The Right of Business Owners to Be Compensated for The Adverse Effects of Road Worrk

Abstract

Virtually every legal system has various notions and doctrines that protect private property such as a “taking” (for constitutional purposes), trespassing, and nuisance, among others. However, most of the current legal systems do not protect against the losses a business owner suffers due to the adverse effects of public work projects. These people solely bear the externalities associated with public construction. This thesis argues that the business owner should have a legal right to be compensated if public road work projects adversely affect their business. As these public works benefit the entire community, their burden should not be limited to a small number of people, but rather should be borne by the public as a whole. In addition to comparing Saudi and American law related to the issue of compensation to remedy the adverse effects of public work projects, this thesis delineates the types of businesses that should be compensated, aiming to strike a balance between over-inclusion and under-inclusion. Additionally, this thesis proposes six methods that courts should consider when determining the just compensation for impacted businesses in such scenarios.