Settlements of Eminent Domain Lawsuits (for LPA)

Transportation Code, Section 224.005
and contractual agreements with LPAs provide that when ROW is acquired by negotiation, State participation will be based on the lesser of either the approved value, as determined by TxDOT, or the actual purchase price paid by the LPA. For condemned ROW, State participation will be based on the final judgment, with the condition that TxDOT is notified in writing before filing the suit and that prompt notice is also given of all action taken.
Normally, if a commissioners' award is appealed, new or updated appraisals are obtained by the LPA before proceeding to trial. If these new appraisals show a value greater than the original offer, TxDOT will notify the LPA that the new value supersedes the original approved value. The LPA may then re-negotiate on that basis and acquire title either by deed or by valid court judgment. TxDOT will not authorize the LPA to settle a case in an amount above TxDOT’s approved value.