NDOT appeals order to pay business for 'good will'

The state is appealing a Clark County district judge's ruling it must pay a couple for the "good will value" of their business.

The Nevada Department of Transportation condemned Lou's Texaco at Sahara and Rancho in Las Vegas as part of a roadway expansion project. But the owners, Stuart and Barbara Cowen, weren't satisfied with the $1 million offered for their property. They argued they should be entitled to compensation both for the good will value - its reputation and standing as a business - and lost future income.

While District Judge Ron Parraguirre rejected the income claim, saying "such anticipated future profits are simply too speculative," he ruled they should be paid for "lost good will" because they paid $260,000 for good will value of the business when they purchased it in 1994. He said that made it "a substantial and valuable right."

The state appealed to the Nevada Supreme Court and argued the state has never paid for such intangible values when condemning a property.

The state was joined by the Nevada Association of Counties, the League of Cities, the Reno and Las Vegas airport authorities and local officials throughout the state who said that ruling, if allowed to stand, would set a precedent that would seriously injure local governments.

"The implications of this case extend beyond the rights and obligations of the parties to the authority of all municipal governments in Nevada to conduct their business affairs," said the two airport authorities in their petition to join the case.

The high court gave permission for them to file briefs in the case, along with the Pacific Law Foundation and a property rights group identifying itself as "defenders of Property Rights.

The Supreme Court will hear oral arguments in the case Tuesday.

Contact Geoff Dornan at nevadaappeal@sbcglobal.net or 687-8750.