Mississippi Senate Bill SB2023

Mississippi 2022 Regular Session

• Introduced: 1/6/22
• Refer: 1/6/22
• Failed: 2/1/22

Caption

Eminent domain; provide compensation for the loss of a business's goodwill.

Impact

If enacted, SB2023 would modify Mississippi law concerning eminent domain by formally recognizing and compensating for the loss of goodwill—defined as the benefits accrued due to a business's location, reputation, and quality. Currently, businesses have limited recourse when their properties are taken, and this bill could provide a significant new avenue for compensation that reflects not just the physical property loss but also the intangible value tied to business reputation and customer loyalty.

Summary

Senate Bill 2023 aims to provide compensation for business owners whose properties have been taken under eminent domain, specifically addressing the loss of goodwill associated with these businesses. The bill stipulates that compensation for loss of goodwill will be available under certain conditions, which the business owner must prove, including that the loss was due to the property being taken and could not be prevented through relocation or other means.

Contention

The bill may face opposition related to concerns about the implementation and practical efficacy of measuring 'goodwill.' Opponents might question the fairness and transparency of requiring business owners to confidentially submit state tax returns to the court for determining compensation. Additionally, there are concerns that this could lead to incentivization of claims for compensation, complicating the eminent domain process further.

Legal nuances

The bill clarifies that it does not allow for compensation claims related to 'inverse condemnation' for temporary business interruption. This amendment aims to delineate the specific circumstances under which businesses can seek compensation, potentially preventing frivolous claims while ensuring genuine losses due to property seizures are recognized.