Pennsylvania Eminent Domain Lawyer & Attorney : Fox Rothschild Law Firm : Condemnation, Real Estate Valuation : Philadelphia, Bucks County, Pennsylvania

The Pennsylvania Department of Transportation ("PennDOT") recently announced its preliminary construction plans for a portion of I-95 in Northeast Philadelphia. These plans include rebuilding two interchanges – one at Bridge Street and one at Betsy Ross Bridge and Aramingo Avenue. PennDOT also intends to rebuild a three-mile stretch of I-95 between Cottman Avenue and the Betsy Ross Bridge. Construction is scheduled to start in 2012. However, according to PennDOT, preliminary engineering is to be completed late this year.

Businesses and residential properties will be acquired for the project – either amicably or through the eminent domain process. I spoke with the outside consultant for the project who told me the acquisition for the project will be in about 2 years. However, we always counsel our clients to engage in “pre-condemnation” planning. This involves a number of potential actions including working with PennDOT to see if you can avoid losing your property. However, most planning involves taking steps to ensure that you receive the maximum payment for your property if it is condemned.

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An appeal recently filed with the U.S. Supreme Court asks the Court to revisit its controversial decision in Kelo v. City of New London. In Goldstein, et al., v. Pataki, et al., property owners are challenging a project in Brooklyn known as the Atlantic Yards Arena and Redevelopment Project.  The properties were condemned for a new basketball arena for the New Jersey Nets as well as high rise apartments and office buildings. 

The challengers — owners of homes and businesses that would be taken to make room for a major part of the development — argue that the purpose of the project is to transfer property from one private owner to another.  The Second Circuit Court of Appeals affirmed the District Court’s dismissal of the lawsuit.  If the appeal is granted, it will be the Court’s first chance to revisit its 2005 Kelo decision. 

Click here to see the petition filed by the property owners.

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One critical aspect of any eminent domain case is selecting the right valuation expert.  Recently, the Commonwealth Court of Pennsylvania ruled that real estate brokers can serve as valuation experts in eminent domain cases even if they do not have a real estate appraiser license.

In King v. West Penn Power Company, a power company acquired a portion of a privately-owned airport for an electronic transmission line by its power of eminent domain.  The property owner in King challenged the amount of “just compensation” that was offered by the power company.  The property owner sought to present the testimony of a real estate broker to testify regarding the negative effect of the taking on the fair market value of the property.

The power company filed a motion to preclude the broker’s testimony on the basis that that the broker did not have a real estate appraiser license.  The trial court granted the motion and precluded the broker’s testimony. The property owner appealed.

The Commonwealth Court reversed the trial court’s decision and found that the broker did not need a real estate appraiser license to qualify as a valuation expert in a condemnation case.  The alleged basis for the motion to preclude the broker’s testimony was the Real Estate Appraiser Certification Act which provides that it is unlawful to perform real estate appraisals “in non-federally related transactions” without a valid certificate from the State Board of Certified Real Estate Appraisers.  However, the definition of “federally related transaction” in the State Board of Certified Real Estate Appraisers’ regulations does not include appraisals for condemnation proceedings.  In addition, the definition of “condemn” in the Pennsylvania Eminent Domain Code does not include “transactions.”   Therefore, the Court held the phrase “nonfederally related transaction” in the Appraisers’ Act does not encompass condemnations of property.

The Court also continued to explain its decision by stating that “it makes no sense to require that qualified valuation experts in condemnation proceedings possess real estate appraiser licenses.”

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