Dept. of Transportation vs. Sunset Marine and Resort

This appeal arises out of what can loosely be defined as a condemnation case. The State of Tennessee, acting through the Department of Transportation, received an easement from the Corps of Engineers for the purpose of building a bridge across Dale Hollow Lake in Pickett County, Tennessee. The bridge was to be built across land owned by the United States and operated by the Defendants as a resort and marina under a lease for commercial purposes. The State filed a Petition for Condemnation against the leaseholder in the Pickett County Circuit Court seeking to take the land under its power of eminent domain. The trial court determined that the State could not take the land based on the Supremacy Clause of the United States Constitution. However, the State had already begun work on the project, and, ultimately, the bridge was completed. The court held a trial to determine the damages which the leaseholder had suffered as a result of the bridge being placed across the leasehold. The trial court granted a partial directed verdict and awarded the leaseholder $287,115. The trial court also awarded the leaseholder $100,000 as attorneys' fees in lieu of injunctive relief. The State appeals from the partial directed verdict and the award of attorneys' fees.