Litigation & Eminent Domain

Who orders this appraisal

• Litigators
• Property owners facing condemnation
• Public agencies

What the engagement covers

• Court-defensible reports
• Condemnation valuations
• Just compensation analysis
• Expert witness testimony

The rules that govern it

CCP §1263.310, the measure of compensation, "Compensation shall be awarded for the property taken. The measure of this compensation is the fair market value of the property taken." Severance damages, lost goodwill, and relocation benefits sit alongside that, but the taking itself is measured by fair market value.

CCP §1263.320, and why the ordinary definition is the wrong one, Eminent domain uses its own statutory definition: the HIGHEST price on the date of valuation that a willing, unpressured seller and buyer would agree to, each with full knowledge of all the uses for which the property is reasonably adaptable. That differs from the "most probable price" standard in an ordinary market value assignment. An appraiser who reaches for the familiar definition here is answering a different question than the statute asks. Where no comparable market exists, subdivision (b) permits any method of valuation that is just and equitable.

CCP §1263.330, project influence is excluded, Fair market value must exclude any increase or decrease attributable to the project itself, to the eminent domain proceeding, or to preliminary actions by the agency. The property is valued as if the project had never been announced, which is often the hardest part of the analysis, because by the time an appraiser is engaged the market has usually already reacted.

CCP §1263.410. Severance damages on a partial taking, Where only part of a parcel is taken, the owner may recover for injury to the remainder. This is where partial-taking cases are actually fought: the strip of land may be worth little, while the damage to what is left, access, parking ratio, frontage, usable area, or configuration. Is worth a great deal. Benefits the project confers on the remainder may be offset against severance damages, but not against the value of the part taken.

CCP §1263.510, loss of business goodwill, California is unusual in compensating lost business goodwill. It is a separate claim from the real property valuation, with its own statutory proof requirements: the loss must be caused by the taking, not compensable elsewhere, and not reasonably preventable by relocation. Goodwill is normally valued by a business appraiser rather than the real estate appraiser.

CCP §1263.120 and §1263.130, date of valuation, The valuation date generally follows §1263.120 where trial occurs within a year of the proceeding commencing, and shifts under §1263.130 where trial is delayed beyond a year through no fault of the defendant. Because the date can move, confirm it with counsel before the appraisal is developed.

Klopping v. City of Whittier (1972) 8 Cal.3d 39, precondemnation damages, Where a public entity announces an intention to condemn and then acts unreasonably or delays, depressing the property’s value before it formally takes anything, the owner may recover for that period. Relevant where an agency has been circling a property for years.

How it works

1. Confirm the date of valuation with counsel before anything else. §1263.120 and §1263.130 can put it in different places, and it governs the whole analysis.
2. Establish the larger parcel and what is actually being taken: fee, easement, temporary construction easement, or access rights.
3. Value the part taken under the §1263.320 statutory definition, not the ordinary market value definition.
4. Analyse the remainder before and after, isolating severance damages and any offsetting project benefits.
5. Strip project influence per §1263.330: value the property as though the project had never been announced.
6. Deliver a report built for cross-examination, and appear for deposition and testimony.

What you receive

Litigation-grade appraisal with testimony, deposition, and rebuttal support. Standard turnaround is 1–3 weeks. Rush appraisals available for urgent deadlines.

Common questions