Seattle Washington Condemnation Attorney | Valuing Easements

In Washington State, valuing easements is much the same as valuing a taking of the entire parcel of land (called the "fee" in legalese). Taking the full fee of the property (when some property is left over) is calculated by determining what the value of the property was before the property was taken and what the value of the property is after the property is taken. Associated with this are often damages to the remaining property, determined by figuring how much less someone would pay for the property after the property is taken.

So, for example, your Seattle eminent domain attorney would argue that after the property was taken your property is worth less than it was before. This can often be the result of a lower highest and best use (commercial uses to residential uses, for example), an increase in noise, the property being severed, or many many other things (including, in some strange cases, the loss of garden decor).

This same valuation applies to easements, except that in the determination of valuation you have to take into account any use the landowner could make of the property during the term of the easement. So, in many ways it is the same valuation, only the extra step of thinking about the uses the landowner could put the land to that must be taken into account.

If your land is being taken by eminent domain, you should at least speak with a Seattle condemnation lawyer. Their knowledge and expertise can make a significant difference in the compensation you receive (or at least allow you to sleep at night knowing you received everything you could). If your land is being taken by the government call someone today.

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Seattle Eminent Domain Lawyer | Eminent Domain Jury Trial

All attorneys, no matter if you represent landowners in an eminent domain case or the condemning authority (Washington Department of Transportation, Sound Transit, Puget Sound Energy, Seattle Department of Transportation, King County Department of Transportation, etc.) feel like if they are taking a case to trial they have a fairly good shot of receiving a favorable verdict. The truth is, however, that often the chances are closer to fifty fifty, and it is impossible to tell what a jury will focus on in your specific eminent domain trial. Often the margin between a successful verdict and an unsuccessful one is razor thin.

For example, in South Dakota, a recent jury trial in an eminent domain action for land for an airport resulted, in essence, in a victory for the county. From the story, found here, it looks as though there was a legitimate difference of opinion in the value of the land. The County was at about $5,000 an acre, and the landowner was at about $8,000 an acre. In the end, the jury decided the County's determination of value was closer to correct, returning a verdict very close to what the County offered as value.

As an aside, in a case like this, with only $3,000 in difference between the parties, no matter what the amount of acreage (in this case it was 200 acres, making a difference of about $600,000 in price) I can't believe a settlement wasn't reached. Although a trial doesn't cost $600,000, generally it is expected that the jury will come somewhere in the middle of the parties. One side must have been fairly confident in their expert appraiser to take this to trial. In this case I hope it was the County.

In any event, as always, it is important to have a good eminent domain attorney, and because we are in the Seattle area, a good Seattle eminent domain attorney. Not only can it make a difference at trial, but they will have the knowledge and experience to know when it is time to go to trial, and sometimes, more importantly, when it is time to settle and take as much as you can get over the offer.

Eminent Domain | Two Types of Taking | Just Compensation

Eminent Domain Law - Two Types of Takings Just Compensation

There are two basic types of takings in the Washington eminent domain law. The first is referred to as a total take. As it sounds, this situation occurs when an entire parcel or tract of land is acquired for a project. The second type of taking is a partial take, and as it sounds, refers to the acquisition of only a partial portion of a tract or parcel. Although it may seem like a small distinction, when analyzing the value of property it becomes very important as valuation of the different property types is done in very different ways.

Condemnation Just Compensation Valuation of total take

The analysis for valuing a total take is straightforward. Using one of three appraisal methods (comparable sales, replacement cost, or income), or a combination thereof, one just determines the actual current fair market value of the property and that is the amount of just compensation owed to the landowner. No further analysis is necessary.

This should make perfect sense from both the landowner's and government agency's point of view. To determine just compensation for an entire tract of land, intuitively the analysis would be to find out what the property as a whole is worth. Whether or not the number arrived at in the analysis is correct is another story, but the theory behind it is sound.

Washington State Just Compensation Valuation of Partial Take

As easy as total takings analysis can be, partial takings can be difficult. Just taking a quick glance at the situation it may seem that the best way to find out what the fair market value of a partial taking is to determine what that size of property is worth and pay for it. Although this seems correct, in practice it just doesn't work out. Using an example of a partial taking for a highway project will demonstrate the error in that determination.

Let's assume there is a highway project in the works that requires 8 acres off a 60 acre parcel in rural Kansas. Using the above proposed methodology, the appraiser would use the sales comparison approach and look for properties in the area recently sold that were between 6 and 10 acres to gauge the fair market value of similar sized tracts. In doing so, the appraiser would probably determine most of the tracts were being sold as rural-residential properties. Let's say that number was $5,000 and acre.

Under the above proposed theory, the analysis would be complete. The 8 acres would be worth $40,000, and that would be it. However, what if I told you that the 8 acres being taken was cutting right through the 60 acres, leaving 10 acres on one side and 42 acres on another, and that the 10 acres would be useless because there would be no way to get to it once the road is built? Under the above theory, there is no way to compensate for that, unless you want to argue that the 10 acres is a take under inverse condemnation principles and therefore just compensation is due. Well, what if it wasn't useless but the owner would have to drive 5 miles around the road to get to it? Then there would be no argument for inverse condemnation, and he would be stuck.

Another problem that might happen is what if 1 acre is being taken off of 60 and 60 acre parcels are going for $1,000/acre and 1 acre parcels are going for $20,000/acre. Does it seem fair to pay the owner of land that is really worth $1,000/acre $20,000/acre just because a small sliver is required? No should be your answer.

To counter these problems, and a couple of others, a theory of just compensation was derived which examines the full value of the property before the taking, and then the full value of the property remaining after the taking, and taking the difference in those two to arrive at a just compensation amount. Under that analysis, a true measure of just compensation is reached, and any damages that might be associated with the taking are accounted for.

Next time - comparable the comparison sales approach is explained.

Washington State Eminent Domain Landowner Consultation