The California Supreme Court reversed a decision of the court of appeal. The court held that a property owner’s failure to object to a lienholder’s withdrawal of funds from the monies deposited with the trial court during a condemnation proceeding did not result in a waiver of the property holder’s right to challenge the condemnation.

Pursuant to a federal consent decree and order to place additional buses in service, the Los Angeles County Metropolitan Transportation Authority (MTA) determined that it needed more space for its operations. The MTA decided to expand its downtown facility by acquiring the nearby property of Alameda Produce Market, LLC. The MTA sued Alameda to acquire the property by eminent domain.