Just compensation equals the property's fair market value at the taking, determined by highest and best use. Partial takings add severance damages to the remainder, offset by any special benefits.
Consequential business losses are generally not compensable.
Alternative Names:
Fair Compensation|Constitutional Compensation
Why it Matters?
Exclusion of business losses is the harshest feature for commercial owners, since relocation costs, lost goodwill, and business interruption are generally outside just compensation even where the taking destroys an operating enterprise. Several states have enacted statutory relocation and goodwill compensation to address that gap. Severance damages to the remainder frequently exceed the value of the portion taken, which makes the remainder analysis the higher-value inquiry.
Frequently Confused with
Related terms
Frequently asked questions
Are business losses compensable?
Why analyze the remainder?
