Property Ownership

What is 'condemnation' versus 'inverse condemnation' in Hawaii?

AA. They are the same; both involve the government paying for land it takes
BB. Condemnation is the government's formal exercise of eminent domain; inverse condemnation is a property owner's lawsuit claiming the government's regulatory action has effectively 'taken' their property without compensation✓ Correct
CC. Condemnation involves commercial property; inverse condemnation involves residential
DD. Inverse condemnation only occurs in flood zone areas in Hawaii

Explanation

In a condemnation proceeding, the government initiates the taking and pays just compensation. In inverse condemnation (regulatory taking), the property owner sues the government claiming that a regulation so restricts use that it effectively takes the property without paying compensation. Hawaii has had inverse condemnation cases involving shoreline setbacks, conservation district restrictions, and other regulatory actions.

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