Eminent Domain I

Minnesota Statutes Chapter 117 governs Eminent Domain Proceedings. The statute fulfills several functions. First, it creates a procedure whereby there is judicial supervision of a governmental finding of Public Purpose. Second, it creates a mechanism for official identification of the land to be taken and notification of interested parties. Third, it creates a mechanism for immediate acquisition and transfer of the property to the governmental authority, called Quick Take. Fourth, it creates a multi-tiered mechanism to establish the amount of just compensation to be paid to the landowner. This panel summarizes the eminent domain procedure under Minnesota Law. It is similar in many respects to procedures used in other states.

Other procedures for takings. In Minnesota, virtually all takings must be performed under Chapter 117. There are a few exceptions. Most notable are takings by watershed districts for Water Projects and by Drainage Authorities for drainage ditches. When a governmental authority takes property without compensation, the landowner may commence an inverse condemnation procedure to force the authority to pay compensation, or may seek injunctive relief to stop the taking unless eminent domain proceedings have first been commenced. This panel does not seek to discuss what amounts to a taking.

Pre-Eminent Domain Negotiation Most governmental authorities prefer to negotiate an acquisition. An agreement saves the authority attorneys fees. It eliminates delay. It makes for happier constituents. Sometimes an authority will approach a landowner with a very substantial and fair offer. Other times, the authority approaches the landowner with an offer which is way too low and unfair. Should you decide to hire an attorney in condemnation proceedings, the authority's offer will serve as a baseline for your fee agreement with an attorney. Most attorneys who practice eminent domain law will work on a contingency fee basis. In most cases the contingency fee should be calculated based upon what the attorney recovers for you, which will be measured by the authority's offer as compared to what you later receive.

Uniform Relocation Act. Minnesota follows the Uniform Relocation Act in condemnations. This act confers various rights upon the landowner. These rights will be discussed in a succeeding panel.

Pre-Taking Entry In Minnesota, a governmental authority may enter upon the land to survey the land or in some cases to confirm whether the land has environmental problems. If there is a dispute regarding the right of entry, the governmental authority applies to the Court for an order.

Commencement of Proceedings An authority commences an eminent domain proceeding by serving a Summons and Petition upon all of the property owners. The authority should serve all persons with a property interest in the land. "Owner" under the Statute includes all persons interested in such property as proprietors, tenants, life estate holders, encumbrancers, or otherwise. The petition gives the owner 20 days notice of the initial court appearance. At this initial court appearance, the Court makes a public purpose and necessity determination and appoints three commissioners, private parties who make an initial just compensation.

Public Purpose and Necessity A court gives great deference to a governmental authority's determination that a taking serves a public purpose. Public purpose focuses on the nature of the project, not the particular land being taken. A court may overturn that determination if (a) the governmental authority failed to follow required statutory procedures in making the determination, (b) the project violates a statute, for example regulating the environment or otherwise prohibiting some aspect of the project itself, (c) the particular government authority lacks authority to conduct projects of this kind, (d) the project itself is beyond the power of government, (e) the governmental authority seeks to take property from another governmental authority with a superior governmental purpose. A court may also overturn a project if the land being taken is not necessary for the public purpose. But the term necessary implies a higher standard than actually exists, for a court will not overturn a public necessity finding unless the governmental authority's determination is wholly without merit. In a recent case, for example, the Minnesota appellate courts refused to allow the University of Minnesota to take land to stockpile it for a future project remote in the future not yet approved.

Quick-Take Usually the condemning authority gets title to the property after the filing of a commissioner's award. But if the condemning authority needs the property immediately, it may certify the property for quick-take by giving 90 days notice. Prior to taking title, it must deposit in court (or pay to the owner) an amount equal to the certified appraisal obtained by the governmental authority. If the owner is dissatisfied with this amount, it follows the regular procedure to establish the market value.

Commissioners' Hearing The first step in the valuation process is to obtain a market valuation determination by Commissioners appointed by the Judge. The judge appoints three disinterested commissioners, and at least two alternates, residents of the county, to ascertain and report the amount of damages that will be sustained by the several owners on account of such taking. Either party may nominate commissioners to serve in this capacity. The Commissioners then conduct a hearing, or hearings. They listen to evidence, including appraisal evidence, presented by the condemning authority and the property owners. They then issue an award based upon the fair market value of the property. They may also award the landowner up to $500 for appraisal fees. Commissioners usually issue their award quite promptly, but by statute they must ordinarily make an award within 90s of their appointment.

Appeal of Commissioners' Award The Condemnation statute provides for appeal to the court for a jury trial appeal de novo of the Commissioner's award. If an appeal is filed, the statute provides for partial payment of the Commissioner's award at once, so that the landowner will have at least partial compensation for the taking at once, since the governmental authority may take title upon issuance of the Commissioner's award. By trial de novo, we mean that the jury gets to decide the valuation all over again afresh. It may raise the award or lower it. The jury's ultimate verdict is likewise appealable to the Minnesota Court of Appeals.