In New Jersey, a Property Owner May Recover Consequential Business Losses for a Temporary Taking

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On August 27, 2009, the New Jersey Appellate Division, in State of New Jersey, by the Commissioner of Transportation v. Arifee, et al.,1 upheld a trial court decision, dismissing the condemnation complaint of the Commissioner of Transportation, for failure to conduct bona fide negotiations. The dismissal of the complaint was upheld because the State of New Jersey, in making its statutorily required offer of just compensation, did not consider the consequential business losses to the property owner that resulted from the temporary easement the state was seeking to acquire. Though the appellate court's opinion is yet unpublished, it is likely to open the door for many business owners in New Jersey who are or will be impacted by a temporary taking to recover business losses that result from the taking.

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