Silver Creek Drain District v. Extrusions Division, Inc., 468 Mich. 367

Summary

The Michigan Supreme Court held that environmental contamination may be considered when determining fair market value and just compensation in a condemnation action under the Uniform Condemnation Procedures Act. The court distinguished valuation of contaminated property in a condemnation proceeding from assigning liability for remediation costs in a separate cost-recovery action, reversed the Court of Appeals on that issue, and remanded for further proceedings.

Holdings

1. A court may consider environmental contamination and its effect on fair market value when determining just compensation in a condemnation proceeding under the Uniform Condemnation Procedures Act.
2. Considering contamination to determine the property's fair market value does not determine or assign liability for remediation costs.
3. The UCPA amendments governing environmental cost recovery did not abrogate the established constitutional meaning of just compensation.

Questions Presented

1. Whether environmental contamination is a factor that a court may consider in determining fair market value and just compensation in a condemnation action under the Uniform Condemnation Procedures Act.
2. Whether consideration of contamination in determining fair market value improperly commingles a condemnation proceeding with a separate environmental cost-recovery action.
3. Whether the phrase "just compensation" in the Michigan Constitution and UCPA incorporates all factors relevant to the property's market value.

Disposition

reversed_and_remanded