Eminent domain cases don’t go to trial very often, but when they do, the focus is usually on discovery and the settlement process. In some instances, we have worked on behalf of the government entity, and in others, for the property owner.
Our experience includes The Colonies v. San Bernardino County, a high-profile lawsuit over flood-control improvements at a 434-acre residential and commercial development in California.
The key issue in eminent domain cases is often the ‘highest and best use of the property’ when the government condemns a business’s property. It is clearly stated in the law that the government is required to pay fair market value for the land. However, what’s “fair” to the government is not always the same as what’s “fair” to the property owner.
When there is a large dispute and a significant difference in the appraisal, a mock trial can be used to determine the best way to present the case to the jury. Results from a mock trial are often used by clients as part of the mediation process, and give clients a better sense of the value of an asset and what is a fair settlement. In addition to seeing which value jurors decide, jury research can be used to discover whether there are themes or issues that jurors will use in supporting their decision on value.
Jurors are often skeptical of the private party in eminent domain cases because the dispute involves a government entity. Consequently, jurors can be wary of awarding large sums of money out of fear that taxes will be raised or public funds will be used to compensate for the loss. Because of these apprehensions, the burden of proving value becomes especially challenging. The plaintiff’s case must be particularly exhaustive and thorough since the jurors have a personal stake in the verdict — their tax dollars.
Changes in property values can also create challenges for property owners. At trial, jurors are required to apply property values at the time of the seizure. This can prove challenging because jurors may be adversely affected by their knowledge of current market conditions, so it is important to explore these issues during jury selection.