Los Angeles County Metropolitan Transportation Authority v. Yum Yum Donut Shops

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MTA filed suit against Yum Yum in eminent domain to take one of Yum Yum's donut shops that was in the path of a proposed rail line. The trial court determined that Yum Yum was not entitled to compensation for goodwill under Code of Civil Procedure section 1263.510, because Yum Yum unreasonably refused to relocate the shop to one of three sites MTA proposed at the entitlement trial. Based on section 1263.510's legislative history, accompanying Law Review Commission Comments, case law, and the general principles governing mitigation of damages, the Court of Appeal held that a condemnee is entitled to compensation for lost goodwill if any portion of that loss is unavoidable. The court held that a condemnee need only prove some or any unavoidable loss of goodwill to satisfy the condemnee's burden to demonstrate entitlement to compensation for goodwill under section 1263.510. In this case, the court held that the trial court erred in finding that Yum Yum's failure to mitigate some of its loss of goodwill precluded compensation for any loss of goodwill. Accordingly, the court reversed and remanded for a jury trial on the value of the lost goodwill. View "Los Angeles County Metropolitan Transportation Authority v. Yum Yum Donut Shops" on Justia Law