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HB 421

Eminent domain; condemnation of public waterworks systems, determination of lost profits.

2026 Regular Session Introduced by Nicole Cole

Virginia bill establishes lost profits calculation methods for compensating condemned public waterworks systems during eminent domain proceedings.

Continued to next session in Courts of Justice (Voice Vote)
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Bill Summary · HB 421

Legislative bill overview

HB 421 modifies Virginia's eminent domain laws to address how compensation is calculated when public waterworks systems are condemned. Specifically, it establishes a framework for determining whether lost profits should be included in the compensation package for affected parties. The bill has been under review by the Courts of Justice Committee since January 2026.

Why is this important

Eminent domain cases involving critical infrastructure like water systems can result in substantial financial disputes. How compensation is calculated directly affects property owners, utility companies, and municipalities—determining whether economic damages beyond direct property loss are recoverable could significantly increase or decrease condemnation settlement costs. This is particularly relevant in Virginia given the state's aging water infrastructure and potential future infrastructure projects.

Potential points of contention

  • Scope of "lost profits": Defining what qualifies as recoverable lost profits (operational losses, business interruption, future revenue) versus what constitutes speculative damages remains contentious in eminent domain law.
  • Cost implications for public projects: Including lost profits in compensation could substantially increase the expense of public waterworks projects, potentially affecting project feasibility and public utility rates.
  • Property rights vs. public interest: Balancing fair compensation for private entities with the government's ability to acquire needed infrastructure for public benefit at reasonable cost.

Compiled from official sources — confirm details with the bill’s official record.

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