Just Compensation Demand - Alabama

DEMAND FOR JUST COMPENSATION — ALABAMA

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED, AND EMAIL

I. INTRODUCTION AND PURPOSE

This letter is a formal demand for just compensation made on behalf of [OWNER NAME] ("Owner"), the owner of the property identified above (the "Property"), in connection with the proposed acquisition of the Property by [CONDEMNING AUTHORITY] ("Condemnor") for the [PROJECT] (the "Project").

The Owner is entitled to just compensation under Ala. Const. art. I, § 23 and art. XII, § 235, and the Alabama Eminent Domain Code, Ala. Code § 18-1A-1 et seq. This demand sets out the Owner's valuation of the Property and the basis for it, responds to Condemnor's offer (if any), and demands payment of full just compensation. The Owner sends this letter in good faith to resolve the matter without litigation, while expressly reserving all rights.

II. IDENTIFICATION OF THE PROPERTY AND THE TAKING

III. THE GOVERNING JUST-COMPENSATION STANDARD IN ALABAMA

1. Constitutional measure. Private property may not be "taken, injured, or destroyed for public use, without just compensation … first made," and just compensation must be paid before the taking. Ala. Const. art. I, § 23; art. XII, § 235.

2. Fair market value. Section 18-1A-172 defines fair market value as the price the property would bring from a willing seller who is not forced to sell and a willing buyer who is not required to buy, after considering all elements affecting value. Section 18-1A-21 separately requires the condemnor to obtain an appraisal before commencing a condemnation action and to give the owner or representative a reasonable opportunity to accompany the appraiser.

3. Partial taking — before-and-after valuation. Where only part of a larger parcel is taken, the statutory valuation rule is the difference between the fair market value of the entire property before the taking and the fair market value of the remainder after the taking. Component analyses such as improvements, severance effects, and cost to cure may support those two appraisals but must not be added again as duplicative damage items. Ala. Code § 18-1A-170(b).

4. Project benefits are not a general offset. Incidental benefits generally may not reduce compensation. Section 18-1A-171 permits enhancement or benefit consideration only in its specified highway, water or sewer line, water-district, and qualifying coastal-beach-project branches. Identify the condemnor and project before applying any exception.

5. Project-influence rule for state-agency acquisitions. When a state agency acquires the property, § 18-4-14(3) directs it, to the greatest extent practicable, to disregard a pre-valuation increase or decrease caused by the public improvement or the likelihood of acquisition, except deterioration within the owner's reasonable control. Identify the acquiring entity before invoking this provision.

IV. OWNER'S VALUATION — ITEMIZED DEMAND

Based on the appraisal and analysis described in Section V, the Owner's just-compensation valuation is as follows:

Complete the total-taking route or the partial-taking route, not both. For a partial taking, use the statutory before-and-after difference as the compensation figure and treat component analyses only as supporting valuation evidence.

The Owner hereby demands payment of just compensation in the total amount of $[____________].

V. BASIS AND APPRAISAL SUPPORT

This demand is supported by:

☐ Appraisal report of [APPRAISER NAME / FIRM], dated [__/__/____], opining a value of $[____________] (Exhibit B)

☐ Comparable sales analysis

☐ Before-and-after analysis of the larger parcel (partial taking)

☐ Cost-to-cure estimate from [CONTRACTOR / ENGINEER]

☐ Survey / site plan (Exhibit C)

☐ Tax assessment / income and expense records

☐ Photographs (Exhibit D)

☐ Other: [________________________________]

VI. STATUTORY LEVERAGE — CONDEMNOR'S OBLIGATIONS

1. Pre-suit offer at full appraised value. Before commencing a condemnation action, the Condemnor must establish an amount based on an appraisal that it believes to be just compensation and make a written offer to purchase the Property for the full appraised value. Ala. Code § 18-1A-22; see § 18-1A-21. The Owner demands a copy of the Condemnor's appraisal and a written statement of the basis for its offer.

2. Offer is a prerequisite. A condemnation action is subject to objection where the Condemnor failed to make the required pre-suit offer to purchase. Ala. Code § 18-1A-91(b). The Owner reserves the right to raise this and any other procedural defect.

3. Interest. Any judgment for compensation includes interest at the statutory rate from the date fixed by law to the date of payment. Ala. Code § 18-1A-211.

4. Litigation expenses on abandonment / dismissal. If the Condemnor abandons the acquisition or the condemnation action is dismissed, the Owner is entitled to recover litigation expenses, including reasonable attorney, appraisal, and engineering fees, incurred because of the proceeding. Ala. Code § 18-1A-232.

VII. DEMAND AND DEADLINE TO RESPOND

The Owner demands that the Condemnor:

1. Pay just compensation in the amount of $[____________]; or

2. Within [____] days of the date of this letter, respond in writing with (a) the Condemnor's appraisal and the basis for its offer, (b) a written explanation of any disagreement with the Owner's valuation, and (c) a good-faith counter-offer.

If the Condemnor does not respond by [__/__/____], or if its response does not reflect a good-faith effort to pay full just compensation, the Owner will pursue all available remedies.

VIII. RESERVATION OF RIGHTS

The Owner expressly reserves all rights, including the right to:

1. ☐ Demand a trial by jury on the amount of just compensation (Ala. Const. art. XII, § 235);
2. ☐ Object to the Condemnor's authority, the public use, or the necessity of the taking, and to any procedural failure (Ala. Code § 18-1A-91(b));
3. ☐ File an answer and objections in any probate-court condemnation action and appeal to the circuit court for a jury trial de novo;
4. ☐ Pursue an inverse-condemnation claim for any property taken, injured, or destroyed without compensation first made;
5. ☐ Seek interest, costs, and all litigation expenses recoverable by law (including under § 18-1A-232 on abandonment/dismissal);
6. ☐ Amend or supplement this demand based on further appraisal or information;
7. ☐ Pursue relocation assistance and benefits under applicable federal and state law (Uniform Relocation Assistance Act, 42 U.S.C. § 4601 et seq.).

Nothing in this letter is an admission, a waiver, or an agreement to any valuation.

IX. SIGNATURE

Respectfully submitted,

[________________________________]

[OWNER NAME / COUNSEL NAME]

☐ Owner ☐ Attorney for Owner — Alabama State Bar No. [__________]

[FIRM NAME]

[STREET ADDRESS]

[CITY, STATE ZIP]

Telephone: [__________] Email: [__________]

Date: [__/__/____]

X. ENCLOSURES

☐ Exhibit A — Legal description
☐ Exhibit B — Appraisal report / summary
☐ Exhibit C — Survey / site plan
☐ Exhibit D — Photographs
☐ Authorization to represent (if counsel)

XI. ALABAMA PRACTICE NOTES

• Measure of compensation. For a partial taking, § 18-1A-170(b) uses the difference between the entire property's pre-taking fair market value and the remainder's post-taking fair market value. Section 18-1A-171 generally bars reduction for incidental benefits and permits benefit consideration only in its specified project branches.
• Valuation date. Alabama generally values the property as of the date of the taking; pre-taking value changes caused by the Project (or the likelihood of acquisition) are disregarded. Ala. Code § 18-4-14; confirm the operative valuation date for the specific acquiring entity and procedural posture.
• Pre-suit offer. The condemnor must make a written offer to purchase at full appraised value before filing (§ 18-1A-22), supported by an appraisal (§ 18-1A-21). Failure to do so is a basis for objection (§ 18-1A-91(b)).
• Forum. Condemnation actions are filed in the probate court of the county where the property lies (§ 18-1A-71); a dissatisfied party may appeal to the circuit court for a jury trial. Ala. Const. art. XII, § 235.
• Interest / payment. Judgment includes statutory interest (§ 18-1A-211); the condemnor must pay the just-compensation award within 90 days of the determination (§ 18-1A-290).
• Fee recovery is limited. There is no general statute awarding the owner's attorney/appraisal fees simply because the verdict beats the offer. The main fee exposure to the condemnor is on abandonment or dismissal under § 18-1A-232. Verify current law before relying on any fee theory. (Unsettled point — flag for counsel.)
• Business losses / goodwill. Alabama generally does not compensate lost business profits or goodwill as a separate element; reflect business impact in FMV / highest-and-best-use. (Fact-specific; flag for counsel.)

XII. SOURCES AND REFERENCES

• Ala. Const. art. I, § 23 — https://law.justia.com/constitution/alabama/
• Ala. Const. art. XII, § 235
• Ala. Code § 18-1A-21, § 18-1A-22 (appraisal; offer to purchase) — Alabama Legislature, https://alison.legislature.state.al.us/code-of-alabama
• Ala. Code § 18-1A-170, § 18-1A-171, § 18-1A-172 (compensation standards; benefits; fair market value defined)
• Ala. Code § 18-1A-211 (interest); § 18-1A-232 (litigation expenses on dismissal/abandonment); § 18-1A-290 (payment within 90 days)
• Ala. Code § 18-4-14 (project-influence rule on valuation)

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in Alabama, working with a qualified appraiser, must review and customize this document before use. Laws and citations change; verify all authorities before relying on them.