Eminent domain is a legal power that allows federal, state and local governments to “take” privately owned property if it will benefit the public. Examples of this include taking properties to widen roads or build highways.
Although eminent domain is a right exercised by the government, there are specific situations where they will grant private companies eminent domain power if it benefits the public.
Private utility companies
Private utilities are a good example of private companies exercising eminent domain. Governments can delegate eminent domain authority to private utilities. These situations usually happen as part of utility companies’ infrastructure projects, such as:
- Laying down water pipes
- Installing transmission or power lines
- Expanding the sewer grid
Private development for public use
Private developers may receive permission to exercise eminent domain if their projects ultimately benefit the public. Since Kelo v. New London in 2005, the definition of public use now includes private economic development, not just public use or purpose.
The government may allow private developers to condemn property or claim private land if they believe the project would expand employment opportunities or generate more taxes for the municipality.
Negotiate to protect your interests
Property owners can challenge eminent domain, whether from the government or a private company. However, it isn’t an easy task.
You must fully understand your rights, the legal basis for the government’s claim and the procedures for taking property. This way, you can make an informed argument and collect the proof you need to support your case.
Reasons you may use to challenge eminent domain include:
- Improper purpose, such as for purely private gain
- Unnecessary taking or excessive property acquisition for the stated purpose
- Lack of adequate notice or improper procedures
It is best to prepare yourself for a lengthy legal process, or, otherwise, be open to alternative solutions, such as a negotiation or settlement.
If you would rather not challenge an eminent domain order, though, that doesn’t mean you should accept the compensation offer right away. You may still be able to negotiate a higher offer. This way, you can compensate not only your property but also the inconvenience and cost of uprooting your life.
Not sure where to start?
Whether challenging the condemnation or the amount offered, property owners can get legal help from an experienced eminent domain attorney. Eminent domain is a complicated issue and not one you have to face alone.