Virginia Property Rights Coalition
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Major Weaknesses of Virginia's Eminent Domain Law
and Solutions Found in the Laws of other States
  • The property owner facing a condemnor who is either unaware of the value of  their
    property or unwilling to pay a fair price will not receive "just compensation" even by
    challenging the condemnor in court and winning an award of "fair market value."  
    This is because attorney fees and other miscellaneous litigation expenses will take up
    to 50% of any benefit they may have gained by going to court.
                                                                                                                                                      
    In seventeen states the law either requires or includes an option, which allows the
    court to order the condemnor to reimburse reasonable litigation expenses, including
    the payment of attorney fees, if it is determined that the condemnor's offer was not fair.

    Click here for:  A Summary of the Statutes of the 17 States that include "property
    owner litigation reimbursement."  This information was provided in a Division of
    Legislative Services report prepared for the Eminent Domain Study Committee.        

  • The property owner facing condemnation must pay for any appraisal he finds
    necessary to determine the fairness of the condemnor's initial offer.  This is a non-
    compensable expense, ranging from $500 to many thousands of dollars, that must be
    incurred before the property owner has adequate information to even determine the
    fairness of the offer, much less negotiate with an experienced condemning authority.     
    There are states that allow the property owner to hire an appraiser and submit the
    reasonable appraisal costs to the condemnor for payment.

  • The business owner facing condemnation will not be reimbursed  for business
    losses. The Virginia Supreme Court has held that "Ordinarily, ..........loss of good will,  
    loss of profits,  and difficulty relocating, is a loss personal to the owner, or to the
    business conducted on the land by the owner, not attributable to the land itself."  State
    Hwy. & Transp. Comm'r. v. Lanier Farms, Inc.  There are 9 states which allow
    recovery for lost business profits or business interruption.   It is interesting to note that
    "business good will or going concern value is recognized as a valuable asset for
    purposes of taxation, divorce and business torts."  Oddly, it is only in eminent domain
    that these loses to a business owner are recognized.

  • The property owner often endures 2 to 3 years in the limbo of a condemnation
    dispute.    To expedite the process, when mediation fails, there are states where the
    courts give priority to hearing condemnation cases.


                        Other Weaknesses of Virginia Law
  • The condemnor is not required to include a separate statement of itemized,
    severance or consequential damages to the remaining property in his offer of
    compensation. There are states that require that the condemnor's offer include a
    separate itemization of severance and/or consequential damages.

  • The residential owners have no option but to remain next to a powerline, pipeline,
    highway, etc. if only part of their property is taken.  There are states that provide the
    property owner the option of requiring the condemnor to purchase the    entire property,
    if only part is taken.   When this option is chosen, the condemnor is required to pay for a
    full perimeter survey.

  • The condemnor is not required to consider damages to the appearance of the
    property remaining or damage to the view, in determining the amount to be offered in
    compensation. There are states which require consideration of the value of these
    features and others, in determining the amount to be paid in compensation.
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