AB 374, as amended, Wagner. Eminent domain: compensation: loss of goodwill.
Existing law requires the governing body of a public entity to adopt a resolution of necessity, as specified, and send related notices before commencing an eminent domain proceeding. Existing law provides that an owner of property taken by eminent domain is entitled to compensation and imposes certain requirements on the owner in order to be compensated for loss of goodwill, as described.
This bill would further requirebegin insert, for the owner of a business to be compensated for loss of goodwill, thatend insert thebegin insert businessend insert ownerbegin delete of a business to prove that there is sufficient evidence to permit the trier of fact to find that goodwill existed prior to the taking of the propertyend deletebegin insert
adduce sufficient evidence to permit a jury to find that goodwill existed prior to the takingend insert.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 1263.510 of the Code of Civil Procedure
2 is amended to read:
(a) The owner of a business conducted on the
4property taken, or on the remainder if the property is part of a
5larger parcel, shall be compensated for loss of goodwill if the
6owner begin insertadduces sufficient evidence to permit a jury to find that
7goodwill existed prior to the taking and end insertproves all of the following:
8(1) The loss is caused by the taking of the property or the injury
9to the remainder.
10(2) The loss cannot reasonably be prevented by a relocation of
11the business or by taking steps and adopting
procedures that a
12reasonably prudent person would take and adopt in preserving the
13goodwill.
14(3) Compensation for the loss will not be included in payments
15under Section 7262 of the Government Code.
16(4) Compensation for the loss will not be duplicated in the
17compensation otherwise awarded to the owner.
18(5) There is sufficient evidence to permit the trier of fact to find
19that goodwill existed prior to the taking of the property.
20(b) Within the meaning of this article, “goodwill” consists of
21the benefits that accrue to a
business as a result of its location,
22reputation for dependability, skill or quality, and any other
23circumstances resulting in probable retention of old or acquisition
24of new patronage.
25(c) If the public entity and the owner enter into a leaseback
26agreement pursuant to Section 1263.615, the following shall apply:
27(1) No additional goodwill shall accrue during the lease.
28(2) The entering of a leaseback agreement shall not be a factor
29in determining goodwill. Any liability for goodwill shall be
30established and paid at the time of acquisition of the property by
31eminent domain or subsequent to notice that the property may be
32taken by eminent domain.
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