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Regents of the Univ. of Cal. v. Sheily

ELR Citation: 34 ELR 20102
Nos. No. B161797, (Cal. App. 2d Dist., 09/24/2004)

A California appellate court held that a dentist was not entitled to compensation for loss of goodwill as a result of a state university's condemnation of property in which the dentist held a leasehold interest. The constitutional right to just compensation does not include the loss of goodwill to a business whose property is taken by the power of eminent domain. The state of California, therefore, enacted a statute that recognizes a right to compensation for loss of goodwill under specified conditions. Here, however, the dentist failed to meet those conditions under California Code of Civil Procedure §1263.510. The lower court's conclusion that the dentist failed to demonstrate that he took reasonable steps to relocate his practice was proper. In addition, the lower court did not err in bifurcating the compensation action.