Eminent Domain Law

In a condemnation proceeding, condemnor and condemnee cross-appealed from an award of attorney's fees in the sum of $831,303.22, of expert fees in the amount of $65,100, and of costs in an amount of $2,133.90. The Appellate Division modified to increase the award of attorney's fees to $1,366,250, and otherwise affirmed.

Condemnor initially offered condemnee $2,080,000 as compensation for the taking of real property. Condemnee then retained counsel on a contingency fee basis, where counsel would receive 20% of the first 500,000 of the excess over the city's initial award, and 15% of the balance. Four years after the initial offer, the city offered to pay $6,335,000 as compensation, and made an advance payment in that amount. Condemnee litigated the value of the premises, and Supreme Court determined that $11.8 million constituted just compensation. Condemnee then sought attorney's fees in the amount of $1,956.888 based on the contingency fee arrangement, together with expert fees and costs and disbursements. Supreme Court concluded that the expert fees and costs and disbursements were reasonable, but applied the contingency fee arrangement to the city's second offer of $6,335,000 rather than to the initial offer. As a result, Supreme Court awarded fees of $831,303.22. Both parties appealed.