Redevelopment Agency v. Metropolitan Theatres Corp.

This case originated as an eminent domain action taken against multiple defendants. Plaintiff appeals only from the judgment entered below as to one of those defendents.

Issue

Does section 1263.510 of the Code of Civil Procedure require that an owner/defendant bear the burden of proof with regard to establishing the value of goodwill which has been lost as a result of property having been taken by eminent domain? We find that it does not.

Facts

In an eminent domain proceeding, plaintiff Redevelopment Agency of the City of Cathedral City (RDA) acquired both fee interests and subsidiary property interests in several parcels of real property. In large part, the acquisition concerned the property interests of defendants who are not parties to this appeal; however, the taking also included a leasehold interest which was held by defendant Metropolitan Theatres Corporation (Metropolitan) in one of the condemned parcels. RDA and Metropolitan settled the lawsuit insofar as the value of the leasehold estate was concerned, and they stipulated that Metropolitan was entitled to be compensated for a loss of goodwill under the terms of section 1263.510. However, RDA and Metropolitan…