Eminent Domain and Inverse Condemnation: Protecting Your Property Rights

“The Department of Transportation is widening the road in front of my home. They say they have the right-of-way, but it looks like they are trespassing on my property. Do I have a remedy?”

Here, a landowner may be entitled to just compensation for damage the government caused to their property by bringing an action for inverse condemnation — even when condemnation proceedings have not been commenced. While eminent domain gives the federal government and North Carolina governmental authorities the power to seize property from private landowners, it’s important to understand that the government’s powers are not unlimited.

What is Condemnation?

In order to understand inverse condemnation, it’s essential to know how condemnation works. Condemnation, also referred to as a “taking,” refers to the government’s right to take private property for public use for compensation. It is how the government exercises the powers granted to it under eminent domain. In a condemnation action, the government takes both physical possession of the property — and legal title to it.

A condemning authority is required to provide just compensation to a landowner under the Takings Clause of the United States Constitution and North Carolina law. This means that private land may not be taken for public use by the government without giving the landowner the fair market value of the property on the date of the taking. Just compensation must also be paid if property is only damaged by the government, and not actually taken.

What is Inverse Condemnation?

Inverse condemnation is a legal remedy that can be used by property owners when a government entity takes or damages a property for public use without bringing an eminent domain proceeding. To bring an action for inverse condemnation, the property owner must show that the government’s taking has either 1) deprived the owner of the economic value of their property or 2) failed to promote substantial governmental interests. In other words, a property owner must show that the actions taken by the government are equivalent to the exercise of eminent domain.

Unlike in a condemnation case, in an inverse condemnation matter, a government entity has not filed an action under eminent domain or offered just compensation. In addition, the parties are switched with inverse condemnation. The private landowner is the plaintiff — who is suing for the lost value of their property — and the government is the defendant.

Bringing a Lawsuit for Inverse Condemnation

A landowner is entitled to be compensated for the fair market value of their property in a condemnation case. If they are paid the fair market value for the taking, but the damage is worth more than the compensation being offered, the landowner may make a claim that they deserve more compensation.

Common types of inverse condemnation claims involve the government damaging property during a public project and situations where the government trespasses on private property for a public purpose. Inverse condemnation can also arise in connection with regulatory takings. Specifically, regulatory takings occur when the government passes a statute that is so burdensome it destroys the value of private land.

To prevail in an inverse condemnation action, a plaintiff must prove the following elements:

• Proof that they own the land subject to the inverse condemnation claim
• Participation by the government entity in a physical or regulatory taking
• The government entity’s actual taking of a property and/or substantial damage to it
• The damage caused to the land was the result of the government’s actions

Critically, even if the damage to the land is not physical, but is the result of excessive noise from a roadway, railroad, or airport nearby, a property owner may be able to bring an inverse condemnation claim. Condemnation claims also commonly arise in North Carolina when the Department of Transportation builds a roadway and does not account for the necessary drainage easements. Typically, landowners have a two-year time frame from the completion of a government project to recognize that the value of their land has been damaged — and file an inverse condemnation claim to obtain just compensation. Inverse condemnation claims are rare, but provide a powerful remedy for a property owner who has not been offered just compensation when their land is substantially impacted by a public project.

Contact an Experienced North Carolina Eminent Domain Attorney

If you are facing an inverse condemnation matter, it’s crucial to have the representation of a knowledgeable attorney to ensure you receive just compensation for your land. Located in Charlotte, Murray Law provides skillful counsel to landowners concerning inverse condemnation proceedings against the government. If you have an eminent domain matter in North Carolina, call Murray Law’s Charlotte office at 704-940-9095 to schedule a consultation to discuss your case and learn how we can help.