Lucas v. South Carolina Coastal Council

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Lucas v. South Carolina Coastal Council
Seal of the United States Supreme Court.svg
Argued March 2, 1992
Decided June 29, 1992
Full case nameDavid H. Lucas, v. South Carolina Coastal Council
Citations505 U.S. 1003 ( more )
12 S. Ct. 2886; 120 L. Ed. 2d 798; 1992 U.S. LEXIS 4537; 60 U.S.L.W. 4842; 34 ERC (BNA) 1897; 92 Daily Journal DAR 9030; 22 ELR 21104; 6 Fla. L. Weekly Fed. S 715
Case history
Prior304 S.C. 376, 404 S.E.2d 895 (1991); cert. granted, 502 U.S. 966(1991).
SubsequentOn remand at the South Carolina Supreme Court, 309 S.C. 424, 424 S.E.2d 484 (1992).
Holding
A regulation that deprives an owner of all economically beneficial uses of land constitutes a taking unless the proscribed use interests were not part of the title to begin with. In other words, a law or decree with the effect of depriving all economically beneficial use must do no more than duplicate the result that could have been achieved in the courts under the law of nuisance.
Court membership
Chief Justice
William Rehnquist
Associate Justices
Byron White  · Harry Blackmun
John P. Stevens  · Sandra Day O'Connor
Antonin Scalia  · Anthony Kennedy
David Souter  · Clarence Thomas
Case opinions
MajorityScalia, joined by Rehnquist, White, O'Connor, Thomas
ConcurrenceKennedy (in judgment)
DissentBlackmun
DissentStevens
StatementSouter
Laws applied
U.S. Const. amends. V, XIV

Lucas v. South Carolina Coastal Council, 505 U.S. 1003 (1992), was a case in which the Supreme Court of the United States established the "total takings" test for evaluating whether a particular regulatory action constitutes a regulatory taking that requires compensation. [1]

Contents

Background

Plaintiff/Petitioner
David H. Lucas, owner of two beachfront properties in Isle of Palms, South Carolina.
Defendant/Respondent
South Carolina Coastal Council, a body that grants permits for the use of beachfront land.

State of law

South Carolina's Coastal Zone Management Act (1977) required owners of coast land in "critical areas" near beaches to obtain permits from Respondent South Carolina Coastal Council before committing the land to new uses. The state's Beachfront Management Act (1988), S.C. Code Ann. § 48-39-10 et seq. (1989 Cum. Supp.), increased the regulations on the use of coastal land.

Facts of case

Petitioner David H. Lucas owned two vacant oceanfront lots in the Beachwood East Subdivision of the Wild Dunes development on the Isle of Palms in Charleston County, South Carolina. The Beachfront Management Act, passed two years after his purchase of the lots, effectively prevented Petitioner Lucas from erecting homes on properties due to the effects it would have on the public beach.

Prior history

Lucas filed suit asserting that the restrictions on the use of his lots was a taking of his property without just compensation. The lower court agreed and awarded Lucas $1,232,387.50 as just compensation for the regulatory taking. The government of South Carolina appealed, and the Supreme Court of South Carolina reversed. [2]

Procedural posture

Petitioner Lucas seeks reversal of the South Carolina Supreme Court judgment, reinstatement of the trial court judgment, and declaration that the Beachfront Management Act constituted a taking.

Supreme Court Review

Issue

Whether the South Carolina Supreme Court erred in holding that the Beachfront Management Act was a valid exercise of the police power and did not constitute a taking.

Arguments/theories

Petitioner
Not stated, presumed reflected in holding and reasoning.
Respondent
(1) The Beachfront Management Act is a valid exercise of the police power, as the beach/dune area of the shores is a valuable public resource, and the erection of structures on that land contributes to erosion and destruction of that resource. (2) All property is held subject to the limitation that the state may regulate the property in such a way as to remove all value.

Rule of law

A regulation that deprives an owner of all economically beneficial uses of land constitutes a taking unless the proscribed use interests were not part of the title to begin with. In other words, a law or decree with the effect of depriving all economically beneficial use must do no more than duplicate the result that could have been achieved in the courts under the law of nuisance. As a result, "total takings" analysis requires a consideration of (1) the degree of harm to public lands or adjacent property posed by the regulated activities, (2) the social value of such activities, and (3) the relative ease with which the alleged harms can be avoided through measures taken by either the claimant or the government.

Opinion of the Court

In a majority opinion by Justice Antonin Scalia, the Court found that the South Carolina Supreme Court erred in holding that the Beachfront Management Act was a valid exercise of the police power and did not constitute a taking.

Reasoning

The majority argued as follows: (1) Deprivation of all economically beneficial use is, from the perspective of a property owner, deprivation of the property itself. (2) When all economically beneficial use is restricted, it is difficult to assume that the legislature is simply "adjusting" economical benefits and burdens. (3) Regulations that restrict all economically beneficial use may often be a guise of pressing that land into public service. (4) Lucas's lands have been deprived of all economically beneficial use. (5) There is no way to distinguish regulation that "prevents a harmful use" and confers benefits on nearby property. (6) Contrary to Respondent South Carolina's assertion, title is not held subject to the limitation that the state may regulate away all the property's economically beneficial use.

Kennedy's Concurrence

Kennedy, J., concurring.
The determination of no value must be considered with reference to the owner's reasonable, investment-backed expectations. Justice Kennedy also expressed concern with the idea that state regulation could go no further than duplicating the common law of nuisance without exposing itself to the challenge of categorical taking, as some fragile lands might prevent such public concern that the state can go further in regulating development than the common law of nuisance might otherwise permit. [3]

Dissents

Blackmun, J., dissenting.
The court should not have granted certiorari to hear this case and it ignores its jurisdictional limits, remakes its traditional rules of review and created simultaneously a new categorical rule and an exception. There could never be a total loss because the owner can still enjoy other attributes of ownership such as right to exclude others, picnic, swim, camp in a tent or live on the property in a movable trailer.
Additionally, state courts historically have been less likely to find that government action constituted a taking when the affected land is undeveloped. Neither is there a Common Law limit on the state's power to regulate harmful uses even to the point of destroying all economic value.
Stevens, J., dissenting.
The categorical rule created by the court is unsound and an unwise addition to the law of takings. In the past the court had worked at rejecting an absolute formula for determining a taking and have frequently in the past held a law that renders property valueless may not constitute a taking. The new rule created by the court is arbitrary because a landowner whose property is diminished in value 95% recovers nothing while an owner whose property is diminished 100% recovers the land's full value.

Souter's statement

In an unusual filing, Justice Souter, a former state supreme court justice (in New Hampshire), wrote a statement in which he neither joined the majority or dissented and said the case should be dismissed on procedural grounds. He wrote, "The case should have been dismissed as improperly granted, as the decision of the trial court that a total taking had occurred is highly questionable on the basis of the facts presented" because "The petition for review was granted on the assumption that the state [of South Carolina], by regulation, had deprived the owner of his entire economic interest in the subject property. Such was the state trial court's conclusion, which the state supreme court did not review."

Result

Judgment/disposition

Judgment reversed and cause remanded for determination of whether regulation could be enacted under state nuisance law.

Subsequent history

On remand at the South Carolina Supreme Court, the court granted the parties leave to amend their pleadings to determine what the actual damages were. [4]

Legacy and other notes

Established the modern "total takings" test.

After paying Lucas $850,000 in compensation for the two lots, South Carolina proceeded to sell the lots to private parties for development. A 5,000-square-foot private home now sits on one lot, while the other remains undeveloped. [5]

See also

Related Research Articles

In United States constitutional law, a regulatory taking occurs when governmental regulations limit the use of private property to such a degree that the landowner is effectively deprived of all economically reasonable use or value of their property. Under the Fifth Amendment to the United States Constitution governments are required to pay just compensation for such takings. The amendment is incorporated to the states via the Due Process Clause of the Fourteenth Amendment.

Kelo v. City of New London, 545 U.S. 469 (2005), was a landmark decision by the Supreme Court of the United States in which the Court held, 5–4, that the use of eminent domain to transfer land from one private owner to another private owner to further economic development does not violate the Takings Clause of the Fifth Amendment. In the case, plaintiff Susette Kelo sued the city of New London, Connecticut, for violating her civil rights after the city tried to acquire her house's property through eminent domain so that the land could be used as part of a "comprehensive redevelopment plan". Justice John Paul Stevens wrote for the five-justice majority that the city's use of eminent domain was permissible under the Takings Clause, because the general benefits the community would enjoy from economic growth qualified as "public use".

Inverse condemnation is a term used in the law to describe a situation in which the government takes private property but fails to pay the compensation required by the 5th Amendment of the Constitution, so the property's owner has to sue to obtain the required just compensation. In some states the term also includes damaging of property as well as its taking. In inverse condemnation cases the owner is the plaintiff and that is why the action is called inverse – the order of parties is reversed, as compared to the usual procedure in direct condemnation where the government is the plaintiff who sues a defendant-owner to take his or her property.

Tahoe-Sierra Preservation Council, Inc. v. Tahoe Regional Planning Agency, 535 U.S. 302 (2002), is one of the United States Supreme Court's more recent interpretations of the Takings Clause of the Fifth and Fourteenth Amendments. The case dealt with the question of whether a moratorium on construction of individual homes imposed by the Tahoe Regional Planning Agency fell under the Takings Clause of the United States Constitution and whether the landowners therefore should receive just compensation as required by that clause. The Tahoe Regional Planning Agency was represented by future Chief Justice John Roberts. Justice John Paul Stevens wrote the opinion of the Court, finding that the moratorium did not constitute a taking. It reasoned that there was an inherent difference between the acquisition of property for public use and the regulation of property from private use. The majority concluded that the moratorium at issue in this case should be classified as a regulation of property from private use and therefore no compensation was required.

Pennsylvania Coal Co. v. Mahon, 260 U.S. 393 (1922), was a case in which the Supreme Court of the United States held that whether a regulatory act constitutes a taking requiring compensation depends on the extent of diminution in the value of the property.

Dolan v. City of Tigard, 512 U.S. 374 (1994), more commonly Dolan v. Tigard, is a United States Supreme Court case. It is a landmark case regarding the practice of zoning and property rights, and has served to establish limits on the ability of cities and other government agencies to use zoning and land-use regulations to compel property owners to make unrelated public improvements as a condition to getting zoning approval, citing the violation of the Fifth Amendment’s Takings Clause.

Keystone Bituminous Coal Ass'n v. DeBenedictis, 480 U.S. 470 (1987), is a United States Supreme Court case interpreting the Fifth Amendment's Takings Clause. In this case, the court upheld a Pennsylvania statute which limited coal mining causing damage to buildings, dwellings, and cemeteries through subsidence.

Palazzolo v. Rhode Island, 533 U.S. 606 (2001), is a United States Supreme Court case in which the Court held that a claimant does not waive his right to challenge a regulation as an uncompensated regulatory taking by purchasing property after the enactment of the regulation challenged.

Williamson County Regional Planning Commission v. Hamilton Bank of Johnson City, 473 U.S. 172 (1985), is a U.S. Supreme Court case that limited access to federal court for plaintiffs alleging uncompensated takings of private property under the Fifth Amendment. In June 2019, this case was overruled in part by the Court's decision in Knick v. Township of Scott, Pennsylvania.

United States v. Causby, 328 U.S. 256 (1946), was a landmark United States Supreme Court decision related to ownership of airspace above private property. The United States government claimed a public right to fly over Thomas Lee Causby's farm located near an airport in Greensboro, North Carolina. Causby argued that the government's low-altitude flights entitled him to just compensation under the Takings Clause of the Fifth Amendment.

In Nollan v. California Coastal Commission, 483 U.S. 825 (1987), the United States Supreme Court reviewed a regulation under which the California Coastal Commission required that an offer to dedicate a lateral public easement along the Nollans' beachfront lot be recorded on the chain of title to the property as a condition of approval of a permit to demolish an existing bungalow and replace it with a three-bedroom house. The Coastal Commission had asserted that the public-easement condition was imposed to promote the legitimate state interest of diminishing the "blockage of the view of the ocean" caused by construction of the larger house. The Court held that in evaluating such claims, it must be determined whether an "essential nexus" exists between a legitimate state interest and the permit condition.

Mugler v. Kansas, 123 U.S. 623 (1887), was an important United States Supreme Court case in which the 7–1 opinion of Associate Justice John Marshall Harlan and the lone partial dissent by Associate Justice Stephen Johnson Field laid the foundation for the Supreme Court's later acceptance and defense during the Lochner era of Justice Field's theory of economic substantive due process under the Due Process Clause of the Fourteenth Amendment.

Eastern Enterprises v. Apfel, 524 U.S. 498 (1998), is a United States Supreme Court case in which the Court held that the Coal Industry Retiree Health Benefit Act constituted an unconstitutional regulatory taking of property which required the Act to be invalidated. The import of this decision is that it was made in the context of a purely economic regulation. The plurality examines the statute and its resultant harm as an ad hoc factual inquiry based on factors delineated in Penn Central Transportation Co. v. New York City, such as the economic impact of the regulation, its interference with reasonable investment backed expectations, and the character of the governmental action. The decision thereby moved beyond the traditional notions of equal protection which had been applied to economic regulation since the time of Lochner v. New York, requiring extreme deference to Congress, and applied a regulatory takings analysis to the problem resulting in a much less deferential result. While the plurality recognizes that this is not a traditional takings case where the government appropriates private property for public use, they also state this is the type of case where the "Armstrong Principle" of preventing the government from forcing some people alone to bear public burdens which, in all fairness and justice, should be borne by the public as a whole. However, while the plurality seems to invalidate this particular law on takings grounds, the concurrences and the dissents warn of such an analysis as this should actually be examined under substantive due process or ex post facto theories.

Agins v. City of Tiburon, 447 U.S. 255 (1980), was a United States Supreme Court case in which the Court held that the test for determining whether a zoning ordinance or governmental regulation will be considered a taking is whether such action “substantially advances” a legitimate state interest.

Lingle v. Chevron U.S.A. Inc., 544 U.S. 528 (2005), was a landmark case in United States regulatory takings law whereby the Court expressly overruled precedent created in Agins v. City of Tiburon. Agins held that a government regulation of private property effects a taking if such regulation does not substantially advance legitimate state interests. Writing for the Court, Justice O’Connor found the test untenable for a number of reasons, but declined to grant Chevron relief because Chevron’s motion before the court was limited to a discussion of the “substantially advances” theory which had just been struck down. The Court remanded to the Ninth Circuit for a determination of whether the statute exacted a taking according to the formula of Penn Central.

Stop the Beach Renourishment v. Florida Department of Environmental Protection, 560 U.S. 702 (2010), was a United States Supreme Court case in which the Court held that the Florida Supreme Court did not effect an unconstitutional taking of littoral property owners' rights to future accretions and to contact the water by upholding Florida's beach renourishment program.

Goldblatt v. Hempstead, 369 U.S. 590 (1962), was a United States Supreme Court case concerning whether a town ordinance regulating a use of a property was unconstitutional under the Fourteenth Amendment, finding the law in question was constitutional as an exercise of the town's police powers.

Koontz v. St. Johns River Water Management District, 570 U.S. 595 (2013), is a United States Supreme Court case in which the Court held that land-use agencies imposing conditions on the issuance of development permits must comply with the "nexus" and "rough proportionality" standards of Nollan v. California Coastal Commission and Dolan v. City of Tigard, even if the condition consists of a requirement to pay money, and even if the permit is denied for failure to agree to the condition. It was the first case in which monetary exactions were found to be unconstitutional conditions.

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Richards v. Washington Terminal Company, 233 U.S. 546 (1914), was a case decided by the Supreme Court of the United States resolving the question when a government-created nuisance amounted to a taking of property under the Fifth Amendment's Takings Clause of the United States Constitution.

References

  1. Lucas v. South Carolina Coastal Council, 505 U.S. 1003 (1992).
  2. Lucas v. South Carolina Coastal Council, 304 S.C. 376, 404 S.E.2d 895 (1991).
  3. Ruhl J B et al (2007) Law and Policy of Ecosystem Services. Island Press, Washington DC
  4. Lucas v. South Carolina Coastal Council, 309 S.C. 424, 424 S.E.2d 484 (1992)
  5. Fischel, William (March 30, 2000). "A Photographic Update on Lucas v South Carolina Coastal Council: A Photographic Essay". Dartmouth College. Retrieved December 13, 2016.