M Civ JI 90.15 Effect of Proposed Public Improvement

The process of determining the value on the date of taking may be complicated by the government’s actions leading up to the taking, if those actions have had an effect on the market value of the property. In such case, you must disregard any change in value resulting from such actions and grant compensation on the basis of what the market value of the property would be if such actions had not occurred. In other words, in arriving at market value you should disregard any conditions which may exist in this area resulting from the prospect of condemnation for this project and the other proceedings leading up to this condemnation case.

You should determine the value of the property as though this project had not been contemplated.

This does not mean that the announcement of the project acts to insulate the properties concerned from normal economic forces. The market may go up or down, the property may deteriorate or be improved, and you should recognize those factors. However, a change in value directly traceable to the prospect of this condemnation should not penalize either owners or the public. By the same token, you should disregard any increases in value which may have occurred by reason of the prospect of the completion of the project.

Note on Use

This instruction applies in total taking cases and to the before value only in a partial taking case.

In public utility condemnation cases, the word “condemnor’s” should be substituted for the word “government’s” in the first paragraph.

Comment

See United States v Miller, 317 US 369; 63 S Ct 276; 87 L Ed 336 (1943); In re Urban Renewal, Elmwood Park Project, 376 Mich 311; 136 NW2d 896 (1965); Heinrich v Detroit, 90 Mich App 692; 282 NW2d 448 (1979); Detroit Board of Education v Clarke, 89 Mich App 504; 280 NW2d 574 (1979); In re Medical Center Rehabilitation Project, 50 Mich App 164; 212 NW2d 780 (1973); Madison Realty Co v Detroit, 315 F Supp 367 (ED Mich, 1970).

History

M Civ JI 90.15 was added February 1, 1981.