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Inverse Condemnation: Per Se Takings and Exactions

By Peterson Law Group on June 30, 2024

A small bronze blind lady scale of justice statue.

Inverse condemnation is when a government entity takes private property for public use without formally invoking its eminent domain powers. This may include physical occupation, regulatory actions restricting property use, or other actions diminishing property value.

Unlike traditional eminent domain, where the government initiates legal proceedings to acquire property, inverse condemnation requires property owners to seek just compensation through the courts to ensure that property owners receive fair compensation for their losses when their property is effectively taken or devalued due to governmental actions.

Inverse compensation provides a legal mechanism for property owners to seek justice for illegitimate government takings. You’ll want to contact an experienced eminent domain lawyer in Los Angeles right away if government actions have damaged, destroyed, or reduced the value of your property.

Effects of Inverse Conversion on Los Angeles Property Rights

There are several types of inverse condemnation that may impact your property rights. Physical takings involve actual occupation or use of property by the government, such as installing public infrastructure. Regulatory takings occur when government regulations limit the use or economic value of property, such as zoning laws or environmental restrictions.

Partial takings, also known as pro tanto takings, occur when only a portion of the property is affected, and this may impact the property’s overall utility and value. Easements and access rights can be compromised, affecting the owner’s ability to fully utilize their property.

Understanding Per Se Takings in Los Angeles

Per se takings refer to government actions that automatically constitute a taking, requiring just compensation without the need for further analysis. These are distinct from regulatory takings, which require a more nuanced examination of the impact on property value and use. The key characteristic of per se takings is their clear-cut nature, which simplifies the compensation process for property owners.

Per se takings typically involve two main categories: physical occupation and deprivation of all economically viable use. Physical occupation occurs when the government or an authorized entity physically intrudes upon private property, such as installing utility lines. Deprivation of all economically viable use happens when regulations or actions render the property useless in an economic sense.

Several factors influence whether a government action constitutes a per se taking, warranting automatic compensation. The most important factor is the nature of the government action itself. Physical occupations, such as installing public utilities or commandeering land for public use, are clear indicators of per se takings. Another significant factor is the extent to which the action deprives the property owner of all economically viable uses. The duration of the government’s interference can also play a role – temporary occupations might not qualify, while permanent or indefinite ones usually will.

Compensation and valuation are critical aspects of per se takings, ensuring property owners receive just payment for their losses. The primary goal is to place the property owner in the same financial position as if the taking had not occurred. Compensation should represent the fair market value of the property at the time of the taking, considering its highest and best use. In some cases, additional damages may be awarded for lost income or decreased property value due to the taking.

Valuation typically involves appraisals, comparable sales analysis, and expert testimony. It’s essential for property owners to work with experienced appraisers and legal professionals to accurately assess the value of their property.

How Exactions Impact Property Rights in Los Angeles

Exactions refer to conditions or requirements imposed by government entities on property owners as part of the land use approval process. These conditions often require property owners to dedicate a portion of their property for public use or to pay fees that benefit the community. Common examples include requirements for building sidewalks, installing public utilities, or contributing to infrastructure improvements.

Exactions must satisfy specific legal standards to be valid, including the nexus and proportionality tests established by the U.S. Supreme Court. The nexus test, established in Nollan v. California Coastal Commission (1987), requires a clear connection between the exaction imposed on the property owner and the public purpose it serves. For example, suppose a local government demands that a developer provide public access to a beach. In that case, there must be a direct link between the development’s impact and the need for public access.

The proportionality test, clarified in Dolan v. City of Tigard (1994), ensures that the extent of the exaction is proportional to the impact of the proposed development. This means the burden placed on the property owner must be roughly equal to the public benefit derived from the exaction.

Contact Our Experienced Eminent Domain Lawyers in Los Angeles

John S. Peterson will stand up for your rights. For over 35 years, Peterson Law Group PC has been getting justice for property owners in Los Angeles. Our firm was selected for the Best Law Firms award by Best Lawyers, and we’ve been featured in U.S. News & World Report. John is a highly esteemed speaker who shares his legal knowledge on local television and national radio shows.

Call (213) 236-9720 to find out more about what our Los Angeles inverse condemnation attorneys can do to help.


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