SCMTD February 2004 Board of Directors Agendas - Santa Cruz ...

CODE OF CIVIL PROCEDURE
ARTICLE 6 (SECTIONS 1263.510 - 1263.530)
COMPENSATION FOR LOSS OF GOODWILL
Compiled from: West's Annotated California Codes
H. [Sec. 1212] Compensation for Loss of Goodwill
Notwithstanding any other provisions of Section 1200 to the contrary, the procedure for
determining and offering compensation for loss of goodwill in connection with the District's
acquisition of any property shall be governed by this Section 1212.
1. [Sec. 1213] Compensation Generally
With respect to the owner of a business conducted on property acquired by the District, or
on the remainder if such property is part of a larger parcel, the amount of just compensation to be
paid by the District may include consideration of loss of goodwill, to the extent required by law
and these Rules and Regulations.
Within the meaning of this Section 1212, "goodwill" consists of the benefits that accrue
to a business as a result of its location, reputation for dependability, skill or quality, and any other
circumstances resulting to a probable retention of old or acquisition of new patronage.
In order to be entitled to compensation for loss of goodwill such owner of a business
shall first have proved all of the following:
a. The loss is caused by the acquisition of the property or the injury to the
remainder;
b. The loss cannot reasonably be prevented by a relocation of the business or
by taking steps and adopting procedures that a reasonably prudent person
would take and adopt in preserving the goodwill;
c. Compensation for the loss will not be included in payments under Section
700 of these Rules and Regulations;
d. Compensation for the loss will not be duplicated in the compensation
otherwise paid to the owner.
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