Recent Blog Posts

    • Upon Abandonment, Condemnor Must Pay Legal Fees and Expenses
      N.J.S.A. 20:3-26(b), part of the Eminent Domain Act of 1971, provides:         “If the court renders final judgment that the condemnor cannot acquire the real property by condemnation or, if the condemnation action is abandoned by the condemnor, then the court shall award the owner of any right, or title to, or interest in such real property, such sum as will reimbursed such owner for his reasonable costs, disbursements and expenses actually incurred, including reasonable attorney, appraisal and engineering fees.”     Despite the clear language in the statute, not all courts have allowed property owners to recover legal fees when a condemning authority decides to abandoned a condemnation case.  For example, a case decided in 1999 denied a request for allowance of legal fees and expenses in a condemnation action where Essex County filed a condemnation complaint, but abandoned the lawsuit before the commissioners held ....
    • What are your views on eminent domain?
      Timothy P. Duggan, Chair and Shareholder of Stark & Stark's Condemnation group, was the guest commentator on GlobeSt.com's website in response to the question, What are your views on eminent domain? GlobeSt.com is a real estate website providing news alerts, discussion forums and real estate related resources to cities across the nation. In his response, Mr. Duggan discusses the various issues that make eminent domain such a controversial subject, including, the different types of redevelopment, relocation benefits, and the need for adequate compensation. You can read Mr. Duggan's full response here. ....
    • Eminent Domain in New Jersey Conference
      The Third Annual Eminent Domain in New Jersey Conference, presented by CLE International and Stark & Stark, will be held October 15 and 16, 2007 at the Nassau Inn Princeton, New Jersey. This is an educational two-day seminar focusing on finding a balance between property owner's rights and condemning authorities. The seminar will provide a case law update and seminars focusing on: representing municipalities, legal challenges one will face during the redevelopment process, updates on redevelopment legislation and a discussion on condemning residential areas vs. commercial/retail/industrial areas. The conference will also feature a mock trial with the Honorable Douglas J. Wolfso, Esq. and several New Jersey Real Estate attorneys, including Stark & Stark Shareholder, Timothy Duggan. Mr. Duggan and Vincent Mangini, both Shareholders and member of Stark & Stark's Condemnation and Real Estate Groups, will present the case law update at this year's seminar. You can log onto CLE's ....
    • Somerville Seizes Supermarket's Lease
      Timothy P. Duggan, Shareholder and member of Stark & Stark's Condemnation Group, was quoted in Monday's Courier News, in the article, Somerville seizes supermarket's lease. Mr. Duggan commented on Pathmark's potential option of filing an appeal in court in order to save the property, and states that while it is difficult to get a stay granted, several recent court decisions have favored property owners. You can read the full article here. ....
    • Eminent Domain and the Art of Compromise
      Public Advocate Ronald K. Chen released a follow up report on May 29, 2007, addressing what he perceives as abuses in the use of eminent domain to acquire property for redevelopment projects.  After setting forth a synopsis of specific examples of eminent domain abuse arising in cases decided by the New Jersey courts, the Public Advocate suggests several remedies which seemed to be directed towards his critics and the legislators considering amending the existing laws.  However, are  Public Advocate Ronald J. Chen and the two legislators who sponsored bills aimed at reforming the law (Senator Ronald Rice (D-Essex) and Assemblyman John Burzichelli (D-Gloucester)) on a course to reach a proper balance in the law?  Possibly, but more work is needed.     What is at stake is the right to own property on one hand, and the need to encourage and complete redevelopment plans in truly blighted areas.  When used properly, redevelopment can turn a blighted ....
    • New Jersey Supreme Court Reviews The Blighted Areas Clause of the New Jersey Constitution And Strikes And Invalidates a Redevelopment Designation
      On June 13, 2007, the New Jersey Supreme Court reversed a lower court ruling which upheld the designation of a parcel of property as being in “need of redevelopment.” Gallenthin Realty Development v. Paulsboro (A-51-2006 - decided June 13, 2007).  The property in question consists of approximately 63 acres of undeveloped open space.  In the past, the property owner used the property to receive dredge deposits from a nearby creek, a use that the property owner believed would continue on a sporadic basis in the future.  Also, the property owner cultivated wild-growing weed which was sold for animal feed.  However, the Township set its eyes on the property and decided it was necessary for a larger redevelopment project.  To take the property, the Township had to first have it designated as an area in need of redevelopment.  Once designated, the Township could invoke its power of eminent domain.  But how could open space that had been ....
    • When Partial Takings Become Complete
      The New Jersey Turnpike will be widened between Interchanges 6 and 9, including widening the existing roadway from three to six lanes in each direction between 8A in Monroe Twp. and 6 in Mansfield Twp. The Authority also intends to widen the Garden State Parkway between mileposts 30 and 80. Other road projects are occurring on local, county and state roads. Many road-widening projects require that some private property be purchased or condemned under the power of eminent domain. As a general rule, a property owner is entitled to just compensation for the value of property taken through eminent domain. If the entire property is acquired, the general measure of compensation is fair market value. However, the matter becomes complicated when only a portion is taken in what is referred to as a “partial taking.” In a partial-taking, the owner is entitled to be paid for the value of the property taken and any damage to the property they retain, referred to as the ....
    • Balancing Redevelopment and Property-Owner Rights
      Timothy Duggan, Chair and Shareholder in Stark & Stark's Real Estate, and Condemnation  groups, authored the article Balancing Redevelopment and Property-Owner Rights in the recent issue of NJ Biz Magazine. You can read the full article here. ....
    • Eminent Domain in New Jersey
      Timothy Duggan, a Chair of the Condemnation group, will be a presenter at Eminent Domain in New Jersey seminar on April 17, 2007 at the Hyatt Regency New Brunswick in New Brunswick, New Jersey.The seminar will address: Case Law Developments The State of Eminent Domain Legislative Reform Environmental Issues Valuation Issues Planners in the Process Relocation Assistance Issues The Ethics of Redevelopment You can download the brochure here. ....
    • Appellate Division Affirms Case Awarding Relocation Assitance
      On January 4, 2007, the Appellate Division affirmed a case which awarded $2 million in relocation asistance for a hot dog manufacturer forced to move its business as a result of a condemnation case.In New Jersey, a business operator (owner or tenant) is entitled to relocation assistance if the business is required to be moved as a result of an eminent domain case. However, under New Jersey law, the mandated relocation benefits are skimpy at best and are presently under review as part of the pending legislation seeking eminent domain reform. As evidenced by a recent Appellate Division decision, business owners must be very diligent in order to maximize their potential recovery of relocation benefits. Jersey City School District v. Marathon Enterprises, docket no. A-6188-03T5, Jan. 4, 2007). Marathon Enterprises owned a building which was acquired by the Jersey City School District to build a school. After a trial, the jury awarded Marathon $5.2 million as just compensation for the ....
    • Achieving Redevelopment through Proper Planning and Cooperation
      In recent years, the word “redevelopment” has become synonymous with “controversy.” This is attributable in great part to the public’s perception of the overuse and abuse of the eminent domain power, often at the behest of developers perceived as profiteers. Certainly, there have been abuses in this regard. However, redevelopment can be a very useful tool in revitalizing old, economically depressed or underutilized neighborhoods if its implementation is preceded by thoughtful planning that permits active involvement by all those with a direct stake in the outcome. Redevelopment planning is a multifaceted task, approached in any number of ways depending upon the circumstances. First, before conceptualizing a redevelopment project, a builder should find a geographic area that elected municipal officials are interested in revitalizing. As an initial step, a developer should research government records to see whether any neighborhoods within a given ....
    • BREAKING NEWS - NJ Supreme Court's Decision in Mt. Laurel v. MiPro
      Today, the New Jersey Supreme Court issued a decision (PDF) in Mount Laurel Township v. MiPro Homes critical to the real estate development community, municipal government, and ultimately all of the citizens of the State of New Jersey. The decision authorizes ambush or pretense acquisitions of housing for families with school children and other uses deemed to be politically or economically undesirable. Given that real estate investment, housing, and commercial development are the backbone of the economy, this decision will reverberate through the halls of the legislature and at every kitchen table in New Jersey. The State has not planned for the social and economic fallout from this decision, including the likelihood that the State's attempt to get out of the tax and financial morass that exists will be further challenged as real estate investment opportunities are minimized and lost. For more information see our media advisory on this decision here. Read and listen about the history ....
    • New Jersey Public Advocate Weighs In On Appeal of Lodi Case
      Approximately one year ago, a Bergen County Court struck down a redevelopment designation finding that the Borough of Lodi did not prove by substantial credible evidence that certain property was in need of redevelopment. LBK Associates v. Lodi, Docket No. BER-L-8766-03 (Oct. 6, 2005). After reviewing the evidence, the court concluded that the report was “a vague criticism of the conditions at the complex based upon superficial observations” and not sufficient to have the area deemed in need of redevelopment. The Borough of Lodi appealed the trial court’s decision. Recently, Public Advocate Ronald K. Chen filed an amicus brief (“friend of the court” brief) with the Appellate Division of the Superior Court of New Jersey in support of the lower court’s ruling. Mr. Chen is asking the Appellate Division to carefully consider the following legal issues: (1) the appropriate standard of review for a municipality’s determination declaring an area as ....
    • Court Issues Stay in Solberg Airport Condemnation Case
      On September 15, 2006, the Township of Reading filed a condemnation complaint in the Superior Court of New Jersey seeking to take part of property owned by Solberg Aviation. The complaint alleged that the property was being acquired for use as open space. Solberg Aviation disputed this allegation and argued that the real reason for the taking was to prevent the expansion and modernization of the airport to allow larger aircraft to utilize the airport. The court scheduled a hearing for November 3, 2006, to review the arguments. After reviewing the legal briefs and hearing oral argument, the trial judge stayed the condemnation case to allow Solberg Aviation to conduct discovery in order to prove its case. The discovery will focus on the Township’s “true motivation” in seeking to acquire the property. Under New Jersey law, acquisition of property for open space is generally deemed a valid public use which permits the government to use its power of eminent domain. ....
    • Eminent Domain - When Your Property Is Taken And The Project Stalls
      Over the weekend I read this story in the Star Ledger and I began to think about how many property owners I know that are in the same situation. This scenario may be repeated by the New Jersey School Construction Corporation ("NJSCC") who acquired numerous properties to build schools throughout New Jersey. However, due to funding issues, some NJSCC school projects have been put on hold and it is questionable whether all of the schools will be built. If not, NJSCC will own property which may ultimately be re-sold and the original property owners will have no recourse. Courts look at the proposed public purpose at the time of the taking to determine whether the taking is constitutional. However, most governmental takings are political in nature and subject to changing administrations and funding availability. In addition to governmental uncertainties, the economic climate may also impact construction projects, especially redevelopment projects. There are numerous redevelopment ....
    • More on Eminent Domain in Trenton
      The City of Trenton is all in a huff over eminent domain these days. See Tim Duggan's post from Wednesday. On December 16, 2005, Ed and Antoinette Shelton defeated in court the City of Trenton's first attempt at amending the Champale Redevelopment Area to include their properties and designating such lands for acquisition. Now, after having gone through the process of designating the Sheltons' lands for redevelopment a second time, City Council has become a little skittish about authorizing the use of condemnation to take them. According to Mrs. Shelton, as reported in the October 4th edition of the Trenton Times, four council members in the past have expressed reservations about using eminent domain for K. Hovnanian's proposed 84-unit condominium complex known as the Villages at Delaware Run. At least one councilman, Jim Coston, has continued to buck K. Hovnanian's redevelopment effort due to, apparently, the City's and K. Hovnanian's less-than-satisfying approach in their attempts at ....
    • Eminent Domain - Trenton's Lamberton Street Development
      A successful challenge to a redevelopment plan does not always end the battle. If a plan is stricken by a court for procedural reasons (ie. sufficient proofs were not submitted to the planning board), the condemning authority can start over and once again adopt a plan and seek to condemn property forcing property owners to challenge the redevelopment plan a second time. However, the property owner may benefit from (1) changes in the law, or (2) changes in political agendas, which is what is happening in Trenton. On behalf of our clients, Mr. and Mrs. Shelton, we were successful in having an amendment to an area in need of redevelopment to include the Shelton's property stricken by the court. (Decision - PDF) The City (and its redeveloper) went back to the planning board and are seeking a "do over" to once again go after the Sheltons' property. Although this is permitted, a certain City councilman who is concerned over Eminent Domain abuses has voiced his opposition to any ....
    • Eminent Domain - Solberg Airport - Readington New Jersey
      On Saturday, the Courier News published an article in which Timothy Duggan, Chair of the firm's Condemnation group discussed the process of eminent domain in New Jersey. The discussion was focused around the current eminent domain controversy taking place in Readington Township.  A group called the Taxpayers' Alliance of Readington is suing township officials over concerns that lawmakers may abuse their authority by spending more than the publicly approved $22 million to purchase the development rights to Solberg-Hunterdon Airport. Technorati Tags: New Jersey : Condemnation : Eminent Domain  ....
    • New Jersey Legal Update - Podcast # 46
      This week's New Jersey Legal Update podcast is a seminar presented by Timothy Duggan and Vincent Mangini, Shareholder's in the firm's Condemnation Group, which was given to commercial and residential property owners in the East End Redevelopment area of Somerville, NJ. The seminar discussed the redevelopment process under New Jersey law and what property owners need to know. You can listen to the seminar here. Technorati Tags: New Jersey : Podcast :  Eminent Domain : Redevelopment : Condemnation  ....
    • Redeveloper May Not Intervene in Condemnation Proceedings
      City of Asbury Park v. Asbury Park Towers, et. al On August 8, 2006, in the matter of City of Asbury Park v. Asbury Park Towers, et. al. the Appellate Division of the New Jersey Superior Court affirmed the trial court’s denial of an application by a redeveloper to intervene in a condemnation action. Although the Court recognized that “. . . Asbury Partners, as the Master Developer, has a significant stake in this specific acquisition . . . we are satisfied that the interest of the redeveloper is adequately represented by the condemning authority in the valuation proceedings.” The Court based this decision on a multitude of factors. For example, the Court noted the impracticality of allowing a private redeveloper “. . . to micro-manage the proceedings once the matter is turned over to the condemning authority.” The Court also found that the City of Asbury Park’s track record clearly demonstrated a zealous and unyielding commitment to the acquisition ....