Common Mistakes Businesses Make in Eminent Domain Cases

If you are concerned that your business might be relocated by the city or state department under eminent domain law, there are some things you should know to avoid making some of the most common mistakes business owners tend to fall prey to.

We have compiled a list of these mistakes and the myths that often drive business owners to make them:

• Failing to plan relocation: The moment you first become aware of the project that is impacting your business, you should begin the process of planning your relocation. The government will assist you as best as they can, but the fact is that their time is limited and they do not possess enough knowledge of your business’ needs and desires to prevent you from losing opportunities. Therefore, you are likely to suffer some serious downtime and run the risk of moving your business to storage rather than being able to re-open a fully operational business. The government can only do so much for you, so start planning as soon as possible.

• Putting off planning your business’ relocation: The longer you wait, the more your options and benefits will dwindle away, so do not let the controversy surrounding a government’s project schedule, funding, or legitimacy procrastinate your planning. You should also be prepared to act immediately as soon as the delays are cleared since the timing of a business relocation determines whether you collect relocation benefits for a planned relocation or an emergency move. Why should you avoid an emergency move? It will decrease the relocation benefits that are available to you. If you give yourself enough time for planning, you will be able to decide how to use your relocation benefits to the fullest extent. You will also allow yourself the time to properly prepare for your move in a way that will benefit your business.

• Approaching the situation with a “do-it-yourself” attitude: Eminent domain is a complex area of law, so attempting to wade your way through it on your own will likely result in you missing out on all of the benefits to which you are entitled. Will you still be able to relocate? Yes, but you will be doing so without all of the resources that are necessary for a successful business relocation. This move is already going to be hard enough, so do not put yourself at a disadvantage by trying to do it yourself.

• Counting on the agency’s relocation agent to plan it for you: Would you trust the IRS to do your taxes? Probably not. Unfortunately, many business owners trust government personnel to treat them fairly throughout the process of relocation and it is a major mistake. This is your business and you know it best and what is best for it, so do not trust the government to care for it as you would. Remember, they are only responsible for explaining your benefits. It is your responsibility to do the planning and how to best utilize your benefits.

• Failing to make use of all available relocation benefits: Early recognition of your relocation benefits will help your business by helping you plan your move based on those reimbursable costs. It will also help you evaluate several factors, such as the opportunity to change the size of your business, to enact a new look for your business, change certain business functions, or even to change the type of business you have altogether.

• Moving before the business is eligible: Planning ahead is critical, but acting on those plans before your business is eligible is a big mistake and can render it ineligible for relocation benefits. How do you know when you are eligible for relocation benefits? You must receive one of the following notices: a notice of intent to acquire, an offer to purchase real property, or a notice of eligibility. You cannot get the jump on your relocation by acting before receiving any of these notices, or else you will end up without the benefits you need to make this move successful.

• Ignoring government notices and key dates: To avoid missing out on your benefits, you will have to track several different notices, key dates, and time frames, including your notice of eligibility, vacate date, 90-day notice, 18 months to file claims, and 60 days to appeal agency decisions. Never interpret the agency’s non-responsiveness to any questions you might have as a justification for an extension of your vacate date. A lack of response does not mean you can change your vacate date, so you should continue to proceed in accordance with the provided deadlines.

• Counting on the agency to make your business whole: As part of its required services, the public agency will do its best within reason to help you relocate your business, but it will not cover all of the expenditures that result from the disruption the move will inflict on your business. The agency’s main goals and requirements will be to clear the right-of-way for the project, to provide business advisory services, and to pay eligible relocation benefits. Ultimately, the person you are working with is only human, and is working toward his or her own agenda, so never rely on agency personnel to look out for your best interests.

• Attending the appraisal walk-throughout without knowing what your relocation benefits are: During your initial walk-through of the property, the government’s property appraiser will make decisions that will impact you. You or your representative should be knowledgeable and be capable of asking important questions that can help you as you move forward.

Eminent Domain Attorneys in California

If your business is in the process of being relocated, you will need a knowledgeable eminent domain attorney on your side to ensure you receive all possible benefits and are receiving the compensation you deserve. At Allen, Semelsberger & Kaelin LLP, our eminent domain attorneys have the skill to guide you through even the most complex eminent domain matters.

For the experienced representation you deserve, contact our office today at (888) 998-2031 to schedule your free initial case evaluation with a knowledgeable member of our legal team.