Medical Acquisition Company v. Superior Court

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In an eminent domain matter, the condemning agency, Tri-City Healthcare District (Tri-City), made a pretrial deposit of $4.7 million and sought to take immediate possession of the subject property, a partially completed medical building. Medical Acquisition Company, Inc. (MAC) stipulated to Tri-City's possession of the building and withdrew the $4.7 million deposited under the "quick-take" provision of the California Constitution. The eminent domain matter was consolidated with another case involving a lease between the parties and ultimately proceeded to trial where a jury determined just compensation for the taking was nearly $17 million. The court subsequently ordered Tri- City to increase its deposit by about $12.2 million. Among other procedural maneuvers, Tri-City filed a notice of abandonment of the eminent domain proceeding. However, the superior court granted MAC's motion to set aside the abandonment. Tri-City appealed that order in addition to the judgment. MAC argued that after judgment, withdrawing a deposit made in an eminent domain action was governed solely by Code of Civil Procedure section 1268.140. Under that section, MAC contended the superior court could not impose any undertaking regarding the prompt release of a deposit to a single claimant after judgment has been entered. In addition, MAC argued the bonding requirement here frustrated the purpose of the quick-take provision of the California Constitution, and thus, should be declared unconstitutional. This was a matter of first impression for the Court of Appeal. After review, the Court concluded MAC was correct that any postjudgment withdrawal of a deposit in an eminent domain case was governed by section 1268.140. However, that provision allowed a court, in its discretion, to impose an undertaking upon objection by any party to the proceeding. The Court concluded MAC did not show how the trial court abused its discretion under section 1268.140. Additionally, the Court determined that MAC's contention that the bonding requirement was unconstitutional was without merit. As such, the Court of Appeal denied the requested relief. View "Medical Acquisition Company v. Superior Court" on Justia Law