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City of Downey v. Johnson

Citations: 79 Cal. App. 3d 970; 145 Cal. Rptr. 298; 1978 Cal. App. LEXIS 1388Docket: Civ. 51204

Court: California Court of Appeal; April 17, 1978; California; State Appellate Court

Narrative Opinion Summary

In the case of City of Downey v. Willie Johnson, the California Court of Appeals affirmed a judgment requiring Willie Johnson to return $9,935 to the City of Downey. This amount represented the excess withdrawn by Johnson from an eminent domain compensation award, which was later reduced by a subsequent trial. Initially, in 1965, Johnson, acting as conservator for landowner Ella Dotsey, withdrew $59,900 after an interlocutory judgment. However, after the city appealed, the compensation was later adjusted to $49,965. The city then sought reimbursement under former Code of Civil Procedure section 1254(g), which mandates repayment of excess amounts. Johnson resisted, citing a precedent without a similar statutory basis, but the court maintained that the statute requires repayment irrespective of who appeals. The court also rejected Johnson's res judicata argument, noting that the claim for reimbursement only arose after the valuation was finalized. The court found no statutory conflict and upheld the city's right to the reimbursement, unaffected by procedural amendments. The judgment was clarified to ensure payments for certain parcels were directed to Johnson as the executor of Dotsey's will.

Legal Issues Addressed

Application of Former Code of Civil Procedure Section 1254(g)

Application: The court clarified that section 1254(g) requires repayment of excess funds irrespective of whether the plaintiff appeals, and does not impose limitations on recovering the excess amounts withdrawn by a defendant.

Reasoning: The court clarified that the amendment to section 1254 established the requirement for repayment regardless of whether the plaintiff appeals.

Legislative Intent and Excess Withdrawals

Application: The court emphasized that allowing a defendant to retain more than the determined property value contradicts legislative intent, thus reaffirming the mandate for repayment under subdivision (g).

Reasoning: The court sees no justification for implying such a limitation, as it would result in the defendant receiving more than the property's determined worth, which is contrary to legislative intent.

Reimbursement of Excess Compensation in Eminent Domain

Application: The court held that a defendant must repay excess amounts withdrawn if a subsequent judgment reduces the compensation previously awarded in an eminent domain proceeding.

Reasoning: The California Court of Appeals affirmed a judgment ordering defendant Willie Johnson to reimburse the City of Downey $9,935, reflecting the amount he withdrew in excess of the final compensation award in an eminent domain proceeding.

Res Judicata and Cause Splitting in Reimbursement Claims

Application: The court dismissed the res judicata argument, holding that the plaintiff's claim for reimbursement was not barred as it arose only after the final judgment on property value was determined.

Reasoning: The defendant's argument regarding res judicata, claiming that the plaintiff’s motion for reimbursement is barred because of supposed cause splitting, is unsubstantiated and lacks legal support.