How a Government Agency Can Take Your Property: Eminent Domain

Government bodies have long had the ability to take private property (with fair compensation) for a public purpose. Traditionally that might have meant for roads or schools, but government is increasingly getting into the real estate development business using their eminent domain powers. They team up with private companies and developers, in the name of economic development, to take properties and develop offices and manufacturing facilities.

There are many steps that need to take place in Maryland before a property can be taken by government from a private owner and developed for some public purpose. The condemnation process starts with the identification of a public need, and a decision by the governmental body that its necessary to acquire private property to fulfill that public need. This often involves public hearings and the property owner may or may not be given individual notice of these hearings.

The condemning public authority (or “condemner”) normally sends written notice to the property owner informing them that it intends to acquire the property. The agency will make an initial offer for what it determines is just compensation (including in some cases relocation costs). Maryland statute requires the condemner in most cases to engage in good faith attempts to acquire the property through negotiations. If those negotiations fail, the condemner would file a lawsuit in circuit court.

Some state and local agencies have “quick-take” authority, but the owner still has the right to a full trial for the court to calculate fair compensation for the property. To quickly take possession, the condemner pays into the court’s registry the amount the agency has determined the owner is entitled to receive (normally based on an appraisal the owner has received during negotiations). When the money is deposited, the condemner can enter the property and start necessary construction work. The owner can withdraw these funds, but this does not prejudice the ability to seek more compensation at a trial. If the government body does not have quick take authority, this step does not apply. The condemner would nt take possession, or pay any money, until after a judgment is entered. This step is also not applicable in traditional Maryland condemnation cases, as the condemning authority does not take possession, or pay any money, until after a judgment is entered.

The court would also issue a scheduling order setting out deadlines. Expert witnesses would be retained by both parties to determine and testify about what is at issue in the case. For example, witnesses would testify regarding how much is the property worth. Both parties would engage in discovery, the method by which facts are discovered so the parties can get a full picture of the case. Negotiations and mediations could take place at any point in the process, but is common after discovery when both sides have disclosed all the relevant facts

If a trial takes place, Maryland residents and businesses have a right to a jury trial on the issue of just compensation in state condemnation proceedings and that jury may go visit the property in question. The parties are allowed to present evidence to support their side, and refute the other sides contentions, as to what the compensation should be

Unless the case is settled during the trial, there will be a verdict, which potentially could be appealed. In a traditional condemnation case, if the condemner decides the verdict is too high, it can abandon the condemnation process but will be responsible to pay the property owners reasonable costs and attorneys fees. In a quick take case, if the verdict is lower than the amount the condemner has paid to the court and taken by the property owner, that owner needs to reimburse the condemner the difference

If you own property, either personally or through your business, in Maryland or Washington, DC and have learned it may be taken by eminent domain, contact the real estate litigation attorneys at Longman & Van Grack in Bethesda and Rockville at (301) 291-5027 so we can discuss the case today.