What happens during the actual condemnation process?
Condemnation is imminent when you receive a 10-day letter requiring you accept the offer on the table or face condemnation. To legally condemn property, compensation must be first paid. Georgia requires payment of just and adequate compensation but the standard varies by state. Just and adequate compensation is generally based on the property’s fair market value and includes compensation for consequential damages to any remaining property.
The day the property is condemned, the condemnor must pay money into the court’s registry. This payment is based on the condemnor’s estimate of just and adequate compensation. Payment of the funds and filing of the petition transfers title to the condemning authority so you no longer own the property, but you don’t know that until you are served with the lawsuit. After service, you must respond in 30 days or you will forfeit your right to dispute the valuation to the property that was, just a few days ago, under your ownership.
One element of damage that may be forfeited is business damages. This element of compensation is not typically included in the condemnor’s independent appraisal and is rarely included in an initial offer. Business damages may only be recovered in certain circumstances and a thorough knowledge of condemnation law is required to accurately assess recoverable business losses. One method includes comparing the business’s fair market value before and after the taking while considering lost profits or lost earning ability.
What do I need to know if I have been served with a condemnation petition?
If you are dissatisfied with the estimate of just and adequate compensation paid into court, you need to act quickly. Your property has been taken and you need to respond immediately. You should also know that each named condemnee has the right to prove his or her entitlement to any portion of the deposited compensation.
You may choose to fight the taking but it is rare that a property owner keeps his or her property. A rejected petition is often quickly cured and refiled. Rather than fighting the right to condemn, most trials focus on issues of value. Georgia property owners are entitled to a jury trial on the issue of compensation. Qualified attorneys and experts will allow you to assess the risks and rewards associated with litigation and they will help you proceed in a way that is adapted to your individual circumstances.
Ivy Cadle is an associate with Baker, Donelson, Bearman, Caldwell & Berkowitz, PC. Reach him at [email protected] or (404) 589-0009.