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Gas & Oil
Southern Zone Edition
October 2013 Edition - Dix Communications
WHAT IS EMINENT DOMAIN? Goldman & Braunstein, LLP Attorneys
Q
uestion: What is eminent domain? Answer: Eminent Domain is the power of federal, state and local governments and even certain private companies, including pipelines and utilities, to take private property and devote it to a public use. Examples include construction of roads, libraries, pipelines, or even an airport. Both the U.S. and Ohio Constitutions provide that property shall not be taken for a public use without the payment of just compensation. Question: Can I keep my property “safe” from an eminent domain action? Answer: If your property is taken or threatened with being taken for a public purpose, there is little that can be done to stop the government from moving forward. You can however assert your rights and take measures to ensure you receive just compensation. But not all pipeline companies have the power of eminent domain. Each pipeline company and the material in the pipeline must be evaluated. Question: Do I need an attorney if I am facing an eminent domain action? Answer: We think so. Negotiations are very complex and each property is unique. An attorney can make sure you take the proper steps to receive just compensation and protect any other rights from being waived or lost. Question: How is “just compensation” determined? Answer: Just compensation is the fair market value of your land. Fair market value is not based on the current use of your
land, but rather on the highest and most valuable use that the land could be put to. If your land has potential for residential or commercial development, just compensation should be based on that value, even if it is presently used as a farm. Question: Can a landowner determine “just compensation” on their own, or do they need an advisor or lawyer to help? Answer: An expert should analyze your lands development potential and highest value. In a recent case, the Ohio Department of Transportation valued farmland for about $130,000. Their appraiser testified the best use of the land would continue to be farming. We hired an independent appraiser who said the highest and best use of land was commercial. We tried the case and got a judgment awarding our client more than $650,000. Question: If I try to fight an eminent domain case and/or the amount of compensation I have been offered, won’t the process be extremely difficult and also very expensive to hire an attorney? Answer: The Constitution entitles you to just compensation and the procedures that have to be followed in order to obtain compensation are not overly difficult or expensive. For example, our firm handles eminent domain cases on a contingency fee. That fee is then a percentage of what we obtain for you by settlement or trial above the government’s original offer of just compensation and above all expenses. Question: Pipelines to move gas are being announced across the county almost daily. These companies are asking
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