Redevelopment Agency v. Contra Costa Theatre, Inc.

Before us are cross-appeals from a jury verdict and judgment in an eminent domain action instituted by the Redevelopment Agency of the City of Concord (respondent) to condemn a leasehold interest owned by Contra Costa Theatre, Inc. (appellant).

During the course of the proceedings, appellant claimed that condemnation damages should include the diminution in value of his property interest caused by respondent’s improper precondemnation denial of his application for a use permit, under the authority of Klopping v. City of Whittier (1972) 8 Cal.3d 39 [ 104 Cal.Rptr. 1 , 500 P.2d 1345 ]—so-called “Klopping damages.” The lower court ordered a bifurcated trial in which evidence and instructions relevant to the claim of unlawful precondemnation conduct were withheld from the jury. The Klopping damages claim was heard by the trial court alone. Thereafter, the jury determined the value of appellant’s leasehold interest, and thus the amount of damages to be awarded in the eminent domain action, according to the highest and best use of the property.

The jury awarded appellant damages for the market value of the leasehold interest, including loss of goodwill. The trial court then…