Just Compensation Demand - Delaware

DEMAND FOR JUST COMPENSATION — DELAWARE

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 and to advance the negotiation contemplated by 29 Del. C. § 9505 before the Condemnor commences condemnation in the Superior Court under 10 Del. C. ch. 61. The Owner reserves all rights described in Section 8.

2. IDENTIFICATION OF THE PROPERTY AND THE TAKING

3. GOVERNING JUST-COMPENSATION STANDARD IN DELAWARE

3.1. Constitutional basis. Article I, Section 8 of the Delaware Constitution provides that private property shall not "be taken or applied to public use" without compensation.

3.2. Measure — fair market value. Just compensation is the fair market value of the property taken, determined by three commissioners at trial under 10 Del. C. § 6108, before whom any party may present competent and relevant evidence on just compensation.

3.3. Partial takings — before-and-after rule. For a partial taking, compensation is measured by the difference between the fair market value of the whole before the taking and the fair market value of the remainder after the taking, capturing severance damages to the remainder, offset by any special benefit to the remainder.

3.4. Possession, deposit, and vesting (10 Del. C. § 6110). The Condemnor may deposit the sum it estimates to be just compensation and obtain possession. The Owner may apply to withdraw the deposit (or part of it) without prejudice to proving a greater amount. The Condemnor's obligation to pay the amount ultimately determined is absolute, and title vests in the Condemnor on the date of payment of the final award.

3.5. Pre-negotiation valuation and incidental reimbursement (29 Del. C. § 9505). Before initiating negotiations, the acquiring agency must establish an amount it reasonably believes to be just compensation. The agency must also reimburse the Owner, to the extent fair and reasonable, for incidental expenses such as recording fees, transfer taxes, and prepayment penalties on a preexisting recorded mortgage.

4. OWNER'S VALUATION AND ITEMIZED DEMAND

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

5. APPRAISAL SUPPORT

This demand is supported by:

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

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

6. STATUTORY LEVERAGE — NEGOTIATION, PUBLIC USE, AND COSTS

6.1. Good-faith negotiation and incidental reimbursement (29 Del. C. § 9505). The Owner requests a copy of the Condemnor's appraisal and the written basis for its just-compensation estimate, and demands reimbursement of incidental expenses (recording, transfer taxes, mortgage prepayment penalties).

6.2. Public-use scrutiny (29 Del. C. § 9501A). Delaware narrows "public use" and provides that, where the condemned property will be owned, occupied, or developed by a private party, the Condemnor must establish public use by clear and convincing evidence. The Owner reserves the right to challenge the taking on this basis.

6.3. Costs (10 Del. C. § 6111). The costs of the proceeding, including the (capped) commissioners' fee, are addressed by § 6111. Delaware does not provide a broad owner attorney-fee-shifting statute comparable to Florida's; the Owner does not waive any fee or cost recovery that may be available under applicable law or 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, including (a) the Condemnor's appraisal and the basis for its estimate, (b) a written explanation of any disagreement, and (c) a revised written offer. If the Condemnor deposits an inadequate sum and takes possession under § 6110, the Owner will withdraw the deposit without prejudice and pursue the full award before the commissioners.

8. RESERVATION OF RIGHTS

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

1. ☐ Have just compensation determined by three commissioners (10 Del. C. § 6108);
2. ☐ Contest the Condemnor's authority, the public use (29 Del. C. § 9501A), and the necessity of the taking;
3. ☐ Seek severance damages and to dispute any claimed special benefit;
4. ☐ Withdraw any deposit without prejudice to claiming a greater amount (§ 6110);
5. ☐ Recover incidental expenses (§ 9505), interest, and any available costs (§ 6111);
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.

9. SIGNATURE

Respectfully submitted,

[________________________________]

[OWNER NAME / AUTHORIZED REPRESENTATIVE]

OR, if represented by counsel:

[LAW FIRM NAME]

By: [________________________________]

[ATTORNEY NAME], Del. Bar ID No. [________]

Attorney for Owner

[ADDRESS] | [CITY, STATE ZIP]

Telephone: [NUMBER] | Email: [EMAIL]

Date: [__/__/____]

10. DELAWARE PRACTICE NOTES

• Forum and trier. All condemnations are in the Superior Court (10 Del. C. § 6102), and just compensation is determined by three commissioners chosen from a list of eleven by alternating strikes (§ 6108).
• Measure of compensation. Fair market value of the property taken; partial takings use the before-and-after method, capturing severance and offsetting special benefit.
• Deposit and possession (§ 6110). The condemnor may deposit its estimate and take possession; the owner may withdraw the deposit WITHOUT prejudice; the obligation to pay the final award is ABSOLUTE; title vests on payment.
• Pre-negotiation duties (§ 9505). The agency must establish a just-compensation amount before negotiating and reimburse incidental expenses (recording, transfer taxes, mortgage prepayment penalties).
• Public-use leverage (§ 9501A). Where a private party will use the property, the condemnor must prove public use by CLEAR AND CONVINCING evidence — a meaningful challenge in redevelopment/economic-development takings.
• No broad attorney-fee shift (DISTINCTIVE). Unlike Florida, Delaware does not provide a general owner attorney-fee-shifting statute; § 6111 addresses costs and a capped commissioner fee. Do not promise attorney-fee recovery without specific authority.
• No separate business damages (UNSETTLED / DISTINCTIVE). Delaware does not have a Florida-style business-damages remedy; lost profits/goodwill are generally not separately compensable. Verify before asserting any business-loss claim.

11. SOURCES AND REFERENCES

• Del. Const. art. I, § 8
• 10 Del. C. ch. 61 (Condemnation) — https://delcode.delaware.gov/title10/c061/index.html
• 10 Del. C. § 6108 (commissioners) — https://codes.findlaw.com/de/title-10-courts-and-judicial-procedure/de-code-sect-10-6108/
• 10 Del. C. § 6110 (possession; deposit; vesting) — https://codes.findlaw.com/de/title-10-courts-and-judicial-procedure/de-code-sect-10-6110/
• 10 Del. C. § 6111 (costs) — https://law.justia.com/codes/delaware/title-10/chapter-61/section-6111/
• 29 Del. C. §§ 9501A, 9505 (acquisition policies; public use) — https://delcode.delaware.gov/title29/c095/index.html

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 Delaware 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.