FAQ
What is eminent domain?
When the government or a utility clothed with governmental power wishes to take over private property for public use, matters can quickly become complicated.
Ordinarily, a government may exercise eminent domain only for a “public use.” A common example is the taking of land to build or expand a public road or highway. Public use could also include the taking of land to build a school, municipal building, for a public park, to install a high voltage transmission line, or (under limited circumstances) to redevelop a “blighted” property or neighborhood. But whether the proposed use is public, necessary, and legal may be a matter of fierce dispute.
Typical Process of Eminent Domain
The following steps are typical when your home or business is being acquired for a public project:
The government attempts to negotiate the purchase of your property.
If you do not wish to sell, the government files a court action to request the right to exercise eminent domain and provides notice of the hearing on its request as required by law.
At the hearing, the government must demonstrate that it engaged in good faith negotiations to purchase the property, but that no agreement was reached. The government must also demonstrate that the taking of your property is for public use and is reasonably necessary for the use, as defined by law. You are given the opportunity to respond to the government’s claims and make recommendations for court-appointed commissioners.
If the government is successful in its petition, commissioners are appointed by the court, and the government will usually pay or deposit the amount of its approved appraisal of value and take ownership of the property it seeks. Commissioners will then preside over proceedings that end in an award of just compensation.
If neither the government nor you are satisfied with the commissioners’ award, either side may appeal the award to a jury trial.
What is Just Compensation?
Usually, just compensation is the fair market value of your property before it is taken, less the fair market value of your property after it is taken—the so-called “before-and-after rule.” If the parties do not agree on the values, appraisers are almost always necessary to provide an expert opinion on property values.
Sometimes, if a taking destroys a business, an owner may receive, in addition to property damages, damages for the loss of their business concern. The legal complexities in this area are best handled by a competent attorney who specializes in eminent domain law.
If an owner must relocate, the owner is entitled to what is called minimum compensation—meaning, the value of a comparable property in the community. This may be more than damages determined in a typical condemnation case.
