US-New YorkWhat damages can I recover beyond fair market value in a condemnation?
In New York condemnation cases, you may recover damages beyond fair market value for items like business goodwill, moving expenses, and severance damages — but only if specific statutory conditions are met.
What the Law Says
New York law allows certain additional compensation beyond just the fair market value of condemned property — but only under strict statutory conditions.
Under the New York Eminent Domain Procedure Law (EDPL), property owners may be entitled to compensation for losses not reflected in the property’s fair market value. These include business goodwill, relocation expenses, and severance damages when only part of a parcel is taken.
Business goodwill compensation is available only if the business has operated on the property for at least five years, the taking causes permanent discontinuance, and the loss is not speculative. It is capped at $10,000 unless the condemnor agrees otherwise or a court finds greater loss proven by clear and convincing evidence.
Moving expenses are reimbursable up to $10,000 for residential tenants or owners, and up to $25,000 for commercial tenants or owners — provided the move occurs within 60 days of possession and proper documentation is submitted.
Severance damages — the diminution in value of the remainder parcel after a partial taking — are recoverable, but limited to 25% of the fair market value of the remainder before the taking, unless the condemnor consents to a higher amount.
Statutory TextThe court shall award just compensation for the taking of real property, which shall include the fair market value of the property taken and, where applicable, damages to the remainder and compensation for business goodwill, moving expenses and other elements authorized by this article.
— EDPL § 701 — Just Compensation
Statutory TextBusiness goodwill shall be compensable only where (a) the business has been conducted on the property for at least five years; (b) the taking results in permanent discontinuance of the business; and (c) the loss is capable of reasonable calculation and is not speculative.
— EDPL § 702-A(2) — Business Goodwill
Statutory TextMoving expenses shall be reimbursed up to ten thousand dollars for residential occupants and up to twenty-five thousand dollars for commercial occupants, subject to documentation and time limits.
— EDPL § 702-B — Moving Expense Reimbursement
Statutory TextSeverance damages shall not exceed twenty-five percent of the fair market value of the remainder prior to the taking, unless the condemnor consents in writing to a greater amount.
— EDPL § 702-C(3) — Severance Damages Limitation
What Courts Have Said
New York courts have interpreted EDPL provisions narrowly, emphasizing strict compliance with statutory prerequisites for recovering extra damages.
Held that goodwill compensation requires proof of actual, non-speculative loss — mere allegations of lost customers or reputation are insufficient without financial records or expert testimony.
Affirmed denial of severance damages where the owner failed to present competent appraisal evidence showing measurable decline in the remainder’s value post-taking.
What to Do
File a written claim for goodwill, moving expenses, or severance damages within 60 days after the condemnor takes possession.
Gather 5+ years of business tax returns, lease agreements, and customer records to support goodwill claims.
Obtain a certified appraisal showing the pre- and post-taking value of the remainder parcel for severance damages.
Submit itemized receipts and invoices for all moving costs within 30 days of relocation.
Consult an eminent domain attorney before signing any settlement agreement — waivers of statutory rights are enforceable.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.