12 CAW Equities v. City of Greenwood Village , 425 P.3d 1197 ( 2018 )


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  •      The summaries of the Colorado Court of Appeals published opinions
    constitute no part of the opinion of the division but have been prepared by
    the division for the convenience of the reader. The summaries may not be
    cited or relied upon as they are not the official language of the division.
    Any discrepancy between the language in the summary and in the opinion
    should be resolved in favor of the language in the opinion.
    SUMMARY
    March 22, 2018
    2018COA42
    No. 2017CA0212 CAW Equities v. City of Greenwood Village —
    Eminent Domain — Private Condemnation — Prior Public Use
    Doctrine
    In this private condemnation action, a division of the court of
    appeals concludes, as a matter of first impression, that the prior
    public use doctrine applies to Colorado Constitution article XVI,
    section 7, to preclude a private condemnation that would entirely
    eliminate an existing public use on the property. The division
    further concludes that Colorado’s eminent domain statutes properly
    clarify and regulate the constitutional right of private
    condemnation. Finally, the division awards attorney fees to the City
    of Greenwood Village under section 38-1-122(1), C.R.S. 2017
    COLORADO COURT OF APPEALS                                        2018COA42
    Court of Appeals No. 17CA0212
    Arapahoe County District Court No. 15CV31946
    Honorable Charles M. Pratt, Judge
    CAW Equities, L.L.C., a Colorado limited liability company,
    Plaintiff-Appellant,
    v.
    City of Greenwood Village, Colorado, a home rule municipality,
    Defendant-Appellee.
    JUDGMENT AFFIRMED
    Division VII
    Opinion by JUDGE FREYRE
    Bernard and Berger, JJ., concur
    Announced March 22, 2018
    Waas Campbell Rivera Johnson & Velasquez LLP, Darrell G. Waas, Patricia C.
    Campbell, Denver, Colorado, for Plaintiff-Appellant
    Otten, Johnson, Robinson, Neff & Ragonetti, P.C., Thomas J. Ragonetti, Bill E.
    Kyriagis, Brian J. Connolly, Denver, Colorado; Tonya Haas Davidson, City
    Attorney, Greenwood Village, Colorado, for Defendant-Appellee
    ¶1    In this private condemnation action under Colorado
    Constitution article XVI, section 7 (Section 7), we address a novel
    question — Does the “prior public use” doctrine of eminent domain
    law apply to private condemnations under Section 7? We answer
    that question “yes” and affirm the district court’s judgment related
    to that doctrine. We also conclude that while Section 7 is
    self-executing, it is not limitless. Consistent with numerous
    Colorado cases, we conclude that this constitutional right, as
    others, is subject to reasonable legislative regulation.
    ¶2    Petitioner, CAW Equities, L.L.C. (CAW), appeals from the
    district court’s judgment denying its private condemnation of a
    public trail belonging to respondent, the City of Greenwood Village.
    CAW contends that the district court erred when it: (1) placed
    statutory limitations on the constitutional right to private
    condemnation for water use; (2) determined that CAW needed to
    make a showing of necessity for the condemned property without
    first addressing the bad faith issue; (3) required CAW to make a
    showing of “absolute” necessity; (4) admitted testimony regarding
    the feasibility of CAW’s water plan; and (5) awarded the City
    attorney fees. Because we conclude that Section 7 may be limited
    1
    by statute, and that the prior public use doctrine provides an
    alternate basis to affirm the district court’s judgment, we do not
    address the necessity issue, the bad faith issue, or the admissibility
    of the feasibility evidence. Moreover, because we affirm the district
    court’s judgment, we also affirm its award of attorney fees.
    I.    Background
    ¶3    CAW is a Colorado limited liability company managed by
    Robert Lembke and owned and controlled by the Lembke family.
    CAW sought private condemnation of a public equestrian and
    pedestrian trail (public trail) that bisects two of its adjacent
    properties. The public trail runs between the Highline Canal to the
    north and Long Road to the south. The City owns the public trail
    from a plat dedication and separate dedication agreement for
    equestrian and pedestrian use.
    2
    This diagram, based on admitted exhibits, is not to scale and is
    provided for illustrative purposes only.
    ¶4    Several years before this suit was filed, CAW proposed creating
    a new trail along the southern edge of the Eastern Lembke Tract in
    exchange for vacating the public trail through its property. The City
    expressed interest initially, so Lembke made some improvements to
    the proposed route. He offered easements to the City on CAW’s
    property in exchange for the public trail. The City ultimately
    3
    rejected this offer, so Lembke offered to purchase the public trail for
    $85,300. Without responding to this offer, the City began
    construction to improve the public trail. Two days after the City
    placed surveying stakes on the public trail, CAW filed this petition
    in condemnation under Section 7.
    ¶5    CAW petitioned to condemn the entire public trail to construct
    a ditch from the Highline Canal to the southern end of its
    properties. The City opposed CAW’s petition in a C.R.C.P. 12(b)(1)
    motion to dismiss. It argued that CAW brought the condemnation
    action in bad faith, and that the rights it asserted did not comply
    with the legislative authority that guided and implemented the
    constitutional right of private condemnation. The district court
    granted the City’s motion in part, concluding that the eminent
    domain statutes clarified and implemented the rights and
    responsibilities of a party seeking to condemn property under
    Section 7. It deferred the bad faith argument to the hearing on the
    merits.
    ¶6    At the hearing, CAW presented expert testimony that its
    proposed water plan was the most efficient and cost-effective means
    of transporting water from north to south and diverting it to the
    4
    eastern and western tracts for irrigation. The City presented
    contrary expert testimony of numerous alternatives that did not
    require condemning the entire public trail. The record reflects that
    the City offered to grant CAW an easement to transport water
    across the public trail consistent with these alternatives and that
    CAW rejected that offer.
    ¶7    The district court issued a detailed written order denying
    CAW’s petition. It found that (1) the eminent domain statutes were
    a proper application of legislative authority to implement and
    regulate Section 7; (2) CAW was required to show necessity for the
    proposed condemnation; (3) the proposed water plan failed to
    comply with the relevant statutes, and that CAW had failed to
    establish a need to take property already in public use; and (4)
    CAW’s failure to establish the necessity of constructing its proposed
    ditch rendered any bad faith determination unnecessary. The court
    then awarded the City attorney fees and costs.
    II.   Private Condemnation Under Section 7
    ¶8    We first address whether the district court erred in concluding
    that CAW lacked the authority to condemn the public trail. CAW
    contends that the court imposed unlawful restrictions on its right to
    5
    condemn property under Section 7. It argues that Section 7 is
    self-executing and that a private condemnor need not comply with
    the eminent domain statutes or show necessity before exercising his
    or her condemnation right. We disagree, and conclude, consistent
    with well-settled law pertaining to other constitutional provisions,
    that the legislature, through the eminent domain statutes, may
    regulate Section 7 so long as it does not unnecessarily limit or
    curtail the constitutional right.
    A.    Standard of Review and Applicable Law
    ¶9    We review a district court’s judgment in a condemnation
    action as a mixed question of fact and law. See Glenelk Ass’n v.
    Lewis, 
    260 P.3d 1117
    , 1120 (Colo. 2011). “[W]e defer to the trial
    court’s findings of fact unless they are so clearly erroneous as to
    find no support in the record.” 
    Id. We review
    the court’s legal
    conclusions, including questions of constitutional and statutory
    interpretation, de novo. Gessler v. Colo. Common Cause, 
    2014 CO 44
    , ¶ 7. When interpreting a statute, “a court’s essential task is to
    determine and give effect to the intent of the legislature.” Premier
    Farm Credit, PCA v. W-Cattle, LLC, 
    155 P.3d 504
    , 513 (Colo. App.
    2006) (quoting People v. Goodale, 
    78 P.3d 1103
    , 1107 (Colo. 2003)).
    6
    To accomplish this task, we must first examine the plain language
    of the statute itself. Jefferson Cty. Bd. of Equalization v. Gerganoff,
    
    241 P.3d 932
    , 935 (Colo. 2010). If the language is clear and
    unambiguous, we must interpret it as written. 
    Id. ¶ 10
      This case involves a conflict between two rights. On the one
    hand, the right to own and use property is fundamental and
    important. See Akin v. Four Corners Encampment, 
    179 P.3d 139
    ,
    144 (Colo. App. 2007). On the other hand, water is a “scarce and
    valuable resource” in Colorado. Mount Emmons Mining Co. v. Town
    of Crested Butte, 
    40 P.3d 1255
    , 1257 (Colo. 2002). Consequently,
    water is carefully managed, including its distribution in ditches, to
    promote beneficial uses. See, e.g., Colo. Const. art. XVI, § 6
    (“Diverting unappropriated water – priority preferred uses”); Colo.
    Const. art. XVI, § 7 (“Right-of-way for ditches, flumes”); §§ 37-86-
    101 to -113, C.R.S. 2017 (“Rights-of-way and Ditches”); Archuleta v.
    Gomez, 
    200 P.3d 333
    , 341-43 (Colo. 2009).
    Ditches are important to Colorado. They
    permit a landscape, economy, and history in
    which fertile valleys prosper. Without them,
    properties adjacent to or distant from
    watercourses wither. Colorado is not a
    riparian state in which only those lands
    adjacent to the streams and rivers have rights
    7
    to waters. Rather, as early as the tenure of the
    territorial legislature, our lawmakers
    recognized that our arid climate required the
    creation of a right to appropriate and convey
    water across the land of another so that lands
    not immediately proximate to water could be
    used and developed.
    Roaring Fork Club, L.P. v. St. Jude’s Co., 
    36 P.3d 1229
    , 1231-32
    (Colo. 2001).
    ¶ 11   The importance of water distribution in Colorado is expressed
    in the state constitution, which permits private property to be
    taken, without the consent of the owner, for “reservoirs, drains,
    flumes, or ditches on or across the lands of others.” Colo. Const.
    art. II, § 14. It also permits public land to be condemned for
    rights-of-way, stating as follows:
    All persons and corporations shall have the
    right-of-way across public, private and
    corporate lands for the construction of ditches,
    canals and flumes for the purpose of conveying
    water for domestic purposes, for the irrigation
    of agricultural lands, and for mining and
    manufacturing purposes, and for drainage,
    upon payment of just compensation.
    Colo. Const. art. XVI, § 7.
    ¶ 12   Section 7 is self-executing, which means that it “shall take
    immediate effect, and ancillary legislation is not necessary to the
    8
    enjoyment of the right thus given, or the enforcement of the duty
    thus imposed. In short, if a constitutional provision is complete in
    itself, it executes itself.” Town of Lyons v. City of Longmont, 
    54 Colo. 112
    , 117, 
    129 P. 198
    , 200 (1913). Thus, at the time of its
    adoption in 1876, no further legislative action was required to
    implement it.
    ¶ 13   Nevertheless, “[a] provision can still be self-executing even if
    ‘further legislation may clarify or facilitate the execution of the
    provision.’” Developmental Pathways v. Ritter, 
    178 P.3d 524
    , 531
    (Colo. 2008) (quoting Davidson v. Sandstrom, 
    83 P.3d 648
    , 658
    (Colo. 2004)). Indeed, “although the constitution recognizes the
    right of eminent domain, it is proper for the legislature to impose
    just limitations which do not prevent the exercise of the right.”
    Gibson v. Cann, 
    28 Colo. 499
    , 501, 
    66 P. 879
    , 880 (1901); see also
    
    Davidson, 83 P.3d at 658
    n.9 (“Only legislation which ‘directly or
    indirectly limits, curtails or destroys the rights given by those
    provisions is invalid as violative of the rights reserved by the people
    to themselves.’” (quoting Colo. Project-Common Cause v. Anderson,
    
    178 Colo. 1
    , 5, 
    495 P.2d 220
    , 222 (1972))).
    9
    B.    The Eminent Domain Statutes Apply to Section 7
    ¶ 14   Relying on Town of Lyons, CAW argues that Section 7 is
    self-executing and cannot be limited or curtailed by the eminent
    domain statutes. To be sure, our supreme court concluded that the
    City of Longmont was entitled under Section 7 to condemn a
    right-of-way through the streets of Lyons for a water pipeline and
    stated that “[t]he intent of a constitutional provision is the law.”
    Town of 
    Lyons, 54 Colo. at 116
    , 129 P. at 200. However, it reached
    this conclusion “independent of statutory provisions” and without
    considering whether the eminent domain statutes could limit
    Section 7. 
    Id. ¶ 15
      Moreover, it noted that Lyons “retains authority to prescribe
    all reasonable and necessary rules and regulations which the city of
    Longmont must observe in maintaining its pipe line . . . and all
    rights which [Longmont] may exercise over its line within the
    corporate limits of Lyons are therefore subject to such control.” 
    Id. at 117,
    129 P. at 200. In our view, this language refutes CAW’s
    argument that Section 7 provides a limitless right and supports the
    principle that “the manner of exercising the [constitutional] right
    [may be] regulated by statute.” Downing v. More, 
    12 Colo. 316
    , 318,
    10
    
    20 P. 766
    , 767-68 (1889); see also Tripe v. Overacker, 
    7 Colo. 72
    ,
    73, 
    1 P. 695
    , 696 (1883) (holding that the statute limiting the
    number of ditches that could cross another’s land was a proper
    limitation of Section 7).
    ¶ 16   More recently, our supreme court explained that “[t]he extent
    of the right-of-way is defined by section 37-86-103, C.R.S. 1973,
    and the right of condemnation to acquire the right-of-way is granted
    by section 37-86-104, C.R.S. 1973.” Application of Bubb, 
    200 Colo. 21
    , 27, 
    610 P.2d 1343
    , 1347 (1980). In doing so, the court
    recognized that the sources of the right of condemnation are
    Colorado Constitution article II, section 14, and Section 7. 
    Id. at 27
    n.11, 610 P. at 1347 
    n.11.
    ¶ 17   We conclude that while Section 7 may be self-executing, it is
    not without limitation, as suggested by CAW, but may be regulated
    and implemented by the eminent domain statutes. Well-settled law
    recognizes the legislature’s ability to “regulate the exercise” of the
    right of private condemnation, and to hold otherwise would allow
    private condemnors an unfettered ability to condemn property
    without any guiding principles, and would leave condemnees and
    courts with little understanding of the contours of the right.
    11
    ¶ 18   Accordingly, we make explicit what has been implied in our
    case law — that the eminent domain statutes properly regulate the
    exercise of the right of private condemnation under Section 7. See
    Passarelli v. Schoettler, 
    742 P.2d 867
    , 870 (Colo. 1987) (“[T]o
    withstand constitutional challenge statutory provisions must, at a
    minimum, have a reasonable basis in fact and bear a reasonable
    relationship to a legitimate governmental interest.”).
    ¶ 19   CAW alternatively argues that even if the eminent domain
    statutes apply, its proposed plan does not violate them. For the
    reasons stated below in Part III, discussing the prior public use
    doctrine, we conclude that CAW did not have the authority to
    condemn the public trail. Therefore, we need not decide whether
    the proposed plan complies with the eminent domain statutes.
    III.   Prior Public Use Doctrine
    ¶ 20   Whether a person claiming a right to condemn property for a
    ditch must show that the ditch is “necessary” under the
    constitution is a difficult and unresolved question. CAW claims
    that Section 7 does not require it to show a ditch is necessary, and
    that it provides an absolute right to condemn. CAW reasons that
    because it plans to construct a ditch, as expressly authorized under
    12
    Section 7, and because Section 7 contains no language requiring
    proof of necessity, it need not make such a showing. The City, on
    the other hand, asserts that CAW must prove that the ditch is
    necessary to access its water rights in order to condemn a ditch, an
    argument with which the district court agreed.
    ¶ 21   However, we need not decide this unsettled question1 because,
    as the court found, the land CAW seeks to condemn is already in
    public use as a public trail. Therefore, we address, as a matter of
    first impression, whether the prior public use doctrine applies to
    private condemnation proceedings under Section 7 and conclude
    that it does. We further conclude that Section 7 does not constitute
    “express authority” to condemn property in public use, and that the
    court properly applied this doctrine in finding that CAW failed to
    (1) allege express authority for its right to condemn all of the public
    trail; (2) prove that the right to condemn property already in public
    use was a necessary implication of its private condemnation right;
    1Colorado law is well established that to condemn a private right of
    way for ingress or egress, the condemnor must show necessity.
    Glenelk Ass’n v. Lewis, 
    260 P.3d 1117
    , 1122 (Colo. 2011). However,
    whether this same requirement and the definition of “necessary”
    used in the private right-of-way context apply to irrigation ditch
    easements is unresolved.
    13
    and (3) prove that some public exigency existed to justify the
    necessity of condemning the public trail.
    A.    Standard of Review and Applicable Law
    ¶ 22   We review a district court’s judgment in a condemnation
    action as a mixed question of fact and law. Glenelk 
    Ass’n, 260 P.3d at 1120
    . “[W]e defer to the trial court’s findings of fact unless they
    are so clearly erroneous as to find no support in the record.” 
    Id. We review
    the court’s legal conclusions de novo. 
    Id. ¶ 23
      Over one hundred years ago, our supreme court considered
    whether a private company could condemn a piece of land for a
    reservoir that was being held for railroad use. See generally Denver
    Power & Irrigation Co. v. Denver & R.G.R. Co., 
    30 Colo. 204
    , 
    69 P. 568
    (1902). In discussing article 2, section 14 of the constitution
    and the prior public use doctrine, the court stated as follows:
    It is unnecessary to attempt an analysis of this
    constitutional provision, — whether or not it is
    self-executing, or the legislature has provided
    laws by which its provisions may be enforced,
    — further than to say that neither the
    constitutional provision referred to nor any
    statute to which our attention has been
    directed changes or modifies the general rule
    that property already devoted to a public use
    cannot be taken for another in such manner or
    to such an extent that the use to which it is
    14
    devoted will be wholly defeated or superseded,
    unless the power to so take be granted
    expressly or by necessary implication, except it
    may be in cases where a public exigency
    requires that it be taken.
    
    Id. at 210,
    69 P. at 570 (emphasis added) (citations omitted). While
    the court did not analyze Section 7, it clearly rejected the
    “self-executing” argument in a similar constitutional provision,
    under similar circumstances, and found that the prior public use
    rule could only be defeated expressly, by necessary implication, or
    by public exigency. 
    Id. This prior
    public use rule has been
    reiterated in case law and continues to operate in Colorado in cases
    under Colorado Constitution article II, section 14. See, e.g., Beth
    Medrosh Hagodol v. City of Aurora, 
    126 Colo. 267
    , 273-74, 
    248 P.2d 732
    , 735 (1952) (noting the prior public use doctrine applies where
    the city sought to condemn cemetery property for a reservoir); Town
    of Parker v. Colo. Div. of Parks & Outdoor Recreation, 
    860 P.2d 584
    ,
    586 (Colo. App. 1993) (“The right to take property already dedicated
    to a public use for another public use exists in some cases, but
    such right must be by specific grant of authority.”); see also Mark S.
    Arena, Comment, The Accommodation of “Occupation” and “Social
    Utility” in Prior Public Use Jurisprudence, 137 U. Pa. L. Rev. 233,
    15
    234 & n.5 (1988) (collecting cases adopting the prior public use
    doctrine under various constitutional and statutory provisions).
    B.   Application
    ¶ 24   CAW does not provide, nor can we discern, any reason to limit
    the prior public use rule to takings of private property to construct
    ditches for conveying water under article II, section 14 of the
    constitution. Instead, we believe the prior public use rule applies
    with equal force to the more narrow circumstance of taking property
    for a right-of-way to construct a water ditch under Section 7.
    ¶ 25   CAW contends that Section 7 “expressly allows a taking of
    public property as long as it is for one of the enumerated purposes”
    and that the prior public use rule does not require otherwise. It
    argues that because Section 7 allows a “right-of-way across public”
    lands (emphasis added), it expressly authorizes the condemnation
    of lands already in public use. However, this argument
    misconstrues the scope of Section 7, and it misconstrues the prior
    public use rule.
    ¶ 26   First, Section 7 is a narrow provision that allows “persons and
    corporations” a “right-of-way across public, private, and corporate
    lands . . . .” It is not an express provision to condemn entire tracts
    16
    of land currently in public use. Cf. Minn. Power & Light Co. v. State,
    
    225 N.W. 164
    , 165-66 (1929) (“There is a distinction between power
    merely to cross a railway or other line and authority to construct a
    railway or line longitudinally upon or through property already
    devoted to a public use.”). CAW’s argument fails to acknowledge
    how narrowly we must construe the condemnation power, Town of
    
    Parker, 860 P.2d at 586
    (“[N]arrow construction is the rule in
    determining the scope of the condemnation power delegated.”), and
    how broadly we must construe statutes regulating that power,
    § 37-86-101, C.R.S. 2017. Thus, although the language of Section
    7 includes a private right to condemn public, private, or
    corporate-owned property for water rights-of-way, it must be viewed
    through the broader lens of the eminent domain statutes that
    regulate it.
    ¶ 27   To that end, we believe that CAW misconstrues the meaning of
    “express” authorization. In Denver Power & Irrigation Co., the court
    noted that although the petitioner had a general right to condemn
    properties held for railroad use, “no statute is pointed out which
    would authorize [petitioner] to take such property to an extent
    which would totally deprive the railroad companies of its use.” 
    30 17 Colo. at 211
    , 69 P. at 570 (emphasis added). We glean from this
    case that the prior public use doctrine requires express legislative
    or constitutional authority for a condemnor to entirely extinguish
    an existing public use, as distinct from the general grant of the
    power to condemn.
    ¶ 28   Although Section 7 grants the general authority to condemn
    public property for a right-of-way to access water, it does not
    expressly grant the authority to extinguish an existing public use
    on such property. See, e.g., Freeman Gulch Mining Co. v. Kennecott
    Copper Corp., 
    119 F.2d 16
    , 20 (10th Cir. 1941) (applying Utah
    statutes and holding that property devoted to one public use may,
    under general statutory authority, be taken for another public use,
    where the taking will not materially impair or interfere with, or is
    not inconsistent with, the use already existing); Village of Richmond
    Heights v. Bd. of Cty. Comm’rs, 
    166 N.E.2d 143
    , 150 (Ohio Ct. App.
    1960) (“As a general rule, property already devoted to a public use
    cannot be taken for another public use which will totally destroy or
    materially impair or interfere with the former use . . . .”); In re Vt.
    Gas Sys., Inc., 
    174 A.3d 1253
    , 1259 (Vt. 2017) (“[W]e conclude that
    the prior public use doctrine does not prohibit condemnation of
    18
    land devoted to a public use when the new use does not materially
    impair the prior use.”); cf. Wyo. Stat. Ann. §§ 1-25-813, 1-26-505
    (West 2017) (condemnations of property in public use allowed on a
    showing that the new use will not unreasonably interfere with or
    impair prior public use). CAW does not cite, nor have we found,
    any authority granting the unfettered power to condemn that it
    espouses. Cf. Town of 
    Parker, 860 P.2d at 587
    (explaining that the
    “general grant of eminent domain power” of Colorado Constitution
    article XX, section 1 “confers no specific condemnation powers over
    state-owned lands” and thus could not justify condemnation); see
    also Lake Cty. Parks & Recreation Bd. v. Ind.-Am. Water Co., 
    812 N.E.2d 1118
    , 1123 (Ind. Ct. App. 2004) (“[A]bsent the prior public
    use doctrine, property could be condemned back and forth
    indefinitely.”).
    ¶ 29    Narrowly construing the right to condemn, as we must, we
    reject CAW’s argument that Section 7 expressly authorizes it to
    extinguish the public trail and instead conclude that Section 7
    merely grants express authority to a right-of-way, so long as the
    right-of-way does not extinguish the prior public use. Consistent
    with this holding, the district court found that several alternatives
    19
    to extinguishing the public trail existed and that CAW could obtain
    a right-of-way to access its water rights without eliminating the
    existing public use. Because ample record evidence supports this
    conclusion, we discern no error.
    ¶ 30   Additionally, to the extent CAW asserts that its right to
    condemn land in existing public use arises “by necessary
    implication” of Section 7, we reject that assertion for the reasons
    explained above and conclude that the right to condemn an entire
    tract of public land in public use is not a necessary implication of
    the general right to privately condemn a right-of-way for a ditch.
    See Mack v. Town of Craig, 
    68 Colo. 337
    , 338-39, 
    191 P. 101
    , 101
    (1920) (“The authority to condemn must be expressly given or
    necessarily implied. The exercise of the power being against
    common right, it cannot be implied or inferred from vague or
    doubtful language . . . . When the right to exercise the power can
    only be made out by argument and inference, it does not exist.”
    (quoting John Lewis, Law of Eminent Domain § 371 (3d ed. 1909)));
    cf. Bd. of Cty. Comm’rs v. Intermountain Rural Elec. Ass’n, 
    655 P.2d 831
    , 833-34 (Colo. 1982) (concluding that although the county had
    20
    a duty to provide county offices, the fact that an individual did not
    want to sell offices did not necessarily imply the right to condemn).
    ¶ 31   Where, as here, a private condemnor can obtain a right-of-way
    without extinguishing the existing public use, the condemnation
    power does not necessarily imply such a power. Cf. Bd. of Cty.
    
    Comm’rs, 655 P.2d at 833
    (explaining that, when a statute is silent
    and the power can be exercised “without resort to condemnation,” it
    is presumed the legislature intended the property be acquired
    without condemnation).
    ¶ 32   Finally, CAW provided no evidence of a “public exigency” to
    justify condemning the public trail. Indeed, it failed to show that a
    ditch over the entire tract was necessary, and it conceded that a
    ditch on the Eastern Lembke Tract was possible, though not
    preferable. See Beth Medrosh 
    Hagodol, 126 Colo. at 274
    , 248 P.2d
    at 736 (finding exigency not established where “it [was] not shown
    that it [was] necessary to take the land in question, nor [was] it
    alleged or shown that no other land or site [was] available”).
    ¶ 33   Thus, while CAW’s proposed water plan may reflect the most
    cost-effective and efficient option to achieve its own purposes, it
    does not reflect the only available option, nor does it consider the
    21
    existing public use. See Denver Power & Irrigation Co., 30 Colo. at
    
    211, 69 P. at 570
    (“It may be true that the site thus selected is
    convenient, or it may even be true that it is the only available one
    on the stream; but that is a matter which affects the rights of
    petitioner, and not the public.”). Indeed, efficiency and costs relate
    only to CAW’s rights and not the public. 
    Id. ¶ 34
      The district court concluded that “there are other available
    means and locations to achieve the goal of conveying or
    transporting the water without interfering with the public trail
    which would defeat the use for which it was dedicated to the
    public.” Because ample record evidence supports this finding, the
    court did not err in so concluding. See Glenelk 
    Ass’n, 260 P.3d at 1120
    (“[W]e defer to the trial court’s findings of fact unless they are
    so clearly erroneous as to find no support in the record.”).
    ¶ 35   Accordingly, we affirm the court’s judgment that CAW lacked
    the legal authority to condemn the public trail.
    IV.   Remaining Issues
    ¶ 36   Having concluded that the district court properly denied
    CAW’s petition for the condemnation of the public trail, we need not
    decide whether a condemnor needs to establish necessity under
    22
    Section 7, whether a finding of bad faith is a necessary predicate to
    determining necessity, or whether the court abused its discretion in
    admitting feasibility evidence. See People v. Lopez, 
    2015 COA 45
    ,
    ¶ 64 (refusing to address issues raised when a narrower decision is
    reached).
    V.   Attorney Fees and Costs
    ¶ 37   CAW last contends that the district court erred in awarding
    the City its attorney fees and costs under section 38-1-122(1),
    C.R.S. 2017. Because we agree that CAW was “not authorized by
    law to acquire real property or interests therein sought in a
    condemnation proceeding,” 
    id., we affirm
    the attorney fee judgment.
    A.   Standard of Review and Applicable Law
    ¶ 38   A court may award attorney fees and costs “when authorized
    by statute or court rule.” § 13-16-122(1)(h), C.R.S. 2017; United
    Bank of Denver, Nat’l Ass’n v. Colo. State Treasurer, 
    797 P.2d 851
    ,
    852 (Colo. App. 1990). We review an attorney fee award for an
    abuse of discretion and will not disturb that award unless it is
    patently erroneous or unsupported by the evidence. Hartman v.
    Freedman, 
    197 Colo. 275
    , 
    591 P.2d 1318
    (1979). Whether a
    statutory basis for attorney fees exists is a question of law that we
    23
    review de novo. US Fax Law Ctr., Inc. v. Henry Schein, Inc., 
    205 P.3d 512
    , 515 (Colo. App. 2009); Town of Telluride v. San Miguel
    Valley Corp., 
    197 P.3d 261
    , 262 (Colo. App. 2008) (reviewing
    statutes de novo).
    ¶ 39   Section 38-1-122(1) authorizes an award of attorney fees and
    costs in condemnation cases:
    If the court finds that a petitioner is not
    authorized by law to acquire real property or
    interests therein sought in a condemnation
    proceeding, it shall award reasonable attorney
    fees, in addition to any other costs assessed, to
    the property owner who participated in the
    proceedings.
    (Emphasis added.) Attorney fees and costs, therefore, are
    recoverable for the successful defense of a private condemnation
    action. See West v. Hinksmon, 
    857 P.2d 483
    , 487 (Colo. App. 1992)
    (Attorney fees should be allowed in private condemnation action “if
    it is established that an alternate acceptable route is legally
    available to the condemnor at the time the action is commenced.”);
    Billington v. Yust, 
    789 P.2d 196
    , 198 (Colo. App. 1989) (noting the
    statute provides “for the imposition of attorney fees as part of
    recoverable costs” in private condemnation action).
    24
    B.   Application
    ¶ 40   CAW does not challenge on appeal the reasonableness of the
    attorney fees awarded by the district court, but only the court’s
    legal basis for ordering them under section 38-1-122. It contends
    that the phrase “not authorized by law” “should not be read so
    broadly as to include every condemnation that does not proceed to
    a valuation hearing.” CAW reasons that the court’s interpretation
    would require condemnors to pay fees and costs in all dismissed
    cases, irrespective of whether there was any legal basis for filing the
    condemnation petition.
    ¶ 41   We agree with CAW that “[u]nlike some attorney fee statutes,
    [section] 38-1-122(1) does not provide that fees are to be awarded to
    the ‘prevailing party,’” Wilkenson v. Gaffney, 
    981 P.2d 1121
    , 1123
    (Colo. App. 1999), but instead “authorizes the court to award fees to
    the respondent property owner if the petitioner is not authorized by
    law to acquire the real property interests sought,” 
    id. ¶ 42
      Because the court acknowledged that CAW could acquire a
    right-of-way across the public trail, albeit not the one it sought,
    CAW argues that it was authorized to condemn at least some of the
    public trail and should not be required to pay attorney fees.
    25
    ¶ 43   Recall, however, that CAW sought to condemn all of the public
    trail, not an easement across it. In fact, the record shows that CAW
    explicitly rejected the City’s offer for such an easement. Therefore,
    because the only property interest that CAW “therein sought” to
    condemn under section 38-1-122(1) was the entire public trail, not
    the easement the court acknowledged it could obtain, we conclude
    that CAW’s petition was not authorized by law, under the prior
    public use doctrine, and that the district court properly awarded
    fees and costs to the City under section 38-1-122(1). Cf. 
    Wilkinson, 981 P.2d at 1122
    (awarding attorney fees for petitioners’ request for
    utility easement that did not succeed despite succeeding in
    obtaining a right-of-way).
    ¶ 44   Alternatively, CAW argues that the fee award should be
    reduced because it had legal support for its private condemnation
    action across the public trail. We construe this argument as one
    asserting that its petition was not frivolous or vexatious, an
    argument with which we agree but find irrelevant. The question
    here is not whether CAW brought a frivolous, groundless, or
    vexatious suit. See § 13-17-101, C.R.S. 2017. Rather, the question
    is whether the law authorized CAW to bring the suit “to acquire real
    26
    property or interests therein sought.” § 38-1-122(1). CAW does not
    dispute that it sought to condemn the entire public trail or that it
    rejected the City’s offer of an easement across the public trail.
    Because the prior public use doctrine precluded what CAW sought,
    CAW’s petition was not “authorized by law.”
    ¶ 45   We are not persuaded that Hinksmon requires a different
    result. In that case, a division of this court reversed a condemnee’s
    attorney fee award because it concluded that what the condemnor’s
    petition sought — a private right of necessity — was authorized by
    law, even though the district court found that a less damaging route
    
    existed. 857 P.2d at 487
    . The division remanded the case for
    further findings to determine the location of the easement. In
    Hinksmon, what the petition sought and what was awarded were
    the same — a private right of necessity.
    ¶ 46   In contrast, here, CAW’s petition sought condemnation of the
    entire public trail, not an easement across it. Under these
    circumstances, CAW’s petition was not authorized by law, and we
    conclude the district court properly awarded the City fees and costs
    under section 38-1-122(1).
    27
    VI.     Conclusion
    ¶ 47   The judgment is affirmed.
    JUDGE BERNARD and JUDGE BERGER concur.
    28
    

Document Info

Docket Number: 2017CA02

Citation Numbers: 2018 COA 42, 425 P.3d 1197

Filed Date: 3/22/2018

Precedential Status: Precedential

Modified Date: 3/19/2020

Authorities (19)

Board of County Commissioners v. Intermountain Rural ... , 1982 Colo. LEXIS 757 ( 1982 )

Wilkinson v. Gaffney , 1999 Colo. J. C.A.R. 3171 ( 1999 )

Premier Farm Credit, PCA v. W-CATTLE, LLC , 2006 Colo. App. LEXIS 1649 ( 2006 )

Town of Telluride v. San Miguel Valley Corp. , 2008 Colo. App. LEXIS 1408 ( 2008 )

People v. Goodale , 78 P.3d 1103 ( 2003 )

Minnesota Power & Light Co. v. State , 177 Minn. 343 ( 1929 )

Akin v. Four Corners Encampment , 2007 Colo. App. LEXIS 716 ( 2007 )

Archuleta v. Gomez , 200 P.3d 333 ( 2009 )

Davidson v. Sandstrom , 2004 Colo. LEXIS 49 ( 2004 )

Billington v. Yust , 13 Brief Times Rptr. 895 ( 1989 )

US Fax Law Center, Inc. v. Henry Schein, Inc. , 2009 Colo. App. LEXIS 72 ( 2009 )

Jefferson County Board of Equalization v. Gerganoff , 2010 Colo. LEXIS 820 ( 2010 )

GLENELK ASS'N, INC. v. Lewis , 260 P.3d 1117 ( 2011 )

Rocky Mountain Gun Owners v. Hickenlooper , 2015 COA 45 ( 2016 )

Hartman v. Freedman , 197 Colo. 275 ( 1979 )

Beth Medrosh Hagodol v. City of Aurora , 126 Colo. 267 ( 1952 )

Town of Parker v. Colorado Division of Parks & Outdoor ... , 17 Brief Times Rptr. 421 ( 1993 )

Application of Bubb v. Christensen , 200 Colo. 21 ( 1980 )

Colorado Project-Common Cause v. Anderson , 178 Colo. 1 ( 1972 )

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