Leslie

Two interdependent businesses share the same building. Here we hold that in a condemnation proceeding the combined loss of goodwill suffered by both businesses is a proper measure of damages even though the businesses are treated separately for tax purposes.

Facts

The State of California filed an action in eminent domain on March 25, 1993, seeking interests in property owned by Robert G. Leslie and Marilyn B. Leslie. The Leslies’ property was on Los Angeles Avenue in Saticoy, adjacent to State Highway 118. The state, through the Department of Transportation, sought permanent and temporary interests in the property to widen and straighten the highway. These interests included a partial taking, a temporary construction easement, and a right to enter the remainder.

The Leslies and R & H Paving, Incorporated (R & H) answered the complaint, claiming damages for loss of goodwill among other damages. Robert Leslie was the sole shareholder of R & H, a roadway construction business since 1967. R & H operated at the Los Angeles Avenue property and employed on a seasonal basis between 50 and 100 employees.

Prior to trial, the Leslies and R & H filed a witness list and a…