Eminent Domain, POOF!: Reversal Of $328,000 Inverse Condemnation Merits Judgment Meant That $529,540.40 Fees/Costs Award Against City Of San Diego Went POOF!

Merits Reversal Hinged On City Not Bearing Responsibility For Private Pipeline Non-Maintenance Where City Refused A Public Dedication Offer.

            In Ruiz v. County of San Diego, Case No. D074654 (4th Dist., Div. 1 March 17, 2020) (unpublished), Plaintiff homeowners obtained a $328,000 inverse condemnation award against the County of San Diego when their privately-owned underground storm drain pipe rusted out over 50 years of use.  The trial judge, who entered the merits award, subsequently awarded plaintiffs $529,540.50 in attorney’s fees and costs under CCP § 1036, the inverse condemnation fee-shifting statute which can benefit plaintiffs.

            Well, everything went POOF! on appeal.  The 4/2 DCA decided that the merits judgment was infirm based on the city refusing a prior public dedication offer such that it had no maintenance or control over plaintiffs’ private pipeline.  Much to their chagrin, plaintiffs also lost their fee/costs recovery—a reversal of fortune on appeal. 

            BLOG OBSERVATION—We bloggers will note that appeals by governmental authorities do seem to result in a higher reversal rate than non-governmental appeals, sometimes involving a reversal as a matter of law or a modification, which obviously impacts the adverse fee/costs recovery greatly—they go away completely or are remanded for a redetermination based on the modification on appeal.