Eminent Domain Report

Courts have historically denied inverse condemnation claims by property owners against water suppliers where the quality of water or chemicals used allegedly caused corrosion or damage to water pipes.  However, under a recent line of cases, that bar to recovery may be shifting.  In a new unpublished decision, Micheli v. City of Fresno (2026 Cal. App. Unpub. LEXIS 1027), the Court permitted a large-scale, class action inverse condemnation lawsuit to proceed where homeowners claimed the City’s water supply corroded their pipes and caused health-related concerns. 

Background ...

When the government approves a private development that diminishes neighboring property values, can a property owner maintain a takings claim?  According to a recent California court decision, the answer is no – governmental approval of a private project cannot trigger inverse condemnation liability. 

Background

In De La Cruz v. City of Los Angeles (2026 U.S. Dist. LEXIS 26413), a new six-story apartment building was being constructed next to the plaintiff’s residence.  The development was approved without a full environmental impact report based on a CEQA exemption for ...

When a lawsuit involves both inverse condemnation claims and other tort claims, trial courts often bifurcate the proceedings. A recent unpublished opinion from the Third District Court of Appeal, Rainey v. Nevada Irrigation District, 2026 Cal. App. Unpub. LEXIS 231, addresses what happens when findings made in the first phase resolve factual issues common to the claims reserved for the second phase.

Background

Two neighboring property owners sued the Nevada Irrigation District, alleging that water leaking and seeping from the District’s irrigation ditch caused landslides ...

In Washington State, when a public agency determines it needs to acquire property for a public project, the agency will work directly with the private property owner to negotiate a purchase price for the property rights needed. However, if the agency reaches an impasse in the negotiations with the property owner, the public agency may turn to its eminent domain power and initiate a condemnation lawsuit. A condemnation lawsuit triggers the formal legal process for the agency to take private property for a public purpose without the owner’s consent in exchange for payment of just ...

This seems like common sense, but a public agency cannot pursue an inverse condemnation cause of action for damages suffered from its own public improvements. Yet that is exactly what the County of Santa Cruz recently attempted against another local public agency. The Court denied leave to amend to add an inverse condemnation cause of action and left unanswered a significant policy question on whether a public agency can pursue a claim for inverse condemnation at all, or whether inverse condemnation only applies to damages to private (not public) property. …