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Justices Back Regulators In Property Rights Case
Washington Post, April 24, 2002
Charles Lane


The Supreme Court ruled yesterday that the Constitution does not require governments to pay compensation to landowners when agencies temporarily prohibit them from building on their land, a decision that strengthens the hand of environmental regulators against the conservative-led "property rights" movement.

By a vote of 6 to 3, the court rejected the argument of a group of California property owners that government freezes on development are tantamount to official seizures -- known in legal parlance as "takings" -- of private property and require compensation. Rather, the court held that such claims must be considered case by case, balanced against other factors such as the duration of a development moratorium and the government's reasons for it.

"Land-use regulations are ubiquitous and most of them impact property values in some tangential way -- often in completely unanticipated ways," Justice John Paul Stevens wrote in the opinion for the court. "Treating them all as . . . takings would transform government regulation into a luxury few governments could afford."

In previous cases, the Supreme Court had been receptive to property owners' claims of "regulatory takings." But yesterday's ruling signaled that the court's past support was not unqualified, and that a majority of the justices may not share the property-rights movement's most ambitious goals.

As a result, a legal cloud has been lifted from over what a friend-of-the-court brief from 22 state governments called "a vital planning tool" for dealing with environmental concerns, traffic and demands for services. The Bush administration also supported the regulators.

The court's opinion included examples of recent building moratoriums in jurisdictions ranging from Fort Lauderdale, Fla., where officials were setting new standards for beachfront construction, to Aboite Township, Ind., which wanted to allow time for water and sewage improvements.

"We have not had the Supreme Court in any recent takings case talking about the necessity for government regulation of land use for preserving the environment, and Justice Stevens laid out the rationale," said Richard Lazarus, a professor of environmental law at Georgetown University who represented regulators in this case. "That is going to be important both to planners and the lower courts."

The case emerged out of a decades-long legal battle between several hundred families that bought property during the 1970s around Lake Tahoe, which straddles the California-Nevada border, and the Tahoe Regional Planning Agency (TRPA), a bi-state body responsible for protecting the lake's environment.

In 1981, the TRPA ordered the first of two moratoriums on development, eventually totaling 32 months. The agency said it needed time to draw up a long-term policy for managing building-related runoff that threatened to cloud the lake's transparent water.

Because of ensuing litigation, however, the temporary moratorium turned into a de facto ban on development that has left the families still without the lakeside homes they dreamed of years ago when they sank large sums of money into their Tahoe property.

The Supreme Court has recently ruled in favor of some claims that the denial of land use through regulation should trigger the same Fifth Amendment guarantee of "just compensation" as do outright seizures of property by government.

Last year, the court held that a Rhode Island property owner could press such a claim even though he had bought his property after a regulation limiting its use was enacted.

Because of that history, coupled with the fact that in this case such an evident loss had been suffered by a sympathetic group of middle-class people, some in the property-rights movement viewed the case as a vehicle for persuading the court to expand its takings doctrine even further.

It is unfair, property-rights supporters argued, for government to impose all the costs of saving a public resource on one group of citizens.

"No one in this case doubted the environmental purpose of preserving Lake Tahoe from soil runoff triggered by construction," said Douglas W. Kmiec, dean of Catholic University Law School. "The question, however, was whether all of us who enjoy that beauty should pay to maintain it or only those unlucky few who . . . used their family savings to buy developable lots, but only after the first generation of housing had already caused some environmental harm."

But there were indications yesterday that the property owners, in seeking a ruling that every freeze on development, regardless of duration, constitutes a taking requiring compensation, had asked the court for too much, prompting it to issue an opinion that may have defined new limits on its past support for property rights.

The court's two swing-vote justices, moderate conservatives Sandra Day O'Connor and Anthony M. Kennedy, joined with Stevens and liberals David H. Souter, Ruth Bader Ginsburg and Stephen G. Breyer in the six-member majority.

Stevens's opinion quoted frequently from O'Connor's past writings to support his view that "the extreme categorical rule that any deprivation of all economic use, no matter how brief, constitutes a compensable taking surely cannot be sustained."

Chief Justice William H. Rehnquist dissented in the case, joined by Justices Antonin Scalia and Clarence Thomas.

Rehnquist argued that the TRPA was responsible for six years of the time in which the property owners were not allowed to build, and noted that they were entitled to compensation for a taking because "a ban on all development lasting almost six years does not resemble any traditional land-use planning device."

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