803-pt – revision 3 – 09.05.06.usa
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1
Welcome to the
International Right of Way Association’s
Course 803Eminent Domain Law Basics
for Right of Way Professionals
803-PT – Revision 3 – 09.05.06.USA
2
Introductions
Who we are…What we do…
Where we do it…
How long we’ve been doing it…
Our goals for the course...
3
Objectives (1) At the end of the two days,
you will be able to...
• Discuss the characteristics ofeminent domain
• Express an understanding of the sources of eminent domain law
• Analyze the components of justcompensation and the legal aspectsof valuation
4
Objectives (2) At the conclusion of the two days,
you will be able to...
• Demonstrate the meaning of just compensation and the legal aspectsof valuation
• Name some of the role players and describe their roles in the eminent domain process
6
ScheduleDay One (1)
8:00 - 8:30 Introductions, Etc.
8:30 - 9:30 Background9:30 - 10:15 Primary Sources of
Eminent Domain Law10:30 - 2:15 Breakdown and Analysis
of the Constitutional Right of Eminent Domain
2:30 - 4:45 Just Compensation andLegal Aspects of Valuation
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ScheduleDay Two (2)
8:00 - 8:30 Recap
8:30 - 2:45 Just Compensation and Legal Aspects of Valuation
3:00 - 3:30 Roles of Right of Way Professionals
3:30 - 4:00 Course Review
4:00 - 5:00 Exam
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Eminent Domain
Eminent domain is the power of the
sovereign to take private property for
public use without the owner's consent.
Generally, the "sovereign" is the
government (federal and state),
although some quasi-public and other
agencies have eminent domain powers.
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No person shall be … deprived of … property, without due process of law; nor shall private property be taken for public
use, without just compensation.
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Characteristics ofEminent Domain Power (2)
Sovereign AttributeConstitution and Statute
Relationships to Private Property Rights
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1 Kings 21“ … Naboth the Jezreelite had a vineyard, hard
by the palace of Ahab king of Samaria. And
Ahab spake unto Naboth, saying, Give me thy
vineyard, that I may have it for a garden of
herbs, because it is near unto my house: and I
will give thee for it a better vineyard than it;
or, if it seem good to thee, I will give thee the
worth of it in money.”
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Police Power
Police power is the right of
government to restrict the use
of private property in order to
promote or protect public interests
(e.g., public health, safety, and welfare.)
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Taxation
Taxation is an involuntary fee
paid by individuals or businesses
to a governmental unit.
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Whatdayathink? (1)
To construct the NASCAR-owned Kansas
International Speedway, Wyandotte County
condemned property belonging to 150
families within the 1,200-acre tract. Owners
of 30 of the parcels challenged the takings in
court. The Kansas Supreme Court upheld
the condemnations, ruling that the racetrack
is a valid public purpose.
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Whatdayathink? (2)
In 2002, the Honolulu City Council approved a
resolution allowing it to condemn five beach
front properties needed for a 7.9 acre hotel
expansion, which was part of a $300-million
Waikiki Beach Walk redevelopment project.
The City claimed the project would attract more
visitors and spur other development.
(Go on to next slide)
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Whatdayathink? (3)
The City Council Chairman said that filing
the condemnation actions would "encourage
the parties to negotiate." The owners said that
it was neither "necessary or appropriate” for
the City to condemn the properties and then
sell to the hotel chain. (The owners settled.)
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No person shall be … deprived of … property, without due process of law; nor shall private property be taken for public
use, without just compensation.
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… nor shall any State deprive any person of life, liberty, or property, without due
process of law...
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CourtsFederal State
Supreme Court
Court of Appeals(12 Regional Circuits)
District Courts(94 Judicial Districts)
Supreme Court (of Virginia)
Court of Appeals
Circuit Courts
(31 Circuits)
Magistrates
General District Courts
Juvenile and Domestic
Relations District Courts
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Private property… (1)
Private property shall not be taken or damaged for public use
without just compensation.
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Private property… (2)
Private property shall not be
taken or damaged for public use without just compensation.
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Private property… (3)
Private property shall not be taken or damaged for public use
without just compensation.
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EconomicRegulatory Takings
Public Purpose Private Loss
Character of the government conduct
Interference
Legitimacy
Economic impact
Investment expectations
Economic harm
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Private property… (4)
Private property shall not be taken or damaged for public use
without just compensation.
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Private property… (5)
Private property shall not be
taken or damaged for public use
without just compensation.
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Private property… (6)
Private property shall not be
taken or damaged for public use
without just compensation.
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Private property… (7)
Private property shall not be taken or damaged for public use
without just compensation.
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Just Compensation (1)
Just compensation means the full and perfect equivalent in money of
the property taken. The owner is to be put in as good a position pecuniarily
as he would have occupied if his property had not been taken.
United States v. Miller, 317 U.S. 369 (1943)
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Just Compensation (2)
Just compensation means a compensation that would be just in regard to the public, as well as in
regard to the individual…
Bauman v. Ross, 167 U.S. 548 (1897)
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Private property… (8)
Private property shall not be taken or damaged for public use
without just compensation.
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Market Value
Market value is a type of value, stated as an opinion, that presumes
the transfer of a property … as of a certain date, under specific conditions
… (relationship, knowledge, and motivation; terms of sale;
conditions of sale).
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Monongahela (1)
The noun “compensation” standing by itself, carries the idea of an equivalent. So that, if the adjective “just” had been omitted, and the provision was simply
that property should not be taken without compensation, the natural import
of the language would be that the compensation should be the equivalent
(go to next slide)
38
Monongahela (2)
for the property taken; and this just compensation, it will be noticed, is for the property, and not to the owner.
Every other clause in this fifth amendment is personal.
Monongahela Navigation Co. v. U.S., 148 U.S. 312 (1893)
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Formulas (2)
is the difference between the value before the acquisition and the value after the acquisition.
Federal (Before and After) Rule
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Formulas (3)
State (Summation) Rule
is the value of the part taken plus(damages to the remainder property minus
benefits to the remainder property [the damages minus the benefitscannot be less than zero dollars])
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Definitions Value of the part taken is determined by multiplying the quantity taken times the before unit value of the item
Damages to the remainder property represent the loss in value to the remainder property as a result of a partial acquisition
Benefits to the remainder property represent theincrease in value to the remainder propertyas a result of a partial acquisition
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Three Approaches
Sales Comparison Approach• Research the market for comparable data
• Develop relevant units of comparison
• Compare the sales to the subject and adjust for dissimilarities
• Reconcile the value indications into a final value opinion
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Three Approaches
Cost Approach• Develop a value opinion for the land
• Estimate the cost new of the improvement
• Deduct depreciation
• Add land value opinion to the depreciated improvement value
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Three Approaches
Income Capitalization Approach
The conversion of income into value througha rate or a ratio.
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Today, we:
• Discussed the characteristics of eminent domain
• Examined the sources of eminent domain law
• Analyzed the term ”Private property shall not be taken or damaged for public use without just compensation”
Recap Day One (1)
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Recap Day One (2)
• Looked at just compensation and the laws and legal aspects of valuation (through the three approaches to value)
• At various times throughout the day, we did some exercises and a case study
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Day TwoToday, we will
• Finish discussing just compensation and the laws and legal aspects of valuation
• Name some of the role players and describe their roles in the eminent domain process
• Do a few more exercises and a case study
• Take the exam
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Market Perceptions
“Property owners…are due compensation, even if the ‘cancerphobia’ driving down the worth of their land is unjustified or irrational…”
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Benefits (1)
Rule No. 1: Only special benefits can be considered and they can only be considered
to the extent that they offset damages to the remainder.
Rule No. 2: Only special benefits canbe considered and they can be considered
to the extent that they offset damages to the remainder and the value of the part taken.
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Benefits (2)
Rule No. 3: Both special and general benefits can be offset against damages to the remainder,
but not against the value of the part taken.
Rule No. 4: Benefits cannot be considered at all.
Rule No. 5: Both special and general benefits can, on occasion, offset both damages to the remainder and the value of the part taken.
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Private property… (9)
Private property shall not be taken or damaged for public use
without just compensation.
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Just Comp…and…Valuation (1)
Measuring Just CompensationTwo Formulas
Three Approaches to ValueLarger Parcel
Undivided Fee Rule
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Just Comp…and…Valuation (2)
Law and the Valuation ProcessValue of the Part Taken
Damages to the Remainder Benefits to the Remainder Property
Condemnation Proceedings
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Objectives (1) Right now, you should be able to...
• Discuss the characteristics of eminent domain
• Express an understanding of the sources of eminent domain law
• Analyze the components of just compensation and the legal aspects of valuation
58
Objectives (2) Right now, you should be able to...
• Demonstrate the meaning of just compensation and the legal aspects of valuation
• Name some of the role players and describe their roles in the eminent domain process
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