A dearth of facts here so I will make some up.  The state has offered $10,000 for the easement and the owner thinks it's worth $50,000.  The tenant is still in the house and pays the same rent because so far nothing has happened.  If the judge or jury rules in favor of the owner, the judgment includes reimbursemet of legal fees.  

I would add those costs to basis of the property, then subtract from basis whatever is collected.  But would you adjust only the basis of the land, which might result in a gain, or also the building?  Decision for another day.