Los Angeles County Metropolitan Transportation Authority v. Alameda Produce Market, LLC

Under California’s “quick-take” eminent domain procedure, a public entity filing a condemnation action may seek immediate possession of the condemned property upon depositing with the court the probable compensation for the property. (Mt. San Jacinto Community College Dist. v. Superior Court (2007) 40 Cal.4th 648, 653 [ 54 Cal.Rptr.3d 752 , 151 P.3d 1166 ] (Mt. San Jacinto); see also Code Civ. Proc., §§ 1255.010, 1255.410.) Any defendant in the condemnation action—which includes anyone the public entity knows to have or claim an interest in the property (§ 1250.220, subd. (a))—may apply to the court to withdraw all or any portion of the deposit (§ 1255.210). Section 1255.260 provides that, “[i]f any portion” of the deposit “is withdrawn, the receipt of any such money shall constitute a waiver by operation of law of all claims and defenses in favor of the persons receiving such payment except a claim for greater compensation.” The Court of Appeal in this case held that, under this statute, if a lender holding a lien on condemned property applies to withdraw a portion of the deposit, and the property owner does not object to the application, the lender’s withdrawal of a…