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

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VI. THE "SLEEPER": MOVE TO DISMISS FEDERAL TAKINGS CLAIMS FILED IN STATE COURT.

Del Monte Dunes raises another fundamental issue, which may prove to be the "sleeper" as lower courts begin to parse Del Monte Dunes.

When landowners file takings claims in state courts, in addition to asserting claims under the state Constitution and other provisions of state law, they often include a claim alleging a violation of the federal Takings Clause, including federal takings claims filed under § 1983. A § 1983 claim often offers significant advantages, not the least of which is the availability of attorneys fees under § 1988 for prevailing claimants. State courts sometimes allow both the state-law and federal takings claims to proceed simultaneously, and if they find a taking, they award attorneys fees under federal law.

Del Monte Dunes makes clear, however, that a claim for a regulatory taking under the federal Constitution does not even accrue unless and until a state court denies the landowner compensation under state law. E.g., 119 S. Ct. at 1639 ("statutory action [under § 1983] did not accrue until it was denied just compensation"). The four dissenters agree. Id. at 1655-56 ("Whereas in eminent domain proceedings the government admits its liability for the value of the taking, in the inverse condemnation cases litigated under § 1983, it refuses to do so inasmuch as it denies the landowner any state process (or effective process) for litigating his claim.").

Williamson County likewise makes clear "that a property owner has not suffered a violation of the Just Compensation Clause until the owner has unsuccessfully attempted to o btain just compensation through the procedures provided by the State for obtaining such compensation * * *." 473 U.S. at 195.

Municipalities should use Del Monte Dunes and Williamson County to argue that takings claimants in state court may not assert a takings claim under the federal Takings Clause directly, including § 1983 claims, in state court in the first instance. Until the claimant exhausts available state-law judicial remedies for a taking, there is no violation of the federal Takings Clause. If a takings complaint filed in state court lands on your desk, and if it includes a claim for a violation of the federal Takings Clause, move to dismiss the federal claim. No violation of the federal Takings Clause occurs until the state court rules on the request for compensation under state law.

 

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