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Verdicts & Settlements: Government Liability

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Unauthorized use of residential property

March 28, 2019

James Penosky and Shemi Kumar bought a home in Atlanta and hired a contractor to perform substantial renovation work. The couple later discovered a sewer line running across the property and underneath the home, which prevented the contractor from performing the renovations. The city refused to relocate the sewer line or reimburse Penosky and Kumar for the remediation work, which is estimated at $1 million.

Penosky and Kumar sued the city of Atlanta, alleging unauthorized use of property, nuisance, and inverse condemnation. The plaintiffs claimed that the city had no express easement for the sewer line and, therefore, the line was on their property illegally. Additionally, the plaintiffs asserted that none of the existing public records available at the time of the sale identified the sewer line.

The jury awarded $965,000.

Citation: Penosky v. City of Atlanta, No. 2017-CV-292705 (Ga. Super. Ct. Fulton Cnty. Feb. 2019).

Plaintiff counsel: Jeffrey Schneider and Brandon Arnold, both of Atlanta.