HB-5818, As Passed House, May 31, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 5818

     A bill to amend 1980 PA 87, entitled

"The uniform condemnation procedures act,"

by amending section 16 (MCL 213.66), as amended by 1996 PA 474.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 16. (1) Except as provided in this section, an ordinary

or expert witness in a proceeding under this act shall receive from

the agency the reasonable fees and compensation provided by law for

similar services in ordinary civil actions in circuit court,

including the reasonable expenses for preparation and trial.

     (2) If the property owner, by motion to review necessity or

otherwise, successfully challenges the agency's right to acquire

the property, or the legal sufficiency of the proceedings, and the

court finds the proposed acquisition improper, the court shall

order the agency to reimburse the owner for actual reasonable

attorney fees and other expenses incurred in defending against the

improper acquisition.

     (3) If the amount finally determined to be just compensation

for the property acquired exceeds the amount of the good faith

written offer under section 5, the court shall order reimbursement

in whole or in part to the owner by the agency of the owner's

reasonable attorney's fees, but not in excess of 1/3 of the amount

by which the ultimate award exceeds the agency's written offer as

defined by section 5. The reasonableness of the owner's attorney

fees shall be determined by the court. If the agency or owner is

ordered to pay attorney fees as sanctions under  Michigan court

rule  MCR 2.403 or 2.405, those attorney fee sanctions shall be

paid to the court as court costs and shall not be paid to the

opposing party unless the parties agree otherwise.

     (4) If the agency settles a case before entry of a verdict or

judgment, it may stipulate to pay reasonable attorney and expert

witness fees.

     (5) Expert witness fees provided for in  subsection (1) and

this subsection  this section shall be allowed with respect to an

expert whose services were reasonably necessary to allow the owner

to prepare for trial. For the purpose of  subsection (1) and this

subsection  this section, for each element of compensation, each

party is limited to 1 expert witness to testify on that element of

compensation unless, upon showing of good cause, the court permits

additional experts. The agency's liability for expert witness fees

shall not be diminished or affected by the failure of the owner to

call an expert as a witness if the failure is caused by settlement

or other disposition of the case or issue with which the expert is

concerned.

     (6)  An  Except as provided in subsection (7), an agency

shall  is not  be required to reimburse attorney or expert witness

fees  that are attributable to an unsuccessful challenge to

necessity or to the validity of the proceedings.

     (7) In any matter under this act involving the relocation of

an indigent person, other than a proceeding concerning the taking

of property for the construction of a highway, the court may award

reasonable attorney or expert witness fees attributable to an

unsuccessful challenge to necessity or to the validity of the

proceedings if the court finds that the indigent person had a

reasonable and good faith claim that the property was not being

taken for a public use. As used in this subsection, "indigent

person" means an individual whose annual income is at or below 200%

of the federal poverty guidelines published by the United States

department of health and human services.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) House Bill No. 5817.

     (b) House Bill No. 5819.

     (c) House Bill No. 5820.

     (d) House Bill No. 5821.