HF 3253

as introduced - 88th Legislature (2013 - 2014) Posted on 03/21/2014 12:27pm

A bill for an act
relating to eminent domain; modifying appraisal and attorney fee requirements;
amending Minnesota Statutes 2012, sections 117.031; 117.036, subdivisions 2, 4.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 117.031, is amended to read:

117.031 ATTORNEY FEES.

(a) If the final judgment or award for damages, as determined at any level in the
eminent domain process, is more than 40 percent greater than the last written offer of
compensation made by the condemning authority prior to the filing of the petition new text begin or, if
the owner provided the acquiring authority with an appraisal, the last written offer made
after receipt of the appraisal by the condemning authority new text end , the court shall award the owner
reasonable attorney fees, litigation expenses, appraisal fees, other experts fees, and other
related costs in addition to other compensation and fees authorized by this chapter. If the
final judgment or award is at least 20 percent, but not more than 40 percent, greater than
the last written offer, the court may award reasonable attorney fees, expenses, and other
costs and fees as provided in this paragraph. The final judgment or award of damages
shall be determined as of the date of taking. No attorney fees shall be awarded under this
paragraph if the final judgment or award of damages does not exceed $25,000. For the
purposes of this section, the "final judgment or award for damages" does not include any
amount for loss of a going concern unless that was included in the last written offer by
the condemning authority.

(b) In any case where the court determines that a taking is not for a public use or
is unlawful, the court shall award the owner reasonable attorney fees and other related
expenses, fees, and costs in addition to other compensation and fees authorized by this
chapter.

Sec. 2.

Minnesota Statutes 2012, section 117.036, subdivision 2, is amended to read:

Subd. 2.

Appraisal.

(a) Before commencing an eminent domain proceeding under
this chapter, the acquiring authority must obtain at least one appraisal for the property
proposed to be acquired. In making the appraisal, the appraiser must confer with one
or more of the owners of the property, if reasonably possible. Notwithstanding section
13.44, the acquiring authority must provide the owner with a copy of each appraisal the
acquiring authority has obtained for the property at the time an offer is made, but no later
than 60 days before presenting a petition under section 117.055, and inform the owner of
the right to obtain an appraisal under this section. Upon request, the acquiring authority
must make available to the owner all appraisals of the property. If the acquiring authority
is considering both a full and partial taking of the property, the acquiring authority shall
obtain and provide the owner with appraisals for both types of takings.

(b) The owner may obtain an appraisal by a qualified appraiser of the property
proposed to be acquired. The owner is entitled to reimbursement for the reasonable costs
of the appraisal from the acquiring authority up to a maximum of $1,500 for single family
and two-family residential property and minimum damage acquisitions and $5,000 for
other types of property, provided that the owner submits to the acquiring authority the
information necessary for reimbursement, including a copy of the owner's appraisal, at
least deleted text begin five deleted text end new text begin 30 new text end days before a condemnation commissioners' hearing. For purposes of this
paragraph, a "minimum damage acquisition" means an interest in property that a qualified
person with appraisal knowledge indicates can be acquired for a cost of $10,000 or less.

(c) The acquiring authority must pay the reimbursement to the owner within 30
days after receiving a copy of the appraisal and the reimbursement information. Upon
agreement between the acquiring authority and the owner, the acquiring authority may pay
the reimbursement directly to the appraiser.

new text begin (d) At the time an owner rejects a written offer of compensation from the acquiring
authority or makes a counteroffer, the owner shall provide the acquiring authority with
a copy of any appraisal of the property that has been obtained by the owner and not
previously provided to the acquiring authority. If the owner subsequently obtains an
appraisal, the owner shall provide the acquiring authority with a copy of the appraisal
within ten days of obtaining the appraisal.
new text end

Sec. 3.

Minnesota Statutes 2012, section 117.036, subdivision 4, is amended to read:

Subd. 4.

Use of appraisal at commissioners' hearing.

An appraisal must not be
used or considered in a condemnation commissioners' hearing, nor may the appraiser who
prepared the appraisal testify, unless a copy of the appraiser's written report is provided to
the opposing party at least deleted text begin five deleted text end new text begin 30 new text end days before the hearing new text begin , or at an earlier time required
under subdivision 2, paragraph (d) new text end .