New Jersey Modernizes Partial Takings Compensation

Abstract

The New Jersey Supreme Court's decision in Harvey Cedars v. Karan has brought the evidence that may be presented to a jury in line with what the law required that jury to consider. Before Karan, a jury in New Jersey was instructed by the judge to weigh all the relevant factors that a willing buyer and willing seller would consider regarding the property in issue on a particular date. Despite this instruction, under the previous “special benefits” standard, the jury was not permitted to hear all those factors. Rather, the jury was limited to considering only the negative impact a buyer would point out to reduce a purchase price—in the Karan case, the alleged loss of view. The jury was not permitted to hear the positive impacts of a project that a seller would likely emphasize to increase a purchase price, such as the protective benefit of the dune and added beach area.