DEPARTMENT OF TRANSP. EX REL. PEOPLE v. Hunziker

Decision Date30 July 2003
Docket Number No. 3-02-0525, No. 3-02-0553.
Citation796 N.E.2d 122,277 Ill.Dec. 407,342 Ill. App.3d 588
PartiesThe DEPARTMENT OF TRANSPORTATION, for and in behalf of The PEOPLE of the State of Illinois, Plaintiff-Appellee, v. Dale K. HUNZIKER, as Trustee of the Barbara J. Hunziker Family Trust Dated October 10, 1999, Defendant-Appellant (Melinda Woskow Mayani, as Trustee of the Melinda Mayani Trust, established under the Last Will and Testament of Ann Woskow dated April 9, 2001; Burger King Corporation, a Florida Corporation; John Drury; Charles R. McLochlin; Norbert J. Lukas; Richard O. Deignan; Robert Deignan; Fredrick W. Kaufman; Robert S. Cohen; First American Bank, f/k/a Commercial National Bank as Trustee of Trust No. XXX-XXXXXXXX, as Trustee of Trust No. 66-7792-0 and as Trustee of Trust No. 66-8033, n/k/a National City, a Banking Corporation; TPC-CHI, Inc., f/k/a Chart House, Inc., a Delaware Corporation; Talman Home Federal Savings and Loan Association of Illinois, n/k/a LaSalle Bank, N.A., a National Banking Association; Edward T. O'Connor, Peoria County Treasurer; and Unknown Owners and Non-Record Claimants, Defendants). The Department of Transportation, for and in behalf of The People of the State of Illinois, Plaintiff-Appellee, v. Dale K. Hunziker, as Trustee of the Barbara J. Hunziker Family Trust Dated October 10, 1999, Defendant-Appellant (A.A. Green, Trustee under Trust No. 66-7792-0; Denny's, Inc., a California Corporation; Central Dining, Inc., an Illinois Corporation; Melinda Woskow Mayani, as Trustee of the Melinda Mayani Trust, established under the Last Will and Testament of Ann Woskow dated April 9, 2001; Burger King Corporation, a Florida Corporation; John Drury; Charles R. McLochlin; Norbert J. Lukas; Richard O. Deignan; Robert Deignan; Fredrick W. Kaufman; Robert S. Cohen; First American Bank, f/k/a Commercial National Bank as Trustee of Trust No. XXX-XXXXXXXX, as Trustee of Trust No. 66-7792-0 and as Trustee of Trust No. 66-8033, n/k/a National City, a Banking Corporation; TPC-CHI, Inc., f/k/a Chart House, Inc., a Delaware Corporation; Talman Home Federal Savings and Loan Association of Illinois, n/k/a Lasalle Bank, N.A., a National Banking Association; Edward T. O'Connor, Peoria County Treasurer; Professional Realty Services, Ltd.; South Side Trust & Savings Bank of Peoria, a Banking Corporation; and Unknown Owners and Non-Record Claimants, Defendants).
CourtUnited States Appellate Court of Illinois

Supplemental Opinion Upon Denial of Rehearing filed September 10, 2003.

Mark D. Walton (argued), Gregory A. Hunziker, Hunziker & Walton, L.L.C., Peoria, for Dale K. Hunziker.

James Ryan, Attorney General, Chicago, Gary E. Barnhart, Special Assistant Attorney

General (argued), Canton, Michael J. Luke, Senior Assistant Attorney General, Springfield, for IDOT.

Kevin W. Lyons, State's Attorney, Peoria, for Peoria County Treasurer.

John S. Elias, Elias, Meginnes, Riffle & Seghetti, Peoria, for A.A. Green, Trustee Under Trust No. 66-7792-0.

Bagley & Miller, Pekin, for Central Dining, Inc.

Joseph B. VanFleet, Law Office of Joseph B. VanFleet, L.L.C., Peoria, for Melina Woscow Mayani, Trustee.

Roy G. Davis, Davis & Campbell, Peoria, for Drury Management, Inc.

Justice SLATER delivered the opinion of the court:

Plaintiff Department of Transportation (the Department) filed complaints for condemnation of two contiguous parcels of property (the property) owned by defendant Dale Hunziker. The other defendants also have an ownership or other interest in the property. Hunziker filed a traverse and motion to dismiss each complaint which the trial courts denied. On appeal Hunziker contends that the Department was required to disclose the appraisal reports which it used to determine the amount of compensation offered for the property. We agree.

Facts

In February of 2002 the Department notified Hunziker that its plans to widen Interstate 74 made it necessary to acquire his property. A separate letter was sent for each parcel. The letters set forth the amount of compensation that had been established by the Department and included a document entitled "Basis for Computing Total Approved Compensation and Offer to Purchase" (the basis document). Because the information contained in the basis document is critical to our resolution of this case, the relevant parts of one of those documents is set forth below "1. Existing Property Total area 31, 467 square feet, more or less. Highest and best use as appraised, Fast food restaurant 2. Land to be Acquired as Permanent Right of Way Estate or interest to be acquired fee simple additional right of way 1,443 square feet Existing right of way (when applicable) 0 square feet Total right of way 1,443 square feet 3. Improvements and/or Fixtures to be Acquired Removal of a portion of the asphalt paving, concrete curbing, and landscaping, along with removal of two parking lot light fixtures mounted on light poles with concrete bases, an on-premise advertising sign, and elimination of 12 parking spaces. 4. Compensation for Permanent Right of Way: Fair market value of the 1,443 square feet to be acquired including all improvements as part of the whole property, based on an analysis of market data in the vicinity of the acquisition. $ 35,000.00 Damage to the remaining property as a result of the acquisition (Relocation of sign, loss of parking) $ 35,000.00 Total compensation for permanent right of way $ 70,000.00 Less cost of construction to be offset against total compensation $ 0.00 Net Compensation $ 70,000.00 Benefits in the amount of $ NONE have been estimated to the remaining property. These benefits have been offset against any possible damages but have not been offset against any part of the compensation for the part acquired. 5. Compensation for the Removal of Signs Located on the Proposed Right of Way: A description of the sign to be removed by the owners $ 0 Total compensation for sign removal $ 0 6. Compensation for Temporary Construction Easements: Parcel No. 415PO23TE—355 square feet for grading, shaping, and sidewalk construction $ 2,000.00 Parcel No. $ 0 Total compensation for easements $ 2,000.00 7. Total Compensation for Entire Acquisition, which includes all interests in the land required for the highway improvement ad damages to the remainder, if any. (sum of 4+5+6) $ 72,000.00" In response to the Department's offers, Hunziker requested copies of the appraisal reports on which the offers had been based. The department refused, stating that it was its policy not to release appraisals except in response to an appropriate discovery request. On May 9, 2002, the Department filed its complaints for condemnation, along with motions for immediate vesting of title under the "quick-take" provisions of the Eminent Domain Act (the Act). See 735 ILCS 5/7-103 (West 2002). Hunziker filed a traverse and motion to dismiss each case, along with a motion for expedited discovery. The discovery motion was granted and plaintiff thereafter furnished Hunziker with the appraisal reports for the property. Following a hearing on June 12, 2002, Hunziker's traverses and motions to dismiss were denied. In each case the trial judge found that plaintiff was not required to furnish Hunziker with copies of its appraisals during negotiations, although one judge noted his belief that plaintiff's actions "smack[ed] of arrogance" and were contrary to the spirit of sections 7-102 and 7-102.1 of the Act. 735 ILCS 5/7-102, 7-102.1 (West 2002). Hunziker now appeals, and we reverse.

Analysis
Jurisdiction

The Department has raised the issue of this court's jurisdiction over this appeal in light of Southwestern Illinois Development Authority v. National City Environmental, L.L.C., 304 Ill.App.3d 542, 238 Ill.Dec. 99, 710 N.E.2d 896 (1999), aff'd, 199 Ill.2d 225, 263 Ill.Dec. 241, 768 N.E.2d 1 (2002). In Southwestern the fifth district appellate court held that the issue of whether the condemning authority had made a good faith attempt to negotiate could not be considered in an interlocutory appeal brought pursuant to Supreme Court Rule 307(a)(7) (166 Ill.2d R. 307(a)(7)) and section 7-104(b) of the Act (735 ILCS 5/7-104(b) (West 2002)). Southwestern relied on Southwestern Illinois Development Authority v. Vollman, 235 Ill.App.3d 32, 175 Ill.Dec. 683, 600 N.E.2d 926 (1992), which held that an interlocutory appeal pursuant to section 7-104 of the Act was limited to the three issues delineated in subsection 7-104(b), which states in part:

"(b) At the [quick-take] hearing, if the court has not previously, in the same proceeding, determined [1] that the plaintiff has authority to exercise the right of eminent domain, [2] that the property sought to be taken is subject to the exercise of such right, and [3] that such right is not being improperly exercised in the particular proceeding, then the court shall first hear and determine such matters. The court's order thereon is appealable, and an appeal may be taken therefrom by either party within 30 days after the entry of such order, but not thereafter[.]" 735 ILCS 5/7-104(b) (West 2002).

We believe that the Southwestern court construed subsection 7-104(b) too narrowly. One of the findings that is expressly appealable is whether the right of eminent domain is "being improperly exercised in the particular proceeding." 735 ILCS 5/7-104(b) (West 2002). Since good faith negotiation by the condemnor is a condition precedent to exercising that right (see Department of Transportation v. 151 Interstate Road Corp., 333 Ill. App.3d 821, 267 Ill.Dec. 566, 777 N.E.2d 369 (2002),appeal allowed, 202 Ill.2d 669, 272 Ill.Dec. 357, 787 N.E.2d 172 (2003) and cases cited therein), review of the good faith issue is proper as part of the larger issue of the propriety of exercising the power of eminent domain. 151 Interstate,333 Ill.App.3d 821,267 Ill.Dec. 566,777 N.E.2d 369. In the same manner, the question of whether the Department must...

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