4 Bits Intel. West Coast State Bill. Change Attorney Fees Calculation.

State:  California

The current way attorney fees are awarded in eminent domain: Since 1975, attorney fees can be awarded in California for eminent domain if:

• final offer of compensation was unreasonable
• the final demand of the property owner was reasonable

Assembly Bill 408 wants to change the standard for attorney fees in eminent domain to: 

• Attorney fees must be awarded if condemnor’s offer is lower than 90% than the court’s value determination
• Attorney fees may be awarded if condemnor’s offer is between 90-100% of the court’s value determination

What opponents to AB 408 are saying: this will disincetivize landowners from settling, encourage more litigation and thereby drive up costs for public projects

Nossaman LLP | California to Consider Significant Change to Eminent Domain Law Regarding a Condemnee’s Right to Recover Litigation Expenses