California Business Loss by vmy19736

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									                            BUSINESS GOODWILL


THE MARYLAND DEPARTMENT OF TRANSPORTATION REQUESTED A
SURVEY OF THE OTHER STATES REGARDING BUSINESS GOODWILL.

      DO YOU PAY FOR BUSINESS GOODWILL? IF YES, HOW IS IT
       CALCULATED?


ALABAMA

It is their understanding the Rules and Regulations pursuant to the Uniform Act
specifically provides that business goodwill is not compensable. Alabama does not pay
for loss of business goodwill.

ARIZONA

Arizona does not pay damages for goodwill.

ARKANSAS

Arkansas does not pay for business goodwill.

CALIFORNIA

Forwarding links to California Code of Civil Procedure, Article 6, "Compensation for
Loss of Goodwill," Sections 1263.510 to 1263.530, and Section 7.17.00 of our Right-of-
Way (Procedures) Manual, "Business Goodwill Appraisals." If you have a problem
accessing either or both links, they can be accessed through the State of California's
internet site.
http://www.leginfo.ca.gov/cgi-
bin/waisgate?WAISdocID=7196329004+0+0+0&WAISaction=retrieve
http://www.dot.ca.gov/hq/row/rowman/manual/chap07/Sec7-17.pdf

CONNECTICUT

Connecticut does not pay damages for goodwill.

DELAWARE

Delaware does not pay damages for goodwill.

FLORIDA
Florida does pay damages for business goodwill. These payments are called Business
Damages. Business damages are available to those businesses who can meet the
following eligibility requirements: (1) the business must hold a property interest in the
land being acquired; (2) the taking must be a partial taking. If the entire property on
which the business is located is acquired no business damages will be paid; (3) the
business must have been in operation on the site for five years or longer; and, (4)
damages must result directly from the loss of property. The effects of construction
activities or other impacts associated with construction are not compensable.

Businesses located on property being acquired are notified of their right to claim
damages. Affected businesses must submit a written settlement offer to Florida DOT that
includes an explanation of the nature, extent and monetary amount of the damages being
claimed. The offer must be prepared by the business owner, a certified public accountant
or an expert familiar with the business. The business must also submit adequate business
records to substantiate the claim.

Upon receipt of a business damage claim, Florida will either review the claim and
supporting records internally or hire an outside CPA or business damage expert to review
the claim and recommend an amount as Florida’s counteroffer. The ultimate amount of
business damages to be paid will be negotiated with the owner or determined in
condemnation.

GEORGIA

Georgia does not pay damages for goodwill.

HAWAII

Hawaii does not compensate for goodwill.

IDAHO

Idaho does not pay damages for goodwill.

ILLINOIS

Illinois does not pay for business goodwill.

INDIANA

Indiana does not pay damages for goodwill.

IOWA

Iowa does not pay damages for goodwill.
KANSAS

Kansas does not pay damages for goodwill.

KENTUCKY

Kentucky does not pay damages for goodwill.

LOUISIANA

Louisiana law requires their agency to pay when they have a taking from an owner
occupied business the "full extent of the owner’s loss" if the business cannot be cured on
site. They will hire a business valuation expert to determine the value of the business and
an appraiser to determine the market value of the property and the replacement cost of a
similar improvement including the cost of replacement land. They will pay the lesser of
the value of the business versus the replacement cost of the business if both values
exceed the market value of the business property. If the business value is less than the
market value, they will offer to pay the market value of the property. They will always
pay no less than the market value of the business property. Their law requires our agency
to restore the income stream of the business and they use the procedure above as a guide
to compensate the business owner to their full extent of loss as a result of our taking.

MAINE

Maine does not pay damages for goodwill.

MASSACHUSETTS

Massachusetts does not pay for lost goodwill.

MICHIGAN

Michigan does not pay goodwill. If a business cannot be relocated, they hire a consultant
to do a business evaluation to determine the value of the business.

MINNESOTA

Minnesota does not pay for business goodwill.

MISSISSIPPI

Mississippi does not pay for goodwill, only property.

MISSOURI

Missouri does not pay for loss of business or business goodwill.
MONTANA

Montana does not pay damages for goodwill.

NEBRASKA

Nebraska does not pay damages for goodwill.

NEW HAMPSHIRE

New Hampshire does not pay damages for goodwill.

NEW JERSEY

New Jersey does not pay damages for goodwill. This is covered within our eminent
domain statute.

NORTH CAROLINA

North Carolina does not pay damages for business goodwill.

NORTH DAKOTA

North Dakota does not pay for business goodwill.

OHIO

Ohio does not pay for loss of goodwill.

SOUTH CAROLINA

South Carolina does not pay for goodwill.

SOUTH DAKOTA

South Dakota does not pay for goodwill.

UTAH

Utah does not compensate for business goodwill.

VIRGINIA

Virginia does not pay damages for goodwill.
WASHINGTON

Washington does not pay damages for goodwill.

WISCONSIN

Wisconsin had been asked this or a similar question regarding business losses on several
occasions in the past. Below are their comments.

Question 1: What are Wisconsin’s require ments for paying attorney fees incurred
by a landowne r seeking a damage recovery?

Response: Under section 32.28, Wis. Stats., the state’s duty to pay a property owner’s
litigation expenses arises where the condemnation commission or the circuit court awards
the property owner an amount that exceeds the state’s highest written offer by at least
$700 and at least 15%. Litigation expenses are defined to include costs, disbursements
and expenses, including reasonable attorney, appraisal and engineering fees necessary to
prepare for or participate in actual or anticipated proceedings before the condemnation
commissioners … or any court…

Question 2: In Wisconsin, what interest rate applies to the amount of damages
awarded to a property owne r who prevails against the state before a Condemnation
Commission, Circuit Court judgme nt, or appeal from judgment of the Circuit
Court?

Response: The state’s obligation to pay interest on amounts awarded a property owner is
found in section 32.05(10)(b). It states that “the court shall enter judgment for the
amount found to be due after giving effect to any amount paid by reason of a prior award.
The judgment shall include legal interest on the amount so found due from the date of
taking if judgment is for the condemnor, and from 14 days after the date of taking if
judgment is for the condemnee.” By way of interpretation, the state only owes so called
“legal interest,” on any amount over what it has already paid the property owner. “Legal
interest” in Wisconsin is defined to be “continuous simple interest .. at 5%..” Milw. &
Sub.Trans. v. Milw. County, 82 Wis. 2d 420, 263 NW 2d 503, 1977.

Question 3: Is payment for loss of business an ite m of compensation recognized
under Wisconsin law?

Response: No, WisDOT does not pay for loss of business as an item of compensation.
Wisconsin law does, however, take the Federal relocation regulations a step further and
offers a Replacement Business Payment to business displacees. More specifically:

       Section 32.19, Wis. Stats., and section Comm 202, Wis. Admin. Code, govern the
       payment for property acquired and “other losses,” incurred by persons displaced
       as a result of any public project. Wisconsin is adamant in its position that “loss of
       business” is not an eligible item of damage to a business operation. Wisconsin
       statute and Administrative Code do provide, however, for a Replacement
       Business payment of up to $30,000(tenant) or $50,000(owner), based on certain
       eligibility criteria.


WYOMING

Wyoming law indicates that a landowner is entitled to compensation for loss of goodwill.
However, they have never paid for loss of goodwill. The law states it is only
compensable if it “cannot reasonably be prevented by relocation of the business or by
taking steps and adopting procedures that a reasonably prudent person would take and
adopt in preserving the goodwill.”

								
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