Condemnation Damages Typically Do Not Include Payment for Business Losses
The frustration business owners experience when faced with a condemnation in Pennsylvania is real. While there are tactics that can be used to attempt to recover losses from the impact to the business, these seldom compensate for the entirety of the effect of the loss.
June 23, 2022 at 10:34 AM
7 minute read
Real EstateWhen a government entity with power of eminent domain decides to condemn property, it is fundamental that the condemnor must pay the landowner for what is taken. It is a continual source of frustration, however, to those that operate businesses on property that is condemned that the compensation offered by the government is for the value of the land interest that is acquired and not for effects upon the value of the business. The government acquires real property; it does not acquire businesses. Therefore, the view ensconced in the case law is essentially that the business should take the money received for the land interest and relocate to a new location for its operations. In practicality, this is often very difficult to do.
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