Inverse Condemnation Definition

The taking of a portion of property by a government agency which so greatly damages the use of a parcel of real property that it is the equivalent of condemnation of the entire property. Example: the city of Los Angeles widens a boulevard and thereby takes the entire parking lot of Bennison's Market. The city offers to pay for the lot, but Bennison claims the market has lost all its business since no one can park and wants the value of the entire parcel, including the market building.