Eminent Domain, Land Use and Real Estate Litigation

OVERVIEW

Eminent Domain and Inverse Condemnation Litigation

Since its founding in 1923, the firm has specialized in eminent domain litigation, regularly representing property and business owners in counties throughout California as well as the U.S. District Courts and the U.S. Court of Federal Claims. Most of these claims are direct condemnation claims in which a government entity seeks to take the private property of our client. We have represented property owners of every possible use of real estate, including:
  • Large Development Tracts
  • Industrial, Commercial, and Retail Properties
  • Railroad and Other Rights of Way
  • Working Ranches and Farms
We also represent business owners in loss of business goodwill and related claims.

A significant number of our cases are inverse condemnation actions where the government engages in conduct which constitutes an unconstitutional taking of private property but does not institute a direct condemnation action. These cases can be based upon so-called regulatory or actual physical takings of property, or other unreasonable pre-condemnation conduct which damages the property.

Eminent Domain Precedential Decisions

As a result of our long experience in these areas, we have represented clients whose cases have made new law in the area of eminent domain:
  • Los Angeles v. Retlaw Enterprises, Inc. (1976) 16 Cal. 3d 473 (upholding various appraisal theories in then the largest eminent domain award in California)
  • Cuna Mutual Insurance v. Los Angeles Metropolitan Transportation Authority (2003) 108 Cal.App.4th 382 (inverse condemnation action establishing property owner’s right to claim mitigation expenses incurred to protect property from threatened damage by public project)
  • City of Vista v. Fielder (1996) 13 Cal.4th 612 (eminent domain case upholding commercial tenant’s claims for leasehold bonus value and loss of business goodwill)
  • Hawthorne Red. Agency v. Force Electronics (1997) 55 Cal.App.4th 622 (eminent domain/inverse condemnation case requiring government to pay property owner immediately instead of over ten years for property taken and damages suffered)
Across its 100-year history, Hill Farrer has almost 200 published decisions in the Supreme Court of California and Courts of Appeal, many of which have involved real estate litigation.

Real Property and Land Use Litigation

Hill Farrer & Burrill LLP has significant experience in all types of real property litigation. Our representation includes:
  • Property owners in litigation involving purchase and sale agreements, easements, and rights of way, and lease issues.
  • Claims for specific performance of real estate contracts as well as issues concerning boundaries, encroachments, and title issues.
  • Shopping center owners and tenants on issues involving lease termination, exclusivity, and other landlord-tenant matters.
  • We handle "rent reset" matters where the terms of a long-term lease require a reset of rent based upon fair rental value or fair market value of the property.
  • Property owners in assessment proceedings, as well as disputes with government agencies over land use entitlements.
  • Claims between co-owners of real estate, such as fraud, breach of fiduciary duty, and partition actions.
In addition to litigation, Hill Farrer regularly represents clients in various aspects of land use, including zoning and entitlement disputes as well as litigation.

We assist clients’ work through the complex issues in developing and permitting large tracts as well as in-fill development. Our counsel also covers clients with respect to the California Environmental Quality Act (CEQA), both in compliance with that act and in CEQA litigation.

EMINENT DOMAIN AND INVERSE CONDEMNATION LITIGATION

Hill Farrer has represented literally hundreds of property owners whose property has been condemned by federal, state and local governmental entities, special districts, and utilities. 

This representation has involved all types of property from high rise office buildings, industrial parks, shopping centers, residential developments, apartment buildings, farmland, and unimproved land. Many of these cases have gone to jury trial at which our clients prevailed, but the overwhelming majority settled before trial. 

Trial Victories and Favorable Settlements

  • Prevailed at jury trial and on appeal in an eminent domain action with an additional damage award for unreasonable precondemnation delay and conduct by the condemning agency. Our client also received reimbursement from the condemning agency for the fees and costs incurred in the case. Hawthorne Red. Agency v. Force Electronics (1997) 55 Cal.App.4th 622 
  • Prevailed at trial of liability for inverse condemnation in action whether government agency had preserved property within a future right of way, essentially refusing to allow development within an area planned for future infrastructure. After the liability finding, the case settled for $4,500,000 plus reimbursement of the client’s attorney’s fees and litigation expenses. Settled before trial several other similar cases based upon claimed preservation of property for future public improvements. 
  • Obtained a jury trial verdict of $2,500,000 in an eminent domain and inverse condemnation action arising out of a Caltrans-induced slide in Malibu. Our client also received reimbursement from the condemning agency for the fees and costs incurred in the case. 
  • Represented at trial a number of property owners in claims for precondemnation damages due to unreasonable precondemnation delay or conduct by the condemnation agencies. These successful cases included situations where the condemning agency downzoned the property in anticipation of condemnation, forced the removal of improvements, prevented development and hindered rental of the properties. See e.g., Hawthorne Red. Agency v. Force Electronics (1997) 55 Cal.App.4th 622. 

Landmark Properties and Condemnation

  • Prevailed on appeal in an inverse condemnation case involving the El Capitan Theatre. The retrial led to a finding of liability after which the case settled. Our client also received an award for the fees and costs it incurred in the case from initial trial, on appeal, and on the retrial. Cuna Mutual Insurance v. Los Angeles Metropolitan Transportation Authority (2003) 108 Cal.App.4th 382 
  • Represented dozens of property owners whose properties were damaged or destroyed by Metro Rail tunneling and station construction on Wilshire and Hollywood Boulevards. Most of the inverse condemnation cases settled before trial; one inverse condemnation went to binding arbitration resulting in a substantial award to our client, the owner of the historic Wiltern theatre. 

Additional Litigation and Claims

  • Prevented the condemnation of properties sought for public uses, including condemnor’s failure to comply with CEQA 
  • Represented hundreds of business owners in loss of business goodwill claims caused by condemnation, as well as claims for improvements, inventory and mitigation expenses. The subject businesses included, amongst others, gasoline and service stations, markets and mini-marts, retail chains, restaurants, discount stores, theatres, and industrial plants. 

REAL ESTATE AND LAND USE LITIGATION

Trials

  • Obtained judgment after court trial in favor of owner/ground lessor in its disputes with ground lessee involving multimillion-dollar possessory tax and other ground lease issues involving a Newport Harbor frontage commercial building. 
  • Summa Corp. v. California Ex Rel. State Lands Commission, 466 U.S. 198 (1984):  Represented owner of real property in defense of claims by the City of Los Angeles and the State of California to the effect that the property was subject to a public trust easement for navigation, commerce and fisheries.
  • Represented landowner involved in a dispute with a neighboring sewage treatment plant regarding scope of easement to discharge treated effluent on landowner’s property. Successfully brought “anti-SLAPP” motion against sewage treatment company on grounds that the sewage treatment company was attempting to infringe on landowner’s first amendment rights of free speech and petition. Decision of trial court upheld on appeal. 
  • Prevailed at trial and on appeal in our representation of owner and developer of Home Depot Center, the Galaxy soccer stadium in Carson, in CEQA challenges brought by neighborhood groups seeking to prevent the construction and operation of the stadium. 
  • Obtained favorable settlement on quiet title, partition, declaratory relief action, including resolution of client’s cross-claims for adverse possession, which claims arose out of breach of joint venture agreement involving multimillion-dollar residential home in Beverly Hills, California. 
  • Defended a property owner in the trial of an action by adjoining property owner for damages arising from property line dispute. Obtained favorable verdict for client at trial. 
  • Served as lead counsel for defendant national railroad company in a suit brought by a public water agency. The agency intended to build a canal that crossed tracks owned and operated by the railroad. The agency contended that its rights to the land were superior and that the railroad was required to either relocate its operations or pay millions of dollars for the additional cost to tunnel the canal beneath the tracks as opposed to having an open channel canal on the surface of the land. Obtained a complete defense verdict at trial. 

Litigation and Dispute Settlements

  • Represented a property owner in litigation in which a tenant sought to exercise the tenant’s option to purchase the shopping center. Result:  option exercise disallowed; held that the tenant had improperly interfered with the appraisal and that the appraiser had failed to disclose conflicts of interest prior to undertaking the appraisal assignment. 
  • Represented buyers in specific performance cases against recalcitrant sellers 
  • Prosecuted and defended partners in various real estate ventures as to claims between partners, and from third parties, alleging fraud, mismanagement, defalcation, and breach of fiduciary duty. 
  • Successfully represented lenders in claims by borrowers for lender liability. 

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