Bill Text: WV SB400 | 2021 | Regular Session | Introduced
Bill Title: Relating to costs and interest in eminent domain condemnation proceedings
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2021-02-23 - To Judiciary [SB400 Detail]
Download: West_Virginia-2021-SB400-Introduced.html
WEST virginia legislature
2021 regular session
Introduced
Senate Bill 400
By Senators Clements, Swope, and Roberts
[Introduced February 23, 2021; referred
to the Committee on the Judiciary; and then to the Committee on Finance]
A BILL to amend and reenact §54-2-12, §54-2-13, §54-2-14, §54-2-14a, §54-2-15, §54-2-16, §54-2-18, and §54-2-21, of the Code of West Virginia, 1931, as amended, all relating to bringing the statutory interest rate to be paid in condemnation cases into conformity with current statutory rates; and making revisions to meet legislative standards.
Be it enacted by the Legislature of West Virginia:
ARTICLE 2. PROCEDURE.
§54-2-12. Vesting of title in applicant.
Except as otherwise provided in this article, at any time
within three months after the report, or the verdict of a jury, if there be
one, has been confirmed and ordered to be recorded, the sum so
ascertained with ten percent awarded and interest thereon from the
date of the filing of the petition until payment, may be paid by the applicant
into court; upon such payment, title to the property, or interest or
right therein, so paid for shall be absolutely vested in the applicant
in fee simple or to the extent described in the petition: Provided, That
in the case of a public road title to the right- of-way only shall absolutely
vest in the applicant. Interest in all condemnation cases brought under
this article shall be assessed in accordance with §54-2-21 of this Code.
§54-2-13. Entry on land on payment of compensation.
(a) After such a report has once
been made, whether it be set aside, recommitted, or new commissioners
appointed, or not, or whether a trial by jury be demanded and had or not, the
applicant upon paying into court the sum ascertained by such the report,
with ten percent interest thereon from the date of the filing of the
petition until payment, may, notwithstanding the pendency of further
proceedings, enter upon, take and use for the purposes specified in the
application, that part of the land and property in respect to which such
payment is made, and where such payment has been made and possession
taken, or where payment has been made without taking such possession in
a pending case, it shall have the same effect as if such payment were
made or possession taken, or both, in a case hereafter commenced; and no order
shall be made or any injunction awarded by any court or judge to stay it in so
doing, unless it be manifest that the applicant is insolvent or that it or its
officers, agents or servants, are transcending their authority, or that such
interposition is necessary to prevent injury which cannot be adequately
compensated in damages: Provided, That if the applicant be other than a
corporate body politic, before entering upon or taking possession of such
property, it shall enter into bond before the court, or judge thereof in
vacation, in a penalty prescribed by the judge, with securities approved by him
or her, conditioned for the payment to the owner of any additional sums
which may be awarded against it in subsequent proceedings as additional
compensation and damages for the property so taken.
(b) And where, under authority of §54-10-1 of this code,
wood, earth, gravel, shale, stone, water or other material are sought to be
taken, impounded or consumed, the applicant, after such a report
has been made, whether it be set aside, recommitted or new commissioners
appointed, or not, or whether a trial by jury be demanded and had, or not, may,
upon payment into court as aforesaid of the sum ascertained by the report of such
the commissioners, notwithstanding the pendency of further proceedings,
take, impound or consume such wood, earth, gravel, shale, stone, water or other
material; and all the foregoing provisions of this section as to injunction and
bond shall be applicable to such the case.
§54-2-14. Entry by state or its political subdivisions.
(a) If the applicant be is the State
of West Virginia, or any political subdivision thereof, on filing its petition
as authorized in this article, and if the court or judge is satisfied that the
purpose for which the land or property is sought to be condemned is a public
use for which private property may be appropriated on compensating the owner,
the court or judge shall, at the request of the applicant, make an order
permitting the applicant at once to enter upon, take possession, appropriate
and use the land sought to be condemned for the purposes stated in the
petition. The revenues applicable to the payment of any damages or compensation
to which the owner is entitled, and which shall be awarded or assessed in his or
her favor, shall be deemed considered sufficient security and
to have been pledged for such the payment, and no bond or further
security shall be required of the applicant.
(b) If the applicant shall
enter enters upon or take possession of property under the authority
of this section, and shall do does any work thereon and injure
such injures the land or property, it shall may
not be entitled, without the consent of the defendant, to abandon the
proceedings for the condemnation thereof, but such the proceedings
shall proceed to final award or judgment, and the applicant shall pay to the
owner of the land the amount of compensation and damages as finally determined
in such proceedings, with interest at ten percent from the date of the
filing of the petition.
(c) Before entry, taking possession, appropriation,
or use, the applicant shall pay into court such the sum as it shall
estimate estimates to be the fair value of the property, or estate,
right, or interest therein, sought to be condemned, including, where
applicable, the damages, if any, to the residue beyond the benefits, if any, to
such the residue, by reason of the taking.
(d) When, after payment into court as provided
under the authority of this section, the amount allowed by the report of the
condemnation commissioners, or the verdict of a jury, if there be one, exceeds
the amount which has been paid into court, the excess amount, together with
interest thereon at ten percent from the date of the filing of the
petition to the date of payment of the excess amount into court, may, at any
time within three months after the report or verdict of a jury, as the case may
be, has been confirmed and ordered to be recorded, be paid into court by the
applicant for the persons entitled thereto.
(e) If the amount which has been paid into court
pursuant to this section exceeds the amount allowed by the report of the
condemnation commissioners, or the verdict of a jury, if there be is
one, the excess shall be repaid to the applicant out of such the
fund in court, or, if the amount remaining in the fund be insufficient, then
the persons to whom the fund, or any part thereof, has been paid, shall
reimburse the applicant, on a pro rata basis, but without interest.
(f) If the amount allowed by the report of the
condemnation commissioners, or the verdict of the jury, if there be is
one, does not exceed the sum paid into court and it shall appear that the
latter amount was tendered by the applicant to the defendant prior to the
institution of the proceeding, the defendant shall pay the costs of the
proceeding in the trial court unless the refusal to accept the tender was based
on some ground other than that of insufficiency of compensation and any
damages.
§54-2-14a. Alternative method for condemnation by state or its political subdivision.
(a) Prior to any report by condemnation
commissioners, or verdict of a jury, if the applicant be is the
State of West Virginia or any political subdivision thereof, and be otherwise
authorized by law to make payment as required in this section, on filing its
petition as authorized in this article, and if the court or judge is satisfied
that the purpose for which the property or interest or right therein, is sought
to be condemned is a public use for which private property may be appropriated
on compensating the owner, the applicant may thereupon acquire title to, and
enter upon, take possession of, appropriate and use the property, or interest
or right therein, sought to be condemned for the purposes stated in the
petition by following the method provided in this section.
(b) Before entry, taking possession, appropriation,
or use, the applicant shall pay into court such sum as it shall estimate
the amount it estimates to be the fair value of the property, or estate,
right, or interest therein, sought to be condemned, including, where
applicable, the damages, if any, to the residue beyond the benefits, if any, to
such the residue, by reason of the taking. The court or judge
may, at the request of any party to the proceeding, require the clerk of the
court to give an additional bond, adequate to protect such the deposit
with the clerk; and if such a bond is required, the applicant
shall pay the necessary premiums.
(c) Upon such payment into court, the title
to the property, or interest or right therein, sought to be condemned, shall be
vested in the applicant, and the court or judge shall, at the request of the
applicant, make an order permitting the applicant at once to enter upon, take
possession, appropriate and use the property, or interest or right therein,
sought to be condemned for the purposes stated in the petition, but the owners
of such the property, or interest or right therein, at the time
of such payment, including lienors and conflicting claimants, shall have
such the title, interest, or right in the money paid into court
as they had in the property, or interest or right therein, sought to be
condemned, and all liens by deed of trust, judgment or otherwise, upon such
property, or interest or right therein, shall be transferred to such the
fund in court, subject to the provisions of this section. The title in the
applicant shall be defeasible until the compensation and any damages are
determined in the condemnation proceedings and the applicant has paid any
excess amount into court.
(d) Upon petition to the court or judge, any person
entitled thereto may be paid his or her pro rata share of the money paid
into court, or a portion thereof, as ordered by the court or judge, but the
acceptance of such the payment shall may not limit
the amount to be allowed by the report of the condemnation commissioners, or
the verdict of a jury, if there be is one. Proceedings for the
distribution of the money so paid into court shall be conducted as
provided in §54-2-18 of this code to the extent that the provisions therein
are applicable. No party to the condemnation proceeding shall may
be permitted to introduce evidence of such the payment or of the
amount so paid into court, or of any amount which has been accepted by
any party, nor shall reference be made thereto during the course of the trial.
(e) If the applicant shall enter enters
upon or take takes possession of the property, under the
authority of this section, and shall injure injures the property,
the applicant shall not be is not entitled, without the consent
of the defendant, to abandon the proceeding for the condemnation thereof,
but such the proceeding shall proceed to final award or judgment,
and the amount of compensation and any damages as finally determined in such
the proceeding shall be paid in the manner provided by this section.
(f) When, after payment into court as provided
under the authority of this section, the amount allowed by the report of the
condemnation commissioners, or the verdict of a jury, if there be one, exceeds
the amount which has been paid into court, the excess amount, together with
interest thereon at ten percent from the date of the filing of the
petition to the date of payment of the excess amount into court, may, at any
time within three months after the report or verdict of a jury, as the case may
be, has been confirmed and ordered to be recorded, be paid into court by the
applicant for the persons entitled thereto. In no other instance shall interest
be allowed on payments made pursuant to the provisions of this section. If the amount
which has been paid into court pursuant to this section exceeds the amount
allowed by the report of the condemnation commissioners, or the verdict of a
jury, if there be is one, the excess shall be repaid to the
applicant out of such the fund in court, or, if the amount
remaining in the fund be is insufficient, then the persons to
whom the fund, or any part thereof, has been paid, shall reimburse the
applicant, on a pro rata basis, but without interest. If the applicant has the
right to abandon the proceeding and does so, the amount which has been paid
into court pursuant to this section shall be repaid to the applicant from such
the fund in court and by any persons to whom the fund, or any part
thereof, has been paid, on a pro rata basis, but without interest.
(g) If the amount allowed by the report of the
condemnation commissioners, or the verdict of the jury, if there be is
one, does not exceed the sum paid into court and it shall appear appears
that the latter amount was tendered by the applicant to the defendant prior to
the institution of the proceeding, the defendant shall pay the costs of the
proceeding in the trial court unless the refusal to accept the tender was based
on some ground other than that of insufficiency of compensation and any
damages.
(h) When the report of the condemnation
commissioners, or the verdict of a jury, if there be is one, has
been confirmed and ordered to be recorded, and the excess amount, if any, has
been paid into court as provided herein, the title to the property, or interest
or right therein, so paid for shall be absolutely and indefeasibly
vested in the applicant in fee simple or to the extent described in the
petition: Provided, That in the case of a public road title to the
right-of-way only shall absolutely vest in the applicant.
§54-2-15. Alternative procedure for condemnation by business corporation; bond.
(a) Any business corporation, entitled to exercise
the powers of eminent domain under this chapter, may file with its petition a
bond for a sufficient amount with good sureties, payable to the owner of the
property proposed to be taken to secure to such the owner payment
for such the property and all damages to which he or she
shall be entitled for the taking thereof, and if the owner being sui juris
shall appear and make no objection to such bond, the applicant shall be
entitled to take possession of the property sought to be condemned, for the
purposes stated in the petition. But if If objection be is
made to the form, amount of, or sureties on, such the bond, or if
the owner cannot be found, or is not sui juris, the court or judge shall fix a
day for the hearing of any objections to such the bond and of the
request of the applicant to approve the same; and at any time after five days’ written
notice shall have has been given to the owner or to his or her
guardian or committee, if he or she be not sui juris, and if the owner
cannot be found, or his or her guardian or committee, the owner not
being sui juris, then, after five days’ written notice posted upon the land,
which notice shall state the time and place for such the hearing,
the court or the judge shall proceed to hear and determine the matters arising
upon such objection and request, and may require evidence as to the sufficiency
of the surety or sureties and as to the sufficiency of the amount of the bond,
and may, in its or his or her discretion, require new and additional
sureties and a bond for a larger amount and in a more satisfactory form, and
when satisfied as to the form, amount and sufficiency of such the
bond and sureties, and that the purpose for which the property is to be
appropriated is a public use for which private property may be taken upon
compensating the owner, the court or judge shall approve the bond and make an
order permitting the applicant to enter upon, take possession, appropriate and
use the land or property sought to be condemned for the purposes stated in the
petition. At any time during the subsequent proceedings on such petition, if it
shall appear appears necessary so to do in order to protect the
owner and assure unto him or her the payment of the compensation and
damages to which he or she may be entitled, the court or judge may
require the applicant to give a new and additional bond with sureties
satisfactory to the court or judge.
(b) Any indemnity company authorized to transact business in the State of West Virginia shall be deemed a good and sufficient surety on any bond required under this section.
(c) If the applicant shall enter upon or take
enters upon or takes possession of the property under the provisions of
this section, and shall do does any work thereon, or cause any
injury or damage to such the property, it shall not thereafter be
entitled, without the consent of the defendant, to abandon the proceeding for
the condemnation thereof, but the same shall proceed with reasonable dispatch
to a finality and the applicant shall pay to the owner of the land the amount
of the compensation and damages as finally determined in such proceedings, with
interest at ten percent from the date of the filing of the petition as
provided in §54-2-21 of this code.
§54-2-16. Increase or decrease in award after payment into court; costs.
(a) When, after such payment into court as
is mentioned in §54-2-13 of this code, a subsequent report is made which is
confirmed and ordered to be recorded, or the verdict of a jury is found, if the
sum ascertained by such subsequent report or verdict exceed exceeds
what was so paid, and the applicant fail fails to pay the
same, judgment shall be given against it for the amount of such the
excess, with ten percent interest thereon from the date of filing of the
petition until payment, but if what was so paid exceeds the sum
ascertained by such a subsequent report or verdict, the excess
shall be repaid to the applicant out of the fund in court, or by the persons to
whom the same shall have been it was paid. If the sum ascertained
by such a subsequent report or verdict does not exceed the sum
ascertained by the former report, the party on whose motion the former report
was set aside, recommitted, or other commissioners appointed, or trial by jury
demanded, if he or she be is a defendant therein, shall
pay the costs occasioned by the motion,
unless such the former report was set aside, recommitted or other
commissioners appointed on some other ground than that of insufficiency of
compensation.
(b) If the applicant has stated in his or her
application the sum of money which he or she is ready to pay to the
owners for any parcel of land proposed to be taken, and it appear appears
by a report confirmed and ordered to be recorded, or by a verdict of a jury,
that he or she is entitled to take such the parcel for the
purpose mentioned stated in his or her application without
paying any greater compensation therefor, he or she shall be adjudged
his or her costs in respect to such the parcel, out of the
compensation to be paid therefor to the owners.
(c) In cases not otherwise provided for, the applicant shall pay the costs of the proceedings.
§54-2-18. Payment to clerk; disposition of money paid into court; determination of conflicting claims; notice to condemnee.
(a) Payment of an award or judgment, or any money,
under any of the provisions of this chapter may be made to the clerk of the
court in which such proceeding is had, and such the payment shall
be deemed to be a payment into court. Within ten 10 days
after the payment of an award, judgment, or money into court pursuant to the
provisions of this chapter, the condemnor shall serve notice upon the parties
of record except nonresidents and unknown parties whose interests the applicant
seeks to condemn, or upon their counsel of record. Service of notice by
registered or certified mail to the parties’ last-known addresses shall be deemed
sufficient. Notwithstanding any other provision of this chapter to the
contrary, failure to serve such notice shall result in the accrual of interest at
ten percent upon the award, judgment or money paid into court from the
filing of the petition until such the notice is served or until
disbursement be is made to the persons entitled thereto. The
clerk to whom payment is so made, together with the surety on his or
her official bond, shall be liable therefor, as for other moneys collected
by him or her by virtue of his or her office.
(b) Upon money being paid into court, pursuant to the provisions of this chapter, and the court or judge being satisfied that the persons entitled thereto are before the court or judge, it or he or she shall make such distribution or disposition of such money as is proper, having due regard to the interest of all persons therein, and in what proportions such money is properly payable.
(c) If it shall appear appears that
the petition states the persons or classes of persons, who, in the opinion of
the applicant, are vested with the superior right or claim of title in the
property, or interest or right therein, condemned or sought to be condemned or
in the amount allowed or to be allowed by the report of the condemnation
commissioners, or the verdict of a jury, if there be one, and it does not
appear from the record or otherwise that there is any denial or dispute, by any
person or party in interest, of such statement in the petition, the court or
judge may direct that the money paid into court, after withholding therefrom
any sum necessary for payment of any taxes which are a lien upon the property,
interest, or right, be disbursed and distributed in accordance with the
statement in the petition, among the persons entitled thereto, except that with
respect to any persons appearing to be infants, incompetents, incarcerated convicts,
or under any other legal disability, the court or judge shall inquire into
their rights or claims, independent of any statement in the petition, and any
order for disbursement or distribution shall conserve and protect the rights or
claims of such persons in and to the money paid into court.
(d) If it shall appear appears to the
court or judge, from the record or otherwise, that there exists a controversy
among claimants to the money paid into court, or to the ownership of the
property, or interest or right therein, condemned or sought to be condemned,
the court or judge shall enter an order setting a time for hearing the case and
determining the rights and claims of all persons entitled to the money paid
into court or to any interest or share therein. To aid in properly disposing of
the money, the court or judge may appoint a commissioner to take evidence of
the conflicting claims. The court or judge may direct publication to be made
requiring all who are interested to appear at the time set for hearing the case
to present their respective claims. Such The costs shall be
allowed to the prevailing persons as the court or judge shall direct. Upon a
determination by the court or judge of the rights and claims of the persons
entitled to the money paid into court, with or without a report of such a
commissioner, judgment shall be entered directing the disbursement or distribution,
after withholding for taxes as provided in the next preceding paragraph, to the
persons entitled thereto, provided that the rights or claims of persons under
legal disability shall be protected as provided in the next preceding
paragraph.
§54-2-21. Effective date of new percent interest rates.
The percent interest rate provided for in sections
twelve, thirteen, fourteen, fourteen-a, fifteen, sixteen and eighteen of this
article §54-2-12, §54-2-13, §54-2-14, §54-2-14a, §54-2-15, §54-2-16, and §54-2-18
of this code reenact shall be applicable only to condemnation proceedings hereafter
instituted on and after the amendment and reenactment of those section in
the 2021 Legislative session. The interest rate in all condemnation action
brought under this article shall be assessed in accordance with the provisions
of §56-6-31 of this code for judgments in civil actions. The rate of
interest previously applicable to proceedings under the above sections shall
continue to be applicable to condemnation proceedings heretofore instituted.
NOTE: The purpose of this bill is to conform the judgment interest paid in condemnation cases to the interest paid on all other civil judgments and decrees. The Supreme Court of Appeals of West Virginia sets the rate of interest in all civil actions, except condemnations, in January of each year. The interest rate is 2% above prime on January second each year not to exceed 9%. The 2020 interest rate is 4.75%.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.