Land is more than an asset on paper for most farmers. It represents a generational legacy, the site of a family homeplace, a lifetime of work and a place of countless memories. For these reasons, eminent domain can be a difficult topic. While eminent domain issues are highly fact-specific, a basic understanding of eminent domain can help landowners when a road project, utility line or pipeline proposal affects their property.

Generally, eminent domain is the power of the government to take private property for public use, so long as just compensation is paid to the landowner. The right of the government to exercise this power is found in the U.S. Constitution under the 5th Amendment’s Takings Clause and Alabama’s state constitution. The legal term for the process used to exercise eminent domain power is called condemnation. However, not every situation requires formal condemnation action, and in some cases, a landowner may receive an offer and negotiate a voluntary easement or sale before any official condemnation action is filed.

Although federal and state constitutions recognize the power to take private property, Alabama landowners enjoy among the strongest legal protections in the country. In 2005, the Alabama Legislature enacted reforms that limited the use of eminent domain for certain private development purposes.

Alabama law also requires condemning authorities to file a formal complaint in the local probate court. The court then appoints a three-person panel of commissioners to evaluate the property and hold a hearing before compensation is determined. Alabama property owners also have the right to appeal a probate court condemnation award to circuit court, including before a jury if requested.

In practice, the dispute in many eminent domain cases is not whether the condemning entity has the power to take the property but what amount of compensation is considered “just.” When an entity exercises its eminent domain power, it is legally obligated to provide the landowner “just compensation.” Determining that amount, however, is not always straightforward. In a total taking, compensation is generally based on the fair market value of the property acquired. In a partial taking, however, Alabama law measures compensation by the difference between the fair market value of the entire property before the taking and the fair market value of the remaining property after the taking. This means compensation may include not only the value of the land acquired but also any reduction in value to the remaining property caused by the project.

Unfortunately, the term “just compensation” can leave room for a condemning authority to make an initial offer that does not fully reflect the property’s true value or the impact on the remaining property. For that reason, it is critical to obtain experienced legal counsel. An independent appraisal is often essential to ensure all compensable damages are properly identified and valued. 

While eminent domain can be a difficult and disruptive process, Alabama law provides important protection to ensure property owners receive full and fair compensation. Before signing any documents or accepting an offer, landowners should carefully review all documents and seek qualified legal or professional advice to protect their interests and make informed decisions about their property. 

Compiled by Preston Roberts, JD, Alabama Farmers Federation External Affairs Department Assistant Director
The material presented above is for educational purposes only. The content does not constitute legal advice. If readers require specific advice or services, a lawyer or other professional should be consulted.