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Measure of Damages

Reference Number: MTAS-1313
Reviewed Date: 10/06/2025

The normal measure of damages in an inverse condemnation case is the same as in any other condemnation case. [101] The statutory elements of damages in an eminent domain action are set forth in Tenn. Code Ann. § 29-16-203(a). &Under this statute, a property owner may recover the value of the property actually taken, as well as the incidental damages to any remaining property resulting from the taking. &The value of the property is determined according to its fair market value, and the decline in fair market value is also the test for ascertaining damages to any land remaining following any taking.[102]

Where a permanent regulatory taking has occurred, the measure of damages is as previously discussed. Where a temporary regulatory taking occurs, the property owner is entitled to the fair value of the use of the property during the time of the temporary taking.[103] Thus, the value of the temporary use of property normally is measured by the difference in rental value resulting from the imposition of the regulation.[104]


Notes:
[101] Shelby Cnty. v. Barden, supra; McKinney v. Smith County, 1999 WL 1000887 (Tenn. Ct. App. 1999).

[102] Shelby Cnty. v. Kingsway Greens of Am., Inc., 706 S.W.2d 634 (Tenn. Ct. App. 1985); State ex rel. Dep't of Transp. v. Brevard, 545 S.W.2d 431 (Tenn. Ct. App. 1976) 513 (1986); State ex rel. Comm'r of Dep't of Transp. v. Goodwin, No. W2002-00391-COA-R3-CV, 2003 WL 21026937 (Tenn. Ct. App. Apr. 23, 2003).

[103] First English Evangelical Lutheran Church v. County of Los Angeles, 482 U.S. 304 (1987); Yuba Nat'L Resources, Inc. v. U.S., 904 F.2d 1577 (Fed Cir. 1990).

[104] Kimball Laundry Co. v. U.S., 338 U.S. 1 (1949); Yuba Nat'l Resources, Inc. v. U.S., supra.