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SIX LESSONS FOR MUNICIPAL LAWYERS:
CITY OF MONTEREY V. DEL MONTE DUNES AT MONTEREY, LTD.

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II. USE DEL MONTE DUNES TO SHOW THAT TAKINGS CLAIMANTS SHOULD LITIGATE IN STATE COURT FIRST.

Where a landowner challenges state or local government action as a taking, Williamson County Regional Planning Comm'n v. Hamilton Bank, 473 U.S. 172 (1985), requires the landowner to seek compensation in state court before proceeding in federal court. Williamson County made clear that this requirement is compelled by "the nature of the constitutional right." 473 U.S. at 194-95 & n.13.

Despite Williamson County's clarity on this point, certain takings claimants have argued that this requirement is prudential, not constitutional, and thus subject to change either by the Congress or the courts. The National Association of Home Builders has pressed hard for legislation that purports, among other things, to allow takings claimants to proceed directly to federal court without suing in state court first. (In the 105th Congress, the primary NAHB bill was H.R. 1534; in the 106th Congress, the bill has been reintroduced as H.R. 2372.) Others have requested the Supreme Court to reconsider Williamson County's "state-remedy" requirement. See Petition for a Writ of Certiorari, Rainey Bros. Constr. Co. v. Memphis and Shelby County Bd. of Adjustment, No. 99-60 (U.S.) (filed July 6, 1999).

Del Monte Dunes emphatically reaffirms that Williamson County's state-remedy requirement is constitutionally based. E.g., 119 S. Ct. at 1639 (the landowner "would have suffered no constitutional injury" if an adequate postdeprivation remedy had been available) (citing Williamson County) (majority); id. at 1641 ("there is no constitutional violation 'unless or until the state fails to provide an adequate postdeprivation remedy'") (quoting Williamson County) (plurality).

As a result, Del Monte Dunes should prove very useful to municipalities in arguing against efforts in the Congress and the courts to undo Williamson County's state-remedy requirement. The ruling reaffirms that the Congress has no authority to eliminate the state-remedy requirement, and that the Court should retain the requirement to preserve the fundamental character of the constitutional right to just compensation under the Takings Clause.

 

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