Redevelopment Agency v. Arvey Corp.

Defendants, Arvey Corporation, Transo Envelope Company and International Paper Company, appeal from a judgment entered on a jury verdict awarding them $225,000 for business goodwill lost because their property was condemned by the Redevelopment Agency of the City of Emeryville (Agency). In 1989 the Agency filed an eminent domain action to condemn, for public purposes, property on which appellant Arvey operated the Transo Envelope Company. In 1990 a jury trial was conducted to determine just compensation for the property taken and the amount of Arvey’s lost business goodwill. Arvey does not challenge the jury’s award of $3 million as the fair market value for the property taken. What Arvey is challenging here is the jury’s award of only $225,000 as the amount of goodwill reasonably lost by Arvey due to the eminent domain action.

Facts

When Arvey became aware in 1986 of a possible eminent domain action, it began searching for a new location for Transo Envelope Company. Through a series of acquisitions, Arvey and Transo after December of 1987 became operating divisions of International Paper Company, which also operated Coast Envelope Company in South San Francisco. The…