Inverse Condemnation (florida)

[Michael P Jacobs MAI]

It has been years and years - almost a different lifetime and a different state - since I have worked on a condemnation assignment (with supervision). What would the steps to competency require? Is it simply applying the law as a jurisdictional exception where necessary or more complicated than that? Can a strong MAI do this without additional competency requirements?

 

[Meandering]

It has been years and years - almost a different lifetime and a different state - since I have worked on a condemnation assignment (with supervision). What would the steps to competency require? Is it simply applying the law as a jurisdictional exception where necessary or more complicated than that? Can a strong MAI do this without additional competency requirements?

You probably want to look at other condemnations, both won and lost in your area and speak to the appraisers who worked on them. We've had some strange cases here, that you would not find in a text book, it helps to know, and be able to cite those as background, or as additional information, whatever the case may be. If you're working through an attorney, find out what other condemnation cases they've worked on, and any references they can give you to look them up and read about the hearings and the defenses. It helps when you can back up something your thinking with a citation of a judge saying something similar in a previous hearing.

Good luck.

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[Terrel L. Shields]

Inverse cases are sometimes hard. The valuation though is simply before and after. When towns ban drilling they run afoul of inverse taking of mineral owner interests. Most back off when confronted with the certitude of bankrupting the town.

 

[Meandering]

Inverse cases are sometimes hard. The valuation though is simply before and after. When towns ban drilling they run afoul of inverse taking of mineral owner interests. Most back off when confronted with the certitude of bankrupting the town.

Have you seen them where the "market value" sought has included the consideration that the property was an "investment holding" in the first place and lacked the "typically motivated" requirement for market value, and the courts actually took that into consideration? Happened here.

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[Gobears81]

It has been years and years - almost a different lifetime and a different state - since I have worked on a condemnation assignment (with supervision). What would the steps to competency require? Is it simply applying the law as a jurisdictional exception where necessary or more complicated than that? Can a strong MAI do this without additional competency requirements?

Steps to competency could be taken through the traditional channels: coursework, appraising like-kind properties with supervision, etc. But...there could some intricacies of this type of work that are often specific to your state that are not practiced elsewhere. I remember taking an IRWA class (in IL) and the instructor was from Michigan. He was undoubtedly qualified, but mentioned something in the course that was theoretically correct, yet several of the seasoned IL appraisers jumped on that because from a practice standpoint (again, in IL only), it was not an accepted approach. While the MAI is a great designation, some appraisers that predominantly do eminent domain work do not have an MAI, and it doesn't seem to hold the same water in eminent domain work as other types of work. Some of my best collaborative experiences with other appraisers has been in learning eminent domain appraising, and even after learning the ropes, they can be great sounding boards for specific assignment peculiarities. If you have a colleague like this, I'd offer to take them to lunch because they would most likely be your best resource

 

[Pittsburgh Pete]

Have you seen them where the "market value" sought has included the consideration that the property was an "investment holding" in the first place and lacked the "typically motivated" requirement for market value, and the courts actually took that into consideration? Happened here.

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I would assume you are referring to the "assembled economic unit doctrine"--applies to a displaced business.

Not sure what you feel you (the OP) need to do to become proficient as much eminent domain work includes a value "as is" and a value "as impacted." The difference is damages. There are a couple of curves if easements might be involved and/or there are idiosyncrasies in your state laws on the matter. Good luck to the OP!

 

[Pittsburgh Pete]

FYI:

The AEUD affords additional compensation for takings:

when the nature of the business requires a unique building for its operation, such that no other building within a reasonable distance is adaptable to the functioning of this business, then the condemned building, itself, will be considered an essential part of any meaningful economic unit in this industry․[E]ven  though all or most of the machinery, equipment and fixtures are removable, since no new site is available, condemnee cannot maintain his economic position by relocating.   Therefore, all machinery, equipment and fixtures which are vital to the economic unit and a permanent installation therein will be considered a part of the real estate of the condemned property under the [AEUD]. Only thus can the condemnee receive “just compensation.”