There are countless scenarios in which businesses may need to take legal action against the government. Lawsuits regarding an overreach of authority or issues with unlawful bidding practices are relatively common.
Other times, companies may need to file lawsuits related to large-scale projects that recently occurred. Road expansions, new infrastructure and similar projects can affect the flow of traffic through a community. In some cases, projects require the seizure of real estate that belongs to businesses. Other times, they may negatively affect the value of real property owned by businesses. In the latter scenario, filing an inverse condemnation lawsuit could be an appropriate response.
What is inverse condemnation?
Condemnation is the legal process through which the state takes real estate that belongs to an individual or business. The sale is compulsory, but the original owner should receive reasonable compensation for the loss of their property.
Inverse condemnation is sometimes necessary when a property loses value because of a nearby project. A change in the flow of traffic could prevent customers from pulling into a convenience store parking lot, thereby drastically reducing total sales, for example.
In such cases, a business experiencing a drop in revenue or facing a drastic reduction in the use or value of real property could potentially file inverse condemnation lawsuits against the government entity responsible for the project. They may be eligible for compensation that can help offset the negative financial impact the project has had on the business or the value of its real estate holdings.
Working with a lawyer is typically beneficial for those who need to sue the government. An inverse condemnation claim is a complex legal matter that is much easier to navigate with the assistance of an attorney.