There are many elements of the equation to commercial success. Business owners understand all the careful strategies that go into building a productive business. One of those strategies involves the particular location of your business.
You try to choose the perfect location to maximize business and profit. So, what happens when the government claims the right to the property you chose? Eminent domain can seriously impact business practices, but there are ways for business owners to protect their investments and interests.
Compensation for eminent domain
As outlined in the Fifth Amendment of the United States Constitution, the government cannot take your property without providing you compensation for what they are taking. This compensation usually involves the government valuing your property and offering financial reimbursement of that value.
Business damages are not covered
Unfortunately, that just compensation does not include any damages the property taking could cause to your business. These damages could include:
- Loss of profit or clientele
- Costs of moving locations
- Costs of new equipment
As any business owner knows, these factors make up a significant part of the equation for success. Losing any of these could lead to serious ramifications for your business and growth opportunities.
Challenges and inverse condemnations
Since business damages are not considered a part of just compensation, the government might not be obligated to pay for those losses. However, business owners do still have options, including:
- Challenging the condemnation: The state and federal government might have eminent domain, but property owners can legally contest the taking of their land.
- Filing an inverse condemnation lawsuit: Through inverse condemnation, business owners can demand rightful compensation that the government did not pay.
For both options, it may be helpful to consult an attorney experienced in all matters of eminent domain.
Protecting your future
The most important thing to any business owner is to safeguard the future of their business. Businesses large and small are products of people's dreams and hard work come to life. If eminent domain threatens that hard work, there are ways for business owners to take action and protect their businesses.