§ 1250.420.Resolution of Dispute By Mediation Or Binding Arbitration
Title 7. Eminent Domain Law · Chapter 5. Commencement of Proceeding · Article 6. Settlement Offers and Alternative Dispute Resolution · Enacted 2001 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1250.420 lets parties agree to resolve an eminent domain dispute through mediation or binding arbitration, or through nonbinding arbitration that becomes final unless a party timely elects a trial and then risks paying the other side's costs and expert fees if the trial outcome is not more favorable.
(b)Binding arbitration by a neutral arbitrator. The arbitration is subject to Chapter 12 (commencing with Section 1273.010).
(c)Nonbinding arbitration by a neutral arbitrator. The arbitrator's decision in a nonbinding arbitration is final unless within 30 days after service of the arbitrator's decision a party moves the court for a trial of the eminent domain proceeding. If the judgment in the eminent domain proceeding is not more favorable to the moving party, the court shall order that party to pay to the other parties the following nonrefundable costs and fees, unless the court finds in writing and on motion that the imposition of costs and fees would create such a substantial economic hardship as not to be in the interest of justice:
(1)All costs specified in Section 1033.5, limited to those incurred from the time of election of the trial de novo. Nothing in this subdivision affects the right of a defendant to recover costs otherwise allowable pursuant to Section 1268.710, incurred before election of a trial de novo, except that a defendant may recover the costs of determining the apportionment of the award made pursuant to subdivision (b) of Section 1260.220 whenever incurred.
(2)The reasonable costs of the services of expert witnesses who are not regular employees of any party, actually incurred and reasonably necessary in the preparation or trial of the case, limited to those incurred from the time of election of the trial de novo.
(3)The compensation paid by the parties to the arbitrator.
Plain-English Summary
Litigation is not the only path through a condemnation dispute. This section lets the parties agree to send their dispute to mediation with a neutral mediator, or to binding arbitration by a neutral arbitrator — the latter subject to Chapter 12's arbitration procedures (commencing with § 1273.010).
Nonbinding arbitration works differently. The arbitrator's decision becomes final unless, within 30 days after that decision is served, a party moves the court for a trial of the eminent domain proceeding. Electing that trial is not free of risk: if the resulting judgment is not more favorable to the moving party than the arbitration decision was, the court orders that party to pay the other parties nonrefundable costs and fees — unless paying them would create a hardship substantial enough that imposing them would not serve the interest of justice.
Those cost-shifting consequences reach three categories: the costs listed in § 1033.5 incurred from the time of electing trial (without disturbing whatever costs a defendant could otherwise recover under § 1268.710 for the period before that election, apart from apportionment costs under § 1260.220(b), which remain recoverable whenever incurred), the reasonable costs of expert witnesses who are not regular employees of a party, and the compensation the parties paid the arbitrator.
Frequently Asked Questions
What alternative dispute resolution options does § 1250.420 allow?
Mediation by a neutral mediator, binding arbitration, or nonbinding arbitration, all by agreement of the parties.
How does a party challenge a nonbinding arbitration decision?
By moving the court for a trial of the eminent domain proceeding within 30 days after service of the arbitrator's decision.
What happens if the trial outcome is not more favorable to the party who requested it?
That party must pay the other parties' nonrefundable costs and fees, including certain § 1033.5 costs, expert witness costs, and the arbitrator's compensation, unless the court finds the hardship exception applies.
Is there any escape from paying those costs and fees?
Yes, if the court finds in writing that imposing them would create a substantial economic hardship inconsistent with the interest of justice.
Amendment History
Added by Stats 2001 ch 428 (AB 237), s 3, eff. 1/1/2002.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
Also known as:eminent domain arbitration and mediationnonbinding arbitration trial de novo condemnationcost shifting arbitration eminent domain