The Common Law

Eminent Domain – The Government Made a Low Offer – What Next?

I rejected the low amount the government offered me for a portion of my property that they want to use to build huge electric transmission lines and towers. Now that I've rejected its offer, I'm not really sure what happens next.

After the offer is rejected, the governmental entity (the condemnor) will file a lawsuit against the landowner to acquire the property rights it seeks. In Texas, the document the condemnor uses to initiate the lawsuit is called an "original petition." Texas law requires the original petition to be filed in the county where the property is located.

Rather than immediately launch into full-scale litigation, the next step in the Texas condemnation process is for the parties to conduct a special commissioners' hearing, which is presided over by three court-appointed commissioners. The special commissioners must be disinterested property owners who own property in the county where the condemnation takes place. Interestingly, the commissioners in most cases have no legal background or training, yet Texas law gives them considerable power to make an initial determination of the value of the condemned property.

The burden generally falls to the condemnor to coordinate with the commissioners to set up the special commissioners' hearing. Texas law requires that each party be given written notice of the hearing date (no later than the 11th day before the day set for the hearing). In this informal administrative proceeding, both the condemnor and the landowner can put on evidence supporting their positions on fair market value. At the hearing's conclusion, the special commissioners will issue a special commissioners' award, which sets out the commissioners' independent opinion as to the value of the property.

To claim possession of the property, the condemnor must then deposit the amount of the special commissioners' award into the registry of the court. The landowner has the option to withdraw the award. Once the special commissioners' hearing has been conducted, the condemnor (assuming compliance with various other requirements) may take possession of the property and begin construction of the project.

It's important to know that sometimes it may be best for a landowner to skip the special commissioners' hearing altogether. Landowners should talk to experienced eminent domain lawyers before the special commissioners' hearing process begins.