2011

Update: here‘s the Respondent’s Brief, filed yesterday (courtesy of Election Law Blog – the author is one of the counsel for Mr. Carrigan)

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In Comm’n on Ethics of the State of Nevada v. Carrigan, No. 10-568 (cert. granted Jan 7, 2011), the U.S. Supreme Court is considering whether a state statute which requires elected officials to recuse themselves from considering matters on which they appear to have conflicts of interest impermissibly infringes upon a city councilman’s First Amendment rights.

In that case, the Nevada Supreme Court invalidated a Nevada law which required a Sparks, Nevada city councilmember to recuse himself from considering an application to develop a hotel/casino because the developer’s “consultant” was a “longtime professional and personal friend” of the councilmember, and had been his campaign manager. We’ve been following the case closely, since the Court’s decision could have a broad impact on the land

Continue Reading Latest Briefs In SCOTUS Ethics Case: Do Elected Officials With Conflicts Of Interest Have A Right To Vote Anyway?

This just in: in Trinity Park, L.P. v. City of Sunnyvale, No. H035573 (Mar. 24, 2011), the California Court of Appeal (6th District) held that the City’s approval of the property owner’s residential development, conditioned upon the developer reserving 12 1/2% of the units for sale at below the market rate, was not a “development fee, dedication, reservation or ‘other exaction’ within the meaning of [Cal.Gov’t Code §] 66020 where, as here, the affordable housing requirement was clearly not intended to ‘defra[y] all or a portion of the cost of public facilities related to the development project.'” Slip op. at 2.

The narrow issue in the case was the statute of limitations (statute of repose, if you want to be more technical). California law requires challenges to conditions on development permits to be made within 90 days, while challenges to development fees, dedications, reservations and “other exactions”

Continue Reading Cal Ct App: When Is An Affordable Housing Exaction Not Exactly An “Exaction?”

Vermont lawprof John D. Echeverria has posted Public Takings of Private Contracts on SSRN. From the abstract:

This article, part of a larger project analyzing how far public and private contracting arrangements can go in constraining democratic decision-making, examines whether the United States should be liable under the Takings Clause of the Fifth Amendment when its actions have the effect of destroying or impairing private contract rights. In the Omnia Commercial case, decided 90 years ago, the Supreme Court ruled that private contract interests represent “property” within the meaning of the Takings Clause, and that the issue of whether such property has been “taken” should be resolved by assessing whether the government has “appropriated” the contract interest (resulting in a taking), or merely “frustrated” it (not resulting in a taking). While Omnia Commercial reflects a sound intuition that private contract interests deserve special treatment under the Takings Clause, the appropriation

Continue Reading Echeverria On “Public Takings of Private Contracts”

In Alto Eldorado Partnership v. County of Santa Fe, No. 09-2214 (Mar. 16, 2011), the U.S. Court of Appeals for the Tenth Circuit held that a regulatory takings challenge to an affordable housing exaction was not ripe under the second prong of the   Williamson County test.The “final decision” prong was not at issue in this case, where the plaintiffs challenged the County’s up-to-30% affordable housing exaction on subdivisions, where the subdivision is for resale.  Continue Reading 10th Circuit: Affordable Housing Exaction Claim Not Ripe Under Williamson County

Louise Ing’s post on the unique unwritten rules of men’s haberdashery in Hawaii’s courtrooms and law offices (What Not to Wear – Hawaii Lawyers Edition) on her firm’s new blog Hawaii Litigation Blog, got us thinking. She wrote:

The sartorial customs of the Hawai`i legal profession are a frequent “oh by the way” inquiry of out-of-state lawyers about to appear in a Hawai`i court, but it turns out that appropriate attire can vary even among islands and judges. The result: even Hawai`i lawyers visiting a neighbor island for a court or a court conference can unwittingly telegraph “I’m out of step” if they don’t pay attention to their environment.

This came into focus in humorous way at a 2010 conference attended by judges and lawyers. First, there was a Circuit Court judge from the island of Hawai`i who looked around the room and chuckled about Honolulu men’s

Continue Reading Our Bishop Street Fashion Guide

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