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HB 1337

Real Property - Condemnation - Damages Awarded for Lost Profits

2025 Regular Session Introduced by Barry Beauchamp and 16 co-sponsors

Maryland bill expanding eminent domain compensation to include business lost profits, increasing costs for government property takings and creating new valuation disputes.

Hearing 3/06 at 1:00 p.m.
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Bill Summary · HB 1337

Legislative bill overview

HB 1337 would modify Maryland's eminent domain laws to allow property owners to claim damages for lost business profits when their property is condemned by the government. Currently, Maryland law typically limits condemnation awards to the fair market value of the property itself, excluding consequential business losses. This bill expands compensation to include demonstrable lost profits resulting from the taking.

Why is this important

Property owners facing condemnation—often for infrastructure projects like highways, utilities, or public facilities—currently have limited recourse for business disruption costs. This bill could significantly increase the financial burden on government agencies and public utilities conducting projects, potentially affecting project feasibility and costs passed to taxpayers. It also raises questions about how to fairly measure and verify lost profits claims.

Potential points of contention

  • Cost implications: Allowing lost profit claims could substantially increase condemnation settlement costs, raising project expenses for municipalities and state agencies that ultimately affect public budgets and taxpayer burden
  • Valuation disputes: Determining "lost profits" is inherently subjective and contentious—businesses can argue various counterfactuals about what they would have earned, creating litigation-heavy disputes
  • Scope concerns: The bill's language on what constitutes qualifying "lost profits" and temporal limits (how long after taking are losses recoverable?) remains unclear and could create unintended expansions of liability

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

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