Florida Eminent Domain – Resolving Business Damage Claims (Part 3)
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After a business owner submits a good faith business damage offer in a Florida eminent domain case, the focus shifts to reaching a resolution of the claim. This article examines the process of settling business damage claims, including the condemning authority’s obligations, the components of a business damage settlement, and how attorney’s fees and costs are determined.
The Condemning Authority’s Response
Once a business owner submits a business damage offer, the condemning authority has 120 days to respond. The condemning authority must either:
- Accept the business owner’s offer;
- Reject the offer; or
- Make a counteroffer.
If the condemning authority fails to respond within 120 days, the law treats this as a counteroffer of $0.00, meaning the condemning authority is unwilling to pay any business damages. The business owner may then pursue their claim as part of the eminent domain lawsuit.
Negotiations often continue even if the initial offer is rejected. The business owner’s counsel and experts will work to convince the condemning authority of the validity and amount of business damages through information sharing and advocacy.
Settling Business Damages Before a Lawsuit
If the parties agree on the amount of business damages, they can settle the claim prior to a condemning authority filing suit. A pre-suit settlement agreement should cover key terms such as, at a minimum:
- The agreed amount of business damages;
- The scope of the business damages covered (e.g. lost profits, relocation costs, etc.);
- Payment terms and timing; and
- Release of further business damage claims.
A pre-suit settlement will also typically include a business damage closing, where the condemning authority provides payment and the business owner executes the necessary release documents. The condemning authority will also pay the business owner’s reasonable attorney’s fees and expert costs incurred in preparing and negotiating the business damage claim. If the parties cannot agree on the amount of fees and costs, the court can decide that issue.
Compensation and Fees Determined in Litigation
If the parties cannot settle the amount of business damages, the claim will likely be decided as part of the eminent domain lawsuit. At trial, a jury will determine the amount of business damages owed based on the evidence presented by both sides’ lawyers and experts.
In litigation, the business owner’s attorney’s fees are calculated based on the benefit the attorney achieves. In this context, a benefit is defined as the difference between the final judgment and any prior counteroffer the condemning authority made. For example, if a business owner recovers a $500,000 damage award and the condemning authority previously countered at $100,000, the benefit achieved is $400,000.
The business owner is also entitled to recover reasonable expert witness fees and costs. If the condemning authority fails to come to an agreement with the business owner, the court will determine the amount of reasonable fees and costs.
Don’t Waive Your Claim to Business Damages
Business owners impacted by eminent domain should vigorously pursue a full settlement of their business damage claims. Having experienced eminent domain counsel and qualified financial experts is essential to achieving a successful recovery, whether by pre-suit settlement or trial verdict. Through skilled negotiation and advocacy, business owners can obtain compensation for their economic damages as well as their attorney’s fees and expert costs.