Section 22 Valuation of Determinable Tenancies

• Library: Condemnation Practice 2009

If a condemned subject property is encumbered with a written lease and that lease has specific provisions setting forth the respective rights of the parties in the event that the demised property is condemned, these provisions are persuasive and controlling in the court’s determination of whether the parties to the lease have a compensable interest in the commissioners’ award. See State ex rel. Mo. Highway & Transp. Comm’n v. Jim Lynch Toyota, Inc., 835 S.W.2d 421, 424 (Mo. App. E.D. 1992); see also State ex rel. Mo. Highway & Transp. Comm’n v. Muegge, 842 S.W.2d 192 (Mo. App. E.D. 1992). These provisions are commonly called “condemnation clauses.” Thus, a lease that states “LESSEE shall have no right to share in the condemnation award . . .” is enforceable to eliminate a tenant’s interest...