Property Rights And Eminent Domain: Court Overturns Condemnation Victory On Right To Take Where Taking Did Not Result In Landlocked Parcel

In an opinion containing echoes of the United States Supreme Court's controversial and much maligned decision in Kelo v. City of New London, 545 U.S. 469 (2005), the California Court of Appeal has limited the reach of California Code of Civil Procedure § 1240.350(a). That section provides that a condemning agency that takes property resulting in the property being "cut off from . . . access to a public road", may also take property belonging to another party to provide alternative access to the original property. The Court of Appeal in Council of San Benito County Governments v. Hollister Inn, Inc., limited Section 1240.350(a) to situations where the taking leaves the original property completely landlocked.

Factual Background

Hollister Inn, Inc. ("Hollister") operates a Best Western hotel near the intersection of Highways 25 and 156 in San Benito County. In 2006, a joint powers authority (the "COG") filed eminent domain proceedings to acquire property neighboring the Best Western for the Highway 25 Bypass Project, which, once completed, would result in the elimination of a roadway easement over the neighboring property connecting Hollister's hotel to Highway 25 The main entrance to the hotel was located over that easement and Hollister contended that the elimination of the access way would "severely damage business and impact . . . profits." Although Hollister's property also had access to Highway 156, 80 to 90 percent of the hotel's business came in from Highway 25. Moreover, in addition to eliminating that access, the project proposed adding a center median to Highway 156 preventing drivers travelling north from making a left onto the property.

Prior to the adoption of the resolution of necessity -- which is the government agency's formal decision to acquire property by eminent domain and must be adopted before the condemning agency can commence an eminent domain action in court -- the COG had considered the possibility of relocating the driveway. However, the idea was rejected because Hollister was not the owner of the property that would have been condemned and, the COG concluded, the project could not condemn someone else's property for the benefit of an adjacent property owner.

Proceedings in the Superior Court

The COG filed eminent domain proceedings in March 2006. Following a trial on the right to take, the trial court held that the COG committed a gross abuse of discretion by failing "to consider the possibility of taking the...