In Bair v. United States, No. 2007-5049 (Feb. 5, 2008), the US Court of Appeals for the Federal Circuit held that a federal statute that effectively wiped out liens possessed by beet growers was not a taking. The court held that the liens — which all parties admitted were recognized by state law — were always subject to the federal statute, thus were not a compensable property interest that could have been taken. Yes, the value of the liens were wiped out by the federal statute, but the liens were never viable to begin with.
The Federal Circuit held that the federal statute was a “background principle” of law under Lucas to which the state-recognized liens were always subject, much like the federal “navigational servitude,” the background principle that private ownership of navigable waters is impossible:
The central dispute in this case is whether appellants possessed a compensable property
Continue Reading Federal Circuit: No Taking Due to “Federal Beet Lien Servitude”
