M Civ JI 90.20 Compensation for Fixtures; Definition

The market value of the property taken includes the value of its fixtures. An item is a fixture if it meets all three of the following criteria:

The item is attached *(or constructively attached) to the land or to a building or structure attached to the land.

*(“Constructively attached” means that an item is a fixture even though it is not physically attached if it is a part of something else that is physically attached, and when the item, if removed, either could not generally be used elsewhere or would leave the part remaining unfit for use.)

The item is a necessary or useful part, considering the purpose for which the land, building, or structure is used.

The surrounding circumstances indicate that the owner intended to make the attachment *(or constructive attachment) permanent.

†(Improvements made by a tenant are to be valued on the basis of their useful life without regard to the term of the lease.)

Note on Use

*The parenthetical paragraph in subsection 1 and the phrases in parentheses preceded by an asterisk should be used only when applicable.

†The final paragraph of this instruction should be used only if applicable.

Comment

Wayne County v Britton Trust, 454 Mich 608; 563 NW2d 674 (1997). Stocks of goods and ordinary movable office furniture are not fixtures. Britton.

For a discussion of just compensation for improvements made by a tenant, see Almota Farmers Elevator & Warehouse Co v United States, 409 US 470; 93 S Ct 791; 35 L Ed 2d 1 (1973).

History

M Civ JI 90.20 was added February 1, 1981. Amended October 1998.