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Robert H. Thomas

Screenshot 2024-12-09 at 16-13-02 Involuntary Regulatory Servitudes Correcting for “Regulatory Takings” Terminological Problems by Donald J. Kochan SSRN

Check this out, a new SSRN posting by lawprof Donald Kochan (George Mason/Scalia Law).

If this one is not a direct sequel to his earlier work on re-branding the “takings clause” (a piece we think is excellent and is part of the materials we teach in our Eminent Domain course at William and Mary Law), it does at least seem like a spiritual successor.

Here, Professor Kochan suggests that we’re being unclear when we use the term “regulatory takings” to describe those instances where an exercise of some governmental power other than eminent domain results in what feels like an eminent domain taking from the property owner’s viewpoint.

Instead, he argues, we should focus on the burdens the regulations place on an owner’s use (what the common law described as a servitude). To us, that seems very consistent with the Supreme Court’s approach, and proposals from other commentators. And it does focus the inquiry on the right question, namely what effect has a regulation put on an owner’s property rights. As that suggests, this should be a property-centric inquiry, and not on such unknowables such as the “character of the government action,” or whether an owner has “distinct investment-backed expectations.”

Here’s the Abstract:

This essay challenges the use of the term “regulatory takings” in our takings jurisprudence and scholarly discussion. The words we choose when developing doctrine matter. They can, even subconsciously, affect—by reducing, enlarging, distorting, limiting, or accurately shaping—the perceived and functional quality and character of the things they describe.

The better way to frame the inquiry underlying what is often called regulatory takings law should be to determine not whether there is a “regulatory taking” – some special kind of taking – but instead whether there is a regulation that amounts to a taking. Segmenting the judicial treatment of regulatory effects into a specialized analysis that takes it farther and farther away from an enterprise focused on equivalency between the private law of voluntary servitudes and the public law of what we should be calling involuntary regulatory servitudes. Regulations that restrict some but not all sticks in the property rights bundle should be characterized as the involuntary equivalent of the voluntary instrument, mechanism, or transfer that would have been necessary to achieve a parallel result. The essay proposes an alternative test for determining whether a regulation should be deemed a taking based on a comparison between the effect on the bundle from the regulation and determining whether the same effect in the private marketplace would have required a consensual, mutually beneficial exchange with appropriate compensation. This would better serve the meaning and purposes of the so-called Takings Clause.

The essay also documents the usage history of the regulatory takings label. To be sure, “regulatory takings” was not a dominate part of the takings lexicon before 1981. The first law review publication available in Westlaw to use the term “regulatory takings” is from 1965. The first court opinion to use the term came in a footnote in 1977. Briefing in advance of the 1980 U.S. Supreme Court decision in Agins v. Tiburon involved significant invocations of “regulatory takings” language across nearly a dozen briefs. But, the U.S. Supreme Court in its Agins opinion never uses the phrase “regulatory takings.” The first major court opinion to use “regulatory takings” language is the dissenting opinion by Justice William Brennan—joined by Justices Stewart, Marshall, and Powell—in the 1981 case of San Diego Gas & Elec. Co. v. City of San Diego. And, the Brennan dissent may have entrenched the term in the takings lexicon and is likely the impetus for widespread adoption of the term after 1981.

A must-read for all you takings…uh, dirt law…mavens.
Continue Reading New Article (Donald Kochan): “Involuntary Regulatory Servitudes: Correcting for ‘Regulatory Takings’ Terminological Problems”

‘Tis the season for TV holiday movies. Here’s one to add to your list, as it is on-brand for us dirt lawyers. “Christmas at the Drive In” is described thusly:

“A property lawyer works to prove that her town’s Drive In Theater, a local institution, is not closed down at the holidays, finding

Sticks bundle
We thought this was going to be about sticks.

We ain’t gonna pretend we understand cryptocurrency or blockchain. I’m just a caveman. Your world frightens and confuses me!

And there’s a lot there to confuse us in the U.S. Court of Appeals’ recent opinion in Van Loon v. Dep’t of the Treasury, No.

PXL_20240821_114525464.MP
How it started.

Once again, our fall duties included teaching two property law courses at the William and Mary Law School: Eminent Domain & Property Rights, and Land Use Controls. We started in mid-August, and just wrapped the classroom portion of the courses earlier this week. I say “classroom portions” because although we are done

Today we have another guest post by New York colleague Jennifer Polovetsky, who writes about trade fixtures in New York. Lots of good stuff for those of us not in NY as well. Thanks to Jennifer (and to the New York Law Journal) for allowing us to republish her intriguing piece.

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Trade Fixtures

The latest state supreme court decision involving a takings challenge to a statute permitting precondemnation entries, this time from Iowa.

In Summit Carbon Solutions, LLC v. Kasischke, No. 23-1186 (Nov. 22, 2024), the Iowa Supreme Court concluded that, at least on its face, Iowa’s entry statute for hazardous liquid pipelines, which permits

Here’s the latest in a case we’ve been following with keen interest

Yesterday, the Supreme Court denied certiorari in Baker v. City of McKinney, the case where municipal police severely damaged a home in the course of extracting a criminal suspect, after which the owner successfully sought just compensation for a taking. All good, until the Court of Appeals got it. Here’s the district court’s opinion finding a taking. (As we noted in this brief in an earlier similar case, homeowner’s insurance generally does not provide coverage for damages caused by government.)

And here’s the Fifth Circuit’s opinion reversing, concluding (correctly) that there is not a categorical “police power” exception to takings liability, but also that just compensation is not required when the government action and the resulting damage is “objectively necessary” for public safety.

Teed up that way, we thought this one had a chance. But alas, the Cert Fairy left a lump of coal under the pillow.

Perhaps a silver lining to the denial, however: two Justices (Sotomayor joined by Gorsuch – kind of an odd combination) issued a statement noting that the issues in the case, if refined and presented in a different case, could be of interest to the Court.

The very interesting part of the Statement starts on page 3, where Justice Sotomayor writes:

I write separately to emphasize that petitioner raises a serious question: whether the Takings Clause permits the government to destroy private property without paying just compensation, as long as the government had no choice but to do so. Had McKinney razed Baker’s home to build a public park, Baker undoubtedly would be entitled to compensation. Here, the McKinney police destroyed Baker’s home for a different public benefit: to protect local residents and themselves from an armed and dangerous individual.

….

This Court has yet to squarely address whether the government can, pursuant to its police power,require some individuals to bear such a public burden. This Court’s precedents suggest that there may be, at a minimum, a necessity exception to the Takings Clause when the destruction of property is inevitable.

Statement at 3-4.

Note the two cases cited by Justice Sotomayor next: Bowditch v. Boston, 101 U.S. 16 (1879), and United States v. Caltex (Philippines), Inc., 344 U.S. 149 (1952), which “do not resolve Baker’s claim …  because the destruction of her property was necessary, but not inevitable.” Statement at 5. In both Bowditch and Caltex, the destruction of the plaintiff’s property was pretty certainly going to happen anyway (in Bowditch by fire, by Caltex by the advancing Imperial Japanese Army — the “fortunes of war,” as the Court put it). The government blowing up the properties in these cases only hastened the inevitable. For more on these cases and the “inevitable” vibe, see the amicus brief our outfit (Pacific Legal Foundation) submitted.

Also worth checking out is Mitchell v. Harmony, 54 U.S. (13 How.) 115 (1851), where the Court held that commandeering property to prevent it from falling into the hands of the enemy in war was not a taking as long as the danger is “immediate and impending,” and waiting around for civil authority would be too late.

We wrote about these cases and the notion that even a compelling police power reason isn’t alone enough to avoid takings liability and the Armstrong redistribution principle, and similar in our article, “Evaluating Emergency Takings: Flattening the Economic Curve,” 29 Wm. & Mary Bill of Rights J. 1145 (2021).

Justice Sotomayor continued, “Whether the inevitable-destruction cases should extend to this distinct context remains an open question.” Statement at 5. The Statement also points out the lower court split in reasoning (but not outcome), and concludes:

All those decisions, save the Sixth Circuit’s, however, predate the Fifth Circuit’s determination that there is an “objectively necessary” exception to the Takings Clause. Whether any such exception exists (and how the Takings Clause applies when the government destroys property pursuant to its police power) is an important and complex question that would benefit from further percolation in the lower courts prior to this Court’s intervention.

Statement at 6.

Count us intrigued.  

Statement of Justice Sotomayor, with whom Justice Gorsuch joins, respecting denial of certiorari, Baker v….

Continue Reading Cert Denied (With Hints) In SWAT Takings Case