Just Compensation Demand - Colorado

DEMAND FOR JUST COMPENSATION — COLORADO

1. INTRODUCTION AND PURPOSE

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

The Owner submits this demand to document the Owner's good-faith valuation, to advance the good-faith negotiation required by C.R.S. § 38-1-121 before any condemnation petition is filed, and to establish the record relevant to fee-shifting under C.R.S. § 38-1-122(1.5). This demand does not waive — and the Owner expressly reserves — all rights described in Section 8.

2. IDENTIFICATION OF THE PROPERTY AND THE TAKING

3. GOVERNING JUST-COMPENSATION STANDARD IN COLORADO

3.1. Constitutional basis. Article II, Section 15 of the Colorado Constitution provides that private property shall not be "taken or damaged, for public or private use, without just compensation." Colorado's "or damaged" language is broader than the federal Fifth Amendment and supports recovery where a public project damages the remainder even absent a physical taking of it.

3.2. Statutory measure (C.R.S. § 38-1-114).

• Total taking: the compensation is the reasonable market value of the property taken as of the valuation date.
• Partial taking: the compensation is the value of the part actually taken PLUS damages to the residue (severance damages), reduced only by the special benefits, if any, that the Project confers on the remainder. General benefits shared by the community at large are not offset.

3.3. Valuation date and trier (C.R.S. §§ 38-1-114, 38-1-115). Compensation is ascertained by a board of commissioners or, on demand, a jury. The valuation date is fixed by statute and case law (generally the date of trial / the date possession is taken, whichever the court determines applicable). Owner reserves the right to a commission or jury determination.

3.4. Interest (C.R.S. § 38-1-116). The Owner is entitled to statutory interest on the award from the date the Condemnor takes possession (or as otherwise provided by law) to the date of payment.

4. OWNER'S VALUATION AND ITEMIZED DEMAND

Based on the appraisal and analysis described in Section 5, the Owner's good-faith valuation is as follows:

5. APPRAISAL SUPPORT

This demand is supported by:

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

☐ The Owner's statutory right under C.R.S. § 38-1-121 to an appraisal at the Condemnor's expense, which the Owner ☐ has invoked / ☐ hereby invokes

☐ Comparable sales analysis ☐ Income approach ☐ Cost approach ☐ Engineering / site plan ☐ Survey ☐ Photographs

6. STATUTORY LEVERAGE — GOOD-FAITH NEGOTIATION AND FEE-SHIFTING

6.1. Good-faith negotiation (C.R.S. § 38-1-121). Before filing a condemnation petition, the Condemnor must negotiate in good faith and must, on request, provide the Owner an appraisal at the Condemnor's expense. The Owner requests that the Condemnor provide a copy of its appraisal and the basis for any offer.

6.2. Attorney-fee exposure (C.R.S. § 38-1-122). The Owner places the Condemnor on notice of two fee-shifting provisions:

• § 38-1-122(1): If a court finds the Condemnor was not authorized by law to acquire the Property, the court shall award the Owner reasonable attorney fees.
• § 38-1-122(1.5): Where the court's award exceeds $10,000 AND equals or exceeds 130% of the last written offer made before the petition was filed, the Condemnor shall reimburse the Owner's reasonable attorney fees. (This subsection does not apply to certain rights-of-way condemnations identified in the statute — confirm applicability.)

The Owner intends to document each written offer for purposes of § 38-1-122(1.5). The Condemnor's last written offer to date is $[____________], dated [__/__/____].

6.3. Costs. A property owner in a Colorado condemnation proceeding is generally entitled to recover the reasonable and necessary costs of litigation (e.g., expert and appraisal fees) as provided by statute and rule.

7. DEMAND AND RESPONSE DEADLINE

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

The Owner requests a written response within [____] days of receipt of this letter, including (a) the Condemnor's appraisal, (b) a written explanation of any disagreement, and (c) a revised written offer. Absent a satisfactory response, the Owner will pursue all available remedies and will rely on this demand and the Condemnor's offers in any subsequent fee application under C.R.S. § 38-1-122(1.5).

8. RESERVATION OF RIGHTS

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

1. ☐ Demand a board of commissioners or a jury to ascertain compensation (Colo. Const. art. II, § 15; C.R.S. § 38-1-115);
2. ☐ Contest the Condemnor's authority, the public use, and the necessity of the taking;
3. ☐ Assert that the Property has been "damaged" within the meaning of Colo. Const. art. II, § 15, including by inverse condemnation;
4. ☐ Seek severance damages and to dispute any claimed special benefits;
5. ☐ Recover interest (C.R.S. § 38-1-116), costs, and attorney fees (C.R.S. § 38-1-122);
6. ☐ Claim relocation benefits and assistance under applicable state and federal law; and
7. ☐ Amend or supplement this demand on further appraisal or information.

Nothing in this demand constitutes a waiver, an admission, or an agreement to any valuation, and no statement here is an offer admissible to prove value beyond its statutory purpose.

9. SIGNATURE

Respectfully submitted,

[________________________________]

[OWNER NAME / AUTHORIZED REPRESENTATIVE]

OR, if represented by counsel:

[LAW FIRM NAME]

By: [________________________________]

[ATTORNEY NAME], Colo. Atty. Reg. No. [________]

Attorney for Owner

[ADDRESS] | [CITY, STATE ZIP]

Telephone: [NUMBER] | Email: [EMAIL]

Date: [__/__/____]

10. COLORADO PRACTICE NOTES

• "Taken OR damaged." Colo. Const. art. II, § 15 compensates property that is taken or damaged, broader than the federal clause. This supports severance/inverse-condemnation theories where a project damages the remainder.
• Measure of compensation. C.R.S. § 38-1-114: total taking = reasonable market value; partial taking = value of part taken + damages to residue − special benefits (general benefits not offset).
• Owner's appraisal at condemnor's expense. C.R.S. § 38-1-121 requires good-faith negotiation and entitles the owner to an appraisal paid by the condemnor — a meaningful leverage point; invoke it early.
• Fee-shifting. C.R.S. § 38-1-122(1) (no authority) and § 38-1-122(1.5) (award > $10,000 and ≥ 130% of last written offer) shift the owner's reasonable attorney fees. Document every written offer. Note the rights-of-way exclusions in § 38-1-122(1.5).
• Trier and valuation date. Compensation is fixed by a board of commissioners or a jury (C.R.S. § 38-1-115); confirm the controlling valuation date for the specific taking.
• No general business-damages remedy (UNSETTLED / DISTINCTIVE). Unlike Florida, Colorado does not provide statutory business damages; lost profits/goodwill are generally not separately compensable. Business use may bear on market value and highest-and-best use. Verify current law before asserting any business-loss claim.
• Interest. C.R.S. § 38-1-116 provides interest on the award; confirm the applicable rate and accrual date.

11. SOURCES AND REFERENCES

• Colo. Const. art. II, § 15 — https://leg.colorado.gov/
• C.R.S. § 38-1-114 (compensation) — https://leg.colorado.gov/
• C.R.S. § 38-1-115 (ascertainment; valuation date)
• C.R.S. § 38-1-116 (interest)
• C.R.S. § 38-1-121 (good-faith negotiation; appraisal at condemnor's expense)
• C.R.S. § 38-1-122 (attorney fees) — https://codes.findlaw.com/co/title-38-property-real-and-personal/co-rev-st-sect-38-1-122/
• Colorado Department of Transportation, Right of Way Manual, ch. 3 (Appraisal) — https://www.codot.gov/

EXHIBIT A — LEGAL DESCRIPTION

[________________________________]

EXHIBIT B — APPRAISAL SUMMARY

(Attach appraisal report or summary.)

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in Colorado must review and customize this document before use, and valuation must be supported by a qualified appraiser. Laws, citations, and rates change frequently; verify all authorities before use.