Owning and operating a small business in Alabama is a source of pride for many individuals. Whether you have run your own business for decades or you have just launched a small business enterprise within the last year, there is a considerable amount of excitement (and a bit of anxiety) that comes with this type of work. As a small business owner, you face countless decisions on a daily basis, ranging from relatively minor tasks (what types of pens to purchase) to big-picture choices (whether to launch a second location). While many decisions are relatively predictable, many business owners find themselves blind-sided by sudden and confusing eminent domain matters. If your business has received a condemnation notice informing you that an upcoming construction project will impact your building or land, enlist the guidance of an experienced and knowledgeable Alabama condemnation attorney right away. It’s essential to recognize that individuals and businesses have legal rights during these proceedings, so you do not have to acquiesce to the condemning authority without questioning many aspects of their behavior. Your lawyer will assess the specifics of your situation and identify the most strategic path forward that can turn lemons into lemonade.
Understanding Eminent Domain and Condemnation in Alabama
First, it’s important to understand what the terms “eminent domain” and “condemnation” mean for landowners in Alabama. Both federal and state constitutions endow governmental entities (and other qualifying bodies) with the power (called eminent domain) to seize private land to use in construction projects that will benefit the public in some way. In exchange, the entity must provide the property owner with “just compensation” for their property. The term “eminent domain” refers to the constitutionally-protected authority to seize private property, while the term “condemnation” refers to the legal process that occurs when a governmental entity invokes its eminent domain power.
When Eminent Domain Authority Can Be Used
Essentially, an approved governmental entity may invoke its eminent domain authority to complete a project that will benefit the public. For example, a federal, state, or local transportation department may invoke eminent domain to obtain privately-owned land to complete a highway expansion project. Since the completed project will ease traffic congestion and improve mobility throughout the area, this goal constitutes “public use” and justifies the taking of private property. While most governmental entities hold inherent eminent domain power, bodies wishing to initiate condemnation proceedings must obtain authorization from the court. Over the years, Alabama courts have ruled that “a county has the right to condemn land for a toll road/bridge project that would be constructed and operated by a private company” and that “public utility companies may properly exercise the power, as conferred by the legislature, because their projects are of benefit to the public.” As soon as you receive a condemnation letter, contact your attorney to determine whether the condemning authority has the right to invoke eminent domain power in the first place.
How Eminent Domain Impacts Small Businesses
As a small business owner, your location matters. Many shops and businesses rely on a steady stream of customers, and those loyal to your company want to know where they can go to continue patronizing your business. Receiving a condemnation letter can be a disorienting and confusing experience, especially if you are not familiar with eminent domain and condemnation laws (which most people and businesses are not). Most condemnation letters are worded in such a way that implies the recipient has no choice but to accept all of the provisions included in the letter, including the settlement offer. However, it’s essential to recognize that you have the right to dispute the condemnation action and push for a much better settlement offer that reflects a more comprehensive and legally proper valuation of your property. The odds are pretty good that the condemning authority’s offer is based on an appraisal that did not follow the special rules required in a condemnation, intentionally producing a lowball offer. Whoever accepts that first offer is probably leaving money on the table.
Small Businesses Are Historically Undercompensated
An entity invoking eminent domain authority has the responsibility to offer compensation that is “just.” However, this vague term leaves property owners vulnerable to lowball offers, especially if they are unaware of their right to negotiate a more equitable settlement offer. Historically, government entities have undercompensated small businesses during condemnation proceedings, often using only the fair market value of the land to calculate the property’s worth. A truly “just” settlement should consider multiple factors, such as the costs of relocating the business, the loss of goodwill, and the loss of customers. Working with a trusted and skilled condemnation attorney is the best way to ensure that you obtain a fair settlement award in exchange for giving up your property.
How a Condemnation Attorney Can Help
Government or private entities that invoke their eminent domain power will attempt to compensate affected property owners as little as possible, as this strategy protects their bottom line. As a small business owner, you have the right to fight back against lowball offers. Although some business owners may attempt to take this challenge on themselves, working with a seasoned condemnation attorney is the best way to protect your best interests and obtain the most favorable outcome. Your attorney understands the nuances and complexities of Alabama condemnation laws, and they will help you identify the most strategic path forward. Having a dedicated legal professional by your side can empower you to take aggressive action against a condemning entity that threatens your business and livelihood. A government entity will rarely offer business damages to an owner without the court compelling it to do so, which is why enlisting the services of a trusted Alabama condemnation lawyer is highly recommended. Together, you and your attorney can push for the compensation you need to make up for the damages and losses associated with the seizure of your property.
As a small business owner in Alabama, it’s essential to understand your legal rights in eminent domain and condemnation matters. The dedicated legal team at Sewell Sewell Beard LLC is here to help. Call our Jasper, AL office at (205) 544-2350 or our Prosper, TX office at (972) 777-5390 today to speak to a knowledgeable and experienced condemnation attorney.
