Key Steps in Challenging a Government’s Eminent Domain Valuation

Wadler Perches & Kerlick
EMINENT DOMAIN written on paper with figure of house

When the government exercises its power of eminent domain, property owners have the right to question whether the compensation truly reflects the property's actual value.

At Wadler Perches & Kerlick, we work with property owners who’ve received government notices about the use of eminent domain. These notices often include an offer to purchase private property, which can feel hurried and unjust, particularly if the valuation appears too low.

Challenging that valuation means we have to take a methodical approach. From reviewing the initial offer to possibly presenting our case in court, each step matters. Let's look at at how we work to protect property rights and fight for compensation in Southeast Texas, including Wharton County, Fort Bend County, and Matagorda County.

Reviewing the Initial Offer and Identifying the Taking

When the government first contacts a property owner under eminent domain, it usually includes an appraisal and purchase offer. Before we do anything else, we need to take a close look at that paperwork.

This first review includes:

  • Identifying the type of taking: The government may be seeking full ownership (a fee simple taking) or just a portion (a partial taking), such as an easement.

  • Checking the appraisal summary: We review the assumptions made, the comparable sales used, and whether special features of the property were overlooked.

  • Understanding how access or use might be affected: Sometimes, even a small easement can reduce the usefulness—or value—of the remaining property.

If the valuation seems low or the method appears flawed, we can prepare a challenge.

Getting a Second Appraisal

Once the government’s appraisal is reviewed, the next move is usually to get an independent appraisal. Property owners have the right to get a second opinion—and that opinion can be vital in challenging the offer.

A reliable appraisal helps by:

  • Measuring fair market value based on current conditions: It should reflect what a willing buyer would actually pay for the property.

  • Factoring in highest and best use: If the government’s appraisal ignores zoning or development potential, it may miss future value.

  • Assessing damages to the remaining property: In partial takings, the remaining land often loses value. That loss should be part of the compensation.

We work with professionals who are familiar with eminent domain issues in Texas, including those involving agricultural, residential, and commercial properties.

Determining Whether the Taking Is Lawful

Not every use of eminent domain is automatically lawful. While the government does have broad power, it’s not unlimited. We assess the legitimacy of the taking by asking if the taking is for a public use. Texas law requires that property be taken for things like roads, utilities, or schools, not for private gain.

We also evaluate whether the land acquisition is truly necessary. In some cases, the government may attempt to take more property than required, and we can challenge whether all of it is genuinely needed. Additionally, we review whether the process complies with statutory procedures. Missing notices, incomplete documentation, or the absence of a clear public purpose can render the acquisition open to challenge.

If the taking isn’t valid, then we don’t even need to reach the question of value—we fight the taking itself.

Filing a Formal Objection

When the offer isn’t fair and the taking raises questions, the next step is to formally challenge it. In Texas, this usually starts with filing an objection in court.

That process includes:

  • Filing a petition to challenge the valuation: This document outlines the reasons why we believe the offer doesn’t meet the “just compensation” standard.

  • Participating in a special commissioners' hearing: A panel of three local landowners hears both sides and determines compensation.

  • Deciding whether to accept the commissioners’ award or move forward to trial: If the award is still too low, we can take the case to a judge or jury.

Throughout this process, we continue gathering evidence and building a case for better compensation. Eminent domain cases often turn on the details—what the land is worth, how it's used, and how the taking affects future value.

Building a Strong Case for Compensation

Once the matter goes to court, we need more than just a second appraisal. We need to make a clear case for what the property is worth and why the government’s offer falls short.

We may include:

  • Testimony from appraisers and engineers: Professionals can explain technical points like zoning, traffic access, or floodplain adjustments.

  • Maps, photos, and exhibits: Visuals help show how the taking will change the property.

  • Valuation based on use, income, or market comparison: Depending on the type of property, we use the method that best reflects real-world value.

We aim to present a clear and convincing case, not only about what’s being taken but also about what’s being lost.

Addressing Partial Takings and Remainder Damages

When only part of a property is taken, the remaining land may drop in value, which is often where much of the dispute lies.

Damages to the remainder may include reduced access. If a driveway is moved or visibility drops, a business might lose customers. Irregular lot shapes are another type of damage, as a new road or utility line can leave the rest of the land hard to use or build on. 

A third type of damage is the loss of unity; when a property includes multiple parcels used together, breaking them up can lower the overall value.

We work to document and quantify these damages so they are included in the final compensation. Eminent domain law allows for these damages to be part of a full recovery if they are properly proven.

Considering Relocation and Business Losses

While Texas law doesn’t always compensate for all business losses during a taking, relocation costs and some business impacts may be covered. This is especially true when the government is acquiring commercial property.

What we evaluate:

  • Whether relocation costs are reimbursable: The law provides for some moving expenses when property is taken.

  • If fixtures or improvements are compensable: Built-ins or custom features can enhance value.

  • Whether temporary loss of business qualifies: Some types of takings allow for claims tied to the interruption of business activity.

We make sure all eligible impacts are raised and supported by solid documentation. Too often, these costs are overlooked, but they can be significant.

Negotiating or Proceeding to Trial

Some eminent domain cases settle before trial, while others go all the way to a jury. We help clients decide when a settlement is acceptable—or when it’s worth pressing forward.

Negotiation involves knowing the likely range of a trial award, with our appraisal and evidence providing a solid estimate of what’s fair. It also requires understanding the costs of litigation, as sometimes it makes sense to settle for a good offer rather than prolong the fight. Additionally, considering timing is crucial, as trials take time, and settlement may speed up payment.

If a fair resolution isn’t possible through negotiation, we are ready to present a full case at trial. Eminent domain trials hinge on credibility, preparation, and communicating value to the court.

Appealing an Unsatisfactory Outcome

If the court's decision undervalues the property, we may have the option to file an appeal. Appeals address legal errors rather than new facts, making it crucial to have established a strong record from the outset.

Reasons we might appeal include improper jury instructions or rulings on evidence, failure to consider all damages or follow the law on valuation, or bias or procedural errors during trial.

While appeals can extend the process, they may also lead to the correction of serious valuation errors. We only recommend an appeal when we believe there’s a strong basis for change.

Keeping Long-Term Impacts in Mind

Even after a settlement or judgment, the effects of eminent domain can persist. We make sure final agreements are upheld and any lingering issues are resolved.

Post-resolution issues may include access disputes after construction begins, changes to the scope of the project affecting value, and tax adjustments or title questions

We know that property owners aren’t just dealing with a check—they’re often adjusting their lives or businesses after a forced taking. We aim to help clients work through every phase with clear communication and reliable support.

Contact Our Lawyers Today

If you’ve received an eminent domain notice and think the offer may be low, we’re ready to help you challenge it. With offices in Wharton, Fulshear, Richmond, and Bay City, we proudly serve clients across Southeast Texas, including Fort Bend County, Wharton County, and Matagorda County. Contact our attorneys today.