For those of you who don’t work in the area of regulatory takings, it may surprise you that it is extremely difficult to get a trial of federal takings claims in federal courts. With the antagonism of many state courts to takings claims–California is one of the worst–the ability to litigate takings claims in federal court is crucial. That is why October 7, 2009 Ninth Circuit decision in Los Altos El Granada Investors v. City of Capitola is so important. This is another case I worked on with Rob Coldren and Bill Dahlin of HKC.
I will spare you the procedural history of the case spanning 9 years. The decision summarizes that procedural history, noting the “sisyphean task” facing property owners seeking to adjudicate federal takings claims in federal courts.
The substance of the Appellate Court’s holding was that a proper “reservation” of the right to have a federal court determine federal claims remained viable. The Appellate Court reversed a District Court’s dismissal of the property owner’s claim and remanded the matter for a determination as to which claims should proceed to trial. The decision, while technically dealing only with procedural matters, provides much needed guidance for lawyers (and their clients) seeking to litigate Fifth Amendment claims in Federal Court. It is a welcome relief. Combined with the Guggenheim decision, local governments have a lot more to worry about when they adopt confiscatory regulations. It is long overdue.
Filed under: Current Decisions, Rent Control
