In Three Rules for Forensic Real Estate Damage Valuation: Deductive, Adductive, or Reductive Rule? (analysis) ForensisGroup experts Wayne C. Lusvardi and Charles Warren redefine the three conventional approaches for damage valuation:
Neither law nor real estate appraisal has thoroughly clarified the different damage valuation methodologies that are applicable under tort law, condemnation law, regulatory takings law, and inverse condemnation law in various political jurisdictions. Real estate appraisal generally relies on three cardinal valuation methods: the Cost, Sales Comparison, and Income Approaches. This article shows that there are three methods of damage valuation that generally comport with the three conventional methods of valuation.
The three conventional valuation methodologies have been incorporated into damage law under different terminology and computation formats. Two rules predominate and have mostly been applied to damage situations involving use of eminent domain powers by public entities:
Existing Nomenclature for Damage Valuation Rules:
* The Federal Rule or Before and After Rule (Comparison Approach)
* The State Rule or Value of the Take Plus Damages Rule (Cost Approach)
More to follow from ForensisGroup experts Wayne C. Lusvardi and Charles Warren.
