Fiduciary duty plays a significant role in ensuring that property restricted for a certain use is managed in alignment with that purpose, even when appropriated by eminent domain. The party holding the property under such conditions has a legal and ethical obligation to act in the interest of the original purpose. If eminent domain compensation is enacted, it must be handled or distributed in a manner compatible with that initial intent.
For example: If a non-profit organization receives land from a donor exclusively for the construction of a historic museum but later, eminent domain forces repurposing of that land, any ensuing compensation must be deployed towards advancing historical preservation, reflecting the donor’s original intentions.