Here’s the latest in a case we’ve been tracking, the City of Missoula, Montana’s takeover of a privately-owned water system. In 2016, the Montana Supreme Court held that the city could exercise its power of eminent domain to take the property for a “more necessary” public use. The court allowed the city to take the company, and on remand, the lower court determined compensation. There was also a follow up case on who pays property taxes on land while it is being condemned (the owner, although it may eventually have a claim for a refund from the city once the condemnation is completed and title transfers).
In City of Missoula v. Mountain Water Co., No. DA-17-0272 (June 5, 2018), the Montana Supreme Court considered the payment of attorneys’ fees and costs. After the owners–the water company itself and its “upstream” owner–rejected the city’s offer of $50 million, the condemnation
