City of Missoula v. Mountain Water Co.
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In this condemnation proceeding initiated by the City of Missoula to condemn the water system serving the City, previously owned by Property Owners, the Supreme Court affirmed in part and reversed and remanded in part the district court’s orders resolving Property Owners’ claims for attorney and expert fees.
After a trial, Property Owners moved for reimbursement of their litigation expenses, arguing that they were prevailing parties. Property Owners argued that Mont. Code Ann. 70-30-306(2) and (3), which cap reimbursement for attorney and expert fees to the customary rate in the county where the case is tried, is unconstitutional both facially and as-applied. The district court concluded that Property Owners were prevailing parties with a right to be reimbursed for their necessary litigation expenses but denied the constitutional challenges to the statute. On appeal, the Supreme Court held that the district court (1) did not err in denying Property Owners’ facial constitutional challenge to Mont. Code Ann. 70-30-306, but as to Property Owners’ as-applied constitutional challenge to the statute, this matter must be remanded for further proceedings; (2) did not err by determining that Property Owners were prevailing parties and entitled to recover litigation expenses; and (3) did not err in awarding attorneys’ fees for out-of-state attorneys.
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