Eminent Domain

The law of eminent domain creates complex legal problems when authorities attempt to acquire real property or business. Before the government can take or damage property, you have a right to compensation. When we fight for clients, we leverage our experience and our expansive network of professionals within the areas of real estate appraisal, business valuation, engineering and general litigation to provide our clients with the very best advice, support, and representation. We couple a proactive legal strategy with a coordinated communication plan as we assemble a unique team of valuation experts with extensive litigation experience to maximize the recoverable value of the real estate and business assets. This ability is especially critical for companies with multiple locations who need a comprehensive strategy to manage and avoid the destruction of business value through condemnation.

Baker Donelson's Eminent Domain Group is ranked among the top five firms in the nation by Best Lawyers in America 2011.   We have developed a national practice representing investor-owned utilities, private enterprises, state and national real estate and investment entities, and individual property owners faced with takeover attempts by local governments and public utilities. Having represented clients in Alabama, California, Georgia, Illinois, Kentucky, Missouri and Tennessee, the Group’s diverse team of lawyers is experienced in defending all aspects of any kind of condemnation battle, including litigation strategy, maximizing business or property value, government negotiations, and strategic communications and media relations.

Our lawyers are uniquely experienced in the complex body of law governing municipal actions and public utility franchises, both of which are key in analyzing the rights of an investor-owned utility faced with a takeover attempt. 

Representative Matters
Investor-Owned Utilities

• Successfully avoided threatened condemnations of natural gas companies by local governments in the following cities: Morristown, Maryville and Alcoa, Tennessee and Kansas City, Kansas.
• Represented publicly held water company in opposing City of Chattanooga's plan to initiate an expedited condemnation proceeding and pay only a fraction of the fair market value of the local subsidiary. The case involved the following: A Public Records Act lawsuit to compel production of the financial reports on which the City relied to substantiate the economic viability of the takeover attempt; a parallel suit contesting the City’s authority to condemn based on a prior perpetual franchise granted to the company by the State; and an injunction against the condemnation proceeding while the franchise case was pending. Community pressure, coupled with legal victory after victory for the water company, ultimately convinced the City to abandon its condemnation attempt.
• Successfully thwarted two separate efforts by the City of Knoxville, Tennessee to condemn property owned by local private businesses.
• Represented utilities and developed maximization of value strategy in negotiated sales under threat of condemnation.
• Represented utilities in franchise negotiations and related litigation.
• Represented utilities in regulatory matters in Tennessee and Illinois.
• Represented mortgage lenders and private businesses in eminent domain actions.

Private Property Condemnations

• Negotiated 743% business loss compensation increase over Georgia DOT initial offer for total taking of convenience food store with retail fuel sales tenant’s business.
• Negotiated a settlement for a nationally traded REIT in an eminent domain case involving damage to a property under lease as an auto dealership; settlement was a 252% increase over the sum originally paid into court by the Georgia DOT.
• Jury verdict awarding 429% real estate compensation increase over Georgia DOT initial offer for partial taking of vacant agricultural tract; verdict later affirmed by the Georgia Court of Appeals and finalized by the Supreme Court of Georgia upon the unanimous denial of a writ of certiorari.
• Negotiated a settlement of a condemnation case with the Georgia DOT on behalf of a regional convenience store operator; settlement represented a 125% increase over sums the DOT had deposited with the court.
• Secured a favorable jury verdict in a condemnation case in a northern metro Atlanta county in which the client, a petroleum realty investor, was awarded a sum 300% greater than that testified to by the experts for the Georgia DOT.
• Assisted petroleum distributor in obtaining DOT plan revision of site access thus preserving value of multipurpose interstate development site.
• Successfully negotiated settlement of total taking of petroleum distribution property in metro Atlanta for large petroleum real estate investor; settlement precisely met client’s goal for resolution of the matter.
• Negotiated a settlement for owners of a vacant tract of land who had a portion of their property condemned by the Georgia Department of Transportation; settlement was a 3,266% increase over what the Georgia DOT paid into court.
• Negotiated 340% real estate compensation increase over Georgia DOT initial offer for partial taking of interstate-oriented driving range/recreational facility.
• Negotiated 153% real estate compensation increase over Georgia DOT initial offer for partial taking of national fast food chain restaurant.
• Represented a developer in concluding a settlement affecting the construction of two proposed mixed use hotel/condominium towers in Atlanta exceeding clients settlement goals on both matters.
• Concluded a settlement of a power transmission line taking that adversely affected the development potential of a large residential tract in North Georgia.
• Negotiated 181% combined real estate/business loss compensation increase over Georgia DOT initial offer for total taking of convenience food store with retail fuel sales tenant’s business.
• Represented gas distribution company in threatened takeover attempt of gas distribution system in Morristown, Tennessee. Successfully negotiated with the City to abandon its condemnation effort and to award the company a new 20-year franchise. Also negotiated five new franchise agreements across the state on behalf of the distribution company.
• Represented hotel developer in a year-long effort to counter the City of Knoxville's attempted takeover in conjunction with the construction of a new convention center. City abandoned the condemnation effort. Client's property, a $30 million hotel facility situated in the center of the city, is positioned to be the official convention center hotel.
• Defended beer distributor in condemnation suit by City of Knoxville. After initial depositions, City dismissed suit and paid all attorneys' fees and expenses incurred in defending the suit. After suit was dismissed, Baker Donelson negotiated sale of the same property to the City, and the client received a $2 million premium.

Representative Clients

• Tennessee-American Water Company
• Atmos Energy Corporation