Does a small business have any right to compensation during heavy city construction in the area that has negatively impacted it?
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Does a small business have any right to compensation during heavy city construction in the area that has negatively impacted it?
Asked on September 11, 2013 under Business Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
No, unfortunately the small business does not. Municipalities are allowed--actually, in all practical ways required--to perform maintenance, construction, expand infrastructure, etc., and they are not required to compensate citizens and business for the inconvenience, loss of business, additional cost, etc. It makes sense: if a city had to pay everyone negatively impacted by construction, etc., it could never afford to do any. As a result--to enable cities to do necessary work--the courts will not award compensation for this.
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