The Detroit Free Press (Freep.com) reports that the Michigan Department of Transportation settled its condemnation action seeking to take a 51-acre right of way for the M-5 freeway segment known as the Haggerty Connector in Novi, Michigan. The state DOT took the land in 1996 and deposited its idea of just compensation in the amount of $2.8 million. But after a valuation trial the verdict came to $14.9 million. The Michigan Supreme Court reversed, and ordered a new trial.
But there won’t be any retrial. DOT has now settled the case for $16 million, payable in addition to the $2.8 million deposit.
It kinda makes a fellow wonder. What were the DOT people thinking when they made a deposit that was only some 15% of what the land turned out to be worth. Reasonable minds can differ as to what is reasonable compensation. But when the eventual voluntary settlement turns out to be almost seven times the original offer, that raises the question as to whether the initial purchase effort was sincere. Remember that this was not a case of DOT suffering an adverse verdict after trying the case and fighting the good fight against what it thought was the owner’s ecessive demand — the $18.8 million payment was agreed to by DOT.