© Southeast Appraisal Resource Associates, Inc. 2019
EMINENT DOMAIN OVERVIEW
Southeast Appraisal
When a government or condemning authority takes land for a public use, it is exercising the power
of eminent domain (sometimes called Condemnation, Appropriation, or Expropriation depending
upon the jurisdiction). Condemnation transfers title or some lesser interest from the property
owner to the condemning authority, what might otherwise be a trespass, conversion, or wrongful
eviction, under a legal framework. The framework both empowers the condemning authority to
take property, and constrains the condemning authority from certain abuses, with the intent of
balancing public necessity and property rights.
From a historical perspective, eminent domain refers to the inherent right of the sovereign
(generally a Monarch) to ultimately own all land. Under feudal systems, all property rights,
particularly to land flowed from the sovereign, then through the aristocracy or governmental
ministers endowed with authority by the sovereign, and finally to the people. This tradition was
passed through England to the United States. The founders of the United States and framers of the
constitution were steeped in the European eminent domain tradition, but also in the philosophical
innovations of John Locke, who argued that property rights do not derive from a sovereign, but are
an inherent right of all people bestowed by the two pillars of God and reason. The Founders
distilled these two ideas of property into eminent domain as it exists in the U.S. Constitution. The
Fifth Amendment preserved the government’s power to take property from English common law,
but imposes the restrictions that such property must be taken for a “public use” and that taking
property imposes a duty on the government to pay “just compensation”.
Viewed currently, eminent domain powers are held not just by governments, but can be delegated
to private or semi-private entities as well when they engage in public purposes and require land for
public uses. These powers may include railroads, pipeline companies, service authorities and
regulated monopolies like utilities. Like the government, these entities are required to pay just
compensation to property owners when they “take” property through condemnation.
Just compensation varies from state to state and between state and federal courts, but generally is
an attempt to provide “fair market value” of the property taken. In most jurisdictions, the goal is to
simulate a sale between willing participants, as if the project was not occurring, and not to provide
a windfall to either the property owner or the taking entity. The fair market value of property taken,
and in some jurisdictions damaged, is generally determined by third party appraisers, who
represent each side and present appraisal reports to the finder of fact (who, depending on the
jurisdiction, can be a judge, private or governmental commissioners, or a jury). Because the just
compensation owed is usually determined by the effectiveness of appraiser methods and
testimony, hiring an experienced and thorough appraiser is critical for success for all parties
involved.
What Alex Ruden Brings to Your Eminent Domain Case
Alex Ruden, ASA, has served condemning authorities and property owners over a 45-year career in
the states of New York, New Jersey, Pennsylvania, Maryland, Virginia, North Carolina and Georgia.
Alex is generally familiar with and experienced in the procedures, from both the condemning
authority’s and the property owner’s perspective within each state.
These varied issues include:
•
Partial Takings vs. Whole Takings
•
What takings or damages are compensable under the principles of “just compensation”
•
Defining real property vs. tangible personal property (are items “fixtures”?)
•
If they are “fixtures” how are they valued?
It is the appraiser’s task to appropriately understand the variances noted above and work within
the regulations and “case law” within each state.