What is the value of a Dune Easement taken by eminent domain?

The New Jersey State Appellate Court reversed a trial courts award of $375,000 to a Harvey Cedars couple on Monday July 8^th2013. This decision will give municipalities affected by Hurricane Sandy a comfort level to pursue homeowners who have not signed easements by taking their property by eminent domain.

            After a slice of land in front of a Harvey Cedars oceanfront home was taken by eminent domain, in order to allow for a dune replenishment project a court awarded the owners $375,000. Harvey Cedars appealed the court’s decision and now that $375,000 award is no more.

            The Courts decision was based on the fact that Harvey Cedars was not provided the opportunity to present a counter argument of value.

Here is an excerpt from the court’s decision.

A formula, as used by the trial court and Appellate Division, that does not permit consideration of the quantifiable benefits of a  public project that increase the value of the remaining property in a partial takings case will lead to a compensation award that does not reflect the owner’s true loss. Compensation in a partial takings case must be “just” to both the landowner and the public.

             In any eminent domain case a homeowner is entitled to the fair market value for their loss.  To calculate a loss in a partial taking, the court says we must look to the difference between the fair market value of the property before and after the partial taking. The value of an easement has a lot of contributing factors and in an eminent domain case the law states, that value must be based on a consideration of all relevant, reasonably calculable, and non-conjectural factors that either decrease or increase the value of the remaining property.

            In determining  the damages of the Karnes’ home the trial court did not permit the jury to consider that the dune would likely spare the Karans’ home from total destruction in certain fierce storms and from other damage in lesser storms.

In reality dune construction protects not only the oceanfront homeowner that agrees to an easement but all of the homes behind it.Dune easements protect all water area homeowners, including the ones that sign them.