Understanding the Working of Eminent Domain

The Government and all its bodies are primarily responsible for the larger well being of the society. For this purpose a Government body might sometimes see merit in acquiring private property for public use. The use can vary from reasons such as widening the roads, to building public schools and parks or adding infrastructure to ease commuting. As long as the Government is able to justify the need for land in the larger interest of the public, it can exercise its eminent power.

How to evaluate Just Compensation?
Just compensation is usually calculated on the basis of the current market value of the property. The Government might consult a real estate expert and seek multiple quotes before arriving at the value of ‘just compensation’.  The court defines just compensation as the fair market value of the property. A ‘fair’ market value is an amount a willing seller offers for the property and a willing buyer is satisfied with it.

What if the compensation is not just?
If, as a property owner you feel you are not satisfied with the amount being offered to you, you can refuse to sell your property to the ‘buyer’ appointed by the Government. The buyer is a Government representative who offers you the “just compensation” decided by the Government in exchange for your land. The Government then turns the case over to the relevant legal department. The lawyers working on behalf of the Government prepare relevant papers detailing out the private property in question, the need for it by the Government and the current compensation offered by the Government. These papers known as Complaint or Petition are then submitted in a court of law. The court then issues papers which are served to the property owner along with the Complaint or Petition.

What are the next steps?
If you are served with such a complaint or petition your first move should ideally be to contact a competent eminent domain lawyer. You are allowed to represent yourself in such a case. But you would require extensive knowledge of eminent domain to contest your claim.

What will the eminent domain lawyer do?
One of the first things the eminent domain lawyer will do is submit and ‘Answer’ to the Complaint or Petition. The Answer must contain the reasons why the land owner does not agree with the compensation offered by the Government or any other reason owing to which the land owner does not wish to sell his land to the Government.

Once the Answer is submitted, the law still allows the Government acquisition of the requested land. However the Government has to deposit the amount of the just compensation within the court. The land owner can access these funds by filing a simple petition to the court. This arrangement also makes the land owner agree to the clause that in case the just compensation decided by trial is lesser than the amount deposited by the Government, the land owner shall deposit the balance amount within the court. And should the just compensation be higher than the deposited amount, the court shall recover the balance from the Government and forward it to the land owner. This ensures that work does not come to a standstill because of dispute over the compensation amount.

The case then moves to the discovery phase where both parties can collect the necessary evidence to substantiate their claims. Both parties can decide whether they want their dispute to be settled by a jury or the presiding judge. An experienced eminent domain lawyer can help you claim the right compensation for your property.