How effective can an expert witness be in determining the outcome of your real estate lawsuit?
Even if the homeowner has the only expert witness regarding damages in an eminent domain action, that testimony needs to be grounded in a proper interpretation of the law, or it will be barred, and the homeowner will not recover any damages in excess of the fair market value of the house.
This rule was applied in the recent McNamara case where the family sued the Department of Transportation for taking their house for an improvement project in Prunedale. The McNamara appraiser conceded that the decrease in the value of the their home from September 2006 when the project was approved, and the date of valuation of the house in July 2008 when DOT filed its lawsuit, was due to the general market decline, and Caltrans was not responsible for the decline.
Significantly, the DOT had not restricted the McNamara’s sale of their property before July 2008, and the Appellate Court cited the rule in the Klopping case that any losses occasioned by a general decline in property value that occur before the date of the taking must be borne by the property owner. In other words, if the general market decline caused the loss of value, the property owner cannot hold the DOT responsible due to general market decline. The McNamara appraiser admitted he could not attribute the property’s loss due to anything other than the market’s decline. Continue reading