What is "just compensation" in the context of eminent domain?

In the context of eminent domain, "just compensation" refers to the requirement that property owners be compensated fairly when their property is taken for public use. The term encapsulates the principle that the government must provide a monetary sum equivalent to what the property would reasonably sell for in the open market, which is determined through appraisals and market analysis.

The appraised fair market value of the property is considered the most appropriate measure of just compensation because it reflects what a willing buyer would pay a willing seller in an unrestricted market, thus ensuring the property owner is not financially disadvantaged by the government's acquisition. This approach contrasts with considerations such as the historical purchase price of the property, the cost to replace it, or its assessed value for taxation, which may not accurately represent current market conditions.

Using the fair market value as a baseline for just compensation helps to uphold the rights of property owners and ensures that they receive a fair and equitable sum for what they have lost, hence avoiding any potential injustices that could arise from lower or outdated valuations.