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the UNIT RULE: MISUNDERSTOOD AND RIGHTLY SO

the UNIT RULE: MISUNDERSTOOD AND RIGHTLY SO. By Kinnon W. Williams and Jacob J. Stillwell. DISCLAIMER.

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the UNIT RULE: MISUNDERSTOOD AND RIGHTLY SO

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  1. the UNIT RULE: MISUNDERSTOOD AND RIGHTLY SO By Kinnon W. Williams and Jacob J. Stillwell

  2. DISCLAIMER This information and the materials provided in this presentation are for educational purposes and are not intended as legal advice. As with all legal matters, you should contact an attorney if you have specific questions or concerns related to a specific issue or problem.

  3. Kinnon W. Williams is a Shareholder at Inslee, Best, Doezie & Ryder, P.S. Named a “Super Lawyer” by Seattle Metropolitan Magazine in 2013 - 2017, his practice focuses on eminent domain, government acquisitions, impact fees and dedications.Serving as Special Counsel to private and public clients, he has defended and prosecuted numerous eminent domain actions. He is the co-author of the WSBA Real Property Desk Book on Eminent Domain and is a frequent speaker on the subjects of eminent domain, easements, roadways and impact fees.

  4. Jacob J. Stillwell is an Associate at Inslee, Best, Doezie & Ryder, P.S. whose practice encompasses municipal, litigation, business and real estate law. Jacob holds a Masters of Laws (LL.M.) degree in Sustainable International Development from the University of Washington School of Law and graduated summa cum laude from Gonzaga University School of Law, where he served as editor-in-chief of the Gonzaga Law Review.

  5. The Unit Rule Two Parts: The Undivided Fee Physical Components

  6. The Undivided Fee All Estates valued as a whole • Leasehold • Easements • Life Estates • Covenants

  7. Physical Components Considered to the extent they contribute to value: • Improvements • Natural Resources • Timber • Minerals • Water Cumulative appraisals not allowed

  8. Valuation Issue The Unit Rule assumes that all interest and estates in the property will be acquired

  9. Query Is acquisition of the entire fee the rule or the exception to the rule in most current acquisitions?

  10. Natural Resources • Cannot be valued separately - Meadows v. U.S. • Can be considered to the extent they enhance value of real property - U.S. v. 158.76 Acres of Land

  11. Covenants • Private deed restrictions should be ignored - Childers v. United States • Covenant compensable when connected to use of land - Adaman Mutual Water Co. v. U.S. • Covenants more akin to contract obligations not compensable - U.S. v. 0.073 Acres of Land • Violation of a covenant compensable right - Fisher v. Dep’t of Transportation – Superior Court Decision

  12. Options, Etc. Less than Fee Estates fall within the Unit Rule • Options to purchase compensable - Spokane School District v. Parzybok • Life Estates • Lease hold Interests

  13. Zoning [The jury is] to value the property in view of uses permitted under present zoning. However, if [the jury] find[s] there is a reasonable probability that zoning will change in the near future, [the jury] may consider the effect of such probability on the fair market value of the property. WPI 151.15

  14. Takeaway • Exceptions to the Unit Rule are more common than the rule itself. • Be wise – value all property as if fee simple absolute and obtain specific instructions

  15. For further information, feel free to contact: Kinnon W. Williams Kwilliams@insleebest.com Jacob J. Stillwell jstillwell@insleebest.com INSLEE, BEST, DOEZIE & RYDER, PS 10900 NE 4th Street, Suite 1500  Bellevue WA 98009-9016 Tel + 425.455.1234  Fax + 425.635.7720 | www.insleebest.com

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