Attisha

In this eminent domain case, defendants Bahira and Behnam Attisha and Kheder and Balsam Attisha appeal a judgment awarding them $400,000 for loss of business goodwill. The Attishas contend the trial court erred by (1) disallowing compensation for business inventory; (2) striking the testimony of their expert goodwill valuation witness on the grounds that (a) under this court’s opinion in San Diego Metropolitan Transit Development Bd. v. Handlery Hotel, Inc. (1999) 73 Cal.App.4th 517 [ 86 Cal.Rptr.2d 473 ] (Handlery), as a matter of law the expectation of a lease renewal is speculative and cannot provide a foundation for a goodwill award, and (b) the expert impermissibly considered business sales outside the San Diego area in his “cash flow multiplier” valuation method; (3) excluding the testimony of Bahira Attisha on goodwill valuation; and (4) directing a verdict in the amount to which the goodwill valuation expert of the Redevelopment Agency of the City of San Diego (Agency) testified.

We conclude the court misinterpreted Handlery, abused its discretion by striking the expert’s testimony and erred by directing a verdict. The goodwill valuation issue should have gone to…