Lanning

Plaintiff, Dwight Lanning, appeals from that part of the judgment of the Monterey County Superior Court which determined that neither the City of Monterey nor Southern Pacific Land Company was liable to plaintiff on the theory of inverse condemnation, the court finding there had been no “taking” of plaintiff’s property. We reverse the judgment.

Facts

On June 17, 1982, the Southern Pacific Land Company sold to the City of Monterey (City) its railroad right of way and track structure extending from Roberts Lake in Seaside to the Southern Pacific station in Monterey. The City acquired the land for a transportation corridor including a pedestrian and bicycle trail. The sale followed negotiations covering a period of many months, and as found by the court, was conducted in lieu of the city’s exercise of its power of eminent domain to acquire the property. The City expressly acquired the property subject to existing leases. The consideration paid to Southern Pacific covered the fee and track structure and did not purport to pay for any lessee-owned improvements.

Plaintiff was the lessee of a portion of this land, having been in possession of it since 1965 when he signed a…