Eminent Domain Law in Virginia

Eminent Domain Law in Virginia
Publication Date: 2012
Available Formats: Print (346 pages, looseleaf, 1 volume)
  Electronic (searchable PDF via flash drive, CD, or immediate download)
  Both Print and Electronic formats
  Individual chapters available for download
Product #: 868

Information

Content Highlights:
  • Condemnation Procedure Under Title 25.1
  • Condemnation Procedure Under Title 33.1 as Exercised by Transportation Commissioner
  • Federal Condemnation Procedure
  • Pretrial Issues
  • Valuation Issues
  • Trial
  • Appeal
  • Relocation Assistance
  • Regulatory Takings
  • Tax Issues of Condemnation

Eminent domain is both a specialized practice area and a topic that anyone whose practice touches real estate ignores at his or her peril.

This handbook covers every aspect of eminent domain, both state and federal, including regulatory takings and inverse condemnation. It is oriented toward practice requirements, with in-depth treatment of pre-trial and trial procedure and the key step of valuation, to ensure that the property owner received just compensation for any taking.


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Table of Contents

CHAPTER LIST

1. General Condemnation Procedure Under Title 25.1

2. Condemnation Procedure Under Title 33.1 As Exercised By The Commissioner Of Highways

3. Federal Condemnation Procedure

4. Pretrial Practice And Procedure

5. Valuation

6. Trial

7. Condemnation Appeals In Virginia

8. Relocation Assistance And Real Property Acquisition Policies

9. Regulatory Takings

10. Tax Aspects Of Condemnation Awards


CHAPTER 1: GENERAL CONDEMNATION PROCEDURE UNDER TITLE 25.1  (back to top)

1.1 CONSTITUTIONAL REQUIREMENTS
        1.101 United States Constitution
        1.102 Virginia Constitution

1.2 STATUTORY CONSIDERATIONS
        1.201 Delegation Of Eminent Domain Power And Territorial Limits
        1.202 Delegation Of The Eminent Domain Power To Subordinate State Agencies
        And Units Of Local Government
        1.203 Property Interests Subject To Condemnation
    
1.3 SUBSTANTIVE PREREQUISITES TO CONDEMNATION
        1.301 Public Use As A Precondition To Condemnation
        1.302 Judicial Determination Of Appropriate Public Use
        1.303 Necessity As A Precondition To Condemnation
    
1.4 PROCEDURAL CONSIDERATIONS
        1.401 General Procedural Principles
        1.402 Statutory Principles For Eminent Domain Proceedings
        1.403 Other Conditions Precedent To Exercise Of Eminent Domain Power
    
1.5 FORM AND CONTENT OF THE PETITION
        1.501 Designation Of Property As Defendant
        1.502 Description And Plat Of Property
        1.503 Multiple Parcels Permitted
        1.504 Identification Of Owners
        1.505 Required Statements
        1.506 Miscellaneous Matters
        1.507 Service Of The Petition And Notice
        1.508 Mandatory Dispute Resolution Orientation

1.6 ANSWER AND GROUNDS OF DEFENSE
        1.601 Time Requirements For Response
        1.602 Failure To File Answer And Grounds Of Defense
        1.603 Amendments To Pleadings
    
1.7 DETERMINATION OF JURISDICTIONAL MATTERS
        1.701 Burden Of Proof
        1.702 Pre-Trial Settlement Conference
        1.703 Order Setting Trial
        1.704 Appeal Prior To Trial
    
1.8 POSSESSION “PENDENTE LITE”
        1.801 Entry For Survey, Appraisal, And Tests
        1.802 Entry After Filing Petition
        1.803 “Quick-Take” Or Use Of Certificate To Transfer Defeasible Title
        1.804 Inspection Under Rules Of Court
        1.805 Special Entry For Counties
        1.806 Deposit Of Estimated Compensation & Damages Before Entry
        1.807 Entry After Commissioner’s Report Filed
    
1.9 DETERMINATION OF JUST COMPENSATION
        1.901 Appointment Of Commissioners
        1.902 Appointment Of Jury
        1.903 Objections To Juror Or Commissioner Based On Discriminatory Motive
        1.904 Conduct Of Jurors And Commissioners At Trial
        1.905 Issues Determined By The Jury, Commissioners Or Court When Setting
        Value
    
1.10 CONDUCT OF JUST COMPENSATION TRIAL
        1.1001 Presentation Of Evidence
        1.1002 Expert Witnesses
        1.1003 Instructions
        1.1004 Written Report Of The Award
        1.1005 Action By The Court Upon The Report

1.11 POST AWARD ISSUES AND APPEAL
        1.1101 Procedure For Appeal
        1.1102 New Trial Order Unappealable
        1.1103 Distribution Of Award Paid Into Court
        1.1104 Vesting Of Title
        1.1105 Withdrawal Of Deposit After Award But Prior To Additional Proceedings
        1.1106 Interest
        1.1107 Dismissal
        1.1108 Costs
    
1.12 RIGHT OF OWNER TO REPURCHASE

APPENDIX 1-1: PETITIONER’S INTERROGATORIES TO DEFENDANT

APPENDIX 1-2: VOIR DIRE

APPENDIX 1-3: REPORT OF COMMISSIONERS

APPENDIX 1-4: LANDOWNER’S EXCEPTIONS TO COMMISSIONERS’ REPORT

CHAPTER 2: CONDEMNATION PROCEDURE UNDER TITLE 33.1 AS EXERCISED BY THE COMMISSIONER OF HIGHWAYS  (back to top)

2.1 INTRODUCTION

2.2 NATURE OF THE POWER OF EMINENT DOMAIN
        2.201 Nature and Scope of Power
        2.202 Time and Manner of Exercise and Extent of Power
        2.203 Exercise of Power Strictly Construed
        2.204 Delegation of Power
    
2.3 LIMITS ON POWER OF EMINENT DOMAIN
        2.301 Just Compensation
        2.302 Public Use

2.4 STATUTORY PROCEDURES UNDER TITLES 25.1 AND 33.1
        2.401 In General
        2.402 Step-by-Step Process Used by Commissioner
        2.403 “Quick Take” Method

2.5 REMEDY OF LANDOWNER IF COMMISSIONER FAILS TO INSTITUTE
    PROCEEDINGS
        2.501 Statutory Procedures
    
2.6 CONDEMNATION PROCEEDINGS GENERALLY—TITLE 25.1 OF THE
VIRGINIA CODE
        2.601 In General
        2.602 Jurisdiction
        2.603 Bona Fide Effort to Purchase
        2.604 Petition for Condemnation
        2.605 Notice of Proceedings to Owners
        2.606 Mandatory Dispute Resolution Orientation Session
        2.607 Nonsuit
        2.608 Determination of Just Compensation
        2.609 Qualification and Empanelment of Commissioners
        2.610 Qualification and Selection of Jurors
        2.611 Voir Dire
        2.612 View of the Property
        2.613 Testimony
        2.614 Closing Argument
        2.615 Report
        2.616 Costs
        2.617 Tenants
        2.618 Suggested Research Materials

2.7 RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION
POLICIES
        2.701 Breadth of Policies
        2.702 Moving Expenses and Relocation Payments
        2.703 Housing Payments
        2.704 Lessees’ Eligibility
        2.705 Advisory Assistance
        2.706 Income Tax Considerations
        2.707 Final Accounting
        2.708 Legal Issues
        2.709 Procedural Considerations

CHAPTER 3: FEDERAL CONDEMNATION PROCEDURE  (back to top)

3.1 EMINENT DOMAIN INCREASINGLY FINDING A FEDERAL FORUM

3.2 HOW EMINENT DOMAIN CASES GET TO FEDERAL COURT
        3.201 Constitutional Basis: Fifth Amendment Takings Clause
        3.202 Statutory Basis: Delegation of Power to Federal Agencies and
        Departments
        3.203 Military Acquisitions
        3.204 Statutory Basis: Delegation of Power to Nonfederal Agencies/Private
        Companies
        3.205 Diversity of Citizenship

3.3 FEDERAL COURT PROCEDURES
        3.301 In General
        3.302 Pre-Filing Requirements
        3.303 Complaint
        3.304 Answer
        3.305 Discovery
        3.306 Right to Trial by Jury
        3.307 Property View
        3.308 Burden of Proof
        3.309 Number of Jurors
        3.310 Verdicts
        3.311 Summary Judgment
        3.312 Motions in Federal Court

3.4 SUBSTANTIVE DIFFERENCES IN EMINENT DOMAIN LAW – FEDERAL
COURT VERSUS VIRGINIA STATE COURTS
        3.401 Calculation of Just Compensation in Partial Takes
        3.402 Special Versus General Damages and Benefits
        3.403 Temporary Takes
        3.404 Compensation for Damage to Other Parcels
        3.405 Borrowing Virginia Procedure
        3.406 Quick Take Procedures
        3.407 Evidentiary Issues
        3.408 Conflict between State and Federal Laws – Which Controls?
    
3.5 LOCAL RULES IN EASTERN AND WESTERN DISTRICTS OF VIRGINIA
        3.501 Eastern District Local Rules
        3.502 Western District Local Rules
    
3.6 SPECIAL PROBLEMS IN FEDERAL COURT
        3.601 Counterclaims Are Not Permitted
        3.602 Inverse Condemnation Claims
    
3.7 CONDEMNATION PROCEDURES IN VIRGINIA CIRCUIT COURTS VERSUS
THE UNITED STATES DISTRICT COURTS IN VIRGINIA
        3.701 Strict Construction
        3.702 Pre-Condemnation Negotiations
        3.703 Quick Take
        3.704 Objections or Defenses to the Condemnation
        3.705 Procedural Requirements
        3.706 Right to Jury
        3.707 Discovery
        3.708 Motion Practice
        3.709 Burden of Proof/Burden of Going Forward
        3.710 Calculation of Just Compensation
        3.711 Testimony of Property Owner
        3.712 State Licensing Requirements for Experts
        3.713 Definition of Nature of Property being Taken
        3.714 Jury View of the Property

APPENDIX 3-1: FEDERAL RULES OF CIVIL PROCEDURE RULE 71.1.
CONDEMNING REAL OR PERSONAL PROPERTY

APPENDIX 3-2: FORM 60, FEDERAL RULES OF CIVIL PROCEDURE—NOTICE
OF CONDEMNATION

APPENDIX 3-3: FORM 61, FEDERAL RULES OF CIVIL PROCEDURE—
COMPLAINT FOR CONDEMNATION

APPENDIX 3-4: 9.1. EMINENT DOMAIN GENERAL INSTRUCTION (INCLUDING
PARTIAL TAKING INSTRUCTIONS)

APPENDIX 3-5: JUDICIAL CONFERENCE OF THE UNITED STATES
GUIDELINES FOR EMINENT DOMAIN CASES

CHAPTER 4: PRETRIAL PRACTICE AND PROCEDURE  (back to top)

4.1 EARLY ENTRY AND POSSESSION
        4.101 Entry for Purposes of Inspection
        4.102 Early Possession by VDOT
        4.103 Early Possession by Localities
        4.104 Early Possession by Other Condemnors
        4.105 Drawdown of Deposit

4.2 RESPONSIVE PLEADINGS
        4.201 In General
        4.202 Answer and Grounds of Defense
        4.203 Demurrer

4.2 POSSIBLE OBJECTIONS, DEFENSES, OR GROUNDS FOR DEMURRER
        4.204 In General
        4.205 Demurrer
        4.206 Plea in Bar
        4.207 Motion to Dismiss
        4.208 Motion for Bill of Particulars
    
4.3 OTHER PRETRIAL MOTIONS
        4.301 Alternative Dispute Resolution and Settlement Conference
        4.302 Motion for Change of Venue
        4.303 Motion to Separate or Consolidate
        4.304 Motion or Petition to Intervene
        4.305 Motion for A View
        4.306 Motion for Summary Judgment
        4.307 Motion in Limine

4.4 DISCOVERY
        4.401 In General
        4.402 Scope and Protective Orders
        4.403 Fee Shifting
        4.404 Production of Landowner’s Appraisal
        4.405 Expert Witnesses

4.5 PREPARING FOR TRIAL
        4.501 In General
        4.502 Preliminary Hearing
        4.503 Pretrial Scheduling Order
        4.504 Qualifying the Jury or Commissioners
        4.505 No Nonsuit
        4.506 Pretrial Memoranda
    
CHAPTER 5: VALUATION  (back to top)

5.1 WHAT IS JUST COMPENSATION?
        5.101 Virginia Constitution
        5.102 Two Components of Just Compensation
    
5.2 FAIR MARKET VALUE
        5.201 Virginia Model Jury Instructions
        5.202 General Principles of Fair Market Valuation
    
5.3 HOW TO ESTABLISH JUST COMPENSATION
        5.301 Bona Fide Offer Without Appraisal
        5.302 Appraisal
    
5.4 RETAINING AND WORKING WITH APPRAISER
        5.401 When to Employ an Appraiser
        5.402 Considerations in Hiring an Appraiser
        5.403 Information and Materials to Furnish Appraisers
    
5.5 VALUATION PROCESS
        5.501 In General
        5.502 Identification of Parcel
        5.503 Inspection
        5.504 Highest and Best Use Analysis
        5.505 Appraisal of the Residue
        5.506 Three Approaches
        5.507 Development Approach

5.6 VALUATION ISSUES
        5.601 Highest and Best Use
        5.602 Fair Market Value Is Not to Be Affected by the Project
        5.603 Property Under Lease
        5.604 Billboards
        5.605 Timber and Minerals Not to Be Separately Valued
        5.606 Landscaping
        5.607 Temporary Takings
        5.608 Land Valued on Basis of Other Valuation Units
        5.609 Government Monopoly Properties
        5.610 Properties That Usually Sell as Going Concerns
        5.611 Whether Items Are Fixtures or Personalty
        5.612 Date of Valuation
        5.613 Tax Assessment Principles
    
5.7 DAMAGES TO THE REMAINDER OF THE PROPERTY
        5.701 Virginia Model Jury Instruction No. 46.070
        5.702 Determination of Fair Market Value of Remainder After the Take
        5.703 Adjustment Costs
        5.704 Landowner Has Duty to Mitigate Damages
        5.705 Enhancement of the Value of the Remainder as a Result of the Project
        5.706 Items Which Are Not Compensable
        5.707 Unity of Lands Doctrine
        5.708 Burden of Proof

CHAPTER 6: TRIAL  (back to top)

6.1 INTRODUCTION

6.2 PRE-CONDEMNATION PLANNING
        6.201 In General
        6.202 Landowner Instructions
        6.203 Continuation

6.3 DIMINISHING THE IMPACT OF THE TAKING/VALUE ENGINEERING

6.4 INITIAL EVALUATION
        6.401 Offer Packet
        6.402 Assemble a Team
        6.403 Analyze the Offer Packet
    
6.5 RESEARCHING EMINENT DOMAIN ISSUES
        6.501 In General
        6.502 Title 25.1 of the Virginia Code
        6.503 Sources of Virginia Law
        6.504 Nichols
        6.505 Additional Sources

6.6 PRETRIAL
        6.601 Answer
        6.602 Commissioners
        6.603 Intervention
        6.604 Scheduling Order
        6.605 Expert Designations
        6.606 Exhibits and Witnesses
        6.607 Jury Instructions
        6.608 Motions in Limine and Trial Briefs
        6.609 Case Notebook
        6.610 Trial Notebook
        6.611 Final Preparations

6.7 TRIAL
        6.701 Order of Trial
        6.702 Selecting Jurors or Commissioners and Voir Dire
        6.703 Opening Statements
        6.704 View
        6.705 Condemnor’s Case in Chief
        6.706 Landowner’s Case
        6.707 Condemnor Rebuttal
        6.708 Jury Instructions
        6.709 Closing
        6.710 Deliberations

6.8 POSTTRIAL
        6.801 Exceptions
        6.802 Condemnor’s Right to Dismiss
        6.803 Controversy over Award
        6.804 Costs

CHAPTER 7: CONDEMNATION APPEALS IN VIRGINIA  (back to top)

7.1 INTRODUCTION

7.2 PRESERVATION OF ISSUES FOR APPEAL
        7.201 In General
        7.202 Ensure that Everything Happens on the Record
        7.203 Beware of the Motion-in-Limine Trap
        7.204 Object Promptly
        7.205 Proffer Excluded Evidence
        7.206 Learn to Deal with Unwelcome Redactions
        7.207 Be Specific in Describing What You Want
        7.208 Be Very Careful with Jury Instructions
        7.209 Don’t Let the Judge Off the Hook

7.3 VIRGINIA’S APPELLATE COURTS

7.4 THE APPELLATE PROCESS IN VIRGINIA
        7.401 Prerequisites to Appeal
        7.402 Perfecting the Appeal
        7.403 The Appeal
        7.404 Petition for Rehearing
        7.405 Appeal to U.S. Supreme Court
        7.406 Mandate to Trial Court

7.5 PRACTICE TIPS FOR CONDEMNATION APPEALS
        7.501 Remember Your Audience
        7.502 The Standard of Review
        7.503 Condemnor’s Right to Dismiss
        7.504 Assigning Cross-Error

CHAPTER 8: RELOCATION ASSISTANCE AND REAL PROPERTY ACQUISITION POLICIES  (back to top)

8.1 OVERVIEW OF STATE AND FEDERAL RELOCATION STATUTES AND
    REGULATIONS
        8.101 Generally
        8.102 Virginia Act
        8.103 Federal Act

8.2 CATEGORIES OF RELOCATION ASSISTANCE UNDER THE
VIRGINIA ACT
        8.201 Reimbursement for Moving Residential Personal Property
        8.202 Supplement for Purchase of Comparable Housing
        8.203 Supplemental Payment for Replacement Rental Housing
        8.204 Lump-Sum Payment to Business for Moving Expenses
        8.205 Business Reestablishment Expenses
        8.206 Payment to Businesses for Loss of Tangible Personal Property
        8.207 Last Resort Housing

8.3 PURPOSE AND APPLICABILITY OF THE FEDERAL ACT
        8.301 Purpose of the Uniform Act
        8.302 Constitutional Expression
        8.303 Regulatory Focus
        8.304 Definition of “Displaced Person”
        8.305 Applicability

8.4 VIRGINIA RULES AND REGULATIONS
        8.401 Generally
        8.402 Definitions
        8.403 Civil Rights and Equal Opportunity Requirements
        8.404 Program Administration
        8.405 Appeals

8.5 RELOCATION PLANNING AND PUBLIC INFORMATION
        8.501 Conceptual Stage
        8.502 Public Meeting and Hearing
        8.503 Acquisition Stage

8.6 WRITTEN NOTICES TO DISPLACED PERSONS REGARDING BENEFITS
AND SERVICES
        8.601 Notice of Intent to Acquire
        8.602 Notice of Replacement Housing Payment (RHP)
        8.603 90-Day Assurance Notice

8.7 RELOCATION ADVISORY SERVICES
        8.701 Intention
        8.702 How Service Is Provided
        8.703 Who Is Offered Service
        8.704 Minimum Advisory Assistance Service
    
8.8 MOVING COSTS—RESIDENTIAL
        8.801 In General
        8.802 Actual Reasonable Moving Expenses
        8.803 Moving Expense Schedule
        8.804 Reimbursable Costs
        8.805 Non-Reimbursable Costs
    
8.9 MOVING COSTS— BUSINESSES, FARMS AND NONPROFIT
ORGANIZATIONS
        8.901 General
        8.902 Certified Inventory
        8.903 Actual Reasonable Moving Costs
        8.904 Moves by a Commercial Mover
        8.905 Self Moves
        8.906 Low Value. High Bulk Personal Property
        8.907 Actual Direct Loss of Tangible Personal Property
        8.908 Search Costs for a Replacement Location
        8.909 Re-Establishment Expenses
        8.910 Fixed Payment in Lieu of Actual Costs

8.10 GENERAL PROVISIONS FOR REPLACEMENT HOUSING PAYMENTS
        8.1001 General
        8.1002 Fully Eligible Occupants
        8.1003 Partially Eligible Occupants
        8.1004 Requirements to Receive Payment
        8.1005 Inspection for Decent Safe and Sanitary Housing
        8.1006 Multiple Occupancy of Same Dwelling

8.11 REPLACEMENT HOUSING PAYMENTS FOR OWNER-OCCUPANTS
FOR 180 DAYS OR MORE

8.12 REPLACEMENT HOUSING BENEFITS FOR TENANTS, AND OWNERS
WHO CHOOSE TO RENT REPLACEMENT HOUSING

8.13 LAST RESORT HOUSING

8.14 ADDITIONAL RESOURCES

CHAPTER 9: REGULATORY TAKINGS  (back to top)

9.1 CONSTITUTIONAL PROVISIONS
        9.101 In General
        9.102 United States Constitution
        9.103 Virginia Constitution
    
9.2 EVOLUTION OF THE REGULATORY TAKING CONCEPT
        9.201 Pennsylvania Coal Co. v. Mahon
        9.202 Years 1922 to 1978
        9.203 Years 1978 to 1987
        9.204 Years 1987 to 1992
        9.205 Years 1992 to Present

9.3 VIRGINIA’S APPLICATION OF THE SUPREME COURT’S REGULATORY
TAKINGS LAW
        9.301 Generally
        9.302 Commonwealth v. County Utilities Corp
        9.303 City of Virginia Beach v. Virginia Land Investment Ass’n No. 1
        9.304 Richmond, Fredericksburg & Potomac R.R. v. Metropolitan
        Washington Airports Auth.
        9.305 Board of Supervisors v. Omni Homes, Inc.
        9.306 City of Virginia Beach v. Bell
        9.307 Board of Supervisors v. Greengael, LLC

9.4 DEFINING & ANALYZING REGULATORY TAKINGS
        9.401 Two-Step Analysis
        9.402 Definition of “Property”
        9.403 Definition of “Regulatory Taking”
        9.404 Post-Lucas Categorical Takings
        9.405 Ad Hoc Inquiry
        9.406 Unit of Property

9.5 PARTICULAR ACTIONS CHALLENGED AS TAKINGS
        9.501 Generally
        9.502 Physical Invasion
        9.503 Denial of All Economically Beneficial Use
        9.504 Regulations That Go “Too Far” (“Balancing Test” Cases)
    
9.6 PROCEDURE
        9.601 Declaratory Judgment
        9.602 Common Law Actions
        9.603 Limitations of Actions

9.7 DEFENSES
        9.701 Substantive Defenses
        9.702 Procedural Defenses

9.8 REMEDIES
        9.801 Generally
        9.802 Temporary Taking
        9.803 Permanent Takings
    
CHAPTER 10: TAX ASPECTS OF CONDEMNATION AWARDS  (back to top)

10.1 GENERAL RULES, CONCEPTS, AND CONSEQUENCES
        10.101 General Rule of I.R.C. § 1033
        10.102 History of I.R.C. § 1033
        10.103 Concept of Involuntary Conversions Under I.R.C. § 1033
        10.104 Threat or Imminence of Condemnation under I.R.C. § 1033
        10.105 Conversions into Only Similar Use Property
        10.106 Conversion Into Only Dissimilar Property
        10.107 Conversion into Both Dissimilar and Similar Property
        10.108 Exchange of Assets of a Business

10.2 MECHANICS
        10.201 Making the Section 1033 Elections
        10.202 Making the Section 1033(a)(2) Replacement
    
10.3 SPECIAL MATTERS
        10.301 Particular Considerations Under I.R.C. § 1033
        10.302 Mortgages and Liens
        10.303 Other Expenses and Payments
        10.304 Conversions of Section 1245 and Section 1250 Properties
    
10.4 VIRGINIA LAW
        10.401 Income Tax
        10.402 Real Estate Tax
    
TABLE OF AUTHORITIES

INDEX

Authors

Editor

Paul B. Terpak

Authors

Nancy C. Auth

Neil V. Birkhoff

John K. Burke, Jr.

Francis A. Cherry

D. Brian Costello

Jerry K. Emrich

L. Steven Emmert

Randall T. Greehan

Gifford R. Hampshire

Henry E. Howell, III

Steven L. Micas

T. David Stoner

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