Inverse Condemnation as a Cause of Action in New York

Inverse condemnation, also known as de facto appropriation, arises when a government or other entity with the power of eminent domain takes private property without formally initiating condemnation proceedings or offering compensation. In New York, this cause of action allows property owners to seek damages when their property has been effectively taken through government action. Courts require specific elements to be proven in order to sustain this type of claim.

Possession of Eminent Domain Power

To bring a successful claim for inverse condemnation, the property owner must first show that the party responsible for the taking has the legal power of eminent domain. This means the defendant must be a governmental body or a private entity that has been granted the authority by law to condemn private property for public use. Without this authority, the claim cannot proceed under the theory of inverse condemnation.

Intrusion onto Property

The second element requires a showing that the entity with eminent domain power physically or functionally intruded onto the property. This could involve construction, installation of equipment, regulation that blocks use or development, or any action that results in a measurable impact on the land. The intrusion must go beyond minor inconvenience and represent a meaningful interference with the owner’s property.

Interference with Owner’s Rights

There must also be a significant interference with the property owner’s rights. This includes loss of use, enjoyment, or value of the property. For example, if a government project permanently obstructs access or makes the property commercially unviable, that could support a finding of interference. The interference must be severe enough that it disrupts the owner’s ability to exercise control over their property.

A Constitutional Taking Requiring Purchase

Finally, the interference must be so substantial that it qualifies as a constitutional taking under the law. Both the United States and New York State constitutions require that when private property is taken for public use, just compensation must be provided. If the intrusion amounts to a taking in all but name, the law treats it as though the property has been purchased, requiring the government or entity to pay the fair value of what has been taken.

Conclusion

Inverse condemnation serves as a remedy when property is taken without proper legal process. In New York, property owners can recover compensation if they can demonstrate that an entity with eminent domain power intruded on their property and interfered with their rights to such an extent that a constitutional taking has occurred.

Find the Law

“A claim for de facto appropriation or inverse condemnation requires a showing that one with eminent domain power has intruded onto property and interfered with the owner’s rights to such a degree that the conduct amounts to a constitutional taking requiring the intruder to purchase the property from the owner ( 627 Smith St. Corp., 289 AD2d at 473; O’Brien v City of Syracuse, 54 NY2d 353, 357).” Corsello v. Verizon NY INC., 2008 N.Y. Slip Op. 52081, 7 (N.Y. Sup. Ct. 2008)