County Can't Take Leasehold Interest in Building Through Eminent Domain

April 1, 2004


A county leased space for a courtroom in an owner's building. When the lease expired, the county and owner failed to negotiate a new lease. But the county remained in possession of the space, so the owner sued to evict it. In response, the county asked the court to allow it to take, through eminent domain, a 23-month leasehold interest in the building on the same basic terms as its lease. The court agreed to do so, and the owner appealed.


A county leased space for a courtroom in an owner's building. When the lease expired, the county and owner failed to negotiate a new lease. But the county remained in possession of the space, so the owner sued to evict it. In response, the county asked the court to allow it to take, through eminent domain, a 23-month leasehold interest in the building on the same basic terms as its lease. The court agreed to do so, and the owner appealed.

An Arizona appeals court ruled that the county couldn't take a leasehold interest in the building through eminent domain. The court said the state gave the county a limited right of eminent domain—that is, the power to take private property for a public purpose. But this right only allowed the county to take property permanently. And by definition, a leasehold interest is temporary—in this case, lasting only 23 months, the court noted [Orsett/Columbia LP v. Super. Ct. of Ariz.].

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