How is just compensation determined in a California condemnation?

What the Law Says

California law defines just compensation in eminent domain actions as the full monetary equivalent of the property taken, measured by its fair market value, along with adjustments for harm or benefit to the remaining property.

Under the California Eminent Domain Law, just compensation is generally the 'fair market value' of the property at the time of valuation — what a willing buyer would pay a willing seller in an open market, with neither acting under compulsion.

If only part of a parcel is taken, the owner may also recover 'severance damages' — the reduction in market value of the remaining land caused by the taking. However, any 'general benefits' (e.g., improved access or infrastructure) that increase the value of the remainder must be deducted from severance damages.

The condemning agency must pay interest on the award from the date of possession until payment, and the property owner has the right to a jury trial on the issue of compensation unless waived.

Statutory Text

Just compensation is the fair market value of the property taken.

— Code of Civil Procedure, s. 1263.020 — Definition of just compensation

Statutory Text

Severance damages are the amount of damage to the remainder of the property resulting from the taking.

— Code of Civil Procedure, s. 1263.410 — Severance damages

Statutory Text

Any general benefit to the remainder attributable to the public use for which the property is taken shall be offset against severance damages.

— Code of Civil Procedure, s. 1263.330 — Offset for general benefits

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