(a) Any person authorized to acquire property for public use may enter into an agreement to arbitrate any controversy as to the compensation to be made in connection with the acquisition of the property.
§ 1273.010.Agreement to Arbitrate
Title 7. Eminent Domain Law · Chapter 12. Arbitration of Compensation in Acquisitions of Property for Public Use · Enacted 1975 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1273.010 lets anyone authorized to acquire property for public use, or to settle a claim for taking or damaging property already devoted to public use, enter an agreement to arbitrate the compensation owed, with a public entity acting through whichever department or officer holds that authority.
Full Text of § 1273.010
(b) Where property is already appropriated to a public use, the person authorized to compromise or settle the claim arising from a taking or damaging of such property for another public use may enter into an agreement to arbitrate any controversy as to the compensation to be made in connection with such taking or damaging.
(c) For the purposes of this section, in the case of a public entity, "person" refers to the particular department, officer, commission, board, or governing body authorized to acquire property on behalf of the public entity or to compromise or settle a claim arising from the taking or damaging of the entity's property.
Plain-English Summary
Chapter 12 offers condemning agencies and property owners an alternative to a full compensation trial: voluntary arbitration. This section opens the door to that alternative by defining who can use it and for what.
Two situations qualify. The first is the ordinary eminent domain scenario -- someone with authority to acquire property for public use can agree to arbitrate the compensation question rather than litigate it. The second covers property already devoted to one public use that's now being taken or damaged for a different public use; the person authorized to compromise or settle that claim can likewise agree to arbitrate the resulting compensation dispute.
For a public entity, the word person in this section doesn't mean the entity as a whole -- it means the specific department, officer, commission, board, or governing body that holds the authority to acquire the property or to settle the claim on the entity's behalf. That specificity matters because arbitration agreements bind the parties who make them, so identifying exactly who within a public entity has the authority to agree to arbitrate is part of what makes the agreement enforceable.
Frequently Asked Questions
Who can agree to arbitrate compensation instead of going to trial?
Anyone authorized to acquire property for public use, as to compensation for that acquisition.
Can arbitration cover property already used for one public purpose that's being taken for another?
Yes. The person authorized to compromise or settle that claim may agree to arbitrate the compensation for that taking or damaging.
Who has authority to agree to arbitrate on behalf of a public entity?
The particular department, officer, commission, board, or governing body authorized to acquire the property or settle the claim, not the entity as an undifferentiated whole.
Amendment History
Added by Stats. 1975, Ch. 1275.
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: arbitration agreement eminent domain californiavoluntary arbitration compensation condemnation