In Community Development Commission v. Asaro, the California Court of Appeal addressed the pivotal role of a Restaurant Valuation Expert Witness in determining the value of restaurant goodwill following an eminent domain taking. The case involved the condemnation of a restaurant property, with the central dispute focusing on the appropriate method for valuing the intangible asset of goodwill lost by the owners as a result of the taking. The parties presented competing expert testimony, each employing distinct valuation methodologies and capitalization rates, which ultimately influenced the court’s analysis and resolution of the compensation owed to the owners.
Background and Parties
The Asaro family owned and operated a successful restaurant on property condemned by the Community Development Commission. The Commission initiated proceedings to acquire the property for redevelopment, triggering the owners’ claim for just compensation, including the value of the restaurant’s goodwill. The Asaros retained two experts: Edward Neuner, an economist, and John Maggio, a certified public accountant. The Commission presented Jerry Garner, a professional business appraiser, as its expert witness.


