Source: http://www.tatumlawfirm.com/a-background-to-south-carolina-eminent-domain/
Timestamp: 2019-04-20 10:40:13+00:00

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Eminent domain is the power of the government to take private property and convert it into public use through a process known as condemnation.
The power of eminent domain exists as an inherent governmental power. The power of eminent domain is not contingent on a particular legislative or constitutional “trigger” in that it ”appertains to every independent government. It requires no constitutional recognition; it is an attribute of sovereignty.” Boom Co. v. Patterson, 98 U.S. 403, 25 L. Ed. 206, 25 L. Ed. 2d 206 (1879).
Both federal and South Carolina law limit the exercise of eminent domain power.
The Fifth Amendment of the U.S. Constitution provides the primary limitation on eminent domain power. The Fifth Amendment provides in part “nor shall private property be taken for public use, without just compensation” The Fourteenth Amendment made the Fifth Amendment’s limitation on uncompensated taking applicable to state and local governments.
Except as otherwise provided in this Constitution, private property shall not be taken for private use without the consent of the owner, nor for public use without just compensation being first made, therefore.
There are two basic types of condemnation, direct condemnation and inverse condemnation.
In a direct condemnation proceeding, a government entity moves to condemn property, questions of proper public use and just compensation due to the property owner are then considered.
Inverse condemnation involves some government action that deprives a property owner use of his property. “In inverse condemnation cases, the property owner is the moving party claiming an act of the sovereign has damaged his property to the extent of an actual taking entitling him to compensation.” Cobb v. S.C. Dep’t of Transp., 365 S.C. 360, 365, 618 S.E.2d 299, 301 (2005).
“South Carolina courts have embraced federal takings jurisprudence as providing the rubric under which we analyze whether an interference with someone’s property interests amounts to a constitutional taking.” Hardin v. South Carolina Dept. of Transp., 371 S.C. 598, 641 S.E.2d 437, 443 n. 4 (2007).
Permanent physical occupations involve some government activity that interferes with the use of property. Even minor interferences will qualify as a taking. Loretto v. Teleprompter Manhattan CATV Corp, 458 U.S. 419, 427 (1982). Further, indirect entry to property caused by a government entity such as flooding may justify compensation. Columbia Venture, LLC v. Richland County, Opinion No. 27563 (S.C. Aug. 12, 2015).
South Carolina courts have held that certain government regulations of land can be tantamount in its effect on the direct physical invasion of land by the government. “government regulation of private property may, in some instances, be so onerous that its effect is tantamount to a direct appropriation or ouster.” Dunes W. Golf Club, LLC v. Town of Mount Pleasant, 401 S.C. 280 (2013) See also Lucas v. South Carolina Coastal Council, 505 U.S. 1003, 605 S.Ct. 2886, 120 L.Ed.2d 798 (1992).
the property owner’s distinct investment-backed expectations regarding property.
See also Sea Cabins on Ocean IV Homeowners’ Assoc., Inc. v. City of North Myrtle Beach, 345 S.C. 418, 548 S.E.2d 595 (2001).
South Carolina courts apply what is known as the “parcel as a whole” rule, which states in a regulatory takings analysis the court must consider the regulation’s effect on owner’s interest in entire tract, not just portion affected by regulation. Byrd v. City of Hartsville, 620 S.E.2d 76, 365 S.C. 650 (2005).
There must be an essential nexus between the exaction itself and the state interest that the exaction is advancing. Nollan v. California Coastal Comm’n, 483 U.S. 825, 107 S. Ct. 3141, 97 L. Ed. 2d 677 (1987).
There must be a “rough proportionality”- the exaction must be related in both nature and extent to the impact of the proposed development. Dolan v. City of Tigard, 512 U.S. 374, 391 (2005). See also Sea Cabins v. City of North Myrtle Beach, 548 S.E.2d 595, 345 S.C. 418 (2001).
the property owner’s distinct investment-backed expectations regarding the property.
Evidence of the price and other terms upon any sale or the rent reserved and other terms of any lease or tenancy relating to the property or to any similar property in the vicinity when the sale or leasing occurred or the tenancy existed within a reasonable time of the hearing.
Federal and South Carolina courts maintain that a condemned property must confer a public benefit, not necessarily use by the public. To be sufficient to authorize a taking within the meaning of the “public use” requirement contained in the Fifth Amendment. Berman v. Parker, 348 U.S. 26 (1954). South Carolina courts have avoided offering a rigid definition of public use rather opting for a contextual definition in which “The term is an elastic one to keep abreast of changing social conditions, and presents a question of fact in each particular case.” Karesh v. CITY COUN. OF CITY OF CHARLESTON, 247 S.E.2d 342, 271 S.C. 339 (1978).
South Carolina, voters approved a constitutional amendment in 2006 that forbids taking property for economic development in response to the decision in Kelo v. New London, 545 U.S. 469, 125 S. Ct. 2655, 162 L. Ed. 2d 439 (2005) whereby the United States Supreme Court allowed the condemnation and transfer of land to a private corporation for economic development purposes. The South Carolina law narrowed the definition of public use to exclude seizing blighted properties for economic development purposes unless it presents a clear danger to health and safety.
It is important to note that under the Act the issues concerning just compensation and the right to condemn are considered in separate proceedings.
S.C. Code Ann., § 28-2-470 states that the trial of the Challenge Action is separate from the trial on the issue on just compensation.
A Challenge Action must be predicated on deficiencies in the condemnation process. These deficiencies are condemnor’s 1) bad faith; 2) fraud; or, 3) clear abuse of discretion.
A landowner challenging a condemnation proceeding has the burden of proof to establish that the condemning authority is acting fraudulently, in bad faith, or is clearly abusing its discretion. Sease v. City of Spartanburg, 242 S.C. 520, 131 S.E.2d 683 (1963).
Further, a landowner may challenge the whether a particular condemning authority will be legitimately placing the condemned property to public use. The questions presented under this scenario would center on the amount of public benefit derived from the condemned property or allegations that the benefits from a condemned property are improperly directed to a private beneficiary.
The just compensation required by the Constitution to be paid to a landowner is premised on the actual loss caused to him by the condemnation of his land. He is entitled to receive the value of what he has been deprived of and no more. Smith v. City of Greenville, 229 S.C. 252, 92 S.E.2d 639 (1956).
A landowner may also be entitled to damages resulting from the devaluation of the remaining property in a partial taking. The devaluation may be the result of decreased market value of the property resulting from the taking. S.C. State Highway Department v. Touchberry, 248 S.C. 1, 148 S.E.2d 747 (1966).
In valuing property, South Carolina law requires an appraiser to consider the property’s highest and best use. “Highest and best use” has been defined as “the most favorable use to which the property may reasonably be put in the not too distant future.” SC STATE HWY. DEPT. v. Bryant, 171 S.E.2d 349, 253 S.C. 400 (1969).
The calculation of the highest and best use does not allow for consideration of speculative and remote uses rather the fair market value at the time of the taking should be considered. However, a property with high potential to appreciate may affect its fair market value this appreciation must be reasonably probable. South Carolina State Highway Department v. Westboro Weaving Co., 244 S.C. 516, 521, 137 S.E.2d 776, 779 (1964).

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