CUNA Mutual Life Ins. Co. v. Los Angeles County Metropolitan Transportation Authority

In CUNA Mutual Life Ins. Co. v. Los Angeles County Metropolitan Transportation Authority (2003) 108 Cal.App.4th 382, the owner of an historic building brought an inverse condemnation action to recover expenses incurred in protecting the building from the transportation agency's construction of a metro rail station. The trial court found for the agency, holding there had been no damage to the building caused by the construction, and without damage there could be no recovery for mitigation expenses. (Id. at p. 385.) The appellate court reversed. The court held that actual physical damage to the subject property is not a prerequisite to an award of mitigation of damages. The court distinguished Jordan on two grounds. First, the court noted Jordan did not involve mitigation expenses but only inverse condemnation. Second, the court noted Jordan found the claimed damage speculative because "there had been no flood, there might never be a flood, and it was not possible to calculate any loss that the property owners might suffer from some unknown flood." (CUNA, supra, 108 Cal.App.4th at p. 401.) In contrast, the CUNA court found the mitigation damages claimed by the property owner were not speculative since they had already been incurred. Nor was the tunneling and station excavation speculative: they had been completed by the time of trial. (Id. at pp. 401-402.)