Confidential
Settlement – $4,100,000Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Defendant
Edward G. Burg
(Manatt, Phelps & Phillips LLP)
Facts
The defendants owned and operated a metals recycling business which had been in business for 51 years,
including 33 years at its present location east of downtown. The defendants owned about half of the real
property on which the business was conducted, and leased the other half.
The plaintiff sought to acquire by eminent domain part of the property that defendants owned and all of the
property that defendants leased, for construction of a 20-mile grade separated railroad right-of-way from the
Ports of Los Angeles and Long Beach to rail yards in downtown Los Angeles.
As originally planned, the condemnation would have required defendants to shut down the business or move
elsewhere. The defendants were unable to find a suitable site to relocate. The defendants and plaintiff then
worked together to modify the condemnation.
The plaintiff agreed not to take the leased property and defendants agreed to allow additional property that it
owned to be taken for a temporary construction easement. This allowed the defendant to reconfigure its
operations and stay in business at its long-time location, working around the plaintiffÆs project and expanding
onto nearby land owned by the defendants but not previously used for the business.
As modified, the plaintiff acquired about one-half acre in fee and one-half acre in construction easements. The
reconfiguration required defendant to relocate certain equipment, prepare its expansion site for use in the
business, build a replacement office, and operate around the project construction for approximately two years.
Settlement Discussions
The plaintiff (condemnor) made a deposit of probable compensation in the amount of $1,985,440. The defendant (condemnee) made an initial settlement demand of $4.5 million. The parties agreed to a settlement of $4.1 million.
Other Information
The settlement was finalized approximately eight months after the action was filed.
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