People Ex Rel. Department of Transportation v. Diversified Properties Co. III

This is an eminent domain action. The condemnor is the State of California, ex relatione the California Department of Transportation (hereinafter, the State), and the condemnee is Diversified Properties Company III (hereinafter, DPC), a limited partnership which is the owner/ prospective developer of the commercially zoned realty which was condemned by the State in this action (hereinafter, the subject property).

The State has appealed from those portions of the judgment in condemnation entered below in which the trial court (1) awarded damages for unreasonable delay by the State in instituting its direct condemnation action —basing its appeal on the fact that the trial court found a constructive or de facto taking of the subject property by the State at a time precedent to the unreasonable delay—and (2) imposed a 10 percent postjudgment interest rate on the compensation and damages awarded to DPC.

The State has raised the following contentions: (1) There was insufficient evidence to support the trial court’s finding that the State had effected a “de facto taking” of the subject property some two and one-half years prior to the filing of the within eminent domain action…