Guide · 10 min read

Understanding Just Compensation

Highest and best use, severance damages, and the difference between a partial and total taking.

The constitutional floor

The Fifth Amendment and Article I, Section 13 of the South Carolina Constitution require just compensation for private property taken for public use. Just compensation is measured by fair market value at the time of the taking — what a willing buyer would pay a willing seller, neither under compulsion.

Highest and best use

Fair market value is calculated based on the property's highest and best use, not its current use. A residential parcel adjacent to a commercial corridor may carry commercial-development value even if a single-family home sits on it today. Failing to argue highest and best use is one of the most common ways landowners are underpaid.

Partial takings and severance damages

When only a portion of a parcel is taken, compensation includes both the value of the strip acquired and any diminution in value to the remaining property (severance damages). Loss of access, changed drainage, new easements, and altered visibility all reduce the value of what remains.

Costs to cure

In some cases the remainder can be restored through fencing, re-grading, or new access. Reasonable costs to cure are a component of just compensation and should be documented by a qualified engineer, not estimated by the acquiring agency.

This guide is informational and is not legal advice. Reading it does not create an attorney-client relationship. For advice on your matter, contact the firm.