Eminent Domain Report

Appraising a property being acquired through eminent domain involves a number of unique valuation rules, including highest and best use, larger parcel, date of value, and unique evidentiary restrictions on comparable sales and hypothetical conditions.  One of those rules is known as the “project influence rule”:  an appraiser must disregard any increase or decrease in the property’s value due to the project for which the property is being acquired.  A recent court of appeal decision, City of Pacifica v. Tong (2024 Cal. App. Unpub. LEXIS 7984*), highlights why this rule is not ...

When a public agency acquires property for a public project, property owners have a constitutional right to receive just compensation. But what about the businesses that operate on the property – are they entitled to anything? 

The rights of business owners vary from state to state, as there is not a constitutional right to compensation for business losses. In California, business owners may be entitled to compensation for several items. These include:

• Loss of Business Goodwill: A business may accrue “goodwill” because of its location, reputation and ability to attract and ...

Join me and my colleague Liz Klebaner on November 22, 2024 as we present “Environmental Considerations for Right of Way Acquisition: Identifying and Tackling Pre-Acquisition and Post EIR/S Issues” during the IRWA Region 1 Fall Conference and Networking Round-Up 2024. … 

In 1831, the colony of Gonzales requested a cannon for defense that was granted by the Mexican authorities. This cannon was a Spanish made bronze six-pounder. The grant had one condition; the cannon had to be returned when asked. By 1835, the political climate had changed in the area and Mexico had asked the Texians to return the cannon. The Texians response: “Come and Take It”. This led to a Mexican military response against the Texians with the colonists producing a flag of a white field with stitching of a black star, a cannon and the words: COME AND TAKE IT. The Texians faced off ...

Join me on January 24, 2025, as I participate in the “Masters of Trial” panel during CLE International’s 27th Annual California Eminent Domain Conference in Irvine, CA. Our panel will discuss effective direct and cross examination of appraisers and other experts.

CLE International’s California Eminent Domain Conference provides the opportunity to network with attorneys, appraisers, agency representatives, right of way professionals and others from around the state, while you hear all points of view on the most important and timely condemnation issues. I hope to see ...

Investors and developers scour the Southern California real estate market searching for opportunities to buy dated houses that they can demolish and replace with large, modern homes to sell for much more.  A few individuals likely thought they struck gold after inheriting a small bungalow cottage in Coronado, California with panoramic views of the Bay and golf course nearby. The cottage, built in 1924, was the smallest house on the street with the least-utilized lot; it represented both a great opportunity and a bygone era. These soon-to-be developers turned inverse condemnation ...

We’ve reported in the past that public agencies are more frequently demanding certain off-site public improvements to accommodate proposed private developments as a condition of entitlement approval.  These can range from street widenings to accommodate additional traffic, pump stations for additional water capacity, or flood improvements to address drainage or run-off concerns.  Additionally, a new condition facing California developers is dedicating or acquiring open space to mitigate wildfire risk.    

Recently, the owner of a mixed-use development project in San Diego ...

The regulations implementing the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (the Uniform Act or Act) have not been amended since 2005. In 2019, the U.S. Department of Transportation promulgated proposed regulations. After extensive comment, the final rule was passed and circulated on May 3, 2024. It went into effect on June 3, 2024. This article summarizes some of the major changes to the Uniform Act. … 

When a property owner brings a regulatory taking / inverse condemnation claim based on a city or county’s zoning decisions, the owner often provides context and history, including public statements made by staff, board members or city council members.  Are those public statements protected speech and therefore subject to California’s Anti-SLAPP statute?  A recent California Court of Appeal decision, City of Redondo Beach v. 9300 Wilshire, provides some context on what is and what is not permissible.  … 

Despite California’s record high levels of precipitation in 2023, water scarcity remains a pressing issue. Governments have turned to using the power of eminent domain to acquire investor-owned utilities in an effort to improve water service and costs for their communities. This complex process, known as municipalization, contains significant legal hurdles for governments because investor-owned utilities are uniquely empowered to challenge such takeovers.

In Nossaman’s California Water Views – 2024 Outlook, we explore the legal framework of condemnation actions ...