In Moore v. City of Middletown, No 2012-1363 (Aug. 30, 2012), the Ohio Supreme Court held that a property owner did not have standing to bring a regulatory takings claim when a "foreign municipality" (the neighboring city) rezoned an adjacent parcel, because the municipality did not have jurisdiction to exercise eminent domain over his property. However, the court held the property owner could seek a declaratory judgment "to challenge the constitutionality of the ordinances."
Under Ohio law, a "regulatory takings" action gives the plaintiff a right to bring a mandamus action to compel a municipality to institute condemnation proceedings, and the court held that since Middletown could not have exercised eminent domain authority outside of its jurisdiction, it could not be compelled to do so by the property owner. Our Ohio colleague Matt Fellerhoff discussed this aspect of Ohio law in his analysis of Clifton v. Blanchester, 964 N.E.2d 414 (2012), the case on which the Moore court based its ruling (see Matt's analysis here and here).
The Moore court, however, took the next step. If the property owner does not have a takings challenge for compensation, might it have other claims? The court worked from the premise that "[t]he rights to acquire, use, enjoy, and dispose of property are among the most revered in our nation's laws and traditions and are integral to our theory of democracy and notions of liberty," and that "[z]oning ordinances directly affect, and often limit, property owners' rights." Slip op. at 14. The impact of zoning decisions are not limited to the owner whose property is zoned, but to other owners whose rights may be impacted. Consequently, adjacent property owners have a due process right to challenge zoning ordinances that are "arbitrary and capricious" -
We hold that property owners whose property is adjacent to property rezoned by aforeign municipality may use a declaratory-judgment action to challenge theconstitutionality of the zoning action.
Slip op. at 17. (Remember, Ohio is the land of Euclid.)
The net result is that a property owner in this situation cannot bring a regulatory takings action in Ohio courts for compensation under Ohio law, but only has a cause of action to invalidate the ordiance. This holding further highlights Matt's conclusion that with no recourse for compensation under Ohio law, the property owner may go immediately to federal court, and that Williamson County does not bar raising a federal takings claim in federal court.
Moore v. City of Middletown, No. 2012-1363 (Ohio Aug. 30, 2012)
