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AB-2023 Eminent domain: compensation: loss of goodwill.(2013-2014)

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AB2023:v97#DOCUMENT

Amended  IN  Senate  June 15, 2014
Amended  IN  Assembly  April 21, 2014

CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 2023


Introduced by Assembly Member Wagner

February 20, 2014


An act to amend Section 1263.510 of the Code of Civil Procedure, relating to eminent domain.


LEGISLATIVE COUNSEL'S DIGEST


AB 2023, as amended, Wagner. Eminent domain: compensation: loss of goodwill.
Existing law provides that an owner of property taken by eminent domain is entitled to compensation for loss of goodwill if the owner proves certain specified elements.
This bill would require than an owner additionally prove that goodwill existed before the taking. The bill would provide that evidence of the other elements would be presented to the trier of fact only if there is credible evidence that goodwill ex isted. the owner produces evidence tending to show that goodwill existed before the taking.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1263.510 of the Code of Civil Procedure is amended to read:

1263.510.
 (a) (1) The owner of a business conducted on the property taken, or on the remainder if the property is part of a larger parcel, shall be compensated for loss of goodwill if the owner proves all of the following:
(A) Goodwill existed in the business before the owner’s property was taken.
(B) The loss is caused by the taking of the property or the injury to the remainder.
(C) The loss cannot reasonably be prevented by a relocation of the business or by taking steps and adopting procedures that a reasonably prudent person would take and adopt in preserving the goodwill.
(D) Compensation for the loss will not be included in payments under Section 7262 of the Government Code.
(E) Compensation for the loss will not be duplicated in the compensation otherwise awarded to the owner.
(2) If there is credible evidence that goodwill existed before the taking,If the owner produces evidence tending to show that goodwill existed before the taking, evidence of the matters described in subparagraphs (B) through (E), inclusive, of paragraph (1) shall be presented to the trier of fact.
(b) Within the meaning of this article, “goodwill” consists of the benefits that accrue to a business as a result of its location, reputation for dependability, skill or quality, and any other circumstances resulting in probable retention of old or acquisition of new patronage.
(c) If the public entity and the owner enter into a leaseback agreement pursuant to Section 1263.615, the following shall apply:
(1) No additional goodwill shall accrue during the lease.
(2) The entering of a leaseback agreement shall not be a factor in determining goodwill. Any liability for goodwill shall be established and paid at the time of acquisition of the property by eminent domain or subsequent to notice that the property may be taken by eminent domain.

SEC. 2.

It is the intent of the Legislature, in amending subdivision (a) of Section 1263.510 of the Code of Civil Procedure, to overrule People ex rel. Dept. of Transp. v. Dry Canyon Enterprises, LLC. (2012) 211 Cal.App.4th 486 to the extent that decision requires that an owner establish preexisting goodwill by more than a preponderance of the evidence.