The state Department of Transportation cannot condemn a portion of American Bank's property to revamp a key intersection in Whitefish, Flathead District Judge Kitty Curtis has ruled.

The state sued American Bank to gain access to an area in front of the bank for expansion of the northwest turn radius at the high-traffic intersection of Baker Avenue and Second Street.

American Bank changed its building design and curb configuration prior to construction in 2002 to accommodate an expanded intersection, according to the ruling. The ruling also pointed out that the Highway Department at first did not plan to expand the intersection to accommodate semitruck turns but at some point changed its position.

Curtis maintained that the state's proposal is "arbitrary and capricious" because it decreases safety by eliminating a substantial portion of public sidewalk along a busy downtown intersection.

"There was no evidence of the present inefficiencies at the intersection," Curtis wrote.

She said that the state never received a single complaint from trucking companies about the northwest turn radius and didn't conduct a pedestrian study even though it routinely requires a study on projects with high pedestrian traffic.

In a long list of reasons for denying the condemnation, the judge further stated that state highway officials didn't provide an accident history for the intersection or an appropriate analysis of truck traffic.

"Montana Department of Transportation did not produce any evidence that it studied or considered other alternatives for the achievement of any of its stated goals of the project," Curtis wrote, "nor did it present evidence that the goals of the project could not be achieved through alternative measures."

Curtis dismissed the case and ordered the state to pay American Bank's legal expenses.