March 2011

Sometimes, you have to wonder. In an otherwise well-written opinion, in Johnson v. Manitowoc County, No. 10-2409 (Mar. 19, 2011), the U.S. Court of Appeals for the Seventh Circuit concluded that a Wisconsin property owner who suffered damage to his rental property when the authorities executed a search warrant against his tenant did not have a Fourth Amendment or takings claim.

Mr. Johnson had the bad fortune to rent his property to a guy who was accused and eventually convicted of murder, and in the course of their investigation, the police seized several of Mr. Johnson’s items, and damaged his property by “removing carpet sections and wall paneling, cutting up a couch in the trailer, and jackhammering the concrete floor of the garage.” Slip op. at 3. Mr. Johnson had yet to pursue Wisconsin procedures to get his property back and to address the damage to his property, but he filed a complaint in federal court, seeking damages under civil rights law for violation of his constitutional rights. The district court granted the County’s motion for summary judgment, and the Seventh Circuit affirmed. The search and seizure was not “unreasonable” under the Fourth Amendment, and the owner has no takings claim under the Fifth Amendment.

There’s nothing obviously outlandish about the court’s takings conclusion — it’s a result that other circuits have reached in similar circumstances. See, e.g., Amerisource Corp. v. United States, 525 F.3d 1139 (Fed. Cir. 2008) (a drug company’s product that was seized but never used in a government investigation, and which was rendered worthless in the interim, did not have a Tucker Act claim for compensation). It might be an incident of ownership that all property is subject to reasonable searches in furtherance of the state’s need to enforce the criminal law. Or, under Williamson County, a federal court could validly ask what a federal takings claim was doing in federal court while there apparently remain avenues for obtaining compensation under state law. But that’s not how the court analyzed the case.

Instead, it addressed it this way:

The Takings Clause provides, “nor shall private property be taken for public use, without just compensation.” It is made applicable to the States by the Fourteenth Amendment. Kelo v. City of New London, Conn., 545 U.S. 469, 472 n.1 (2005). But the Takings Clause does not apply when property is retained or damaged as the result of the government’s exercise of its authority pursuant to some power other than the power of eminent domain. See AmeriSource Corp. v. United States, 525 F.3d 1149, 1154 (citing Bennis v. Michigan, 516 U.S. 442, 452 (1996)). Here, the actions were taken under the state’s police power. The Takings Clause claim is a non-starter.

Slip op. at 10.

The court’s conclusion that a takings claim is a “non-starter” because the government has not invoked its power of eminent domain is utter nonsense. Indeed, the doctrine of regulatory takings is premised on the idea that the government’s exercise of power other than the eminent domain power is a taking if it “goes too far.” See, e.g., Pennsylvania Coal Co. v. Mahon, 260 U.S. 393 (1922) (state’s exercise of its police power was a taking).

We actually like the way this opinion is written, in plain, easy-to-understand language. See, e.g., slip op. at 1 (“A landlord is lucky when he rents a dwelling he owns to a tenant who turns out to be pretty good. When he rents to a tenant who turns out to be fairly bad, he’s unlucky.”); slip op. at 8 (“Johnson argues that the officers’ use of the jackhammer violates the reasonableness standard of the Fourth Amendment. He contends that the officers should have used a diamond or carbide-bladed saw, which would have resulted in less damage to the garage floor. Perhaps Johnson is correct, but the use of the jackhammer looks to be reasonable under the circumstances.”). So it’s a shame that an opinion that is such a pleasure to read could get its reasoning so wrong on the takings claim.

It’s not like the regulatory takings doctrine is a recent concept, or a wholly undeveloped area of law, so we fail to see how the court’s analysis was so off the mark, especially since there were, as noted above, other ways of disposing of this case without perpetuating bad law.

Continue Reading Say What? 7th Circuit: “Takings Clause does not apply when property … is damaged as the result of the government’s exercise of its authority pursuant to some power other than the power of eminent domain.”

Today, I received notice of the public launch of a new Hawaii law blog, Hawaii Litigation Blog. It looks like they have been posting since September of last year, but just went public. The blog is produced by the litigation practice group at the law firm Alston Hunt Floyd & Ing, and its stated “mission is to update clients, colleagues and friends of our firm on legal news and significant cases, as well as to provide information and tips about litigating in Hawaii.”

So far, there are posts about Justice Alito’s recent visit, “Avoiding Litigation in Hawaii,” HAWSCT CJ Ronald Moon’s retirement, and “What Not to Wear – Hawaii Lawyers Edition.”

That last article is particularly intriguing, and points out the often entertaining questions that arise when Hawaii lawyers try and figure out what to wear when they are not appearing in court

Continue Reading New Hawaii Law Blog: AHFI’s Hawaii Litigation Blog

Last Friday, the property owners filed this cert petition, which asks the U.S. Supreme Court to review Guggenheim v. City of Goleta, No. 06-56306 (9th Cir., Dec. 22, 2010) (en banc). In that opinion, the Ninth Circuit held that Goleta’s mobile home rent control ordinance did not work a regulatory taking under Penn Central. The core of the majority opinion is based on the notion that the Guggenheims did not have “investment-backed expectations” because the regulations were in place when they purchased their property.

We covered the en banc oral arguments here, and our resource page on the case is here

The petition presents a single question:

In Palazzolo v. Rhode Island, 533 U.S. 606 (2001), this Court rejected the proposition that “postenactment purchasers cannot challenge a regulation under the Takings Clause.” Id. at 626. In this case, a divided en banc panel of the Ninth Circuit distinguished Palazzolo on the basis that the plaintiff there had acquired the property by operation of law (instead of purchasing it) and held that the fact that petitioners had purchased the property subject to the challenged regulation was “fatal to [petitioners’] claim.”

Is the purchaser of property subject to a regulatory restriction foreclosed from challenging the restriction as a violation of the Takings Clause?

More to come.

Cert Petition, Guggenheim v. City of Goleta, 10-1125
Continue Reading Cert Petition In Guggenheim: Can A Post-Regulation Purchaser Bring A Takings Claim?

We admit that our reaction to the latest volley in the redevelopment fight in California, the State Controller’s report with “Analysis of Administrative, Financial, and Reporting Practices” of 18 selected redevelopment agencies (available here and below), has been much like that of Captain Renault when he discovered there was gambling at Rick’s.

In his press release announcing the report, the Controller notes:

  • There is “no reliable means to measure the impact of redevelopment activity on job growth because [redevelopment agencies] either do not track them or their methodologies lack uniformity and are often arbitrary.”
  • The report “exposes the difficulty of holding [redevelopment agencies] accountable for their funding decisions when existing legal standards are so loose that any area can be deemed ‘blighted.'”
  • “The report also identified several missed payments to school districts and widespread accounting and reporting deficiencies, questionable payroll practices, substandard audits, faulty loans, and inappropriate use of affordable


Continue Reading California Redevelopment Agencies Have No Standards? I’m Shocked, I Tell You, Shocked!

On a day that our attention is elsewhere, comes this important notice: the Texas Supreme Court has granted the State’s motion for rehearing in Severance v. Patterson, No. 09-0378 (Nov. 5, 2010), the case in which the court held 6-2 that Texas does not recognize a “rolling” public beachfront access easement, without proof of prescription.Thus, the public does not gain an easement over private property upon sudden changes in the shoreline.

The case is once again set for oral argument, on April 19, 2011 at 9:00 a.m.

Thanks to our colleagues at the ABA State & Local Government Law Section for the heads-up, and to How Appealing for the links to the order.

More about the case here (the Texas Supreme Court’s decision on certified questions from the Fifth Circuit), and here (the Fifth Circuit’s earlier opinion holding that the owner’s claim for an illegal Fourth Amendment seizure

Continue Reading Private Beaches, “Rolling” Easements – Texas Supreme Court To Rehear Severance

The District of Columbia Court of Appeals has issued yet another opinion about the redevelopment taking of Skyland Shopping Center.

DeSilva v. District of Columbia, No. 10-CV-1069 (Feb. 24, 2011) is not a compelling opinion, nor even a very interesting read; but it is worth a few minutes of your time since it is the tail end of a long-running tale, and what seems to be the end game in a situation that has resulted in at least five other opinions:  Rumber v. District of Columbia, 487 F.3d 941 (D.C. Cir. 2007); Franco v. National Capital Revitalization Comm’n, 930 A.2d 160 (D.C. 2007); Franco v. District of Columbia, 3 A.3d 300 (D.C. 2010); and Rumber v. District of Columbia, No. 09-7035 (D.C. Cir. Feb. 26, 2010) (per curiam); and Oh v. National Capital Revitalization Corp., 7 A.3d 997 (D.C. 2010).Continue Reading DC Ct App: Final Chapter In The Skyland Condemnations?

mallThousands of years from now, when future archaeologists and historians are reconstructing our civilization from the ruins, it is easy to imagine how they might misinterpret the function of shopping malls. Rather than climate-controlled centralized temples of consumerism, or teen hangouts with abundant parking, the historical record might suggest that malls were august civic centers — fora for political debates complete with speaker’s corners, which even included centralized feeding areas to insure the debaters’ sustenance.

And if they are reading the California Reports, they might be right.

Revisiting the issue of speech at shopping malls, the California Court of Appeal (2d District) held in Best Friends Animal Society v. Macerich Westside Pavilion Property LLC, No. B221067 (Mar. 2, 2011) that a shopping center’s rules giving preferential treatment to labor speech violate the California Constitution’s free speech clause. The shopping mall’s rules could not favor speech about labor issues

Continue Reading Cal Ct App: Shopping Center Cannot Allow Labor Protests, But Restrict Other Protests

Honolulu attorney Jay Fidell (who also produces Think Tech Hawaii) writes a regular column in the Honolulu Star-Advertiser. This week, he focuses on land use in “Labyrinthine land-use law suffocating isle economy,” where he writes:

Everyone knows our state, like others, is in a fiscal and economic crisis. We need to revitalize our sagging economy, and fast. The governor has made this an absolute priority, and he’s right — we all have to work together to improve the economy, and that frankly includes all three branches of government.

The elephant in the room is land use, which was clear at a recent Hawaii land-use law seminar. Developers have to run a backbreaking gantlet before they can build anything. Environmental laws are increasingly used to stop projects, even if the real motivation isn’t environmental but just NIMBY (“not in my backyard”). The result: Projects have become prohibitively

Continue Reading Fidell: “Labyrinthine land-use laws suffocating isle economy”

At yesterday’s debate (video archived here) sponsored by Honolulu Civil Beat, “Knowing the Past, Shaping the Future” about the problems that have arisen in Hawaii in the time since the publication of the book The Price of Paradise 20 years ago, U. Hawaii lawprof David Callies revealed a stunning statistic. He noted that the Hawaii Supreme Court “has managed to find in favor of Sierra Club, Friends of the Earth, Earthjustice … 90% of the time, 70% of those decisions overturning the [Hawaii] Intermediate Court of Appeals.”

Whoa.

Callies began by questioning the conclusion reached by most of the book’s essayists that Hawaii is not regulated enough — and that even more government is called for:

I don’t think that’s the problem, folks. The notion that the problems that have arisen over the past 35 or 40 years — or the last 20 years since The Price

Continue Reading What Advantage Do Environmental Plaintiffs Have In The Hawaii Supreme Court? According To UH Lawprof, A 90% Win Rate