Reichs Ford Rd. Joint Venture v. State Rds. Comm'n

In Reichs Ford Rd. Joint Venture v. State Rds. Comm'n, 388 Md. 500, 880 A.2d 307 (2005), the Court discussed compensation for property owners affected by the State's eminent domain power. The Court held that, although the fair market value of the property is typically the only compensation available in an eminent domain condemnation proceeding, the legislature also intended, under the statutory scheme of Maryland Code (2010 Repl. Vol.) 12-105 of the Real Property Article, for the landowner to be able to recover damages such as "real property taxes, mortgage interest, insurance, and other costs associated with maintaining the property" from the time the governmental body decides to take the specific property until the date of the actual taking. Id. at 521-22. The Court based its decision on legislative history, particularly the legislature's concern that announcing the eminent domain condemnation to the public prior to the actual taking results in "vacating tenants and the inability to put the property to any other viable use, and other costs of maintaining a property while waiting for the governmental formally to exercise eminent domain or renounce its interest." Id. at 519. The Court also rationalized that its decision would create "an incentive for the State expeditiously to resolve or prosecute condemnation proceedings rather than, as in this case, possibly dragging its feet." Id. at 523.