People ex rel. Dep't of Pub. Works v. Redwood Hotels Corp.

TAYLOR, J. On this appeal, the only questions presented concern the amount of interest on a judgment in condemnation to which appellants are entitled pursuant to Code of Civil Procedure section 1255b, subdivision (c).

As this is the second appeal on this matter, a brief chronology of the pertinent facts is necessary. On April 15, 1965, a judgment in condemnation was entered awarding to appellants the sum of $85,000 for certain property in Santa Rosa. On June 4, 1965, respondent deposited the principal amount of the judgment and costs but did not deposit the amount of interest because of its appeal from the portion of the judgment for interest. Appellants did not withdraw the $85,000 until October 8,1965.

On the prior appeal, People ex rel. Dept of Public Works v. McCoy, 248 Cal.App.2d 27 [56 Cal.Rptr. 352], respondent argued for an offset against all interest due on the judgment for the rents collected by appellants, who remained in possession from February 15, 1963 (the date of the order of possession) until May 1, 1964, when respondent took actual possession. This court (Division Three) held that respondent was entitled to an offset against the interest due between February 15, 1963, and May 1, 1964, but was not entitled to any offset against interest accruing after May 1, 1964. Accordingly, the judgment was affirmed as to the principal of $85,000, but reversed as to interest, and remanded the matter to the court below for a determination of the amount of offset to be allowed and deducted from the award (People ex rel. Dept, of Public Works v. McCoy, supra, p. 32).

Thereafter, the trial court, after a hearing, found: that the reasonable value of appellants’ use between February 15. 1963, and May 1, 1964, was at least equal to the amount of interest during that period; appellants were not entitled to any interest on the judgment award prior to May 1, 1964; appellants were entitled to interest in the amount of $6,504.25 from May 1, 1964, to June 4, 1965, the date of the deposit; and that respondent was not obligated to pay any further [62]interest as a final determination of the total amount was not made until the instant proceeding and the deposit stopped the running of interest.

On this appeal, appellants contend that they are entitled to interest from June 4, 1965, the date of deposit, until October 8, 1965, the date of withdrawal, and that the trial court erred in depriving them of interest on that part of the judgment representing accrued interest from May 1, 1964 (the date respondent took actual possession) to April 15, 1965 (the date of the judgment).