M Civ JI 90.30 Going Concern

The defendant claims that condemnation of the property destroyed the business.

If you find that the defendant cannot relocate the business, the defendant is entitled to just compensation for the value of the business as a going concern. If you find that the business can be relocated, the defendant is not entitled to compensation for the value of the business as a going concern.

Comment

City of Detroit v King, 207 Mich App 169; 523 NW2d 644 (1994); Department of Transportation v Campbell, 175 Mich App 629; 438 NW2d 267 (1988); Detroit v Michael’s Prescriptions, 143 Mich App 808; 373 NW2d 219 (1985); Detroit v Whalings, Inc, 43 Mich App 1; 202 NW2d 816 (1972).

The Committee has found no Michigan appellate decisions that either permit or deny compensation for a partial taking of a going concern.

A defendant may not recover both going concern and business interruption damages because the theories are mutually exclusive. Detroit v Larned Associates, 199 Mich App 36; 501 NW2d 189 (1993).

History

M Civ JI 90.30 was added October 1998.