We have been discussing strategy considerations in eminent domain cases in previous blog posts over the past month. Our topics have ranged from the consequences of hiring the wrong appraiser to the three things to consider when speaking to the authorities. The last point I would like to discuss in this ‘series’ of blog posts is the ability to recover your attorney’s fees and costs.
The general rule in most states is that you can recover some degree of costs with regards to the appraisal that you need to hire. Some states will either pay for or reimburse you for part or all of the expense of a second appraisal. A limited minority of states will also allow you, because of their statutes, to recover other expert costs like deposition costs, your typical litigation costs, plus attorney’s fees, if you are successful in pursuing your eminent domain claim to the level that is required by that particular state.
If you have an eminent domain claim, you should evaluate your ability to recover costs and attorney’s fees within your jurisdiction with the eminent domain law firm or attorney that you hire.
Because this information is so critical to property owners, I’ve provided a list of states that have statues related to attorney fee recovery in additional damages claims, along with a link to the details. When following the link, scroll to the bottom of the page for information in that state.
I wanted to provide a quick example and will use Wisconsin in this example. In WI, as long as the final award is at least 15% higher than the government’s offer, than all attorney’s fees and costs will be paid for by the government. Let’s say for example you are a property owner and receive an offer in the amount of $100,000 for your land. The eminent domain law firm or attorney that you hire determines that just compensation is $200,000. If the attorney works on a contingent fee basis (where they typically receive 1/3 of the additional money they obtain for you) and the final award as determined by the judge or jury is indeed $200,000, then the government will have to pay $233,000 plus costs. The full $200,000 goes to you the property owner, the $33,000 goes to the eminent domain law firm, and the government will also need to reimburse you for your costs incurred in pursuing just compensation (filing fees, deposition costs, appraisal costs, other expert witness costs, ect).
It’s important to understand what your ability is to recover attorney’s fees and costs in your state and to know what the threshold amounts or limitations are to these statutes.
Please keep in mind this information is a summary of rights. Restrictions do exist in these statutes and it is therefore important to seek legal advice if you have questions regarding how these statutes in your state apply to your case.
