Condemnee entitled to compensation for business losses only when property is unique.(Recent Court Decisions)

When an office building property was condemned, the loss of a tenant's business must be separately compensated if no relocation site exists in the area, according to the Court of Appeals of Georgia.

ABM Realty Company (ABM) operated its property management business from leased offices in the building it managed. When the state university system condemned the entire office property, ABM sought damages for the loss of its business in addition to compensation for its leasehold.

At the hearing on damages, the trial court judge directed the jury that the loss of a business is compensable only if the condemned property is "unique," such that it must be duplicated for the business to survive. The judge further instructed the jury that ABM's difficulty relocating in the area was not evidence of the property's uniqueness. The jury ultimately concluded that the office building was not unique and did not compensate ABM for its business. ABM appealed.

On appeal, ABM argued primarily that, contrary to the jury instruction, its inability to relocate showed the parcel's uniqueness. The appellate court agreed. The court held that in fact, the lack of comparable property is alone sufficient evidence of uniqueness for purposes of business-loss damages. Because the trial court explicitly instructed the jury otherwise, the jury instruction was erroneous, according to the court. The trial court decision was reversed.

ABM Realty Company v. Board of Regents

of Univ. System of Georgia

Court of Appeals of Georgia

March 16, 2009

2009 WL 656546 (Ga. Ct. App. 2009)

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