Lege Trend. Eminent Domain & Property Owner Compensation. How Does Texas Measure Up?

Compensation & Valuation:

  • TX + 28 states use the Broad Instruction Approach
    • Broad Instruction Approach provides minimal instruction on compensation
  • 17 states use the Factor Based Approach
    • Factor Based Approach specifically lays out what considerations should be followed by the court in determining the fair market value of the land. 
    • Seeks to ensures that relevant information is considered in every condemnation case 

A consideration for Texas:

Adopting “a Factor Based or Specific…

Eminent Domain. TXDOT. Right of way. Fraud. Forget flipping houses, flip right of way land. 3 pieces informed intel:

What is flipping right of way?  2 investors have been investigated by the FBI for buying right of way near I-35East, and arguing that land delveopment deals increased the land’s value when the land was sold to TXDOT.

What happened to the 2 investors? 

  • 1 entered a guilty plea to one count of conspiracy to commit mail fraud
  • 1 is awaiting trial

The amount garnered from the land transactions?  2 investors received $12.9 million above their purchase price

Dallas Morning News | Dallas man admits…

Eminent Domain Laws Across the US. Attorney Fees. Quick Info. How does Texas measure up?

Attorney Fees:

  • TX awards attorney fees if the condemnor doesn’t make a bonafide offer
  • 40 other states award on a broader basis
    • 4 states use as standard of 110% of condemnor’s offer 
    • Colorado uses a standard of 130% of condemnor’s offer 
    • 2 states use a standard of 120% of condemnor’s offer 
    • 2 states use a standard of 115% of condemnor’s offer 
    • 6 states use a standard of any amount over the condemnor offer
    • 1 state uses a standard of “closer to land owner’s value than condemor’s…

What all was said after the TX Senate Eminent Domain Bill Package?

  • “Many [Senators] still consider the privately financed plan a boondoggle”

Austin Business Journal | Bills targeting Texas high-speed rail spark debate in Senate Transportation Committee

  • The bill prohibiting eminent domain for high speed rail has been sent to Local and Consent. 

Austin American Statesman | Bills stalling or stopping bullet train pass Texas Senate committee

  • Focused on the land owners experience. Including this quote from a member of the Board of Directors  of the  Texas and…

HB 2556 Property Damage Cost Recovery. 4 Points from The Author

  • Property Rights are Sacred
    • ​“As a small business owner and real estate broker in Texas, I know firsthand that property rights are one of the most sacred liberties that Texans enjoy,” Holland said. 
  • Fair Market Value Offers will cut court costs
    • “HB 2556, my component of eminent domain reform, will empower property owners and commission condemning authorities to extend fair market value offers to deserving landowners, additionally saving our state from frivolous administrative appeals costs…

Show Me State. Show Me Property Rights. 3 Points informed: intel

  • demand responsible routing of utilities along property lines, boundary lines or section lines
  • require minimized land damage
  • Limits the amount of PSI exerted on soil

What supporters say: “protects our property rights from those who would steal our land for their own profit.”

How does the bill apply? It applies to all condeming entities BUT only to agricultural land.

Missouri HB 640 (2017)

Southeast Missourian | Mo. Agricultural bills

4 Bits Intel. West Coast State Bill. Change Attorney Fees Calculation.

State:  California

The current way attorney fees are awarded in eminent domain: Since 1975, attorney fees can be awarded in California for eminent domain if:

  • final offer of compensation was unreasonable
  • the final demand of the property owner was reasonable

Assembly Bill 408 wants to change the standard for attorney fees in eminent domain to: 

  • Attorney fees must be awarded if condemnor’s offer is lower than 90% than the court’s value determination
  • Attorney fees may be awarded if condemnor’s…

5 Bills + 5 Companion Bills. Eminent Domain Reform for Rail Only.

A legislator coalition joined forces to limit eminent domain for high speed rail. Who is involved?

  • Senators Birdwell, Creighton,  Kolkhorst, Perry, & Schwertner
  • Representatives Ashby, Bell, Cook, Schubert, and Wray 

Which eminent domain issues are being addressed?

  • Pre-condementation Access to Property. SB 973 by Creighton/HB 2168 by Bell (Railroad Determination Before Surveys) – prohibits a high-speed rail entity from entering private property to conduct a survey unless the Texas Department…

Lege TREND. Attorney Fees. Sooner State Bill Sets New Threshold for Attorney Fees.

Oklahoma’s House Bill 2194 ups the ante on attorney fees and just compensation. The facts:

  • HB 2194 allows for an award of attorney fees if the jury award is higher than than the special commissioners.
    • Yes, you read that right, any amount higher than the special commissioners and attorney fees and costs are retreivable by the property owner.
  • HB 2194 also requires actual sales prices & actual awards to be used in just compensation calculation. 

2017. SB 742. Kolkhorst. Just the Facts.

SB 742 by Kolhorst.  Relating to requirements for a bona fide offer for the acquisition of property by an entity with eminent domain authority.

  • Requires easements to include more details on right of way, usage, size scope
  • Allows for damages related to the easement
  • Establishes 5 covenants:
    • securing the property owner’s land (locking gates etc)
    • maintaining the right of way
    • repair and restore land to the original condition or better than original condition
    • the owner shall be…