In this interlocutory appeal, we review the district court's ruling consolidating condemnation appeals from proceedings by two separate condemning authorities taking property four months apart from the same parent tract of farmland. The landowner, Johnson Farms,
The district court consolidated the appeals, finding common questions of law or fact and a lack of prejudice. The district court found consolidation would promote judicial economy and that potential prejudice or jury confusion could be avoided through jury admonitions and instructions. We respectfully disagree and note the dearth of authorities supporting consolidation of condemnation appeals under these unique circumstances. The trials will involve overlapping evidence to ascertain just compensation for each taking from the same parent tract. But the fact finders must determine just compensation for different types of takings by separate condemning authorities four months apart for unrelated projects. Certain evidence in each case is inadmissible in the other. This creates a substantial risk of prejudice and jury confusion. For that reason, we conclude consolidation was an abuse of discretion here. Accordingly, we reverse the district court's consolidation order and remand the cases for separate trials.
Before the condemnations at issue, Johnson Farms owned 65.93 acres of agricultural land near the growing Des Moines suburb of Ankeny.
PCAA and WRA commenced their condemnations in 2010, four months apart. In February, PCAA filed an application to condemn 4.17 acres in fee simple to extend the Runway Protection Zone for Runway 22 and relocate Northeast 29th Street. On March 24, a six-member condemnation commission awarded Johnson Farms $345,000 as just compensation. Johnson Farms appealed to the district court.
On June 21, WRA filed an application to condemn Johnson Farms' land adjacent to PCAA's 4.17-acre condemnation. WRA is constructing the Four Mile Interceptor Sewer, which would run a sanitary sewer from the Ankeny Southeast Water Pollution
Johnson Farms moved to consolidate the two appeals into a single district court proceeding under Iowa Rule of Civil Procedure 1.913. Johnson Farms argued the appeals require the juries to hear similar valuation evidence and make similar valuation determinations. Consolidation, therefore, would protect against inconsistent jury compensation verdicts. Johnson Farms indicated it planned to argue the condemning authorities' multiple takings of adjacent land close in time had a "combined effect" of reducing the value of their remaining land. PCAA and WRA argued there were no common questions of fact because the appeals involved different land, property interests, and condemning authorities. The authorities also argued consolidation would prejudice them by permitting the jury to hear inadmissible and confusing evidence and improperly measure the damages.
The district court granted Johnson Farms' motion to consolidate. It found "the cases raise similar legal issues and that the evidence would be substantially the same in both actions." The district court also determined consolidation "would not cause jury confusion but would rather provide a complete picture of the allegations." Further, any dissimilar issues could be "remedied by proper jury instructions and admonitions to the jury." The district court concluded consolidation "would promote judicial economy and save costs to all parties."
WRA and PCAA filed an application for an interlocutory appeal of the district court's consolidation order. We granted the application and retained the appeal.
We review the district court's consolidation ruling for abuse of discretion. Kent Feeds, Inc. v. Manthei, 646 N.W.2d 87, 90 (Iowa 2002). "[T]he question as to whether actions should be consolidated for trial rests largely within the discretion of the trial court." Schupbach v. Schuknecht, 204 N.W.2d 918, 920 (Iowa 1973). We will find the district court abused its discretion when it exercises "`discretion on grounds or for reasons clearly untenable or to an extent clearly unreasonable.'" Everly v. Knoxville Cmty. Sch. Dist., 774 N.W.2d 488, 492 (Iowa 2009) (quoting Schettler v. Iowa Dist. Ct., 509 N.W.2d 459, 464 (Iowa 1993)). "A ground or reason is untenable. . . when it is based on an erroneous application of the law." Graber v. City of Ankeny, 616 N.W.2d 633, 638 (Iowa 2000). "Although our review is for an abuse of discretion, we will correct erroneous applications of law." Everly, 774 N.W.2d at 492.
Consolidation rulings are discretionary. Kent Feeds, Inc., 646 N.W.2d at 90. The district court must exercise its discretion to determine whether the separate actions "`involve common questions of law or fact'" and whether any party can "`show[]'" prejudice. Williams, 201 N.W.2d at 464 (quoting Iowa R. Civ. P. 185, now rule 1.913). Our rule was amended in 1955 to require the party claiming prejudice to "show," rather than merely allege, prejudice. Id. The advisory committee added the showing requirement to take away the nonmoving party's de facto power to veto consolidation:
Iowa R. Civ. P. 1.913 official cmt.
The Fourth Circuit summarized the district court's role in determining whether consolidation should be granted:
Arnold v. E. Air Lines, Inc., 681 F.2d 186, 193 (4th Cir.1982); accord Cantrell v. GAF Corp., 999 F.2d 1007, 1011 (6th Cir.1993);
The parties cite several Iowa cases involving consolidation of condemnation appeals. See Van Horn v. Iowa Pub. Serv. Co., 182 N.W.2d 365, 367-68 (Iowa 1970); Iowa Dev. Co. v. Iowa State Highway Comm'n, 252 Iowa 978, 981, 108 N.W.2d 487, 489 (1961); Strange Bros. Hide Co. v. Iowa State Highway Comm'n, 250 Iowa 450, 452, 93 N.W.2d 99, 100 (1958). Each of these cases, however, merely consolidated proceedings commenced by a single condemning agency for one project taking property simultaneously from multiple neighboring landowners. Consolidation was resisted only in Iowa Development Co., 252 Iowa at 983, 108 N.W.2d at 490-91. We held consolidation was within the district court's discretion under the circumstances of that case:
Iowa Dev. Co., 252 Iowa at 983, 108 N.W.2d at 490-91 (emphasis added).
As the foregoing discussion shows, consolidation of condemnation appeals may well be appropriate for the routine cases involving serial takings from neighboring properties by a single condemner for the same project. Here, we are faced with quite different circumstances: two condemning authorities taking different interests from the landowner for different projects valued by separate compensation commissions months apart. We have not previously adjudicated the propriety of consolidation in this unique situation. We must take a closer look at the particular issues presented here to decide whether consolidation of Johnson Farms' appeals fell within the district court's discretion.
When the condemner seeks a partial taking of a parcel, as here, the jury calculates damages by using a before-and-after formula. Jones v. Iowa State Highway Comm'n, 185 N.W.2d 746, 750 (Iowa 1971). The before-and-after formula requires the jury to ascertain the difference
1. Common questions of law or fact. Johnson Farms asserts the appeals present common questions of law and fact because "the same Iowa substantive law regarding condemnation will apply to both cases" and the appeals involve "similar parties, the same parcel of land, and likely the same fact and expert witnesses." The existence of common substantive law alone, however, does not justify consolidation. See, e.g., Comeaux v. Mackwani, 124 Fed.Appx. 909, 911 (5th Cir.2005) (finding no common question of fact or law under Federal Rule of Civil Procedure 42(a) merely because the plaintiff alleged Eighth Amendment violations in two otherwise unrelated civil rights claims). In other words, two factually unrelated tort actions are not ripe for consolidation simply because the same substantive law applies to each. Id. Innumerable unrelated cases could be consolidated if all that was required is the application of the same substantive law. The ultimate inquiry is not whether the same substantive law applies, but whether the separate actions require determinations of common questions of law or fact.
The fact both appeals involve takings from the same parent tract is not determinative. Each trial turns on a different valuation issue. PCAA condemned 4.17 acres in fee simple from Johnson Farms' 65.93 acre parcel. WRA condemned a .92-acre permanent easement and a 9.43-acre temporary construction easement from Johnson Farms' remaining 61.76-acre parcel. The before-and-after calculation is different in each appeal. The PCAA jury must determine the value of the 65.93-acre parcel before and after its 4.17-acre taking as of March 24. WRA did not even file its condemnation petition until nearly three months later. Accordingly, the WRA taking is not relevant to the PCAA damages calculation. See Heldenbrand, 218 N.W.2d at 634 (Iowa 1974) (holding damages are determined as of the day compensation commission appraised the property). By contrast, the WRA jury must determine the value of the 61.76-acre parcel before and after the WRA easements are imposed as of August 2 (the date the compensation commission viewed the property). Thus, the ultimate issue differs in each case.
We are not persuaded by Johnson Farms' characterization that the appeals involve condemnations by "similar parties." If "[a]ctions involving the same parties are apt candidates for consolidation," then it follows that actions involving different parties are less likely to present common questions. 9A Charles Alan Wright, et al., Federal Practice and Procedure § 2384, at 52 (3d ed.2008). WRA and PCAA are "similar" only in that each has condemnation authority. The entities are distinct in operation, funding, and purpose. PCAA is organized under Iowa Code chapter 28E, owns and operates the Ankeny Regional Airport, and receives project funding through the Federal Aviation Authority.
Johnson Farms contends consolidation is needed to protect against inconsistent jury awards on the common question of the value of the parent tract. Specifically, Johnson Farms fears separate juries will find a high "after" value to its land on March 24 and a low "before" value to the same land on August 2, thereby reducing its compensation for both takings. Johnson Farms' concern is speculative-indeed, it could benefit from inconsistent verdicts. Separate juries may find a low "after" value on March 24 and a high "before" value on August 2, thereby increasing the combined compensation awarded to Johnson Farms. Separate juries could well find the same interim value for the parent tract based on the testimony of Johnson Farms' expert. On the other hand, the City of Ankeny's rapid growth or evidence of other intervening factors may justify different valuations of the parent track four months apart. The concern over the risk of inconsistent verdicts is less compelling here because the juries are deciding different ultimate issues.
We conclude the potential commonality in the questions of fact (the value of the parent tract between the two takings) is insufficient to support consolidation in light of the risk of prejudice and confusion, particularly when the benefits of consolidation are slight.
2. The benefits of consolidation are not great. Consolidation will not significantly promote judicial economy in this litigation. At oral argument, counsel for Johnson Farms indicated each condemnation appeal is likely to require a two- or three-day trial. A consolidated trial would presumably run longer, perhaps three or four days, saving the court and Johnson Farms at most a day or two. Yet PCAA and WRA each would face a longer consolidated trial in place of a shorter separate trial. The downside for Johnson Farms—more total days in court—is ameliorated by its ability to recover its costs and attorney fees if its appeals are successful. Iowa Code § 6B.33. While the trials will include some overlapping evidence such as testimony of the same expert for Johnson Farms, there also will be significant independent evidence. PCAA and WRA will present separate expert testimony specific to their respective takings. The benefit of the time saved by a combined trial is offset by the increased complexity and risk of error requiring retrial.
3. Risk of prejudice. Johnson Farms argued that PCAA and WRA's multiple takings of adjacent land within a short period of time has a combined effect of reducing the value of its remaining parcel. The condemning authorities respond that the combined-effects theory distorts the proper before-and-after damages calculation. See Jones, 185 N.W.2d at 750.
PCAA argues consolidation will force the jury to hear evidence irrelevant to its case concerning the value of Johnson Farms' property after March 24. We agree. See Heldenbrand, 218 N.W.2d at 634 (Iowa 1974) (holding damages are determined as of the day compensation commission appraised the property). PCAA questions whether a jury instruction or admonition can cure this problem. At the very least, PCAA contends such a jury instruction or admonition will confuse the jury.
We disagree with the district court's conclusion that these concerns can be effectively answered through admonitions or instructions to the jury. We recently recognized a jury may have difficulty faithfully applying instructions that require it to use evidence for some purposes and ignore it for others. See State v. Redmond, 803 N.W.2d 112, 124 (Iowa 2011) (cautioning a jury may have difficulty compartmentalizing prior bad-act evidence as going only toward the witness's testimonial credibility). If the condemnation appeals are tried separately, those difficulties are avoided. We conclude the district court misapplied the law by concluding these actions could be consolidated without prejudice to WRA and PCAA. This erroneous application of law constitutes an abuse of discretion. Graber, 616 N.W.2d at 638.
No party cited any case from any jurisdiction consolidating condemnation actions commenced by different condemning authorities for different projects and different types of takings months apart in which the consolidation was resisted.
For these reasons, we hold the district court abused its discretion by consolidating the two condemnation appeals.
We reverse the district court's order consolidating the PCAA and WRA condemnation appeals, and we remand the case for separate proceedings.