In Midwest Materials, Inc. v. Wilson, No. 84A04-1205-MI-258 (Feb. 27, 2013), the Indiana Court of Appeals held that Midwest did not suffer a taking for the loss of its property during the time a requirement that it provide water service to neighboring residences as a condition of a "special exception" needed to build a "molecular methane gas processing unit" on its own property was in force. The trial court eventually struck down the condition, and Midwest then alleged it suffered a temporary taking under Indiana law (only) for the time in which the permit condition was in effect.
On the inverse condemnation claim, the trial court held that Midwest had not been deprived of use of its property, and the Court of Appeals affirmed under Indiana's version of the multi-factor Penn Central test. "The trial court did not err when it concluded that the seventeen-month period from the time that the public water condition was implemented until it was reversed did not constitute inverse condemnation." Slip op. at 19.
Although Midwest asserted only a claim for inverse condemnation under the Indiana Constitution and the court did not apply federal law and has now ripened its federal takings claim under Williamson County, any bets on how successful it will be if it goes to federal court to pursue that federal takings claim? San Remo, anyone?
Read all about the case at "Company loses inverse condemnation claim" from the The Indiana Law Journal.