In City of Oakland v. Schenck, 197 Cal. 456 (1925), the California Supreme Court held that when a railroad’s property is being taken, nominal compensation and not fair market value may be the appropriate measure of “just compensation.”
Schenck held that “where a street is opened across a railroad right of way, the rule as to the amount of compensation to be allowed the railroad company is different from the rule which prevails in the case of the taking of the property of an individual for like uses.” Schenck, 197 Cal. at 460-61. Nominal compensation may be due if the property’s use as a railroad will not be greatly impacted by placing a road across it. In other words, putting a road across railroad tracks don’t substantially impact the value of the railroad tracks.
In City of San Jose v. Union Pacific Railroad Co., No. H033503 (June
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