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CONFIDENTIAL

Mar. 8, 1997

Real Property
Inverse Condemnation
Slander of Title

Confidential

Settlement –  $5,850,000

Court

Riverside Superior Indio


Attorneys

Plaintiff

Cynthia Ludvigsen


Defendant

Justin M. McCarthy


Experts

Plaintiff

E. R. Metcalfe
(technical)

Defendant

John R. Mawhinney
(technical)

Facts

On April 26, 1988, the defendant city and the defendant redevelopment agency filed an application for a tract map and conditional use permit on the plaintiffs' property without the plaintiffs' knowledge or consent. It was the defendants' intent, after approving these applications, to down zone the property, condemn it and then sell it to a local developer. The defendant redevelopment agency filed a condemnation action nearly a year and a half after the land applications were filed and served (after the plaintiffs filed the inverse condemnation action.) The plaintiffs brought this action against the defendants based on inverse condemnation theories of recovery.

Settlement Discussions

The plaintiffs made a C.C.P. º1250.410 settlement demand for $6.2 million. The defendants made a C.C.P.º1250.410 offer of $4.5 million.

Damages

The plaintiffs claimed that the appraiser's value for the subject land was $10.1 million.

Other Information

The settlement was reached approximately seven years and eight months after the case was filed. A settlement conference was held on Aug. 1, 1996 before Judge Lawrence Fry of Riverside Superior Court resulting in a settlement on value. The trial was bifurcated. Phase I was for liability on the inverse condemnation claim and the case settled shortly before Phase II (damages trial) began.


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