Scottsdale Settles Condemnation Case For $8,290,000
The Scottsdale City Council last week approved the settlement of a condemnation action it had filed against CGP-Aberdeen for the principal amount of $7,500,000, plus interest of approximately $790,000, for a total settlement amount of $8,290,000. The property owner was represented by Dale Zeitlin.
The City had filed a lawsuit against the property owner on January 1,2003, which under Arizona law established the date of valuation. The City, however, did not ask the court to take early possession of the property until July 2004 at which time the City paid $4,000,000 (the City's appraised value for the property)to the property owner, a delay of eighteen months.
Mr. Zeitlin argued that the statutory date of valuation when applied to a factual situation where the government delays taking possession of the property for a lengthy period of time was unconstitutional. The trial court rejected this argument, but on appeal, the Arizona Court of Appeals agreed with Zeitlin's argument and held that property must be valued when the government takes possession of the property and first pays its estimate of just compensation. Thus, the valuation date was not January 2003, but July 2004, a date when values were significantly higher.
The settlement was reached using the July 2004 date of value.
This case also has significance to every condemnation case that is filed by Arizona Public Service or other governmental entities that do not have the right to take immediate possession of property. In all of these cases, the property owner will be able to argue for a later date of value. APS had filed amicus curiae briefs opposing using the later date of valuation throughout the appellate process.
