Texas Road, Pipeline, and Utility Takings: How to Maximize Compensation in Your Condemnation Case
Who this is for:
Landowners, ranchers, industrial owners, and developers facing condemnation for pipelines, electric transmission lines, roads, or other utility corridors.
What Actually Happens During a Texas Condemnation Case
When a government or utility wants to take part of your property, the process follows a specific path.
For a deeper dive, see these related posts:
Here’s a concise overview of what actually happens during a Texas condemnation case, from the first offer to trial.
1. “Bona Fide” Written Offers and the Condemnation Petition
Before filing a lawsuit, the condemnor (the “taker”) must try to negotiate in good faith.
In practice, this means little more than:
• sending two written offers at least 30 days apart, and
• providing a certified appraisal of the property rights it wants to take.
These offers are often far below what your property rights are truly worth. If you don’t accept the written offers, the taker can file a petition for condemnation in court to begin the taking.
2. The Special Commissioners’ Hearing
Once the case is filed, the judge appoints three special commissioners (plus two alternates) to hold a short hearing and issue an initial damages award.
The commissioners’ job is limited:
They cannot decide whether the condemnor actually has the power to take the property.
They only determine an initial dollar figure, and the condemnor can immediately take possession of your land by bonding or depositing the amount of the commissioners’ award.
Many landowners choose not to attend this hearing because the hearing and the resulting compensation award have no binding effect if either side objects to the award.
3. The Trial Court
If either side objects to the commissioners’ award, the case proceeds in a district court or county court at law.
There, a judge or jury hears the evidence and decides both the amount of compensation and any legal issues about the taking (such as whether the condemnor had the power to take the property rights in the first place).
How Compensation Is Determined
Texas law requires payment of just compensation, which generally includes several categories of damages. Understanding each helps ensure nothing is overlooked.
Market Value of the Part Taken
Disputes often turn on the property’s highest and best use.
A condemnor might say the land is only suitable for agriculture. The landowner’s expert might show it’s more valuable as industrial or commercial property.
In one case involving members of our team, this difference—agricultural versus industrial use—opened a huge gap between the condemnor’s valuation ($60,000) and the landowner’s number (over $20 million). After multiple appeals, the case was eventually resolved on terms that were very favorable for the landowner.
Remainder Damages
If only part of a tract is taken, the owner can recover for the reduction in value of the remainder—the property left after the taking.
Pipeline and electric transmission companies often argue that their easements don’t affect the value of the surrounding land. Market data says otherwise. Buyers typically pay less for land burdened by lines and easements.
Disputes over remainder damages are often the central issue in condemnation cases, especially takings involving pipelines or electric transmission lines.
Temporary Construction Easements
Temporary easements are valued based on market rent, duration, and intensity of use. They can cover staging areas, temporary roads, or workspace around the project. The value of a temporary easement is usually modest, so most disputes in a condemnation case deal with other issues.
Cost-to-Cure Damages
When a partial taking leaves a property damaged or disconnected, Texas law allows recovery of reasonable costs to restore or adapt the property—for example, replacing fences, driveways, or drainage systems.
The Bottom Line
Texas condemnation law may appear straightforward, but it poses complex questions about valuation, damages, evidence, and legal authority. Understanding each stage—and recognizing where leverage exists—can mean the difference between an inadequate recovery and full, fair compensation.
When property is targeted for an easement or right-of-way, owners who understand the process are best positioned to protect their rights. Knowing how to evaluate appraisals, remainder damages, your property’s highest and best use, and comparable sales is essential.
That means finding excellent lawyers and appraisers with extensive experience in Texas eminent domain law.
