{"id":2046,"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=2046"},"modified":"2022-05-09T16:47:31","modified_gmt":"2022-05-09T16:47:31","slug":"caci-3502-highest-and-best-use-explained","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-3502-highest-and-best-use-explained\/","title":{"rendered":"CACI 3502 \u201cHighest and Best Use\u201d Explained"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv1ypum4-634f41a2244d0b5b59da90208b35e1e9\">\n#top .av-special-heading.av-kv1ypum4-634f41a2244d0b5b59da90208b35e1e9{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv1ypum4-634f41a2244d0b5b59da90208b35e1e9 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv1ypum4-634f41a2244d0b5b59da90208b35e1e9 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv1ypum4-634f41a2244d0b5b59da90208b35e1e9 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 3502 <span class='special_amp'>\u201c<\/span>Highest and Best Use<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\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7\">\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 .av_searchform_wrapper{\nborder-radius:0px 0px 0px 0px;\nborder-color:#edae44;\nbackground-color:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 #s.av-input-field{\nborder-radius:0px 0px 0px 0px;\n}\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 #searchsubmit{\nborder-radius:0px 0px 0px 0px;\n}\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 .av_searchsubmit_wrapper{\nborder-radius:0px 0px 0px 0px;\n}\n.ajax_search_response.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7{\npadding:0px 0px 0px 0px;\nmargin:0px 0px 0px 0px;\n}\n<\/style>\n<div  class='avia_search_element av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7  avia-builder-el-2  el_after_av_hr  el_before_av_textblock '><search><form 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-kv1yr7o1-a0b43330ac3e937c416630caf6c29518\">\n#top .av_textblock_section.av-kv1yr7o1-a0b43330ac3e937c416630caf6c29518 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv1yr7o1-a0b43330ac3e937c416630caf6c29518 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">3502\u00a0\u201cHighest and Best Use\u201d Explained<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">You must determine fair market value based on the property\u2019s highest and best use. The highest and best use is the most profitable legally permissible use for which the property is physically, geographically, and economically adaptable.<\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">Do not consider any personal value of the property to [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of property owner<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] or [his\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/its] need for the property. Also, do not consider the particular need of [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of condemnor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] for the property. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/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>Give this instruction if the owner claims that the property\u2019s fair market value should be determined based on some use for which the property is geographically and economically adaptable other than the current use. (See\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">San Diego Gas &amp; Electric Co. v. Schmidt<\/span> (2014) 228 Cal.App.4th 1280, 1288 [175 Cal.Rptr.3d 858].) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><del><\/p>\n<hr \/>\n<p><\/del><\/p>\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\">\u201cThe property taken is valued based on the highest and best use for which it is geographically and economically adaptable.\u201d (<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, 1058 [20 Cal.Rptr.2d 675], internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe highest and best use is defined as \u2018that use, among the possible alternative uses, that is physically practical, legally permissible, market supportable, and most economically feasible\u2009\u2026\u2009. The appraiser must make a determination of highest and best use as part of the appraisal process.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">San Diego Gas &amp; Electric Co.<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra<\/span>, 228 Cal.App.4th at p. 1289.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIt is long settled that the condemned property may not be valued based on its special value to the property owner\u2009\u2026\u2009. Thus, the cases have generally held that a property owner may not value his property based upon its use for a projected special purpose or for a hypothetical business.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">County of San Diego, supra<\/span>, 16 Cal.App.4th at pp. 1058\u20131059.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cJust as the property may not be valued based on its special value to the owner, the property may not be valued on the basis of its special value to the government.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">County of San Diego, supra<\/span>, 16 Cal.App.4th at p. 1061, internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cSimply stated, purchasers of property that is known to be condemned are prevented from inflating the value of the property by conjecturing what the condemner will actually pay for the property.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">People ex rel. Dept. of Water Resources v. Andresen<\/span>\u00a0(1987) 193 Cal.App.3d 1144, 1156 [238 Cal.Rptr. 826], internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIn condemnation cases it is a firmly established principle that the compensation payable is to be based upon the loss to the owner rather than upon the benefit received by the taker. The California Supreme Court early stated that \u2018it seems monstrous to say that the benefit arising from the proposed improvement is to be taken into consideration as an element of the value of the land.\u2019 This has been construed to mean that \u2018[the] beneficial purpose to be derived by the condemnor\u2019s use of the property is not to be taken into consideration in determining market values, for it is wholly irrelevant.\u2019 This rule, however, does not mean that evidence of the highest and best use of the property must be excluded simply because that is the use that the condemner intends to make of the property\u2009\u2026\u2009. [I]n\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">City of Los Angeles v. Decker<\/span>, the court reiterated that it is improper to award compensation based upon the value to the condemner, but held that it was proper in that case to consider the value of the property for parking purposes (the highest and best use) despite the fact that the city intended to use it for such purposes.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Pacific Gas &amp; Electric Co. v. Zuckerman<\/span>\u00a0(1987) 189 Cal.App.3d 1113, 1127 [234 Cal.Rptr. 630], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018The right to future exploitation of undeveloped natural resources has a present and ascertainable value for purposes of eminent domain.\u2019 Accordingly, \u2018\u2009\u201c[i]n determining just compensation in eminent domain proceedings, the existence of valuable mineral deposits in the land taken constitutes an element which may be considered insofar as it influences the market value of the land.\u201d [Citations.]\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">San Diego Gas &amp; Electric Co.<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra<\/span>, 228 Cal.App.4th at p. 1289, internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[Defendant] also argues that the developer\u2019s rule precluded defendants\u2019 experts from testifying that the highest and best use of the property was a mining operation because such an operation did not currently exist on the property. We reject this assertion as a condemnee may present evidence that the property is suitable for a particular purpose even if the property has not yet been developed to that particular highest and best use. Moreover, ample authority supported the income approach used by defendants where, as here, the property at issue contains undeveloped natural resources.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">San Diego Gas &amp; Electric Co.<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra<\/span>, 228 Cal.App.4th at p. 1293, internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cOnce the highest and best use of the property is determined, one of several approaches to valuation must be selected.\u00a0Evidence Code sections 815\u2013820\u00a0set forth various methodologies sanctioned for use by valuation experts, including considering sales contracts of comparable properties and capitalizing income from the subject land and its existing improvements.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">San Diego Metropolitan Transit Development Bd. v. Cushman<\/span>\u00a0(1997) 53 Cal.App.4th 918, 926 [62 Cal.Rptr.2d 121], 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\u20094.9\u20134.21<\/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\u2009247.134\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-88g73y-4e5b4c171a1679ae74e384629e828f0b 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-5sm48e-7a3cb3eb2091bcb279dab343095857bb\">\n#top .av_textblock_section.av-5sm48e-7a3cb3eb2091bcb279dab343095857bb .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-5sm48e-7a3cb3eb2091bcb279dab343095857bb '   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-2046","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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