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Fair Market Value as Measure of Compensation for Eminent Domain

It is well settled that just compensation must be awarded for property taken pursuant to statutory provisions governing eminent domain. In this post, I discuss how fair market value is used to measure compensation. Generally, the measure of compensation is the fair market value of the property taken. (Civ. Code Proc. § 1263.310.) In situation where there is no relevant, comparable market, the fair market value of the property is determined by any method of valuation that is just and equitable. (Civ. Code Proc. § 1263.310(b).) The analysis of that value begins with a determination of the highest and best use of the condemned property. (City of San Diego v. Barratt American Inc. (2005) 128 Cal.App.4th 917.) A qualified appraiser typically performs this determination.  (See

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