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House approves eminent‑domain reforms to encourage early settlement and limit litigation costs
Summary
Second substitute SB81 creates a structured counteroffer window and conditional award of attorney's fees to encourage settlements in condemnation cases. Supporters said it will reduce costly litigation and speed public projects; the House passed the bill 69–0.
Representative Frank presented second substitute SB81 on March 9 as the culmination of multi-year work to reduce costly eminent-domain litigation and to encourage earlier settlements between condemning authorities and landowners. On the floor he described a mechanism by which, after a plaintiff’s offer and defendant counteroffer, a court finding that the fair value falls within the range would leave each party responsible for its own costs; a judgment more favorable to one side could shift attorney fees and court costs to the losing side.
Frank said the approach discourages gaming by either party and incentivizes negotiation so road, utility and other public projects can proceed more quickly. He noted a July 1 grandfather date; the reform applies to actions moving forward after that date. Representative Drechsler, identified on the floor as an appraiser, said the measure is "a good bill" that will reduce conflict and speed resolution of condemnation disputes.
Supporters described collaboration across interest groups and said the Utah League of Cities and Towns and UDOT had moved to neutral positions during negotiations. The bill passed the House 69–0 in the transcript and was returned to the Senate for signature.
If implemented, the procedure could reduce the percentage of condemnation cases that go to trial and reduce state and local litigation exposure by encouraging timely offers and counteroffers within the statutory window established in the bill.
