What does inverse condemnation refer to?

Inverse condemnation refers to a situation where a property owner seeks compensation from the government due to a reduction in the value of their property caused by government action. This typically occurs when a government project—such as the construction of a highway, a public park, or even regulations that limit the use of the land—has taken implicit possession of the property, thereby diminishing its value. In such cases, the owner can file a claim asking for compensation because they believe that the government's actions have effectively led to a "taking" of their property rights without formal condemnation proceedings having occurred.

This concept is rooted in property law and the Fifth Amendment, which states that private property shall not be taken for public use without just compensation. By providing a way for property owners to claim damages caused by governmental actions, inverse condemnation addresses situations where they feel unfairly impacted by those actions without having been compensated or formally notified that their property would be affected.