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Medical Acquisition Co., Inc. v. Tri-City Healthca
This case involves the construction of a medical office building by a private entity, respondent Medical Acquisition Company, Inc. (MAC), on land that was leased from a public agency, appellant Tri-City Healthcare District (Tri-City). A dispute arose between the parties concerning their respective obligations under their lease agreements, and they sued each other. While the lawsuits were pending, Tri-City began an eminent domain proceeding over MAC's leasehold interest, and Tri-City used its appraisal of the building to calculate the probable amount of just compensation owed to MAC. (See Calif. Const., Art. 1, § 19.) A jury ultimately rejected Tri-City's appraisal and found that MAC was entitled to a much higher amount of compensation for its taken property interest. Tri-City timely abandoned its eminent domain proceeding pursuant to Code of Civil Procedure section 1268.510, but the trial court set aside the abandonment.

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