NFIB Fights Eminent Domain Abuse

Date: May 15, 2014

Small Business Legal Center defends owner in Ohio case.

The NFIB Small Business Legal Center recently took action to defend an Ohio business owner.

In Westerville v. Taylor, a court ruled that the City of Westerville, Ohio, could exercise eminent domain to take control of a portion of a piece of property that a local commercial property owner leases to a bank. The city plans to use the property for a municipal beautification project; the owner speculates that this could be anything from tall trees to an ornamental brick wall, either of which would obstruct views to and from the property, resulting in serious depreciation in value to the commercial property.

The property owner challenged the decision, arguing that the city had abused eminent domain and caused the value of his property to depreciate. A jury awarded the owner $1.3 million. The city is now appealing that ruling.

In March, the Small Business Legal Center filed an amicus brief arguing that the jury decided correctly in awarding damages to the owner for his business’ lost visibility.

“This case … raises fundamental questions as to how commercial property owners should be compensated in partial takings cases,” Karen Harned, executive director of the Small Business Legal Center, said in a press release. “This is a question of great practical concern for small business owners because they have often invested substantial personal assets into their property and business.

“As such, when the government chooses to exercise the power of eminent domain, these owners are placed in a vulnerable position.”

NFIB’s action in Westerville v. Taylor is part of our new initiative, the Just Compensation Project, through which we’re advocating for rules that will ensure small business owners are fully and fairly compensated for their losses in eminent domain cases.

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