A coalition of law professors including property law scholars Richard Epstein, James Ely, and Ilya Somin, along with the Cato Institute have filed an amicus brief supporting the cert petition in Mariner’s Cove Townhomes Ass’n v. United States, No. 12-1453 (cert. petition filed June 12, 2013).
That’s the case in which the Fifth Circuit held that the association’s right to collect maintenance fees, recognized as property under Louisiana law, was not “compensable property” in an eminent domain action. In United States v. 0.073 Acres of Land, 705 F.3d 540 (5th Cir. 2013), the court held concluded that the “consequential loss rule” governed, and thus the property interest, although taken, was not compensable because the right to collect assessments was like a business loss and a frustrated contract.
The Cato/lawprofs’ brief argues:
By adopting the minority view in the split among the circuits and the States, the Fifth Circuit’s