In: Operations Management
The city has the power to take private property for public use. The Fifth Amendment to the U.S. Constitution states, ". . . nor might private property be taken for open use, without just pay." The Supreme Court has held this applies to state and neighborhood, and in addition the elected, government. Richmond must pay the Neelans a reasonable cost for their genuine property. This, by and large, means the sensible market esteem. On the off chance that the Neelans deny Richmond's offer, Richmond will document suit looking for judgment of the land. The court will indicate what remuneration is simply an honor title to Richmond.
In this case, scenario, if the Neelans deny Richmond’s (State) offer and Richmond files a suit. The court will decide based on the following points:
1. That a “just” compensation has to pay to the Neelans.
2. The court or jury determines the land’s fair value.
3. Fair compensation is usually determined using the market value of the land.
4. The price for which the landowner could reasonably expect to sell the land to some other buyer is determined by the court.