Facts of the Case: The government instituted eminent domain proceedings against a landfill belonging to the city of Duncanville, Texas as part of a flood control project. The government argued that it need only pay the ordinary fair market value of the land, while the city argued that the government should pay that value plus the cost of acquiring and developing a new landfill. In the trial court, the jury found that the land was worth $225,000 and a reasonable substitute facility was worth about $700,000. The District Court entered a judgment for $225,000 plus interest. The Court of Appeals reversed and remanded, and the government appealed to the U.S. Supreme Court.
Question: Is just compensation in this case properly measured by the cost of a reasonable substitute landfill or by the fair market value of the condemned facility?
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