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Business damages in Florida eminent domain

The claim most states do not allow, and the one Florida owners most often fail to raise.

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In almost every state a condemnation claim ends at the real estate. The land and buildings are valued, the owner is paid, and whatever happens to the business trading there is treated as its own problem.

Florida is different. Section 73.071(3)(b) of the Florida Statutes brings damage to a business within what a jury may award, subject to conditions that include the business having been established more than five years where the taking occurs on or after 1 January 2005.

The short answer

If a business of standing operates on the property, the claim has two halves. Raising the business half late is the commonest way it gets lost.

How a business damages claim is built

1

Confirm the business qualifies

The statutory conditions include how long the business has been established at the location.

2

Establish the mechanism

Access change, parking loss, visibility loss or construction disruption.

3

Assemble the trading record

Accounts, takings and customer data predating the project.

4

Quantify the effect

The reduction attributable to the taking, separated from unrelated market movement.

5

Distinguish it from severance

Severance damages compensate the property, business damages compensate the business. Both can arise from the same take.

6

Present to the jury

Section 73.071 puts value, severance damages and business damages to the jury where the parties disagree.

What decides these claims

Evidence gathered before the project

Trading records that predate the works are far more persuasive than reconstructions afterwards.

A clear causal chain

Showing how the physical change to the site produced the trading change is the heart of it.

Separating market from project

A business already declining is a harder claim. Be honest about this early rather than late.

Owner or tenant

The position differs, and the lease matters. Both should be examined at the outset.

The construction period

Extended works outside a trading site have effects worth documenting as they happen.

Who pays to run it

Sections 73.091 and 73.092 put reasonable defence costs and attorney fees on the condemning authority.

Frequently asked questions

Does Florida really pay for damage to a business?

Section 73.071(3)(b) brings business damages within what a jury may award in defined circumstances. It is one of the most owner favourable features of Florida eminent domain law and has no equivalent in most states.

What are the conditions?

They include the length of time the business has been established, with more than five years required where the taking occurs on or after 1 January 2005. Check the detail against your own facts with a licensed Florida attorney.

Is this the same as severance damages?

No. Severance damages compensate the reduction in value of the land you keep. Business damages compensate harm to the business operating on it. Both can arise on the same taking.

What if I am a tenant?

The position differs between owner occupiers and tenants and the lease terms matter. Take advice on your specific arrangement.

Understand your property situation before the next step

Explore Florida resources matched to your property type, the project affecting it, and the stage you have reached.

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