Eminent domain: final offer of compensation.
The amendments proposed by SB1167 would significantly impact how compensation offers are addressed during eminent domain proceedings. By recalibrating the threshold for litigation expense recovery, it emphasizes the need for plaintiffs to evaluate their offers more critically. This change, if enacted, could lead to more efficient settlements and reduce unnecessary litigation, benefiting fiscal considerations for state agencies engaging in land acquisition.
Senate Bill No. 1167, introduced by Senator Anderson, seeks to amend existing legislation on eminent domain, specifically pertaining to settlement offers in legal proceedings. The bill establishes that if a court finds, upon a defendant's motion, that the plaintiff's final offer of compensation is less than 85% of what is ultimately awarded in the proceedings, the court must include the defendant's litigation expenses in the awarded costs. This proposal aims to encourage plaintiffs to make reasonable offers to avoid escalating legal costs.
Despite its intended efficiency, the bill has drawn concerns regarding the fairness of imposing litigation costs on plaintiffs who may have legitimate reasons for their lower offers. Critics argue that this could deter plaintiffs from pursuing just compensation in good faith, creating a chilling effect on negotiations. Additionally, there is worry that it may exacerbate power imbalances between government entities and individual landowners, particularly if the costs lead to less willingness to file claims by individuals fearing financial repercussions.