Those who own property in Texas enjoy legal rights when it comes to how they choose to use their land. However, there are circumstances in which a government agency may exercise its legal authority (known as eminent domain) to seize private property for public use in exchange for compensation to the owner. Landowners may not recognize their legal rights when they receive a letter notifying them of an upcoming construction or highway expansion project that affects their property. When an entity exercises its rights to eminent domain, the condemnation process will begin. Condemnation refers to the legal process by which a governmental agency compensates private property owners in exchange for their land. Below is an overview of eminent domain in Texas and what landowners should know about the condemnation process.
Defining Eminent Domain in Texas
Although private property owners enjoy legal authority over their land, governmental agencies or bodies may seize property from landowners for projects intended to benefit the public in some way. The entity enforcing its rights to eminent domain must provide compensation to the property owner in exchange for their land. The Fifth Amendment of the United States Constitution and the Texas Constitution specify that the government may only exercise its eminent domain power if they provide “just compensation” to the property owner. The term “just compensation” leaves room for interpretation; however, the US Supreme Court clarified that “when the government engages in a taking and implements a permanent physical occupation of the property, it must provide the property owner with just compensation, even if the area is small and government’s use does not greatly affect the owner’s economic interest.”
Meeting the Criteria for “Public Use”
In order to exercise its eminent domain power, an entity must demonstrate that the proposed project is for “public use.” This vague term leaves some room for interpretation, but a 2005 case before the US Supreme Court held that projects providing general benefits to the surrounding community, including the furthering of economic development, qualify as public use. Eminent domain allows many entities to seize private property for various purposes, including building or expanding public roads and highways or establishing a new airport, park, school, or public building. Additionally, carrier pipelines and energy transportation companies and entities may exercise their eminent domain rights to install, expand, or repair electric transmission lines and oil, gas, and water pipelines.
Entities That May Exercise Eminent Domain Rights in Texas
In most condemnation and eminent domain matters, only the federal, state, county, and municipal governments have the authority to exercise their eminent domain rights. Additionally, water districts and school districts may propose projects that allow them to exercise this right. In Texas, there are several public entities that have enjoyed the right of eminent domain, such as the Texas Department of Transportation, municipalities, school districts, state universities, public hospitals, municipal water districts, counties, the Texas Board of Criminal Justice, and Texas Parks and Wildlife. Many public utility companies also have the right to exercise their eminent domain authority in order to install pipelines, transformers, and power lines.
Do Private Entities Have Eminent Domain Rights?
After the United States Supreme Court upheld a government’s authority to condemn private property for economic development in 2005, various entities have used eminent domain to seize and convert private property for large commercial projects. Since that ruling, private property has been taken and used for projects like constructing sports stadiums and shopping centers. In Texas, certain private entities have sought and obtained eminent domain authority, including common carriers and pipelines, telephone corporations, waterworks service corporations, and spaceport development corporations, among others. If you are wondering whether a specific corporation or entity has the legal authority to exercise eminent domain and initiate condemnation proceedings against you, you can refer to the publicly accessible list called the Comptroller’s Online Eminent Domain Database (COEDD) for more information.
Understanding Your Legal Rights as a Texas Property Owner
In response to the wave of entities and corporations initiating condemnation proceedings throughout the state of Texas, the Texas State Legislature created the Property Owners’ Bill of Rights to clarify a landowner’s legal rights in eminent domain and condemnation matters. This resource reminds Texas property owners that they have the right to resist a condemning authority and that you may hire an independent appraiser to determine the value of your property to ensure you obtain an equitable amount of compensation in exchange for your property. It’s always in your best interest to enlist the guidance of a trusted Texas condemnation attorney as soon as you receive written notice of an upcoming project that will affect your property. Together, you and your attorney can assess the specifics of the situation and take the necessary steps to ensure you obtain a fair and favorable outcome.
If you are struggling with an eminent domain or condemnation matter, the dedicated legal team at Sewell Sewell Beard LLC is here to help. Call our Alabama office at (205) 544-2350 or our Texas office at (972) 777-5390 today to learn more.
