Understanding the Parties to a Condemnation Lawsuit
When the government exercises its power of eminent domain to take private property for public use, it must follow a legal process known as “condemnation.” At the heart of any condemnation lawsuit are the parties involved, each with distinct roles, rights, and responsibilities. Understanding who these parties are is essential for anyone navigating a potential taking by eminent domain.
The Primary Parties in a Condemnation Case
- Condemning Authority (Plaintiff)
The condemning authority, also known as the “condemnor,” is the party initiating the lawsuit to take the targeted property interest(s) using eminent domain. This is usually a government agency but, in some rare instances, private companies (i.e., pipeline or railroad companies) may also be granted eminent domain powers for specific projects.
- Property Owner (Defendant)
The property owner, also known as the landowner or “condemnee,” is the individual or entity whose property is being taken. This party has the right to challenge the public use or necessity of the taking, dispute the amount of compensation offered, and present competing evidence of the property’s fair market value.
Additional “Interested” Parties
Beyond the condemning authority and property owner, several other parties may be involved in a condemnation lawsuit. The New Jersey Court Rules require that “[t]he record owner, the occupant, if any, such other persons appearing of record to have any interest in the property and such persons claiming an interest therein as are known to the plaintiff shall be made parties.” R. 4:73-2.
- Lienholders and Mortgagees
If the property is subject to a mortgage or lien, the lender or lienholder becomes an interested party. These entities have a financial interest in the property and may be entitled to a portion of the compensation award depending on the nature of their interest.
- Tenants and Leaseholders
In cases where the property is leased, tenants may also have rights that need to be addressed and/or extinguished by the acquisition. Depending on the lease terms, tenants may also be entitled to a portion of the compensation.
- Easement Holders
If another party holds an easement on the property—such as a public utility company—they may also be considered an interested party. The taking may affect their rights or require relocation of infrastructure, which can lead to an additional allocation claim in the case.
- Taxing Authority
In many instances, taxing authorities are also named as interested parties in a condemnation case. These authorities may recover any past due taxes or liens against the condemned property. Where the property is subject to liens in favor of both municipal and state lienholders, the priority of such liens is determined by the dates on which each attached to the property. Union County Utilities Auth. v. Josewitch, 269 N.J. Super. 218 (Law Div. 1993).
Why It Matters?
Only those parties who are joined in the case have their interest in the condemned property foreclosed by the proceedings. See State, Dep’t of Treasury v. Myndyllo, 225 N.J. Super. 302, 305 (App. Div. 1988) (N.J.S.A. 20:3-20 provides for the discharge of liens only with respect to “title to property condemned and acquired by the condemnor hereunder”). For property owners, knowing who else may be involved can help in preparing a comprehensive defense or negotiation strategy. For condemning authorities, identifying all interested parties early in the process helps avoid delays and legal challenges later on when the case is filed in Court. Whether you’re a property owner facing a potential taking or a government agency planning a public project, understanding the roles and rights of each party is essential.
One of the easiest ways for a property owner to begin the fight against eminent domain is to retain experienced counsel as early as possible. For over 55 years, McKirdy, Riskin, Olson & DellaPelle, P.C. has concentrated its practice in this special area of the law and has earned a reputation for persistently defending its clients’ constitutionally-recognized property rights. If you are confronted with the threat of eminent domain, please feel free to contact us for a free consultation.
