Takings

Tax foreclosures violate the takings clause if they government entity retains proceeds beyond the unpaid taxes

In an important case, the Supreme Court held in Tyler v. Hennepin County, 143 S.Ct. 1369 (2023), that it violates the takings clause for a municipality to foreclose on property for nonpayment of property taxes and to retain the value of the property that exceeds the unpaid taxes (with costs). The purpose of a tax foreclosure is to pay off the taxes owed....

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Municipal prohibitions on short-term rental of property not a taking of property under the fourteenth amendment

Two federal courts have held that municipal ordinances that prohibit or regulate the ability of owners to rent their properties to short-term tenants did not unconstitutionally take the owners' property rights without just compensation. Nekrilov v. City of Jersey City, 45 F.4th 662 (3d Cir. 2022);...

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North Dakota Supreme Court finds statutorily-authorized fracking to constitute a taking of property without just compensation

Fracking involves injecting fluids under the earth through pores (openings in the earth) that may extend to neighboring property. Such physical invasions, the North Dakota Supreme Court held, are takings of property that cannot be statutorily-mandated without just compensation. Northwest Landowners Ass'n v. State, 978 N.W.2d 679 (N.D. 2022).

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Second Circuit upholds rent control against a takings challenge post-Cedar Point

In one of the first important cases to gauge the consequences of the Supreme Court's physical takings decision in Cedar Point Nursery, the Court of Appeals Second Circuit, in two linked cases has upheld recent amendments to New York City's rent stabilization law against a claim that is a facially invalid violation of the takings clause applicable to the states through the fourteenth amendment....

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City repeal of gas drilling permits held to be a Lucas taking

A Texas court has ruled that a city ordinance prohibiting all drilling of gas wells in the city took the property of a company that had leased land for gas drilling purposes and been given permits in the past to do so. The company claimed that the denial of new permits to drill and the ordinance permanently prohibiting drilling rendered their lease without any value. The court agreed since the lease was limited to a use that was now illegal. No finding was made on...

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State court affirmation of public rights below the high tide line do not take property without compensation in violation of the 14th amendment

After the Indiana Supreme Court held that private property rights end at the high tide land, giving the public the right to use the wet sand area between the low and high tide lines, see Gunderson v. State, 90 N.E.3d 1171 (Ind. 2018), an owner sued state officials to have that judicial ruling declared to be a taking of property rights without just compensation. But the Seventh Circuit held that the state courts were competent to determine whether...

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Tax foreclosure constitutes a regulatory taking if the city retains proceeds beyond those necessary to pay off the taxes

The Michigan Supreme Court has condemned the practice of keeping all the proceeds of a tax sale of property (done because of failure to pay property taxes) when the city keeps all the proceeds of the sale, even though those are far more than needed to pay the taxes that were due. Rafaeli, LLC v. Oakland County, 2020 Mich. LEXIS 1219 (Mich. 2020)...

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Covid-19 temporary business closures do not effect regulatory takings

Several courts has addressed the question of whether temporary business closure orders to protect the public from Covid-19 constitutes regulatory takings of property. So far, the answer has been “no” as evident in a prominent decision of the Pennsylvania Supreme Court. Friends of DeVito v. Wolf, 227 A.3d 872 (Pa. 2020) (relying on Tahoe-Sierra Pres. Council, Inc....

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No regulatory taking despite temporary flooding since the government’s action avoided more harm than it caused

In Alford v. United States, 961 F.3d 1380 (Fed. Cir. 2020), owners complained that the Army Corps of Engineers took their properties by temporarily flooding a nearby lake, knowing it would damage the plaintiffs’ property but doing so to avoid even greater damage to their property from a breach of the levee that was almost certain to occur if the Corps had not acted and which would have resulted in the complete destruction of plaintiffs’ properties. The Federal Circuit... Read more about No regulatory taking despite temporary flooding since the government’s action avoided more harm than it caused