On July 8, the New Jersey Supreme Court weighed into the controversy raging between municipalities and beachfront property owners regarding the methodology for valuing property required for dune construction. Borough of Harvey Cedars v. Karan, 425 N.J. Super. 155 (App. Div. 2012), rev’d and rem’d, ___ N.J. ___ (2013). The dispute took on additional significance due to Superstorm Sandy, which confirmed that areas protected by dunes, both oceanfront and inland properties, fared much better than unprotected areas.

The court reversed a $375,000 condemnation award, clarified the rules for determining just compensation in partial taking cases, and remanded the case for a new trial. While local and other officials considered the decision to be very good news, the extent to which the newly defined procedure will affect future condemnation awards remains to be seen.

The Setting

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