Section 13 Good-Faith Negotiations

• Library: Condemnation Practice 2009

The inability of the condemnor and the owner to “agree upon the proper compensation to be paid” is a jurisdictional prerequisite to the exercise of the power of eminent domain. Section 523.010.1, RSMo 2000; City of Columbia v. Baurichter, 713 S.W.2d 263 (Mo. banc 1986); State ex rel. White v. Eiffert, 774 S.W.2d 152 (Mo. App. S.D. 1989). Courts have construed this provision as requiring condemnors to enter into “good faith” negotiations to purchase the property. State ex rel. State Highway Comm’n v. Pinkley, 474 S.W.2d 46 (Mo. App. E.D. 1971); City of Cape Girardeau v. Robertson, 615 S.W.2d 526 (Mo. App. E.D. 1981).

Unless good-faith negotiations have been pleaded and proved, a court has no power to entertain a condemnation action. Bueche v. Kansas City, 492 S.W.2d 835 (Mo. banc 1973); Sch. Dist. of Clayton v. Kelsey, 196 S.W.2d 860 (Mo. 1946). The only exceptions to this rule are when the parties who might claim an interest in the property are unknown to the condemnor, are incapable of contracting, or are not residents of the state. Section 523.010.1. These exceptions, when applicable, should be pleaded. City of Columbia, 713 S.W.2d 263.

Historically, Missouri courts interpreted the good-faith negotiations requirement as imposing on the condemnor an obligation merely to make an offer to purchase the property that, if accepted, would create a binding contract. City of Macon v. Blees, Still-Hildreth Bldg. Preservation, Inc., 729 S.W.2d 234 (Mo. App. W.D. 1987); City of Blue Springs, Mo. v. Cent. Dev. Ass’n, 684 S.W.2d 44 (Mo. App. W.D. 1984). Thus, the offer could not be contingent or leave any doubt as to the terms of the proposed agreement, and it had to be authorized by the condemning authority. State ex rel. Mo. Highway & Transp. Comm’n v. Black, 702 S.W.2d 525 (Mo. App. E.D. 1985); Pinkley, 474 S.W.2d 46. But the relationship between the amount of the offer and the market value of the property was not an issue in the determination of good-faith negotiations. City of Blue Springs, Mo., 684 S.W.2d 44; State ex rel. Mo. Highway & Transp. Comm’n v. Anderson, 735 S.W.2d 350 (Mo. banc 1987).

These rules have been modified by the passage of § 523.256, RSMo Supp. 2008, which codifies what constitutes good-faith negotiations.

Section 523.256 provides that, before a court may enter an order of condemnation, the court must find that the condemning authority has engaged in good faith-negotiations. A condemning authority is deemed to have engaged in...