Just Compensation Demand - Arizona

DEMAND FOR JUST COMPENSATION — ARIZONA

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 Ariz. Const. art. 2, § 17, and the eminent domain statutes, A.R.S. § 12-1111 et seq. This demand states the Owner's valuation, the basis for it, and responds to the Condemnor's pre-suit 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 ARIZONA

1. Constitutional measure — "taken or damaged"; jury fixes value. "No private property shall be taken or damaged for public or private use without just compensation … and the … damages … shall be ascertained by a jury." Ariz. Const. art. 2, § 17.

2. Statutory measure. The jury assesses (a) the value of the property taken; (b) on a partial taking, the damages that will accrue to the remainder by reason of its severance and the construction of the Project (severance damages); and (c) the special benefits, if any, to the remainder, which offset severance damages. A.R.S. § 12-1122.

3. Severance / proximity damages. Severance damages compensate the diminution in value of the remainder caused by the taking and the Project (including proximity effects such as noise, loss of view, and access changes). The Arizona Supreme Court has held that severance ("proximity") damages can be available even where only appurtenant easements are condemned and no physical real property of the owner is taken. State v. Foothills Reserve Master Owners Ass'n, Inc. (Ariz. 2025).

4. Date of valuation. The Property is valued as of the date fixed by A.R.S. § 12-1123 (generally tied to the date of summons / filing, subject to statutory exceptions). Confirm the operative valuation date for the specific posture.

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)

☐ Documentation of proximity / remainder damage

☐ Photographs (Exhibit D)

☐ Other: [________________________________]

VI. STATUTORY LEVERAGE — CONDEMNOR'S OBLIGATIONS AND FEE EXPOSURE

1. Pre-suit written offer plus supporting appraisal(s). At least 20 days before filing a condemnation action, the Condemnor must deliver to the owner of record (1) a written offer to purchase and to pay just compensation, which "must constitute the plaintiff's estimate of just compensation," and (2) one or more appraisals that support the amount of the proposed compensation. A.R.S. § 12-1116(A). The Owner demands a copy of the Condemnor's appraisal(s) and written offer.

2. Possession / deposit. The Condemnor may obtain immediate possession only on a court order after a deposit or payment based on probable just compensation. A.R.S. § 12-1116(E)–(H).

3. Jury determines value. The amount of just compensation, including severance damages, is fixed by a jury. Ariz. Const. art. 2, § 17.

4. Owner's litigation expenses / attorney fees. A.R.S. §§ 12-1129 and 12-1130 authorize an award of the Owner's litigation expenses and/or attorney fees in defined circumstances — including where the Condemnor abandons the action, and in certain owner-initiated and final-offer situations. The Owner reserves the right to seek all such fees and expenses.

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(s) and the basis for its offer, (b) an 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, including severance damages (Ariz. Const. art. 2, § 17);
2. ☐ Contest the Condemnor's authority, the public use, and the necessity of the taking (A.R.S. § 12-1111 et seq.);
3. ☐ File an answer in any condemnation action;
4. ☐ Pursue an inverse-condemnation claim for property "taken or damaged" without just compensation (Ariz. Const. art. 2, § 17);
5. ☐ Recover litigation expenses and attorney fees as provided by A.R.S. §§ 12-1129 / 12-1130, plus costs and interest;
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 — Arizona 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. ARIZONA PRACTICE NOTES

• "Taken or damaged"; jury fixes value. Ariz. Const. art. 2, § 17 compensates property "taken or damaged" and guarantees a jury determination of compensation.
• Measure. Value of the part taken plus severance damages to the remainder, offset by special benefits. A.R.S. § 12-1122. Valuation date per A.R.S. § 12-1123.
• Pre-suit appraisal (distinctive leverage). Unlike many states, Arizona requires the condemnor to deliver one or more appraisals supporting its offer at least 20 days before filing. A.R.S. § 12-1116(A). Demand them; they anchor negotiations.
• Severance / proximity damages. Available for diminution in remainder value, including proximity effects, and — per State v. Foothills Reserve Master Owners Ass'n (Ariz. 2025) — even where only appurtenant easements are condemned.
• Fee recovery. A.R.S. §§ 12-1129 / 12-1130 authorize owner litigation expenses / attorney fees in defined situations (abandonment; certain owner-prevailing and final-offer contexts). Confirm the precise trigger and current text before relying on it. (Flag for counsel.)
• Business losses / goodwill. Generally not a separate compensable element; reflect in FMV / highest-and-best-use. (Fact-specific; flag for counsel.)

XII. SOURCES AND REFERENCES

• Ariz. Const. art. 2, § 17 — https://www.azleg.gov/
• A.R.S. § 12-1116 (pre-suit offer + appraisal) — https://www.azleg.gov/ars/12/01116.htm
• A.R.S. § 12-1122 (measure of compensation); § 12-1123 (date of valuation)
• A.R.S. § 12-1129; § 12-1130 (owner litigation expenses / attorney fees)
• State v. Foothills Reserve Master Owners Ass'n, Inc. (Ariz. 2025) — severance/proximity damages on condemned easements

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