{"id":2045,"date":"2021-10-25T03:54:05","date_gmt":"2021-10-25T03:54:05","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=2045"},"modified":"2022-05-09T16:46:55","modified_gmt":"2022-05-09T16:46:55","slug":"caci-3501-fair-market-value-explained","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-3501-fair-market-value-explained\/","title":{"rendered":"CACI 3501 \u201cFair Market Value\u201d Explained"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv1yi6lj-2b0145ad963b2d84ccfdb050c4eded05\">\n#top .av-special-heading.av-kv1yi6lj-2b0145ad963b2d84ccfdb050c4eded05{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv1yi6lj-2b0145ad963b2d84ccfdb050c4eded05 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv1yi6lj-2b0145ad963b2d84ccfdb050c4eded05 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv1yi6lj-2b0145ad963b2d84ccfdb050c4eded05 av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >CACI 3501 <span class='special_amp'>\u201c<\/span>Fair Market Value<span class='special_amp'>\u201d<\/span> Explained<\/h1><div class='av-subheading av-subheading_below'><p>California Civil Jury Instructions CACI<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-1  el_after_av_heading  el_before_avia_sc_search '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" 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action='https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/' id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CACI' aria-label='Search CACI' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='8' \/><input type='hidden' name='post_type' value='page' \/><input type='hidden' name='results_hide_fields' value='post_titles,meta,image' \/><\/div><\/form><\/search><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv1ypf4c-27057a4c6b7b3e484db42916b105dfc5\">\n#top .av_textblock_section.av-kv1ypf4c-27057a4c6b7b3e484db42916b105dfc5 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv1ypf4c-27057a4c6b7b3e484db42916b105dfc5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">3501\u00a0\u201cFair Market Value\u201d Explained<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">Just compensation includes the fair market value of the property as of [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">insert date of valuation<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]. Fair market value is the highest price for the property that a willing buyer would have paid in cash to a willing seller, assuming that:<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">1.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">There is no pressure on either one to buy or sell; and<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">2.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">The buyer and seller know all the uses and purposes for which the property is reasonably capable of being used. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New September 2003; Revised June 2015 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>Do not give this instruction if there is no relevant market for the property. Instead, instruct on the appropriate alternative method of valuation.<\/p>\n<p>The jury determines the fair market value of the property based on the highest and best use for which the property is geographically and economically adaptable. (See\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">San Diego Gas &amp; Electric Co. v. Schmidt<\/span>\u00a0(2014) 228 Cal.App.4th 1280, 1288 [175 Cal.Rptr.3d 858].) If the highest and best use is disputed, give\u00a0CACI No. 3502,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">\u201cHighest and Best Use\u201d Explained<\/span>. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cFair Market Value\u201d Defined.\u00a0Code of Civil Procedure section 1263.320.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Property With No Relevant Market.\u00a0Evidence Code section 823.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe measure of compensation in a condemnation case \u2018is the fair market value of the property taken.\u2019\u2009\u2018The fair market value of the property taken is the highest price on the date of valuation that would be agreed to by a seller, being willing to sell but under no particular or urgent necessity for so doing, nor obliged to sell, and a buyer, being ready, willing, and able to buy but under no particular necessity for so doing, each dealing with the other with full knowledge of all the uses and purposes for which the property is reasonably adaptable and available.\u2019\u2009\u2018A jury should consider all those factors, including lawful legislative and administrative restrictions on property, which a buyer would take into consideration in arriving at the fair market value.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">City of Perris v. Stamper<\/span>\u00a0(2016) 1 Cal.5th 576, 598\u2212599 [205 Cal.Rptr.3d 797, 376 P.3d 1221].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018Market value,\u2019 in turn, traditionally has been defined as \u2018the highest price estimated in terms of money which the land would bring if exposed for sale in the open market, with reasonable time allowed in which to find a purchaser, buying with knowledge of all of the uses and purposes to which it was adapted and for which it was capable.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Klopping v. City of Whittier<\/span>\u00a0(1972) 8 Cal.3d 39, 43 [104 Cal.Rptr. 1, 500 P.2d 1345], internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cRecognized alternatives to the market data approach to valuation are reproduction or replacement costs less depreciation or obsolescence.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Redevelopment Agency of the City of Long Beach v. First Christian Church of Long Beach<\/span>\u00a0(1983) 140 Cal.App.3d 690, 698 [189 Cal.Rptr. 749], internal citation omitted, disapproved on other grounds in\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Los Angeles County Metropolitan Transportation Authority v. Continental Development Corp<\/span>. (1997) 16 Cal.4th 694, 720\u2013721 [66 Cal.Rptr.2d 630, 941 P.2d 809].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Alternative methods of valuation particularly apply to properties such as schools, churches, cemeteries, parks, and utilities for which there is no relevant market; therefore these properties may be valued on any basis that is just and equitable. (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">County of San Diego v. Rancho Vista Del Mar, Inc.<\/span>\u00a0(1993) 16 Cal.App.4th 1046, 1060 [20 Cal.Rptr.2d 675].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cHowever, when there is \u2018a market for this property in the private marketplace as demonstrated by the evidence,\u2019 the trial court errs in admitting evidence of a valuation methodology that ignores the developed market for a particular type of property.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Central Valley Gas Storage, LLC v. Southam<\/span>\u00a0(2017) 11 Cal.App.5th 686, 692 [217 Cal.Rptr.3d 715].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[T]he fair market value of property taken has not been limited to the value of the property as used at the time of the taking, but has long taken into account the \u2018highest and most profitable use to which the property might be put in the reasonable near future, to the extent that the probability of such a prospective use affects the market value.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">City of San Diego v. Neumann<\/span>\u00a0(1993) 6 Cal.4th 738, 744 [25 Cal.Rptr.2d 480, 863 P.2d 725], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIn condemnation actions, California courts have long recognized what has been referred to as the \u2018appraisal trinity.\u2019 This term encompasses three methods or approaches used by appraisers to determine the fair market value of real estate: (1) the current cost of reproducing (or replacing) the property less depreciation from all sources; (2) the \u2018market data\u2019 value as indicated by recent sale of comparable properties; and (3) the \u2018income approach,\u2019 or the value of which the property\u2019s net earning power will support based upon the capitalization of net income. In 1965, the state Legislature codified these three approaches in\u00a0Evidence Code section 815\u2013820. A qualified appraiser in an eminent domain proceeding may use one or more of these valuation techniques to ascertain the fair market value of the condemned property.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Redevelopment Agency of the City of Long Beach, supra<\/span>, 140 Cal.App.3d at p. 705, internal citations omitted.) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>8 Witkin, Summary of California Law (11th ed. 2017) Constitutional Law, \u00a7\u20091368<\/div>\n<div>1 Condemnation Practice in California (Cont.Ed.Bar 3d ed.) \u00a7\u00a7\u20094.1\u20134.2<\/div>\n<div>4 Nichols on Eminent Domain, Ch. 12,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Valuation Generally<\/span>, \u00a7\u00a7\u200912.01\u201312.05, Ch. 13,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fair Market Value\u2014Physical Character<\/span>, \u00a7\u200913.01 (Matthew Bender)<\/div>\n<div>20\u00a0California Forms of Pleading and Practice, Ch. 247,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Eminent Domain and Inverse Condemnation<\/span>, \u00a7\u2009247.135\u00a0(Matthew Bender)<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-7ntizx-80028c15e37699ebca51143d26205180 hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-60fyu5-73b7034dab467e716f956259319503dd\">\n#top .av_textblock_section.av-60fyu5-73b7034dab467e716f956259319503dd .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-60fyu5-73b7034dab467e716f956259319503dd '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-2045","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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