Court Rules Eminent Domain Taking Should be Valued on Per-Ace Basis

This case comes from an appeal by the Village of Haverstraw from a decision awarding a condemnee $6.5 million in compensation. On appeal, the appellate court reviewed the basis of accepting that valuation on two grounds.

First, the court examined whether the valuation was reasonably supported by the expert testimony. This requires that the valuation be explained by reference to comparable properties and that alterations are justified. The condemnee’s appraiser had testified that the property’s best/highest value use was a multi-family residential complex, an opinion and valuation the court found sufficient based on the facts provided. In contrast, the Village failed to show why its view, that the best use was light industrial development, was correct. Finally, the alterations the lower court made to the valuations presented by the expert testimony were adequately explained to be upheld.

The appellate court also addressed the method by which the property should be valued, holding that the proper valuation of a given property should be calculated per-acre, not based on the number of units that could potentially be developed on the property. Based on the foregoing reasons, the lower court’s decision was upheld.

The case was Village of Haverstraw v. AAA Electricians, Inc., 114 A.D.3d 955 (N.Y.A.D. 2014). The full opinion can be accessed at:

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