Defined term
Just compensation
Just compensation is the constitutional measure of damages owed to a property owner when government exercises eminent domain — generally the property's fair market value at the time of taking.
The Fifth Amendment requires "just compensation" for any taking of private property. The constitutional floor is fair market value at the time of taking, measured by what a willing buyer would pay a willing seller in an open-market transaction.
In partial-taking cases, just compensation includes both the value of the property taken AND severance damages to the remainder where the taking diminishes the remainder's value. Business-relocation costs, lost goodwill (in some jurisdictions), and consequential damages may also be available depending on state law. The government's initial offer is almost always below true just-compensation value; independent appraisal is essential.
Statutes
- U.S. Const. amend. V