THE VALUATION OF CONTAMINATED PROPERTY

Judicial recognition that there may be a reduction in market value bec ause of the existence of environmental contamination has been slow in coming. Of the handful of reported decisions throughout the country, f ew have provided insight or guidance as to (1) the factors that might lead a court to determine that property has been adversely affected by the existence of contamination and (2) the factors a court will use i n calculating the resulting reduction in market value. This article re views the existing case law, as well as such various valuation methods and techniques as those being instituted by the Appraisal Institute, in order to arrive at an understanding of the factors that are likely to be relevant in future litigation.