Being subjected to eminent domain in Washington state, whether it is Seattle, Yakima, Pullman, or some other town, is no fun. Assuming your property is needed for public purposes, the only thing you can do is make sure you extract all of the money that is due to you under Washington state eminent domain law.
One of the critical factors affecting just compensation are damages to the remainder. Damages to remainder include all those things that might devalue the property you have left after the government takes what it needs. It is a difficult concept sometimes to grasp without using examples. So examples you will have.
A great example of damages to the remainder happens when your property is severed. Severed property is exactly what you might think - your property is literally cut in half. This often occurs with larger tracts, and can include things like farms and planned but not yet build, subdivisions. A new alignment of road needs to be built, or power lines or sewer lines or gas lines are needed, and the only place they can go is right through the middle of your property.
The calculation of damages that go to just compensation for the eminent domain taking are incurred because even though you still have the property left over, in a theoretical world if you tried to sell it, you would not be able to get as much for it as you would have before the taking occurred. You, the landowner, are entitled to receive compensation for the lost value the land you have remaining incurs from the taking of your property.
For example, let's say you own an 80 acre rectangle of property. The Washington Department of Transportation needs to put a new controlled access highway (only accessible by interchanges) right through the middle of your property. After the taking you will have 14 acres on one side of the road and 24 acres on the right side of the road. Although you still have those 38 acres, the properties value for agricultural purposes has been significantly diminished - now your property is much smaller and now it is going to be much harder to farm since there is a highway running right through the middle of it. You are entitled to that loss in value as part of your payment of just compensation. Sometimes these damages can be significant. If your property was worth $1000 an acre before the taking and you have 20% damages, you would get an additional $6800 dollars - not chump change.
If your property is being taken, please consult a Washington state eminent domain lawyer. If the government is going to take your property, let's make them pay what it is worth.
Saturday
Washington Eminent Domain Law | Evaluating an Offer of Just Compensation
In my last post I discussed how to evaluate an eminent domain offer of just compensation in Washington. Shortly after that one of my cases provided a clear example of just how doing the wrong thing can hurt you in the long run.
I am dealing with a property owner right now who is having his property taken through eminent domain for a highway project. When he was first approached by the state, before he consulted an attorney, he hired an appraiser to value his property. His appraisal was actually even done before the offer was presented by the state.
Several months after the landowner's appraisal was complete the state's offer of just compensation was made. It was well below what the landowner expected, but was similar to what the appraiser he hired came back with. Unshaken by these results, the landowner continued to work on his own to negotiate with the state. Eventually a determination of just compensation was returned very close to the state's offer (which was based on the state's appraisal - the landowner's appraisal was not presented or discussed).
Finally after all this the landowner hired an eminent domain lawyer to help him out. The only problem? Now not only is the landowner faced with tackling the state's appraiser at trial, but he may have to face his own appraiser. Certain things are inadmissible at trial but because this appraisal was obtained so early in the process, it's possible that it may be discussed at trial. It is hard enough to face a good appraisal from a state agency, it is infinitely hard to face your own appraisal.
The conclusion to this story has not yet unfolded, but I will keep you informed of what happens. Remember, when you are faced with losing your property to eminent domain, talk to an experienced Washington eminent domain lawyer. They will help immensely.
I am dealing with a property owner right now who is having his property taken through eminent domain for a highway project. When he was first approached by the state, before he consulted an attorney, he hired an appraiser to value his property. His appraisal was actually even done before the offer was presented by the state.
Several months after the landowner's appraisal was complete the state's offer of just compensation was made. It was well below what the landowner expected, but was similar to what the appraiser he hired came back with. Unshaken by these results, the landowner continued to work on his own to negotiate with the state. Eventually a determination of just compensation was returned very close to the state's offer (which was based on the state's appraisal - the landowner's appraisal was not presented or discussed).
Finally after all this the landowner hired an eminent domain lawyer to help him out. The only problem? Now not only is the landowner faced with tackling the state's appraiser at trial, but he may have to face his own appraiser. Certain things are inadmissible at trial but because this appraisal was obtained so early in the process, it's possible that it may be discussed at trial. It is hard enough to face a good appraisal from a state agency, it is infinitely hard to face your own appraisal.
The conclusion to this story has not yet unfolded, but I will keep you informed of what happens. Remember, when you are faced with losing your property to eminent domain, talk to an experienced Washington eminent domain lawyer. They will help immensely.
Wednesday
How to Evaluate an Eminent Domain Offer
If you are embroiled in an eminent domain fight right now, you are probably thinking about how the government can take your property, how unfair it is, and how in the end possibly no money can compensate you for what is being taken. It is also equally as likely that you have accepted the fact that your Seattle, Spokane or other Washington city or county you live in will be taken and you have now turned your attention to making sure you get as much money as you possibly can (otherwise known as just compensation). Either way, in the end, assuming the property is being taken for a valid public purpose, your fight with the condemning authority is going to be about money, and will cost money to correctly be evaluated.
There are two major problems with this, however: first, $750.00 is not enough money for an appraiser correctly valuate your property; and second, without the proper instructions, or "problem," given to the appraiser, the determination they make will be flawed, and most generally flawed in the government's favor. It follows an old saying, garbage in, garbage out. This means if you use the wrong rules or information at the beginning of your analysis you are destined to get a wrong answer.
Before you are even reading this you are probably saying "I know what this attorney is going to say. He is going to tell me to spend the money on him." If you were saying this, you are actually correct. But let me explain why. If your property is being taken for eminent domain, it is subject to very specific valuation rules established by both statutory and case law. Some experienced appraisers may be aware of some of these rules, and have some experience in eminent domain law, but often they may not be aware of specific rules that can positively effect the value of your property (as time goes on I will explain and discuss some of these rules - for now you will just have to trust me!).
Appraisers generally have to follow what is called USPAP, or the Uniform Standards of Professional Appraisal Practice. It contains very specific rules, some of which are directly against the way a property in eminent domain is appraised. The primary way an appraiser can deviate from those rules, particularly in condemnation, is if an eminent domain attorney directs them to recognize a jurisdictional exception - basically a rule that does not conform to USPAP. Without this, you will in most circumstances start with "garbage in" to the appraisal problem, resulting in a worthless valuation. And in any event, what you need at this point in the process is not an appraisal, but someone who can evaluate the eminent domain offer given to you. Money is made for you by not getting your own expert but poking holes in theirs.
And when was usually the first time we found out we missed something? When the landowner's attorney sent us a letter itemizing all of the things we missed. This includes incorrectly valuing the severance of a property, the damages to the remainder of a property, an incorrect determination of highest and best use, and failing to utilize relevant comparable sales. But often it amounted to a significant difference in just compensation. So utilize that money not by hiring an appraiser, but by putting it toward evaluating the condemning authority's appraisal.
The State Gives You $750 to Evaluate the Offer for Your Property!
The Revised Code of Washington section 8.25.020 provides you, the landowner, a sum equal to the various expenditures actually and reasonably incurred by those with an interest in the property in the process of evaluating the condemnor's offer to buy the property of up to $750.00. The title of the rule is Payment to Defray Costs of Evaluating Offer - Amount.Do Not Spend This Money to Run Out and Hire an Appraiser!
You need an appraiser for trial, not for negotiation! If you are speaking with the condemning authority, in all likelihood they will tell you this money you are entitled to is available to you and suggest you hire an appraiser to take a cursory look at the property to determine the just compensation owed to you.There are two major problems with this, however: first, $750.00 is not enough money for an appraiser correctly valuate your property; and second, without the proper instructions, or "problem," given to the appraiser, the determination they make will be flawed, and most generally flawed in the government's favor. It follows an old saying, garbage in, garbage out. This means if you use the wrong rules or information at the beginning of your analysis you are destined to get a wrong answer.
Before you are even reading this you are probably saying "I know what this attorney is going to say. He is going to tell me to spend the money on him." If you were saying this, you are actually correct. But let me explain why. If your property is being taken for eminent domain, it is subject to very specific valuation rules established by both statutory and case law. Some experienced appraisers may be aware of some of these rules, and have some experience in eminent domain law, but often they may not be aware of specific rules that can positively effect the value of your property (as time goes on I will explain and discuss some of these rules - for now you will just have to trust me!).
Appraisers generally have to follow what is called USPAP, or the Uniform Standards of Professional Appraisal Practice. It contains very specific rules, some of which are directly against the way a property in eminent domain is appraised. The primary way an appraiser can deviate from those rules, particularly in condemnation, is if an eminent domain attorney directs them to recognize a jurisdictional exception - basically a rule that does not conform to USPAP. Without this, you will in most circumstances start with "garbage in" to the appraisal problem, resulting in a worthless valuation. And in any event, what you need at this point in the process is not an appraisal, but someone who can evaluate the eminent domain offer given to you. Money is made for you by not getting your own expert but poking holes in theirs.
Use the Money Afforded to You to Have the Condemning Authority's Offer Evaluated and Gather Data for Your Counteroffer
Condemning authorities, including: Washington state, Washington Department of Transportation, Sound Transit, Washington counties, Washington cities, Washington water districts and utility companies, are generally trying to evaluate your property for taking by eminent domain in the most fair way possible. But the problem is, they often incorrectly diagnose the problem, and the appraisal that results is not indicative of the true measure of just compensation. In all honesty, condemning authorities know this. How do I know? I work for one (although shortly I'll be leaving it - in Kansas - to help property owners). Although it was always our goal to get the numbers right, often times we missed something or incorrectly evaluated a property under the rules of eminent domain.And when was usually the first time we found out we missed something? When the landowner's attorney sent us a letter itemizing all of the things we missed. This includes incorrectly valuing the severance of a property, the damages to the remainder of a property, an incorrect determination of highest and best use, and failing to utilize relevant comparable sales. But often it amounted to a significant difference in just compensation. So utilize that money not by hiring an appraiser, but by putting it toward evaluating the condemning authority's appraisal.
Tuesday
Washington Eminent Domain Procedure | Part IV
This is part four of my outline of Washington eminent domain law. I've already discussed how property can be taken by eminent domain constitutionally, the eminent domain petition, and the order for immediate possession of property. Up next is a review of what happens at an eminent domain trial, how just compensation is determined, and getting paid for having your property taken through eminent domain.
If damages to a building are based upon readjustment or moving, then the court also must set a time within which any such building must be moved or adjusted. RCW 8.04.114. If the building is not moved or adjusted within that time frame, Washington State can move the building and charge the owner the costs for the move. If you don't want to pay for the costs, the state automatically gets a lien on the property. The amount of the lien and satisfaction of any liens is determined by application and entry of a supplemental judgment by the court. Lesson here: if you are going to get paid less money for saving your building, make sure you can move it!
If the jury or court's verdict is appealed, however, the money paid into the court must stay there until the determination of proceedings has occurred.
If you're property is being taken by eminent domain, please contact an washington eminent domain lawyer as soon as you can. If nothing else they can evaluate the offer from the condemning authority and let you know if you are being dealt with fairly.
Washington Eminent Domain Trial Description
The rule describing what happens at an eminent domain trial in Washington is set out in the Revised Code of Washington statute 8.04.110. It outlines several rules for the trial:Essentially the trial operates like any other trial. The only difference is the issues are related to eminent domain law. That is why it is important to have an experienced eminent domain lawyer on your side.
- A superior court judge shall preside over the trial;
- The trial shall be held to determine the compensation and damage to be awarded;
- The trial shall be held at the the courthouse in the county where the land, real estate, premises or other property is located;
- If it is a trial by jury they shall give their verdict as a lump sum the total amount of damages which shall result to the property; and
- At the trial, witnesses may be examined just like in a normal civil trial.
Determination of Just Compensation for Buildings
RCW 8.04.112 covers damages to buildings taken by eminent domain. If a building is standing, in whole or in part (for example, if a new highway was just going to clip a building versus taking the whole thing out) the jury shall add to their finding of value the damages to the building. If the entire building is taken or damaged so bad that it cannot be readjusted or moved, the measure of damages is the fair market value of the building. If part of the building is taken and it can be readjusted or replaced on any land remaining, and state agrees, then the measure of damages is the cost of readjusting or moving the building, plus any depreciation in market value occurring because of the move.If damages to a building are based upon readjustment or moving, then the court also must set a time within which any such building must be moved or adjusted. RCW 8.04.114. If the building is not moved or adjusted within that time frame, Washington State can move the building and charge the owner the costs for the move. If you don't want to pay for the costs, the state automatically gets a lien on the property. The amount of the lien and satisfaction of any liens is determined by application and entry of a supplemental judgment by the court. Lesson here: if you are going to get paid less money for saving your building, make sure you can move it!
Getting Paid for Property Taken Through Eminent Domain
After trial and the jury's verdict, the State of Washington is going to have to pay you for the property they have taken. RCW 8.04.130 requires the state to pay the amount of the award to the clerk of the court. This allows the State to get the property they need and then allows for a separate hearing for anyone that thinks they are entitled to some of the money.If the jury or court's verdict is appealed, however, the money paid into the court must stay there until the determination of proceedings has occurred.
If you're property is being taken by eminent domain, please contact an washington eminent domain lawyer as soon as you can. If nothing else they can evaluate the offer from the condemning authority and let you know if you are being dealt with fairly.
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