People Ex Rel. Department of Transportation v. Hansen's Truck Stop, Inc.

— In eminent domain actions, the law directs the parties to exchange formal settlement proposals prior to trial. (Code Civ. Proc., § 1250.410, subd. (a).) If, after trial, the property owner’s statutory demand for compensation is found to have been reasonable and the condemning agency’s statutory offer unreasonable, then the property owner is entitled to recover litigation expenses. (§ 1250.410, subd. (b).) When determining entitlement to litigation expenses, the law instructs the judge to consider only the final offer and demand that were made “[a]t least 20 days prior to the date of the trial on issues relating to compensation.” (§ 1250.410, subd. (a).)

In this eminent domain action, the proceedings were bifurcated. A statutory offer and demand ($784,000 and $5 million, respectively) were made prior to the first trial. In that trial the court was asked to decide whether the property owners could pursue damage claims for impairment of access and loss of goodwill as a result of the condemnation. The property owners prevailed.

Prior to the second trial the property owners made an amended, much lower demand, but the condemning agency made no new offer. In the second trial…