Here’s the latest in a case we posted about last year. There, the North Dakota Supreme Court noted an open issue, but declined to resolve it. Now, in Fargo v. Wieland, No. 20200100 (July 22, 2020), the court addressed it head-on. 

Here’s how the noted the issue:

whether a landowner who appeals an award in eminent domain proceedings, without accepting or withdrawing deposited funds, is entitled to the payment of post-judgment interest subsequent to the deposit of the full amount of the judgment

Slip op. at 2.

After a just comp judgment, the city deposited the funds plus money covering the court’s award of attorneys’ fees. The property owner appealed. Even though she could have, she didn’t withdraw the money because doing so would have waived her right to appeal on all issues except a claim for more compensation. Her appeal asserted the taking was invalid, so pulling the money would have waived the argument.

The owner then argued she was entitled to interest on the deposit. The city asserted that no interest could run, because the owner could have pulled the funds. The owner countered that this would force her into choosing between her right to appeal, and her right to the funds.

The court agreed with the city, noting that the operative statute (N.D. Civ. Code § 32-15-29) does not allow interest on deposits that cover the entire amount of a judgment. “While we agree with Wieland that the statute appears to require unsatisfied landowners to make a difficult choice between withdrawing the deposit and limiting their appeal to a claim for greater compensation, or foregoing the use of the funds and preserving all of their potential issues on appeal, there is nothing in the statute suggesting the legislature intended something different.” Slip op. at 5.

Fargo v. Wieland, No. 20200100 (N.D. July 22, 2020)