CASASOLA

Respondent Los Angeles Unified School District (the District) acquired by eminent domain property on which appellants Rudy and Teresa Casasola (the Casasolas) operated a small business. The Casasolas relocated their business to- a new, larger property and spent nearly $1.4 million moving their equipment and repurposing the new property to accommodate their business. They then sought reimbursement from the District for their relocation expenses. The District paid the Casasolas $224,252 in moving and reestablishment expenses, but rejected the remainder of the claim.

The Casasolas challenge this determination on appeal, contending that their reasonable relocation expenses are reimbursable as expenses incurred to mitigate loss of business goodwill. They also challenge the trial court’s award to the District of $180,000 in penalties, contending that the penalties are unconscionable. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

I. The Eminent Domain Complaint

The Casasolas are the owners of a catering truck supply company (referred to as Rudy’s Wholesale or Western Catering). Until October 2007, the catering supply company was located on the 4600 block of Western Avenue in…