Situation 04
A gap between two appraisals is ordinary. What matters is finding exactly where the two disagree, and what the law does about it.
The statutory scheme assumes the parties will not agree at first. That is why the agency must make a written offer, why an owner may obtain an independent appraisal at public expense, and why Code of Civil Procedure section 1250.410 builds a formal exchange of final positions into the case.
Most valuation gaps come from a small number of identifiable disagreements. Reading both appraisals side by side usually locates them quickly.
Where an agency announces a project, then delays unreasonably, and the announcement itself depresses the value or the use of the property, California recognises a claim for precondemnation damages. The rule comes from Klopping v City of Whittier (1972) 8 Cal.3d 39, and it is reflected in jury instruction CACI 3509A.
Under Code of Civil Procedure section 1250.410 the parties exchange a final offer and a final demand before trial. If the court later finds the agency’s final offer unreasonable and the owner’s final demand reasonable in light of the verdict, the owner may recover litigation expenses, including appraisal and attorney fees.
The reasonableness of a final demand is judged against the evidence. A demand supported by a credible independent appraisal is far easier to defend than a number chosen without one.
Most California eminent domain matters settle. They settle after both sides have appraisals, after the scope of the take and the construction impacts are pinned down, and after the section 1250.410 exchange makes the cost of disagreeing visible to both sides.
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Questions owners ask
The agency may adopt a resolution of necessity and file a complaint in eminent domain. The case then decides the amount of just compensation, and possession may pass before judgment if the agency deposits probable compensation.
Sometimes. Code of Civil Procedure section 1250.410 allows litigation expenses where the agency final offer was unreasonable and the owner final demand was reasonable in light of the verdict.
An amount the agency deposits with the court under sections 1255.010 and following. It supports a motion for possession before judgment under section 1255.410 and it can usually be withdrawn by the owner without giving up the right to argue for more.
Where a case is filed and tried, a resolution one to two years later is not unusual. Most matters settle before that point.
Next step
Work out where the valuation gap sits before deciding what to do about it.