Just Compensation Demand - Arkansas

DEMAND FOR JUST COMPENSATION — ARKANSAS

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 Ark. Const. art. 2, § 22, and to the protections of the Arkansas Property Owner's Bill of Rights, Ark. Code § 18-15-103. This demand states the Owner's valuation, the basis for it, and responds to the Condemnor's written good-faith offer (if any). 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 ARKANSAS

1. Constitutional measure. Private property "shall not be taken, appropriated or damaged for public use, without just compensation therefor." Ark. Const. art. 2, § 22.

2. Just compensation, not merely market value. The Property Owner's Bill of Rights guarantees "just compensation when private property is taken for a public use." Ark. Code § 18-15-103(b)(1). Just compensation includes the fair market value of the property taken and, on a partial taking, damages to the value of the remainder (severance damages) caused by the taking and the Project.

3. Twelve-person jury. In a condemnation proceeding, the circuit court must impanel a jury of twelve persons to determine the just compensation owed. Ark. Code § 18-15-103(b)(9).

4. Right to independent appraisal and counsel. The Owner has the right to hire an appraiser or other independent professional to determine value, and to hire an attorney to represent and negotiate for the Owner. Ark. Code § 18-15-103(b)(7)-(8).

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:

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)

☐ Photographs (Exhibit D)

☐ Other: [________________________________]

VI. STATUTORY LEVERAGE — THE PROPERTY OWNER'S BILL OF RIGHTS

1. Pre-suit assessment + written good-faith offer. Before initiating a condemnation proceeding, the Condemnor must provide the Owner an assessment of the just compensation it estimates, before or contemporaneously with a written good-faith offer to buy the Property. Ark. Code § 18-15-103(b)(5)-(6). The Owner demands a copy of the Condemnor's assessment/appraisal and written good-faith offer.

2. Fee recovery — the 20% rule. Except as noted below, in a condemnation brought under the laws of this state the Owner is entitled to an award of the Owner's costs, expenses, and reasonable attorney's fees incurred in preparing and conducting the final hearing and adjudication — including the cost of appraisals and expert fees — if the compensation ultimately awarded exceeds the Condemnor's written good-faith offer by twenty percent (20%) or more. Ark. Code § 18-15-103(b)(11)(A). This demand is made with that threshold squarely in view.

3. County / municipality exemption. Fee recovery in a condemnation brought by a county or municipality is governed instead by the laws authorizing that action, not by the 20% rule. Ark. Code § 18-15-103(b)(11)(B).

4. Highway Department takings. For Arkansas Department of Transportation / State Highway Commission takings, the Commission deposits estimated compensation (Ark. Code § 27-67-314), and the Owner is entitled to attorney, appraisal, and expert fees if the award exceeds the deposit by ten percent (10%) or more (Ark. Code § 27-67-317).

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 assessment/appraisal and the basis for its written good-faith offer, (b) an explanation of any disagreement with the Owner's valuation, and (c) a good-faith counter-offer.

The Owner notes that, for the Condemnor's offer to satisfy the statute and to avoid fee exposure, the offer should approximate full just compensation. If the Condemnor does not respond by [__/__/____], or if its offer is more than 20% below the just compensation ultimately awarded (or 10% below for an ArDOT deposit), the Owner will pursue the fees and expenses described in Section VI.

VIII. RESERVATION OF RIGHTS

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

1. ☐ Demand the 12-person jury on just compensation (Ark. Code § 18-15-103(b)(9));
2. ☐ Contest the Condemnor's authority, the public use, and the necessity of the taking;
3. ☐ File an answer in any condemnation action and appeal any decision (§ 18-15-103(b)(10));
4. ☐ Pursue an inverse-condemnation claim for property "taken, appropriated, or damaged" without just compensation (Ark. Const. art. 2, § 22);
5. ☐ Recover costs, appraisal/expert fees, and reasonable attorney's fees under § 18-15-103(b)(11)(A) (20% rule) or § 27-67-317 (10% rule for ArDOT), plus interest;
6. ☐ Hire an independent appraiser and counsel (§ 18-15-103(b)(7)-(8));
7. ☐ Amend or supplement this demand based on further appraisal or information;
8. ☐ 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 — Arkansas 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. ARKANSAS PRACTICE NOTES

• Constitutional measure. "Taken, appropriated or damaged for public use, without just compensation." Ark. Const. art. 2, § 22. Just compensation (not merely "market value") is the statutory standard. Ark. Code § 18-15-103(b)(1).
• 12-person jury. All condemnation valuations are tried to a twelve-person jury. § 18-15-103(b)(9).
• Pre-suit assessment + good-faith offer. Required before condemnation; demand the appraisal/assessment. § 18-15-103(b)(5)-(6).
• Fee leverage (distinctive 20% threshold). Owner recovers costs, appraisal/expert fees, and reasonable attorney's fees if the award beats the written good-faith offer by 20% or more — EXCEPT for county/municipal takings. § 18-15-103(b)(11). For ArDOT, the threshold is 10% above the deposit. § 27-67-317.
• Valuation date. Arkansas generally values as of the date of taking; confirm the operative date for the entity and posture.
• Business profits / goodwill. Lost business profits are NOT separately compensable in Arkansas; reflect business impact in FMV / highest-and-best-use. (Fact-specific; flag for counsel.)

XII. SOURCES AND REFERENCES

• Ark. Const. art. 2, § 22
• Ark. Code § 18-15-103 (Property Owner's Bill of Rights) — https://codes.findlaw.com/ar/title-18-property/ar-code-sect-18-15-103/
• Ark. Code § 27-67-314 (Highway Commission deposit); § 27-67-317 (Highway Department owner fees, 10% threshold)
• Arkansas Owners' Counsel of America summary — https://www.ownerscounsel.com/eminent-domain-arkansas/

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