In a recent Michigan Court of Appeals decision (Indiana Michigan Power Co v Community Mills) Docket No. 349671, the Court found that Community Mills was entitled to its full, reasonable attorneys’ fees when Indiana Michigan Power Co (IMPC) submitted a defective claim.
IMPC initially sought to condemn certain real property owned by Community Mills. Community Mills filed for summary disposition arguing a lack of subject-matter jurisdiction and the complaint was not submitted to all necessary parties.
The Court dismissed the action without prejudice. Community Mills filed a motion seeking reimbursement of all its attorney fees and expenses incurred in defending against the action. The trial court limited the reimbursement of fees and expenses to those resulting from the procedural defect, less than half of what was requested.
Community Mills appealed and the Michigan Court of Appeals reversed, awarding Community Mills with their full attorney fees and expenses. The Court of Appeals found that the Uniform Condemnation Procedures Act (UCPA) provided that a party that is successful in defending a claim against them is entitled to recover all reasonable attorney fees and expenses incurred in defending the action.
The purpose of this language in the UCPA was to place the owner of the property in as good a position as before the taking or the condemnation action. The Court stated that to grant attorney fees and expenses less than the amount actually incurred would be contrary to the legislative intent.
The key takeaway from this case is that the UCPA allows for, and the courts will enforce, full recovery of reasonable attorney fees and expenses in order to put the owner of the property in question in as good a position as if the action was never brought.
The full text of the opinion can be found at:
https://law.justia.com/cases/michigan/court-of-appeals-published/2020/349671.html
