Washington Eminent Domain | Another Successful Just Compensation Negotiation

This story comes out of Michigan, but is just another example of the difference in eminent domain just compensation that can be achieved by negotiating with the condemning authority through the use of an eminent domain professional. You can read the story here, but I'll recap it for you in case you don't have time to read the whole thing.

The Michigan Department of Transportation needed some property to complete the construction of a connector highway in Oakland County, Michigan. MDOT threatened condemnation if a settlement couldn't be reached (which is usually the case), and extended negotiations ensued (the truth is, those with eminent domain powers, even in Washington, very rarely want to take a taking to trial because there are too many risks and costs involved - that is why you should try to negotiate!). Eventually this case did go to trial, where the developer was awarded $2.7 million dollars.

In this case, however, the verdict was returned based on a highest and best use of the property that was less than it was in reality (highest and best use is what the property could be used for that would most highly utilize its qualities - the use must be legally permissible, physically possible, and economically viable). A second trial was allowed, and based on a new highest and best use (commercial) the jury returned a verdict of over $14 million dollars! MDOT then appealed and a new trial was allowed. Before this new trial, however, MDOT settled for over $18 million dollars!

What is the lesson here? First, it is important to have your offer of just compensation reviewed. Highest and best use is a critical factor in evaluating your property, and government appraisers often "miss" this in an effort to get the appraisals done as quickly as possible and please the condemning authority. Second, it is important to negotiate with the condemning authority. The only way your offer of just compensation can go is up. Don't be afraid to challenge their viewpoint and get the money you deserve.