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Monday, September 17, 2018

A New Take on Takings?




Rose Mary Knick was not happy with her local township. The township passed an ordinance requiring the owners of private cemeteries to open them to the public. A township official inspected Knick’s property, determined that certain stones were grave markers, and issued a violation for failing to hold open the cemetery to the public. Knick disputed that a cemetery existed on her property, and filed suit alleging that the ordinance was an unconstitutional taking of private property. However, Knick’s federal lawsuit was dismissed on longstanding Supreme Court precedent, as she had not yet sought “just compensation” under state law.

Under the Fifth Amendment, governments are prohibited from taking private property for public uses “without just compensation.” Takings under the Fifth Amendment are a concern whenever local governments physically occupy private property or enact laws that restrict how private property can be used.  

The Supreme Court case of Williamson County v. Regional Planning Commission v. Hamilton Bank of Johnson City (1985) has long governed Fifth Amendment takings claims. In Williamson County, The Supreme Court held that a property owner has not been denied “just compensation” for its property unless they have exhausted their state law remedies to obtain compensation. Now, Knick’s case may upend over 30 years of Supreme Court precedent.

On appeal to the Third Circuit, Knick argued that her facial takings claim was exempt from the exhaustion requirement, and, even if it wasn’t, the court should overlook Williamson County.  The Third Circuit disagreed, finding that her takings claim was not an underlying challenge to the validity of the township’s ordinance, but only a claim for just compensation.  Knick did not allege that that the taking by the township was invalid (i.e, for lack of a public purpose). If she had, her takings claim would be exempt from the state law exhaustion requirement and she could file directly in federal court. The Court held that state law inverse-condemnation mechanisms are better equipped to value what compensation Knick was owed, and that she needed to exhaust those remedies first.

Knick has now brought her dispute with her township to the highest court in the land, and oral arguments are set for October. While Knick’s case turns on seemingly mundane procedural issues, the outcome could have a significant impact on local governments. If the Supreme Court sides with Knick, it will become much easier for property owners to challenge land use regulations as takings. A property owner could file suit directly in federal court, even when the government has not yet refused to pay just compensation. State law remedies (eminent domain/inverse-condemnation proceedings), already exist to ensure just compensation is paid. Allowing these claims to proceed in a second forum may result in a proliferation of takings lawsuits.  It will all turn on Knick and her supposed cemetery.

Post Authored by Kurt Asprooth, Ancel Glink

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