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Martin v. Commonwealth11/30/2001
2:00 p.m.
TO BE PUBLISHED
OPINION REVERSING AND REMANDING IN APPEAL NO. 2000-CA-000640-MR AFFIRMING IN APPEAL NO. 2000-CA-002083-MR
These are two consolidated appeals which arose separately but involve the same issues. In both cases, the Commonwealth of Kentucky, Transportation Cabinet, Department of Highways (the Cabinet), condemned real property during the late 1970's, but failed to develop all of the property within eight years. The former property owners brought actions to enforce their statutory right to repurchase property at the price paid by the Cabinet. The Cabinet argues that the actions brought by the former property owners were untimely. In Appeal No. 2000-CA-002083-MR, the Pike Circuit Court determined that the statute of limitations was tolled by the Cabinet's failure to properly notify the former property owners of their statutory right to repurchase. In Appeal No. 2000-CA-000640-MR, the Jefferson Circuit Court concluded that claims under KRS 416.670 are governed by the five- year statute of limitations and that the former property owner's claims were untimely. Although we agree with the Jefferson Circuit Court that these actions are governed by the five-year statute of limitation, we also agree with the Pike Circuit Court that the statute of limitations does not commence to run until the Cabinet gives the former property owner actual notice of their statutory right to repurchase. Hence, we affirm in Appeal No. 2000-CA-002083-MR, and we reverse and remand in Appeal No. 2000-CA-000640-MR.
Because these appeals involve the same issues of law, we shall begin by briefly discussing the statutory right of redemption contained in KRS 416.670. In 1976 the Legislature enacted the Eminent Domain Act of Kentucky requiring the condemning authority either to commence development of a property within eight years or to sell it back to the former owner at the same price paid by the condemnor; however, the statute specifically excluded condemnations by the [former] Department of Transportation. In 1980, the statute was amended eliminating the exception for the Cabinet.
KRS 416.670 is entitled, "Limitations on condemnation powers - Rights of current landowner." The subsections relevant to this appeal provide:
(1) Development shall be started on any property which has been acquired through condemnation within a period of eight (8) years from the date of the deed to the condemnor or the date on which the condemnor took possession, whichever is earlier, for the purpose for which it was condemned. The failure of the condemnor to so begin development shall entitle the current landowner to repurchase the property at the price the condemnor paid to the landowner for the property. The current owner of the land from which the condemned land was taken may reacquire the land as aforementioned.
(2) Any condemnor who fails to develop property acquired by condemnation or who fails to begin design on highway projects pursuant to KRS Chapter 177 within a period of eight (8) years after acquisition, shall notify the current landowner of the provisions of subsection (1) of this section. If the current landowner refuses to purchase property described in this section, public notice shall be given in a manner prescribed in KRS Chapter 424 within thirty (30) days of the refusal, and the property shall be sold at auction. Provided, however, that this section shall not apply to property acquired for purposes of industrial development pursuant to KRS Chapter 152.
In Miles v. Dawson, our Supreme Court held that this statute gives a former property owner the right to repurchase any portion of a tract of property which has been condemned
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