Proposal sets rules for lost profits in property condemnation cases

The decision-maker would include qualifying lost access in compensation for damage to the remaining property. This applies when eminent domain takes or damages property and reduces the value of the property that remains. Compensation for lost access cannot also be counted in another award.

The decision-maker would include qualifying lost profits in compensation. This applies to an owner of a business or farm operation conducted on property taken or damaged through eminent domain. The business or farm owner must prove the amount with reasonable certainty and show the taking directly and proximately caused the loss. The loss must not be reasonably preventable, covered by relocation assistance, or counted in another award. It must be calculated using consistent accounting rules.

The decision-maker would compare water service charges when calculating lost profits. This applies when a waterworks system, or part of one, is condemned and its owner seeks lost profits. A court may reduce the lost-profits amount to the extent it finds just and reasonable. The comparison uses rates, fees, and charges in effect on the date the property is valued.

An owner seeking lost profits would provide tax returns and could ask to join the case. This applies when a business or farm owner seeks lost profits in a condemnation case. The condemning authority may disclose the returns only in connection with the condemnation case. The owner may ask to join by filing a motion and petition stating the basis for the claim. At the owner's request, the court may hear the lost-profits claim separately, but this cannot delay confirmation of the authority's title. Returns cover the three years before the later of the valuation date or the date land use is blocked or another property right is taken, plus each year while the case is pending.