Both Sides Were Off About $21 Million In Their Eminent Domain Final Proposals, So Nothing Showed Bad Faith By County In Its Final Offer.
County of Los Angeles v. 8400 S. Vermont Avenue, L.P., Case No. B326965 (2d Dist., Div. 2 Oct. 9, 2024) (unpublished) was a situation where County of Los Angeles and landowners had very conflicting appraisal reports in an eminent domain action—they were $48 million apart. Eventually, County made a final offer of compensation of $26.6 million, which was $8.62 million above its appraisal’s valuation opinion, while landowners made a final proposal of $42.5 million. At trial, County presented appraisal valuation evidence of $17.98 million, while landowners clocked in at $60.145 million. The jury decided that the fair market valuation was $39 million. Because County’s final offer of compensation was approximately 64% of this valuation, Landowners moved to recover litigation expenses (mainly attorney’s fees) of almost $5 million against County under CCP § 1250.410(a), a request denied by the lower court.
The 2/2 DCA affirmed the litigation expenses denial. As required under the fee-shifting eminent domain statute, nothing showed bad faith by the County with respect to its final offer vis-à-vis the jury verdict. Its final offer was $8.62 million above County’s appraiser’s opinion. Both sides were off about $21 million from the jury verdict with respect to their appraisal testimony presented at trial. There was nothing wrong with County’s final offer including damages, interest, fees, causes of actions, and claims, given that section 998 principles do not apply in the eminent domain context.
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