Business Relocation and Good Will
The government is obligated to provide Relocation Assistance and pay Relocation Benefits when a person, business, or farm operation is forced to relocate to a new site.
MFox Eminent Domain Law & Real Estate Law
Relocation Assistance and Relocation Benefits
Under certain circumstances, the government can force a business to relocate … BUT, there are limits and conditions. And, they must pay for any IMPROVEMENTS PERTAINING TO THE REALTY, they must provide RELOCATION BENEFITS, and they must pay compensation for any LOSS OF BUSINESS GOODWILL, and sometimes more …
Relocation Assistance
The government is obligated to provide Relocation Assistance and pay Relocation Benefits when a person, business, or farm operation is forced to relocate to a new site.
At FoxLaw, we can help you get the MAXIMUM amount of compensation for a move to a new site …
If you are forced to move your business because of a government project, you are entitled to reasonable costs to relocate. In general, relocation assistance is governed by the California Government Code, but be aware that the law can be very complicated and should be discussed with an attorney familiar with the actual application of the law.
In fact, any person, business, or farm operation displaced as a result of the government’s acquisition of property is typically entitled to relocation assistance and financial compensation for eligible relocation expenses, such as moving expenses. The amount of relocation compensation is determined on a case-by-case basis.
The amount that you are entitled to is subject to certain maximum amounts (i.e. $25,0000 for reestablishment expenses), but keep in mind that these amounts are not the TOTAL amount that you are entitled to.
The total amount that you are entitled to includes moving costs, costs to reinstall and reconnect machinery and equipment, expenses in finding a replacement site.
Relocation benefits are typically handled by each agency through an administrative proceeding. It is not part of an eminent domain action itself, unless all attempts for administrative relief are exhausted.
Loss Of Business Goodwill
In eminent domain cases, you are entitled to compensation if your business suffers a loss of benefits that a business enjoys from its location, reputation for dependability, skill, quality, and ability to retain patronage. If these business attributes are lost or damaged by the condemnation and the owner cannot reasonably preserve the goodwill by relocating, the owner has a claim for damages which will be determined by a jury.
Historically, lost business goodwill was not recoverable under eminent domain law. However, in 1975 the Legislature enacted section 1263.510 ‘in response to widespread criticism of the injustice wrought by the Legislature’s historic refusal to compensate condemnees whose ongoing businesses were diminished in value by a forced relocation.
Currently, California law allows a business to recover compensation for loss of goodwill when property is taken by eminent domain.
Not every state allows recovery of compensation for such a loss. To be entitled to compensation for loss of business goodwill, a business must show that the loss is caused by the taking, that it cannot be prevented by relocation or other reasonable mitigation efforts, and that it will not be compensated for the loss in other ways. There are more limits and intricacies that must be analyzed. The attorneys at FoxLaw can help you understand your rights and entitlements in this area.
The Law Office of Mark R. Fox, – FoxLaw – a Los Angeles and Bakersfield California Real Estate and Eminent Domain Law Firm, is proudly affiliated with the law firm of Fisher & Talwar, PLC in an of-counsel capacity, providing eminent domain support and consultation.
Our cases are handled by our California Eminent Domain Attorneys
– a feature which distinguishes The Law Office of Mark R. Fox from larger, more-impersonal litigation houses. Because we are selective in the cases we take on, we are able to devote more time and energy to each of our clients. By participating in every step of the process, our partners are able to effectively assist clients in identifying goals and advise them on how to best attain their desired results.
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Offices in Los Angeles, and Bakersfield California
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MFox@MFoxLawFirm.com
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