HANDBOOK CONTENTS I The Power of Eminent Domain II The Eminent Domain Process III Just Compensation • What is "just compensation"? • Who is entitled to just compensation? • What is "fair market value"? • As of what date will my property be valued? • What happens if the property is rented - who gets the compensation? • What if only part of my property is taken? • What about improvements - is compensation paid for these? • Are business losses compensated? • Is there anything I need to do to protect my right to seek business losses? • Am I entitled to interest? • How much will this cost, and am I entitled to recover my expenses from the government? IV Retaining an Attorney
	THE CALIFORNIA EMINENT DOMAIN HANDBOOK Chapter III: Just Compensation Is there anything I need to do to protect my right to seek business losses? A business owner is only entitled to compensation for loss of business goodwill if he proves all of the following: 1. The loss is caused by the taking of the property or injury to the property on which the business is located; 2. The loss cannot reasonably be prevented by a relocation of the business or by taking steps and procedures which a reasonably prudent person would take in preserving the goodwill; and 3. Compensation for the loss will not be included or duplicated in any other payments made to the business owner. Thus, a business owner generally must take reasonable steps to try to relocate the business if the relocation would result in retention of all or some of the business' goodwill value. However, it should be noted that even if a business is relocated, it can still suffer a loss of goodwill. Relocation can result in loss of patronage, loss of income, or higher expenses. California courts have held, for example, that if a business experiences higher expenses at a relocation site, the business may be entitled to a loss of goodwill based on the resulting decline in net income, even if the business loses no patronag e at all as a result of the taking. One thing which must be kept in mind in order to protect your rights to recover business losses is that you should avoid providing information about your business income to the condemning agency until after you have consulted with experienced eminent domain counsel. Anything you say can - and will - be used against you by the agency.
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