What is inverse condemnation?

Inverse condemnation refers to a situation in which a property owner seeks compensation from the government for the loss of property value that occurs as a result of government actions, even though the government has not formally taken or condemned the property. In this context, it typically arises when government actions, such as infrastructure development or regulatory changes, negatively impact a property’s value without the property being formally condemned.

This concept is grounded in the principle of the Fifth Amendment, which requires that private property cannot be taken for public use without just compensation. When the government’s actions diminish the value of property without going through the formal condemnation process, the affected property owner may bring about a claim, seeking compensation for that loss.

The focus on compensation for deprivation of property value directly aligns with the correct answer, making it evident that inverse condemnation is fundamentally about addressing situations where property owners feel their rights have been infringed upon by governmental activity.