People Ex Rel. Department of Transportation v. Gardella Square

Statement of the Case

Gardella Square (appellants), owners of property condemned by the Department of Transportation (respondent), appeal from the judgment and order awarding prejudgment interest only from the date respondent took actual possession of the property and from the order denying their motion for litigation expenses.

Two basic issues are presented: (1) Where the condemnation award is based on respondent’s acceptance of appellants’ final demand for “compensation” under Code of Civil Procedure section 1250.410, can appellants thereafter seek prejudgment interest on the award based on an inverse condemnation constructive taking theory alleged in their answer? and (2) Are appellants entitled to claim litigation expenses pursuant to section 1250.410 where respondent accepted appellants’ final demand for compensation after the original trial date but more than 30 days before the continued trial date?

For the reasons set forth below, we answer both questions in the affirmative and reverse the judgment and order.

Statement of Facts

Gardella Square, a partnership, was formed in 1979 to acquire a 20-acre parcel of unimproved property in Tuolumne County for the…