Condemnation and Just Compensation in Oklahoma: What Landowners Need to Know
Condemnation cases are undoubtedly on the rise in Cleveland, McClain, and Grady Counties, and road improvements, electrical transmission lines and substations, and the proposed OTA turnpike are the catalysts. The basic constitutional principle is that “[p]private property shall not be taken or damaged for public use with just compensation.” This begs the question: what is “just compensation” under Oklahoma law?
What Is Just Compensation?
Just compensation is the fair market value of the condemned or damaged property on the taking plus any injury to land not taken. The “fair market value” is the amount of money that a willing buyer would pay to a willing seller for the property. Oklahoma law is clear that the fair market value of a property is to be determined in accordance with the property’s highest and best use for which the property is suitable, regardless of what it may have been used for in the past or what future use the landowner may have intended.
Highest and Best Use Under Oklahoma Law
In City of Tulsa v. Creekmore, 1934 OK 57, the Court held that in determining fair market value, it is not merely the value of the property for the use to which it has been applied by the owner that should be taken into consideration but the possibility of its use for all purposes, present and prospective, for which it is adapted and to which it might in reason be applied, must be considered. Creekmore offered an example of this principle - an offering of evidence of what the value of a tract of land that is presently used for agricultural purposes or is vacant and unused, would be if developed into residential lots for homes.
Reasonable Probability Standard
Even if there is an “element of uncertainty” of a proposed use, the landowner may submit evidence of the land’s adaptability to a particular prospective use, but only if the evidence establishes that the proposed use is “within a reasonable probability.”
Why an Appraisal Matters in Oklahoma Condemnation Cases
In this scenario, courts should consider evidence of the land’s adaptability (physical characteristics) to a particular use, as well as regulatory constraints like zoning, comprehensive plan requirements, subdivision and environmental regulations, and the like. Courts will also consider the need and demand of the proposed use by considering market activities, land scarcity, and development trends.
If your land is getting condemned, it might be worth seeking an opinion for an appraiser as to the land’s highest and best use to ensure you are receiving fair market value even if your land is vacant and not being used for anything.
Protecting Your Property Rights Under Oklahoma Law
Condemnation proceedings move quickly, and landowners often feel pressure to accept the initial valuation. However, Oklahoma law provides protections to ensure property owners receive just compensation.
If you are facing eminent domain or condemnation in Oklahoma or Oklahoma City, consulting with an experienced attorney can help you:
Evaluate the government’s valuation
Assess highest and best use arguments
Protect compensation for remainder damages
Navigate litigation if necessary
Written By: Daniel Sadler | Attorney at Law
Rieger Sadler Joyce | Oklahoma City, OK | Norman, OK
Facing Condemnation or Eminent Domain in Oklahoma?
If your property is being taken or damaged for public use in Cleveland County, McClain County, Grady County, or elsewhere in Oklahoma, you may be entitled to more than the initial offer.
The attorneys at Rieger Sadler Joyce LLC represent landowners in eminent domain and condemnation matters throughout Oklahoma and Oklahoma City.
Contact our Oklahoma litigation team to discuss your rights and ensure you receive just compensation under Oklahoma law.
THIS IS MARKETING MATERIAL. THIS IS ONLY GENERAL INFORMATION AND IS NOT TO BE USED AS LEGAL ADVISE OR TO ADDRESS FACT-SPECIFIC LEGAL ISSUES. YOU SHOULD ALWAYS CONSULT AN ATTORNEY DIRECTLY FOR LEGAL ADVICE. WE ASSUME NO LIABILITY AS TO THE USE OF THIS MATERIAL.
