WHAT IS “JUST COMPENSATION”?
When the government or private condemnor takes property using their power of eminent domain, they are required by the Fifth Amendment to the U.S. Constitution to pay “just compensation” for the property. Unfortunately for many property owners, there is no set rule or standard which establishes “just compensation”. Therefore, the government’s (or private condemnor’s) initial offering for the property is often accepted without challenge to its accuracy and validity. Just as in any real estate purchase, it benefits the purchaser—in this case, the State and its agents—to obtain the property at the lowest cost possible. And though there are many ways to accurately assess both the current and potential value of property, they are NOT legally required to inform you of any of these methods, nor are they obligated to tell you what your property MAY be worth when you assert your legal right to use other calculations.
What is Public Use? Eminent domain is the inherent power of the state to seize a citizen’s private property without the owner’s consent. The property can be taken either for government use or by delegation to third parties who will devote it to public use. The most common public uses of property taken by eminent domain are public utilities, highways, and railroads. The U.S. Supreme Court has largely given the “public use” requirement an expansive interpretation and has allowed takings of private property for conveyance to other private parties, or in some cases by private parties directly, on the theory that the new owners will put the taken land to more lucrative uses that are likely to generate more tax revenues. This is known as public us based on “economic redevelopment.” It uses eminent domain to enable acquire and then convey land to commercial development or redevelopment to increase tax revenues. The Supreme Court’s decision in Kelo v. City of New London, 545 U.S. 469 (2005), a
