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Faculty Scholarship at Penn Law

2005

Compensation

Articles 1 - 2 of 2

Full-Text Articles in Law

Bargaining For Takings Compensation, Abraham Bell, Gideon Parchomovsky Sep 2005

Bargaining For Takings Compensation, Abraham Bell, Gideon Parchomovsky

Faculty Scholarship at Penn Law

Efficiency and fairness require paying full compensation to property owners when their property is taken by eminent domain. Yet, to date, the evidentiary challenge of proving subjective value has proved insurmountable, and current law requires condemnees to settle for fair market value. This Article proposes a self-assessment mechanism that can make full compensation at subjective value practical. Under our proposal, property owners must be given the opportunity to state the value of the property designated for condemnation. Once property owners name their price, the government can take the property only at that price. However, if the government chooses not to ...


The Calculation Of Prejudgment Interest, Michael S. Knoll, Jeffrey M. Colon May 2005

The Calculation Of Prejudgment Interest, Michael S. Knoll, Jeffrey M. Colon

Faculty Scholarship at Penn Law

This Essay describes the proper method of calculating prejudgment interest based on sound financial principles. Using the paradigm that the claim plaintiff holds in litigation represents an involuntary loan from plaintiff to defendant and recognizing that in bankruptcy courts treat legal claims similarly to unsecured debt, we argue that prejudgment interest should be computed using the defendant's unsecured borrowing rate. Furthermore, we argue that courts should use a short-term, floating interest rate rather than a long-term rate in order to provide the proper incentive for the parties to settle. We criticize alternative bases for awarding prejudgment interest and address ...