Eminent Domain Law

In an eminent domain proceeding, the city moved for a judgment awarding the city the difference between the advanced payment it made to the claimant and the final value of the property as judicially determined. The court granted the motion, rejecting claimant's contention that a claimant should not be required to pay back an advance payment made by the condemnor.

The city, as condemnor, took title to the property in 2006, and made an advance payment to the landowner of $2,575,700 plus interest from the date of vesting. At trial, landowner sought more, while the city submitted a rebuttal appraisal which valued the property at $1,360,000. The trial court awarded landowner $3,500,000 as the value of the property taken, but the Appellate Division reduced the award to $1,625,888. The city then sought a judgment for the difference between its advanced payment and the award made by the Appellate Division. Landowner resisted, contending that allowing the city to recover part of the advanced payment is inconsistent with the reason for the statutory provision for advance payment, which, according to the landowner, is to allow the landowner to obtain replacement property.