Protecting Both Business Finances And Futures

What is inverse condemnation?

On Behalf of | Jun 1, 2020 | Real Estate Law |

Owning commercial real estate is often beneficial, especially if your company is well-established in an area that offers the chance for growth and expansion. However, when government actions interfere with your business without proper compensation, you have the right to litigation under the guidelines of inverse condemnation. 

The United States Department of Justice notes that inverse condemnation claims are usually related to acts where the U.S. government takes or denies actions that limit the fair or enjoyable use of a business property without fair compensation. While this law can protect your rights as a landowner, it is important to understand its uses and limitations before you take action against the government. 

Inverse condemnation versus eminent domain  

Under the law of eminent domain, the government can seize land for public use, even if it is privately owned. However, the owner of that land must gain fair compensation for the value of that land. If the landowner believes he or she was not paid what the land is worth, the inverse condemnation law may allow that individual to file suit against the government. 

How the law may protect you  

If eminent domain laws have you facing the sale of commercial land, proper appraisal and surveying reports can help you understand the land’s overall value so you know whether the compensation offered is fair. If the compensation is much lower than that amount, then inverse condemnation laws may protect you from lost profits that can seriously harm your business. Speaking to an attorney experienced in this field may help you build a viable case. 

Inverse condemnation laws may also assist you in the fair compensation of land damaged by government-sponsored development. While many jurisdictions have varying rules regarding these claims, many have proven viable and guard business owners against taking a loss on eminent domain seizures. 



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