What does "just compensation" imply in the context of eminent domain?

"Just compensation" in the context of eminent domain refers to the requirement that property owners receive fair payment when their property is taken for public use. This concept is rooted in the Fifth Amendment of the U.S. Constitution, which states that private property shall not be taken for public use without just compensation.

The correct interpretation means that the compensation should be equivalent to the property's fair market value at the time of the taking. Fair market value reflects what a willing buyer would pay to a willing seller in an open market. Therefore, the essence of "just compensation" is to ensure that property owners are not financially disadvantaged when their property is seized by the government for purposes such as building highways, schools, or other public infrastructure.

Other options imply inadequate restitution or disregard for the property's full value. Minimal financial restitution does not take into account the actual market conditions, while no financial compensation contradicts the fundamental right of property owners when the government exercises its power of eminent domain. Limiting compensation to just the value of the land without considering improvements fails to recognize the complete value of what is being taken, leading to unfair outcomes for property owners. Hence, the requirement for "just compensation" promotes equity and fairness in property rights under eminent domain laws.