Harvey Cedars ruling may ease the pain of easement payouts

“In an eminent domain partial-taking case that has the potential to affect all shore towns in New Jersey looking for beach fill easements, the New Jersey Supreme Court July 8 reversed a decision on how just compensation for beachfront property owners is determined.

The court ordered a retrial for a Harvey Cedars couple who was paid $375,000 after the borough took a portion of their beachfront property for dune construction.

Harvey Cedars used the power of eminent domain to take an easement for the construction of a 22-foot high dune in front of Harvey and Phyllis Karan’s property as part of a government-funded replenishment project on Long BeachIsland. The dunes partially obstruct the Karans’ view.

The borough and the Karans failed to agree on the amount of just compensation for the taking of more than a quarter of the property, and the case found its way to a jury trial.

Just compensation is the difference between the fair market value of the property before the taking and the fair market value of the remaining property after the taking.”

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Lowe, Clair. Ocean City Gazette 10 July 2013.