Eminent domain and inverse condemnation are closely related concepts. In one way they are opposites: eminent domain is initiated by the government; inverse condemnation is initiated by the property owner. However, to call them completely opposing legal concepts is a gross misconception.
A quick overview of eminent domain
Eminent domain is the power that allows a government – state, federal or municipal – to take control of private property for public purposes. As a key component of eminent domain, property owners must receive fair compensation for any of their property taken.
Governments use eminent domain in such situations as:
- Building highways
- Creating new schools
- Reinforcing municipal necessities, such as water, sewage and energy supplies
- Expanding public parks and recreational areas
In a perfect world, the government would review the property, appraise it for a fair value and then provide you with compensation. Often, the government will under-appraise property, but you can address that in court. There is another unfair practice related to eminent domain: taking without taking.
What happens when the government takes over property without taking possession?
One common scenario in eminent domain takings is that neighboring property becomes unusable or irreversibly impacted by the project. These effects can be so major that they ruin or destroy the property. Some common examples are:
- Fire damage to property due to negligence
- Contamination of groundwater due to construction
- Considerable loss of value due to proximity to new highways or landfills
- Losing access to utility services
When things like this happen, property owners can file a lawsuit for inverse condemnation to force the government to compensate them for the loss of their property.
Why inverse condemnation is important
The government’s priority is “the public good,” but your individual good can get lost in that pursuit. You have guaranteed rights to protect you, and inverse condemnation is the process you use to hold the government to its word to respect those rights.