This article proved very enlightening. Right ahead of sitting the LSAT for the first time, I felt a sense of relief that a score of 141 was admitted to an Indiana Law School and did well under unique circumstances. While my GPA is currently 3.91 I fear standardized testing and hope that I too will get a good enough grade for acceptance here at home. Thanks so much for this informative post.

  5. No, Ron Drake is not running against incumbent Larry Bucshon. That’s totally wrong; and destructively misleading to say anything like that. All political candidates, including me in the 8th district, are facing voters, not incumbents. You should not firewall away any of voters’ options. We need them all now more than ever. Right? Y’all have for decades given the Ds and Rs free 24/7/365 coverage of taxpayer-supported promotion at the expense of all alternatives. That’s plenty of head-start, money-in-the-pocket advantage for parties and people that don’t need any more free immunities, powers, privileges and money denied all others. Now it’s time to play fair and let voters know that there are, in fact, options. Much, much better, and not-corrupt options. Liberty or Bust! Andy Horning Libertarian for IN08 USA House of Representatives Freedom, Indiana

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