Eminent Domain Report

We are closely tracking the newly released Senate Bill 254 (Becker, 2025) Study Report, prepared by the California Earthquake Authority (CEA) as Administrator of the Wildfire Fund. While the report outlines several pathways to stabilize California’s insurance and energy markets, one of the most significant proposals is the recommendation to fundamentally overhaul inverse condemnation liability for utilities in California.

I. The Strict Liability Standard Under Fire

In California, courts have consistently applied inverse condemnation liability —rooted in Article I ...

Public utilities rely on access to private and public land to build and maintain essential infrastructure. Understanding the right-of-way and condemnation process enables utilities to secure land legally, avoid delays and maintain a balance between operational needs and property owners’ rights. Without a firm understanding of this basis, projects may be delayed, costs can quickly rise and risk exposure increases.

Any acquisition has two parts: (1) the pursuit of a negotiated acquisition through the pre-condemnation process and (2) the involuntary condemnation of the ...

We recently detailed Senate Bill 254, which overhauls California’s approach to wildfires. In addition to promoting new transmission facilities, replenishing the wildfire fund, streamlining the siting process and exempting underground plans, there was a notable addition that has not received as much attention: the Natural Catastrophe Resilience Study. There’s a great article by Travis Ritchie, California Wonders if it is Doing Wildfire Risk All Wrong, that covers this topic. In particular, he notes that utilities in California are vulnerable to wildfire liability ...

On November 27, 2019, U.S. Bankruptcy Judge Dennis Montali issued a Memorandum Decision on Inverse Condemnation (“Memorandum Decision”) in PG&E Corporation and Pacific Gas & Electric’s (together, “PG&E”) Chapter 11 Bankruptcy proceeding in the U.S. Bankruptcy Court for the Northern District of California (Case No. 19-30088).  PG&E challenged the application of the doctrine of inverse condemnation in connection with the 2015, 2017, and 2018 California wildfires.  In the Memorandum Decision, Judge Montali ruled against PG&E and instead concluded that the doctrine ...

One of the hot issues in eminent domain these days involves the government's efforts to take over privately-run utility companies.  The argument typically is that the government -- which has no profit-making motive -- can run the utility at a lower cost, saving the ratepayers money.   Not surprisingly, the utility companies feel otherwise.

In California, one of the first cases to reach trial on this issue is about to wrap up.  The City of Claremont sought to condemn the Golden State Water Company's assets, and Golden State fought the City's right to take.

In a Court trial (i.e., a trial ...

If you happen to be in Austin this week, stop by and see me at the ALI-ABA Eminent Domain Conference.  It starts Thursday, January 28 and runs through Saturday.  I'll be speaking Thursday afternoon on the condemnation of privately-held utility companies -- an issue that's certainly been in the press here in California recently.  I'll be speaking with Christopher Clough of Barron & Adler in Austin, and he's been "in the trenches" on a number of utility-company condemnation issues in Texas.

Aside from my session, there will be a lot of good presentations, including a national eminent domain ...