Eminent Domain – Utility Easements
Utility easements are often a necessity, but they can decrease your land’s value or cause damage. Homeowners often have these types of easements on their land for:
- Water
- Gas
- Electrical lines
Your home needs these utilities, so they’re often beneficial for your property value. Other forms of utilities, such as distribution lines, may not be beneficial to you. Imagine for a moment that you own a 200-acre plot of land that is mostly road-front property.
Utility companies may request an easement to run distribution lines across your land because it’s the only logical means of bringing electricity to other parcels.
Transmission lines are large, and they transmit large amounts of power, often from rural areas to larger cities. Pipelines are also transmission lines that come with:
- Safety risks
- Lower land value
If you’re being pressured into an easement through eminent domain, the lawyers at Cohen & Malad, LLP have 55+ years of experience helping people across Indiana protect their rights.
Contact us immediately if you’re being pressured into a utility easement or have been notified about eminent domain.
Types of Utility Easements
Easements may be requested by anyone for access or use of your land, but in this case, they must be for utilities. You’ll find multiple types of easements listed in Indiana Code 32-23:
- Easement by prescription: If the land was used for 20+ years continuously, an easement by prescription is often granted. This may occur if a utility company had lines put on the property decades ago that were not part of a filed easement.
- Easement in gross: Granted by assignment, alienation, or inheritance.
- Easement by necessity: An easement that is necessary to access another parcel or gain access to a public road. In this case, it’s likely no other means of access is possible.
- Easement by prior use: Often a result of when someone doesn’t record an easement.
Utilities may also be above or below. For example, transmission lines may be above ground, or they may be underground. An underground line may require a smaller easement than one that is above ground.
In terms of utilities, the entity granted the easement may need to maintain transmission lines.
Imagine if you have transmission lines across your property that transmit power across your land to other parcels. The power company may need access to:
- Cut tree branches
- Replace lines
- Replace poles
- Etc.
Underground lines often have fewer risks in terms of safety, upkeep and damage to property value.
Utility easements may be required by:
- Electric companies
- Gas companies
- Water or sewer companies or municipalities
An easement transfers with ownership, and unless it is released, it will remain in place.
Unique Considerations
Home and business owners must consider the complete impact that the easement will have on the property. Loss of future use of the land is possible, but it may be limited, too.
For example, you may have underground utilities running across your backyard, and in this scenario, you can often maintain use of the property but cannot:
- Disturb the utilities
- Put anything permanent in the area
Safety may be a concern, too. If a pipeline goes through your property, there are risks to the property. Eminent domain for utilities must be a last resort. Certain utilities may lower your property value, and it’s important that you work with a lawyer who will fight for the full compensation you deserve.
Homeowner & Business Owner Rights
Utility easements grant utility companies the right to access private property to maintain lines or infrastructure.
The utility company does not take ownership of the property, but it does grant them access. Depending on the wording of the easement, the company may not even need to tell you who will be working on your property or when.
If a utility company uses eminent domain to create an easement, homeowners and business owners are entitled to just compensation. Owners also have a right to choose how they receive that compensation.
Under Indiana Code § 32-24-4-4, if the offer exceeds $5,000, landowners may accept either:
- A one-time lump sum payment from the utility company, OR
- Annual payments for up to 20 years
If multiple people own the property, the decision to elect a lump sum or annual payment must be unanimous.
Your rights as a landowner will largely depend on the wording of the easement. For this reason, it is crucial to work with an attorney experienced in eminent cases involving utility easements. A lawyer will fight to protect your rights and interests.
Just Compensation for Utility Easements
Utility easements are permanent. They transfer with the property, so whether your children inherit it or the bank seizes it, that easement will remain unless relinquished voluntarily or by law.
It is crucial to ensure the easement’s language is drafted precisely so you don’t get taken advantage of by the utility company. Additionally, you should ensure that the utility company provides just compensation for their right to use your land.
Utility easements can cause physical damage to your property and decrease the value of your land. The utility company will make you an offer to compensate you for the easement, but that offer may be lower than you deserve.
To ensure that you receive full just compensation, it’s imperative that you properly assess the true potential losses caused by the easement.
A lawyer with experience handling eminent domain cases and utility easements can help you understand your rights and assess your losses.
Once you accept the utility company’s offer, you have little recourse. You’ve worked hard for your land. We’ll help you protect your interests.
How Cohen & Malad Can Help
Utility easements give other entities the right to access and use your property. They restrict the use of your property, can damage your land and ultimately lower the value of your property.
If a utility company is seeking an easement on your property, the future value and use of your land are at stake. An experienced lawyer who understands eminent domain and utility easements can help ensure your rights and interests are protected.
At Cohen & Malad, LLP, we have decades of experience helping property owners seek just compensation in eminent domain cases.
Contact us today for a free case evaluation and to learn more about your rights.
