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Why public projects may result in inverse condemnation claims

On Behalf of | Jan 29, 2025 | Inverse Condemnation

Projects for the public good generally have a net positive impact on a community. The expansion of roadways, the installation of utility infrastructure and even the development of parks can result in positive consequences for property owners and community members.

Unfortunately, large-scale public projects sometimes have a negative impact on a select few. Often, the government authorities overseeing those projects must use eminent domain laws to lay claim to certain parcels. The acquisition of land makes road expansion or other project development possible.

Frequently, the goal is to limit how many people lose their properties to eminent domain because of public projects. Unfortunately, even those who retain their properties may experience negative consequences after the completion of a sizable project. In some cases, property owners may need to pursue inverse condemnation proceedings against the government.

How do projects affect nearby properties?

There are many ways that projects for the public benefit can affect property owners. The expansion of a road might increase the amount of traffic and the overall speed on a street. It can then become much more difficult for homeowners to safely access their residences or for potential customers to turn into and out of a business.

Noise and pollution can also affect the quiet enjoyment of real property. In scenarios where a public project has caused negative consequences for nearby property owners by altering their user enjoyment of the property, inverse condemnation claims might be possible. The state also allows for inverse condemnation claims in some cases involving losses caused by wildfires.

How inverse condemnation works

Traditional condemnation occurs when property owners refuse to sell a parcel voluntarily in an eminent domain scenario. The entity overseeing the project can then condemn the property through civil court proceedings. They can effectively force the sale of the property to ensure that the project can move forward for the benefit of the overall community.

In an inverse condemnation scenario, people who retained their property can ask the government for compensation because the project has affected the value of their real property holdings. The party making the claim does not need to prove negligence on the part of the entity responsible for the project.

After quantifying the impact that project has had on property value, the owner can pursue litigation requesting compensation for the difference in value. Inverse condemnation proceedings allow people to recoup their losses when development for public benefit causes economic harm.

Reviewing how a project may have affected property values with a skilled legal team can help people determine if an inverse condemnation claim might be possible given their circumstances. Property owners frustrated by changing conditions near their real estate holdings may have legal rights in their cases.