Compensation provided to an owner whose private real property is seized by the government's power of eminent domain, which allows it to take such property for public use. For example, when the national highway system was being constructed in the 1950s, many homeowners had their property seized through eminent domain because the government wanted the land to build the highway system. The just compensation remedy is provided by the Fifth Amendment's taking clause, and is usually considered to be fair market value. However, what the government considers just compensation may not be considered as such by the person whose property is seized.
[Source:
http://www.investopedia.com/terms/j/just-compensation.asp]
Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University
