What Does Expropriation Mean in Business

Indirect expropriation occurs when the government deprives owners of the opportunity to use the property without taking full possession of it. This is more common in indirect expropriations and could refer to an example where increasing regulation prevents a foreign government or company from using its assets. The courts have concluded that the types of measures that can lead to expropriation are very broad.17 Situation 1 (Direct Expropriation): The government of Y seizes the land and builds a highway and toll booth. Situation 2 (indirect expropriation): The Land Y government issues an ordinance for the construction of a motorway and a toll in the countryside and deprives A of the deduction of toll revenue. However, ownership of the land remains the property of A. The Supreme Courts of Illinois, Mich (County of Wayne v. Hathcock, 2004), Ohio (Norwood, Ohio v. Horney, 2006), Oklahoma, and S.C. subsequently decided to prohibit such withdrawals under their state constitutions. There were also federal measures, although relatively few expropriations were carried out by this level of government.

On the first anniversary of the Kelo decision, President George W. Bush issued an executive order stating that the eminent domain may not be used by the federal government “for the purpose of furthering the economic interest of private parties in obtaining ownership or use of acquired property.” The purpose of expropriation is to give the government the ability to force the sale of private property when there is a legitimate public need. Federal, state and local governments have the power to expropriate. The case of the displacement of collias is exceptional compared to the general trend in the Gard in terms of residential mobility17. While flooding does not appear to be a dominant factor in the decision to relocate for most residents surveyed, there are examples where the violence of the flood was enough to scare individuals – often newcomers to southeastern France – to sell their homes and leave the flooded area. or even the region. We could also cite the case of the 1992 flood in Vaison-la-Romaine (France), which dramatically affected four recently built riverside neighborhoods (Ouvèze). About 20 houses were swept away by the very violent flash flood and 12 deaths were reported [COM 93]. Expropriation is an innovation in the prevention of natural risks, as the law encourages the use of expropriation in areas threatened by certain major natural hazards that pose a serious threat to human life. Expropriation is used in extreme cases where amicable acquisition is impossible. The 5th Amendment states that the government cannot withdraw property, assets or businesses without paying fair compensation. There is an international agreement that private owners should receive compensation in the event of expropriation.

Unfortunately, the practice is not the same all over the world. Situation 3 (No Expropriation): Investor A builds a highway and toll on the property. Expropriation is not in itself contrary to international law. Under most IIAs, expropriation is considered legal if it meets all of the following criteria:41 For expropriation to occur, the risk must be disclosed in an IPRA. In addition, the use of expropriation must be less costly than other protective measures such as labour, surveillance or warnings.32 The development of an IPRP is not an alternative procedure to expropriation, but a complementary measure. Finally, regardless of the initiator or beneficiary, only the State can initiate the procedure and declare the public servitude. Thanks to this procedure, people living in particularly vulnerable areas can be relocated and the cleaned areas are neutralized in a safe and sustainable way. This procedure is contrary to the rules of ordinary law because the existence of a risk is not taken into account when determining the amounts of compensation. In order to manage flood risk in local urban policy, a number of instruments can be used with regard to land ownership; The most radical is expropriation and the most flexible is the right of first refusal in urban areas. Given the natural risks, the Barnier law created a procedure adapted to expropriation, with the sole aim of protecting people and property from foreseeable natural hazards. In the current state of the text, it refers to the public ownership of land exposed by the conduct of an expropriation procedure or the amicable transfer of the land concerned (Article L.561-1 of the French Environmental Code).

They were financed by major natural risk prevention funds (Barnier funds), which were mainly covered by a share of insurance premiums to cover the risks of natural disasters. A decree of 12 January 200529 and a circular of 23 April 2007 extended the conditions for the use of these funds. It is now possible to use them for an amicable acquisition by the State or by a municipality or group of municipalities where property has been seriously affected by a natural disaster30. They are also used for studies and work to avoid natural hazards. Government expropriations are widespread around the world, usually accompanied by an agreement that owners should receive adequate compensation for property they have lost.