Goering, J.
This case pertains to whether the City of Topeka (City) is required to pay relocation benefits pursuant to K.S.A. 2015 Supp. 26-518 to two former tenants of properties purchased from their landlord by the City in connection with a drainage project. The district court entered summary judgment in favor of the City, holding that the tenants failed to present evidence to establish (1) that they were "displaced persons" entitled to relocation expenses under the statute and (2) that the City's purchase of the land was "in advance of a condemnation action." We find that the district court erred in granting summary judgment to the City. We therefore reverse the district court's grant of summary judgment and remand the case to the district court for further proceedings.
The facts relevant to this appeal are straightforward. The tenants, Charles Nauheim
During negotiations, the City made clear its desire that the property be vacant prior to the City's acquisition of title. On July 31, 2013, the City's real estate officer, Robert Kennedy, emailed the landlord saying:
On August 16, 2013, the City's deputy attorney, Mary Feighny, emailed the landlord advising the landlord that the City did not want to have to exercise its eminent domain power to purchase the leasehold interest of a different tenant's business should that tenant refuse to relocate. On October 24, 2013, Kennedy again emailed the landlord advising, "I suppose, if we do not close this transaction, that the City will then have to condemn to get these properties. That is not a sure thing, as City management has been very reluctant to use condemnation [as] the City Council is not happy to see that going on."
Jennifer Harrell was the project engineer for the City during this time frame. Kennedy negotiated the purchase of the property under her direction. According to Harrell, acquisition of the landlord's property was contingent upon it being vacant at the time of closing.
Ultimately, the City was able to acquire the property from the landlord without exercising its power of eminent domain. The tenants were required to relocate. No federal funds were used to pay for any part of the drainage project.
The tenants filed suit against the City to recover, pursuant to K.S.A. 2015 Supp. 26-518, relocation expenses they incurred when the landlord cancelled their leases on the subject property. The parties filed competing motions for summary judgment. The district court entered summary judgment on behalf of the City, finding that the tenants failed to establish two key prerequisites for the recovery of relocation expenses under K.S.A. 2015 Supp. 26-518. First, the district court determined that the tenants were not "displaced persons" within the meaning of K.S.A. 2015 Supp. 26-518. Second, the district court found that the City did not acquire the subject property "through negotiations in advance of a condemnation action." The tenants challenge both of these legal conclusions in their timely appeal.
The standard of review is well settled. Summary judgment "should be rendered if the pleadings, the discovery and disclosure materials on file, and any affidavits or declarations show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law." K.S.A. 2015 Supp. 60-256(c)(2).
Where the material facts are uncontroverted, as they are in this case, our review to determine whether summary judgment is proper as a matter of law is unlimited. Stroda
In their first issue on appeal, the tenants argue that the district court committed error in concluding as a matter of law that neither of them were a "displaced person" under K.S.A. 2015 Supp. 25-518. This is an issue of first impression in Kansas.
K.S.A. 2015 Supp. 26-518(a) states:
The term "displaced person" is defined in the Uniform Relocation Assistance and Real Property Acquisition Policies Act, 42 U.S.C. § 4601 (2012) as follows:
The parties agree that the relevant question here is whether, as a matter of law, the tenants are "displaced persons" in that their relocations were a "direct result" of the City acquiring their landlord's properties at issue. As expected, the parties disagree on the answer to that question. Resolution of this issue requires the interpretation of K.S.A. 2015 Supp. 26-518, which is a question of law subject to unlimited review on appeal. O'Brien v. Leegin Creative Leather Products, Inc., 294 Kan. 318, 331, 277 P.3d 1062 (2012). The rules of statutory interpretation are well known:
The City's position on this issue, and ultimately the position taken by the district court, was that the tenants were not forced to relocate from the subject property as a direct result of the acquisition of that property by the City, but rather as the result of their dealings with the landlord. In the view of the City and the district court, the tenants' relocation from the subject property was an indirect consequence of the City's acquisition of the subject property. We disagree.
The uncontroverted facts in this case establish that the City's acquisition of the subject property was contingent upon the property being vacant at the time of closing. This condition precedent for the acquisition of the property was established by the City, not the landlord. Stated another way, the City was
The district court relied on Dawson v. U.S. Dept. of Housing and Urban Development, 428 F.Supp. 328 (N.D. Ga. 1976), in support of its ruling that the tenants' relocation was indirectly, rather than directly, the result of the City's acquisition of the subject property. Dawson is readily distinguishable from this case. In Dawson, the plaintiff, Peggy Dawson, was a tenant in an apartment complex in Atlanta, Georgia, that was sold to a private developer. Certain areas of Atlanta had been approved for urban renewal pursuant to the Neighborhood Development Programs Act, 42 U.S.C. § 1469 et seq., but the apartment complex where the plaintiff resided was not in the included area. The purchaser intended to rehabilitate the building and demanded that Dawson vacate her apartment. Dawson filed suit, claiming that she was entitled to relocation benefits pursuant to the Uniform Relocation Assistance and Real Property Acquisition Policies Act.
The parties in Dawson were in agreement that a person forced to relocate as a result of the Neighborhood Development Programs Project was entitled to relocation assistance under the provisions of the Uniform Relocation Assistance and Real Property Acquisition Policies Act. The parties were also in agreement that Dawson was not forced to relocate pursuant to that project. Nevertheless, Dawson argued that her displacement was the "direct result" of activities within the area approved for urban renewal pursuant to Neighborhood Development Programs Act. The court disagreed, holding:
In this case, the landlord sold the subject property to the City, an entity with the power of eminent domain. Further, the property at issue in Dawson was not in an area subject to urban renewal activities that would have entitled the tenant to benefits under the Uniform Relocation Assistance and Real Property Acquisition Policies Act. Here, the acquisition of the subject property by the City in this case was directly connected to the City's drainage project. In fact, the sole purpose of the City's acquisition of the property was for use in the drainage project.
The statutory language defining a "displaced person" is straightforward and unambiguous. A "displaced person" is any person who moves from real property as a direct result of the acquisition of such property by the City. See 42 U.S.C. § 4601(6)(A)(i)(I) (2012). Here, the City conditioned the acquisition
Although the tenants are "displaced persons," they are not entitled to relocation benefits pursuant to K.S.A. 2015 Supp. 26-518 unless the subject property was acquired by the City "through negotiation in advance of a condemnation action." The district court determined that City did not acquire the subject property "through negotiation in advance of a condemnation action" and granted the City summary judgment. On this issue, the tenants advance two arguments: (1) that K.S.A. 2015 Supp. 26-518 does not require an "intent to condemn" by the City; and (2) assuming that there is an "intent to condemn" requirement, the material questions of fact preclude summary judgment. Each argument will be addressed in turn.
The district court ruled K.S.A. 2015 Supp. 26-518 required the tenants to establish that a condemning authority either took affirmative steps toward condemnation, or threatened to do so. In its written opinion, the district court reasoned:
On appeal, the tenants attack the district court's conclusion arguing that it belies the plain language of K.S.A. 2015 Supp. 26-518. The tenants claim that had the legislature intended to require that a condemning authority be poised to condemn, the legislature would have added that requirement to the statute. The City contends that the tenants' interpretation of K.S.A. 2015 Supp. 26-518 creates a slippery slope on which all acquisitions by a condemning authority would be subject to K.S.A. 2015 Supp. 26-518. The City argues this interpretation ignores the qualifying language of the statute — that only acquisitions "in advance of a condemnation" are covered.
The question then becomes whether there was evidence in the summary judgment record that the City either threatened or took affirmative action towards condemnation of the subject property. On this issue, the district court held that it was uncontroverted that the City did not intend to exercise its power of eminent domain to acquire the subject property. The district court reasoned:
As noted above, in ruling on a summary judgment motion "[t]he trial court is required to resolve all facts and inferences which may reasonably be drawn from the evidence in favor of the party against whom the ruling is sought." Shamberg, 289 Kan. at 900, 220 P.3d 333. In addition, the court should resist the temptation to "pass on credibility and to balance and weigh evidence," which are proper functions for the factfinder at trial. Mastin v. Kansas Power & Light Co., 10 Kan.App.2d 620, 624, 706 P.2d 476 (1985). "In short, `[s]ummary judgment should not be used to prevent the necessary examination of conflicting testimony and credibility in the crucible of a trial.'" 10 Kan.App.2d at 624, 706 P.2d 476. We do not think that the district court viewed the summary judgment record consistent with this standard.
The summary judgment record included an affidavit from the landlord who averred: "Through conversations with at least two representatives, the City of Topeka indicated to Affiant that if negotiations failed, the City would then have to condemn the properties." Thus, from the landlord's perspective, the email communication from the City indicated to him that the subject property would be condemned if negotiations failed. That is a reasonable interpretation given the language of the emails. In the August 16, 2013, email,
The district court focused its attention on the qualifying language in the email exchanges that suggested the City viewed condemnation as a less attractive method to acquire the subject property. However, we cannot conclude from this language that the City was taking the option of condemnation entirely off the table. If that were the case, there would have been no reason for representatives of the City to mention the option of condemnation in the first place. The email communications at issue were exchanged during negotiations for the acquisition of the subject property. The City clearly intended for the landlord to be aware that it had the option of condemnation if the City was not able to acquire the subject property through negotiation. Whether that constitutes a threat of condemnation is a question of fact that is for the trier of fact. Certainly the landlord, who was on the receiving end of these communications, had the understanding that if negotiations failed the City would have to condemn the property.
We find that reasonable minds could conclude from the emails exchanged that the City intended to acquire the subject property by condemnation if it could not acquire the property through negotiation. "[W]here we find reasonable minds could differ as to the conclusions drawn from the evidence, summary judgment must be denied." Shamberg, 289 Kan. at 900, 220 P.3d 333. Because genuine issues of material fact remain as to whether the City acquired the subject property through negotiations in advance of a condemnation action, the district court committed error when it granted the City summary judgment. Accordingly, we reverse the grant of summary judgment to the City and remand the case to the district court for further proceedings consistent with this opinion.
Reversed and remanded.