In Texas, and throughout the United States, the government may acquire private property through the condemnation process, so long as that property is being acquired for an authorized purpose (i.e., public use) and so long as the landowner is receiving just and adequate compensation.
The condemnation process can be frustrating for many landowners, who feel that their rights are being trampled by an aggressive government entity. Worse, still, in some cases the government may infringe upon one’s property rights without technically going through the condemnation process, thus depriving the landowner of compensation.
“Inverse” condemnation is a tool that landowners can use to ensure that they are properly compensated under such circumstances.
Now, as a Texas landowner, it’s likely that you’ve heard of inverse condemnation, but may not fully understand what that entails. Let’s explore some of the basics to help clarify inverse condemnation and how you can use it to secure compensation.
An inverse condemnation is common in scenarios where a government entity has not actually intentionally “taken” the property, but has implemented a restriction (i.e., regulation, permitting issues, zoning, etc.). This restriction imposes a burden on the property such that the land has been rendered useless for its intended purposes — or such that its resale value has been reduced substantially.
How does this work?
Suppose that you own a piece of land that you intended to make into a commercial recreational area. In fact, that’s why you purchased the land in the first place — to develop it into an outdoor recreational area, and to charge customers to visit and use the facilities.
As it turns out, however, the local government implemented zoning restrictions that limit all property in the area to residential uses. Your commercial use — to develop the land into a recreational area — is no longer viable. Under these circumstances, you could argue that the government has imposed a restriction that is equivalent to a “taking” by virtue of it having reduced the value of your property significantly (i.e., by interfering with your intended purposes for the property).
Inverse condemnation proceedings can be brought against the government to force them to pay compensation for the damages caused. Ultimately, the principle behind inverse condemnation is that private landowners should not have to be burdened with the full costs of shifting public policy — essentially, it is the government’s responsibility to compensate private landowners when government restrictions damage the landowner’s property to a significant degree.
It’s important to understand that inverse condemnation proceedings can be difficult. Success will hinge on your attorney’s ability to persuasively argue on your behalf.
In Texas, the government’s act must be a) intentional; b) done with awareness that harm was likely to occur; and c) there must be a causal link between the government’s act and the harm caused. For example, your local government may argue that their zoning restrictions allow for a range of different exceptions and are thus not excessively prohibitive.
