Seeking Fees and Costs in Condemnation Proceedings

March 1, 2010 | Erin Herbold

Iowa Code §6B.3(3) requires notice of a condemnation proceeding, even to parties without a current interest in the subject property.  In addition, a determination of the damages owed to the property owner for the condemnation must be made within 120 days of the filing of condemnation proceedings. If the governmental entity seeking condemnation fails to comply with the 120 day rule, the proceedings are terminated and a new condemnation proceeding must be filed. 

Here, farmers owned farmland northwest of an airport that was owned and operated by the nearest city. The City sought to acquire a portion of the farmers’ land for a runway extension. The City filed the application for condemnation on Oct. 6, 2006. One month later, the application for condemnation was indexed with the county recorder. On June 27, 2007, the “compensation commission” held a public hearing and made an award to the farmers of $600,000. The farmers appealed this determination. 

At trial, the court concluded that the compensation commission had met outside the timeframe authorized by the Iowa Code. Thus, the violation of the statute terminated the condemnation proceeding. However, the city indicated that it intended to renew condemnation proceedings. The farmers filed a motion for the court to direct the city to abandon the condemnation plans. Further, the farmers asked the court to order the city to pay their reasonable attorney/appraisal fees and costs they incurred as a result of the failed condemnation, because the city had essentially abandoned their condemnation plans. The court refused and the city reinstituted condemnation proceedings. 

On appeal, the Iowa Court of Appeals determined that the Constitutional right to “just compensation” in a condemnation proceeding does not include attorneys fees or litigation costs, unless they are allowed by statute.  Instead, landowners are only entitled to attorneys fees and costs when the condemnation proceedings have been abandoned, as per the Iowa Code § 6B.34. Because the city never actually abandoned the condemnation proceedings, either expressly or impliedly, the farmers were not entitled to reimbursement for the costs of litigating the matter.  Berdo v. City of Washington, Iowa, No. 9-1048/09-0442 (Iowa Ct. App., Feb. 24, 2010).